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Finotrade Review - is it scam or safe?

Finotrade Review - is finotrade.com scam or good forex broker?

RATING: 3 / 0 REVIEWS Finotrade
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Trading Accounts and Conditions

 

Account type Min. deposit in. trade size Max. Leverage Spreads*
Classic $1 000 0.1 1:1000 0.4 pips (+ commission?)

 

*The indicated spreads are those on demo accounts.

 

Finotrade is UK forex and CFD broker that provides its services on the ever popular MetaTrader 4 platform. Those who deposit more than $10 000 get some extra services as Gold, Platinum or VIP account holders - better spreads, SMS News & Signals, General Account Manager, etc.

 

In addition, MAM accounts are also available at Finotrade.

 

 

Finotrade Advanatges:

 

- FCA regulation

The main benefit of those who choose to trade with Finotrade is its solid regulation. The brokerage is owned by Finotec Trading UK Limited , a coompany licensed by UK’s Financial Conduct Authority (FCA) – one of the most reliable financial regulators worldwide.

 

 

>>More brokers regulated by the FCA <<

 

 

- Solid experience

A boutique forex brokerage serving hedge funds, investment managers, professional traders and retail brokers Finotrade is part of the Finotec Group and has been operating for more than 10 years now.

 

- MT4 supported

When it comes to software for forex trading, Finotrade offers one of the most highly praised platforms in the industry: MetaTrader 4 (MT4). The main selling points of this software are the amazing charting package, speed of execution and the programming environment. The latter allows users to trade with custom indicators and automated trading systems (a.k.a.Expert Advisors).

 

With Finotrade, the renown Metatrader 4 is available as a desktop download, and mobile apps.

 

Low spreads on demo accounts

While Finotrade does not disclose its spreads (and/or commission fees) publicly on this website, we found the spread on EUR/USD floating around 0.4 pips when we tested its MT4 in demo environment. Interestingly, the demo accounts do not have any commission fees, which makes the cost of trading with this broker seem attractively low. However, we doubt that the situation with live accounts is the same (more details in the Disadvantages section).

 

Click on the image to zoom in.

 

>>Compare the real-time spreads of top brokers<<

 

 

- High leverage levels

The maximum leverage levels offered by Finotrade are not announced on its website either, but when we registered for the demo account, the maximum ratios available were 1:1000. Just because such a high ratio is available, doesn’t mean you should always “gear up” to the maximum. You’d better be careful with margin trading and learn the basics of risk management before you start dealing. Oherwise, you might lose a lot more than you have initially deposited.

 

 

Finotrade disdvantages:

 

Unpolished presentation of trading conditions

As we mentioned above, important information on trading conditions is missing on Finotrade’s website. Spreads are not indicated anywhere, nor the commission fees potentially applicable. This does not leave a good impression, especially on the part of a FCA-regulated broker.

 

Commission fees possibly apply

Another thing that concerns us with regards to Finotrade is the fact that its spreads on commission-free demo accounts are unrealistically low, averaged 0.4 pips. We suppose that in live trading environment some commission fees apply, otherwise it would not be possible for the broker to be profitable.

 

Other two brands of Finotec Trading UK Limited - Sky Clearing and 121 Clearing also offer spread averaged 0.4 pips, but commission fees apply.

 

Actually, In the Terms of Business Finotec it is written that all clients have to pay certain charges, but the details are provided to them by their relationship managers.

 

 

$1000 required for account opening

The initial deposit required by Finotrade is definitely high when compared to those of other UK brokers. For example, leading global broker FxPro requires a mere $100 from its clients. Not to mention that some brokers, like IG, have not set any minimum deposit requirement, so you can start with just a couple of bucks.

 

 

Conclusion

 

Finotrade is a UK forex brokerage brand that offers access to the forex and CFD market through the popular MetaTrader 4 platform. The broker is a part of the Finotec Group and also operates TopWellCG, DragonGain (a brand of Finotec Trading UK Limited, which targets mainly Japanese investors), CSI-FX, Sky Clearing, Ballistic Markets, 121 Clearing, and Noa Prime. The main advantage of Finotrade over many of its competitors, is the fact that it holds a license from UK’s FCA.

 

On the other hand, the broker’s presentation of trading conditions is anything but comprehensive, and the spreads on demo accounts are unrealistically low.

 

FCA applies a number of requirements to licensed entities, which guarantees the security of their clients funds. First, client money must be held entirely separate from the company’s own money, ensuring that in the unlikely event of default, client funds will be returned to the clients rather than being treated as a recoverable asset by general creditors. Second, is a FCA-licensed brokerage, goes into liquidation and there is a shortfall, retail clients can get a compensation from the Financial Services Compensation Scheme (FSCS). The FSCS is UK’s compensation fund of last resort for customers of authorized financial services firms which can pay up to £50,000 in compensation per person.

 

To sum up the above review on Finotrade:

 

Pros Cons
Solid regulation (FCA) Unpolished presentation of trading conditions
More than 10 years of experience Commission fees possibly apply
MT4 available High initial deposit required
Competitive demo spreads  
High leverage levels offered  

 

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Traders` reviews for Finotrade

Spread

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Slippage

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Requotes

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Price feed

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Cons

 

 

Platform

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Deposit/Withdraw

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Cons

 

 

Customer service

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Summary

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