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LetsTrade Review - is it scam or safe?

LetsTrade Review - is letstrade.com scam or good forex broker?

RATING: 2.7 / 0 REVIEWS LetsTrade
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Trading Accounts and Conditions

 

Trading account  Minimum deposit Maximum leverage Average Spread (+ commission)
Standard  $500  1:400 (1:30 for EU clients) 1.2 pips + $6

 

LetsTrade is a forex and CFD brokerage that is a part of the JFD Group. It appears to offer a good variety of forex & CFDs on the MetaTrader4 platform, but no choice of different trading account types. The broker also claims to provide STP execution and Negative balance protection.

 

You can find further details on the offer and regulatory status of LetsTrade below:

 

 

LetsTrade Advantages

 

CySEC license, part of JFD Brokers group

LetsTrade is a part of the JFD Group, whose prominent member JFD Group Ltd. (operating JFD Brokers) is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC). The other group member, JFD Overseas Ltd, is an offshore entity, authorized as a Dealer in Securities by the Vanuatu Financial Services Commission.

 

 

Letstrade.com is an approved domain of JFD Group Ltd., however it seems that some of the broker’s clients are serviced by the offshore entity.

 

 

Click to viewlrger.

 

Holding a CySEC license is the biggest advantage of LetsTrade, as the regulatory environment in Cyprus is quite solid. Cypriot brokers have to meet a set of requirements set on a local and on a EU level, which provides their clients with good assurance for the security of their funds. More importantly, all CySEC-regulated companies are members of the Investor Compensation Fund, which is able to pay compensation up to €20 000, If the company is in default. 

 

Access to MetaTrader4

Clients of LetsTrade are offered trading on the ever popular MetaTrader4 (MT4). This trading terminal offers superior charting and wide range of professional trading tools and features, such as wide range of technical analysis indicators, automated strategies (Expert Advisors), and more. Besides, it is easy to use and provides many customization options.

 

 

>> More MT4 brokers <<

 

 

Negative balance protection

The best possible way to secure trade safely is to choose a well-regulated broker that also offers negative balance protection. According to the information on LetsTrade’s website, this broker provides such, which means that if for one reason or another your account balance becomes negative, LetsTrade will not require you to deposit anything extra.

 

Up to 1:400 in leverage

On its website LetsTrade says it provides high leverage ratios, reaching 1:400. However, such leverage levels can be provided only to non-EU residents by the offshore company within the JFD Group. As some of you are probably aware, in August 2018 the European Securities and Markets Authority (ESMA) restricted the maximum leverage allowed for retail forex traders on the European market to 1:30 due to investment protection concerns. 

 

 

LetsTrade Disadvantages

 

One of the group members registered offshore

There is a chance that if you sign up with LetsTrade, you will actually be serviced by the offshore entity, as we clarified in the Advantages section above. Although we cannot compare LetsTrade with all offshore brokerages, most of which are scams, if you deal with an offshore company, the security of your funds depends solely on the integrity of the people behind them.

 

After ESMA introduced a set of restrictions on CFD trading, some European brokers have started marketing the option to move their clients’ accounts to an intra-group third-country entity, in order to cut loose regulatory corners. ESMA is aware of that malpractice and is closely monitoring all EU brokers.

 

Trading costs above the average

Although the costs of trading at LetsTrade are not clearly presented on its website, we tested its MT4 in demo mode and found that the spreads floating around 1.2 pips on EUR/USD. A commission of $6 applies, which means that the cost of trading per standard lot for this pair is around 1.8 pips, which is slightly above the industry’s average.

 

 

LetsTrade’s demo MT4. Click to view larger.

 

For further information and comparison on spreads, check out the below link.

 

 

>> Compare the spreads of the best brokers in real time <<

 

 

Relatively high initial deposit

In order to open a Standard account with LetsTrade, one has to deposit at least $500, which is a bit high initial investment. By comparison, most forex brokers require something in the range of $100 - $250 as a start. With other brokers, like FXTM and XM you can register a live account by investing just $5.

 

 

Conclusion

 

Our main concern with LetsTrade is that there are two companies behind the brokerage brand, one of which is registered offshore. Besides, the costs of trading with it are slightly above the average. Otherwise, the broker is a member of the JFD Group, the domain is approved by the CySEC and the other company behind the brand is regulated in Cyprus (and Europe).

 

Regulation in Cyprus involves certain rules and requirements to licensed brokers, which provides certain guarantees to their clients. For example, Cypriot brokers have to hold a minimum capital of at least €730 000, which should be maintained at all times, to keep client funds separately from the company’s operational assets, to regularly report executed transactions and many more. Moreover, they have to to adhere to all rules introduced on a EU level. Of course, this also means that CySEC-licensed are entitled to provide cross-border services throughout the EU and the EEA.

 

 

>> Find the best brokers in Cyprus <<

 

 

Let’s sum up the strong and weak sides of LetsTrade:

 

Pros Cons
Regulated in Europe (Cyprus) One of the group members registered offshore

MetaTrader4 available

Trading costs above the average
Good variety of forex & CFDs Relatively high initial deposit

 

Latest news about LetsTrade
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Traders` reviews for LetsTrade

Spread

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Slippage

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Deposit/Withdraw

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