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Forex

NetoBrokers Review - is it scam or safe?

NetoBrokers Review - Is netobrokers.com scam or good forex broker?

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Trading Accounts

Account type Minimum deposit Maximum leverage Minimum volume per trade Spread
Classic $500 1:200 0.01 lots From 3.3 pips
Silver $2,500 1:200    0.05 lots From 2.2 pips
Gold $10,000 1:200    0.05 lots From 1.8 pips
VIP $25,000 1:200 0.25 lots From 0.9 pips

 
NetoBrokers is a forex brokers, which offers multiple account types, as described above. The minimum volumes per trade are rather high for our liking, as they limit the risk management potential for bigger traders. Additionally, Sheriah-compliant (swap-free) accounts are available.


 
The Company. Security of Funds

Company Country Regulation
Uniqueness and Faith PA UK N/A



NetoBrokers is a trademark owned by Uniqueness and Faith PA, a UK-based company. That being said, they are not regulated by the Financial Conduct Authority (FCA). This is troubling for us, as all unregulated companies are.



The main reason for our worries should be obvious to the more experienced traders – when trading with such a company, there is no guarantee you will ever see your money after depositing it with them.



On the other hand, companies registered with the FCA are much more reputable. They are forced to obey the rules enforced by the agency, which are quite strict. When it comes to the security of your funds two of them are the most crucial: segregation of client accounts and participation in the local compensation scheme.



Segregated accounts mean the company can’t access its traders’ capital and spend it freely. This prevents scammers from simply accepting your money and not providing any trading. The Financial Services Compensation Scheme (FSCS), on the other hand, is a system, which functions similarly to an insurance company. Brokers transfer small portions of their profits to a collective pool. This then serves as a guarantee against any one of them going bankrupt. If you trade with an FCA-regulated broker, your account will be covered up to £50,000.



Trading Conditions


 
Minimum Initial Deposit

The minimum deposit at NetoBrokers is $500. This is relatively high level for the current environment, which offers a lot lower levels. For instance, FXCM only requires a $50 initial investment.



Remember that by itself the level does not reveal anything about the broker’s credibility (unlike their regulatory status).


 
Average spreads & Commissions
The costs of trading at NetoBrokers are high, when compared to the competition, except for the VIP account type. Nowadays most brokerages offer spreads, starting from 1.0-1.5 pips. To get full details, be sure to check our spread comparison platform.



After opening a demo account at the company, we saw a 3 pips fixed spread on EUR/USD, which while in-line with their claims is still odd. They don’t mention the fact their spreads are fixed anywhere. That being said, the demo version may be different from the actual real-account environment (although that would defy its purpose).



Leverage
The leverage cap at NetoBrokers is 1:200. While this is a solid level, one may believe it to be low, if he is following the industry. A lot of brokers offer 1:500 in levcerage. XM even uses their ratio as an advertisement – the company offers 1:888, which is very catchy.



Keep in mind, higher leverage ratios allow you to take bigger risks, which can lead to very swift losses. Be sure to fully understand your position sizing before you start trading.



Trading Platforms


 
NetoBrokers offers MetaTrader4 (MT4).This is the most popular currency trading platform, despite being relatively old. While the company behind it has released a newer version, a lot of brokers and traders still prefer the old software. This is at least partially due to the thousands of custom technical indicators and automated trading systems, which are available for it.



That being said, here is a preview of NetoBrokers (click to zoom-in):





Methods of Payment


 
NetoBrokers accepts deposits via the traditional methods: Credit/Debit Card and Bank Transfer. While there are a couple of logos of e-wallets at the company’s website, the account management screen does not support them. We are not certain if they will be applied in the future or they have put the Skrill logo in order to attract customers.


 
Conclusion


 
NetoBrokers is an unregulated broker. The company offers rather wide spreads for most of its customers, with the only decent conditions being provided to VIP account holders. The deposit requirement for that account type are very high, not that we would recommend dealing with an unregulated company altogether. Here are the strong and weak sides of NetoBrokers:

 

Pros Cons
MetaTrader4 available No regulation
  Wide spreads for most account types
  High deposit requirement for the competitive trading conditions
  Demo account differing from the advertised conditions
  Few payment methods

 

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Spread

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Summary

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Traders` reviews for NetoBrokers

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