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STO Review - is it scam or safe?

STO review - is stofs.com scam or good forex broker?

RATING: 3.5 / 0 REVIEWS
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STO is a broker brand of AFX Markets ltd and AFX Capital Markets ltd. AFX Markets ltd is situated at 33 Sun Street, London, UK and AFX Capital Markets ltd’s headquarters are at Limassol, Cyprus. Based on the available information on the website, the brokerage looks promising. Read the whole review to see what are the advantages and disadvantages of trading with this brokerage. 

 

Account types Minimum Deposit Spread Leverage
STO Classic $100 1.6 1:500
STO Premium $2000 0.4 1:500
PRO $10 000 0.3 1:500
VIP $50 000 0.0 1:500
AFX Fast $2000 0.4 1:500

 

Advantages 

 

Top-notch regulation 

 

As was stated above – the brokerage is a white label of AFX Markets ltd and AFX Capital Markets ltd, both of which are well-known in the trading world and regulated. The first, situated in London, falls under the oversight of the FCA with a reference number 560872 and the second, situated in Cyprus, is registered with the Cyprus Securities and Investments Commission with a license number 119/100. Such serious regulation carries a lot of weight in the trading world, and not without good reason. Both of the regulatory agencies require compliance with a number of strict rules that lower the risk of foul play on part of the broker and secure the funds of the clients. One such rule is the segregation of accounts which forces the brokerage to handle the finances of the clients separately from their own and greatly lowers the risk of commingling. Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or tries to commit a fraud. 

 

When it comes to regulation and security of the funds, this brokerage certainly delivers and clients may be safe if they decide to do trade with STO or any of the other white labels of the regulated companies. Interested traders should be sure to check out our list of other recommended FCA-regulated forex brokers: 

 

>>List of FCA-regulated forex brokers<<

 

 

MT4 trading platform 

 

The brokerage grants access to its trading platform through a demo account. It provides clients with a AFX Fast platform and the MT4 which we see as a big advantage. It can be accessed through almost any web browser, as well as mobile devices and has much valued by traders options in it The MT4 is the preferred choice for more than 80 per cent of traders, mainly because of its unique features..One such is the MQL programming language which enables traders to design their own advisor-bots and back-test trading strategies. Traders can also alter market indicator to suit their needs. The brokerage does not, however, provide the new MetaTrader 5. Here is a screnshot of the platform: 

 

MT4 trading platform. Click to zoom.

For interested traders – here is a list of our recommended MT5 forex brokers:

 

>>List of MT5 forex brokers<< 

 

Reasonable spread 

 

Through the demo account we could see a spread of 1.6 pips on EUR/USD which is just above the 1.5 margin that we like and well within the boundaries of the reasonable. There is information on the website which states that the spread significantly lowers if you get a better account with a bigger deposit. Such favorable trading conditions should be seen as an advantage, mainly because a smaller spread lowers the cost of trading. We must mention that there are better spreads by brokers who are just as credible – one such is FXCM which offers a spread of 1.1 pips. 

 

Generous leverage 

 

The brokerage offers a leverage of 1:500 which is extremely high. Such a high leverage extends the trader a lot of freedom in his dealings and creates possibilities for substantial profits, as well as losses. It must be said that at the beginning of August 2018 the European Union will pass a new law - MIFID II – which will significantly lower the leverage of all the brokers operating in Europe. It will put a maximum of 1:30, since it believes such a low amount allows for a more controllable and less volatile trading atmosphere. Nevertheless, having in mind the excellent regulatory status of the brokerage, we are inclined to view such a high leverage as an advantage. 

 

 

Payment methods 

 

STO provides potential clients with a wide range of payment methods, something we always count as an advantage. Clients may deposit and withdraw via Webmoney, Skrill, Neteller, Mastercard, Visa, Wire transfer, SafeCharge, Barclays, Cash, QIWI, Paysafecard and Przelewy24. 

 

Reasonable minimum deposit

 

There is an abundance of information on the website which is always a welcoming sign. We learn that the minimum deposit for the most basic account is $100 which is frankly below the average of $200-250. A low minimum deposit is a plus for a number of reasons. The most important of which is that it allows clients to try out the brokerage without having to risk a large sum. There are, however, other top-notch brokerages who do not even have a minimum deposit. One such is FBS where you may trade with the meager deposit of $1. 

 

Disadvantages 

 

A lack of trading options

 

Potential clients of STO may trade CFDs on currency pairs, commodities, stocks and indices. However, at least on the demo account, the brokerage performs quite poorly when it comes to diversification of trade. There are certainly not a lot of financial markets for potential traders to participate in. One exciting product which is missing are the cryptos. Interested traders should be sure to check out our list of recommended Bitcoin forex brokers. 

 

>>List of Bitcoin forex brokers<< 

 

Conclusion 

 

STO is a white label of the companies AFX Markets ltd and AFX Capital Markets ltd, both of which are registered and licensed with the relevant regulatory agencies of their respective countries. The brokerage offers the MT4 and reasonable spreads for potential clients, although one could ask for a wider variety of financial instruments. However, the most important test a broker is subject to in a review – the safety of the clients funds – is where STO passes with flying colors, being regulated by both the FCA and Cysec. All in all, we do not see good reason not to recommend the brokerage to interested traders who should have access to pretty favorable trading conditions. 

 

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Traders` reviews for STO

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Slippage

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Price feed

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Platform

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Deposit/Withdraw

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