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Tradealot Review - is it scam or safe?

Tradealot Review - Is tradealot.eu scam or good forex broker?

RATING: 3.3 / 1 REVIEWS Tradealot
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Trading Accounts & Conditions

Account type Minimum deposit Maximum leverage Spread
Standard €2,000 1:200 From 0.2 pips + $20 per million, per side

 

Tradealot is a UK-based forex and CFD broker, which is operated by AFX Markets Ltd. This is one of the companies in the AFX Group, two well-regulated entities, which are also behind the brand STO. They provide a very competitive trading environment.

 

For those of you who have read the old review: Treadealot’s initial presentation was very minimalistic, which even led us to question their credibility. Additionally, the trading conditions were different, featuring a monthly fee. The current state of this review reflects their offer as of May 2018.

 

Tradealot Advantages

 

Highly regulated broker (FCA + CySEC)

As mentioned in the beginning, the company behind Tradealot (AFX Markets Ltd) is regulated by the United Kingdom’s Financial Conduct Authority (FCA). This is one of the top watchdogs in the industry, which enforces a lot of rules on brokers. Investing with such a company will guarantee the security of your funds. 

 

STP model

Tradealot operates as a Straight Through Processing broker. This means the company does not take the other side of client trades, i.e. it doesn’t profit from the losses traders experience with them. In essence they have an incentive, for one to trade more frequently, rather than for him to blow out his account.

 

Investment services offered

Tradealot offers investment services via the other company which is a part of the AFX Group, AFX Capital Markets Ltd (which is regulated by the Cyprus Securities and Exchange Commission). The minimum investment is €10.000, with two funds being available. While one is discretionary, the other features their arbitrage strategy.  

 

Tight spreads

When testing the Tradealot trading platform, we saw a EUR/USD spread varying between 0.2 and 0.6 pips. It appears the company has dropped its previous business model, featuring a monthly fee of € 24.95 and bumped the spread ever so slightly. We find this iteration to be more beneficial for the average traders, who may not trade for a living. That being said, they have added a “$20 per million, per side” rate. This will be equivalent of 0.4 pips (for pairs where the US Dollar is the second, or quote currency, as a single dollar in roundturn commissions is worth 0.1 pips). In effect the spread will be in the 0.6 –  1.0 pips range, which is still one of the best in the business. 

 

We felt slightly confused at first, given how MT4 didn’t charge us anything in the “commissions” section, but then we realized the rate is “per side”, while the platform only operates on a “per trade” basis. The fees are obviously paid separately.

 

MetaTrader4 supported

The trading platform is one of the most important things, which active traders look at, when comparing brokers. MetaTrader4 is an old but proven piece of software. The platform is very light on the hardware and (depending on your broker’s credibility and internet connection) will updated quotes very swiftly. On top of that, the platform has its own programming language, which allows traders to develop their own technical indicators and automated trading systems. They are then traded on the MQL marketplace, which can be accessed regardless of which MT4 broker you are trading with.

 


The platform at Tradealot

 

>>A list of MT4 brokers<<

 

High leverage

The ability to trade with up to 1:200 on the major pairs is nice. On the other hand we feel the need to reiterate the importance of risk management for your long term success. Be sure to educate yourself on the risks involved with trading on margin.

 

CFDs on offer

Tradealot offers Contracts For Difference (CFDs) on many asset classes including indices, oil, metal and cryptocurrencies. We have seen even wider ranges, but rarely.

 

Tradealot Disadvantages

 

High minimum deposit

While Tradealot’s offer is very competitive, it comes with a relatively high entry barrier. The level is set at €2,000, which isn’t by everybody’s pocket. Whatever your situation may be, don’t risk more funds than those you are willing to loose without a huge impact on your lifestyle. Luckily you can find well-regulated brokers, who even don’t have a minimum deposit requirement, like IG (who are also registered with the FCA).

 

Payment methods not specified

With the ever growing popularity of e-wallets and more recently, cryptocurrencies, some people use them for their trading needs. Neteller and Skrill are two options which are two of the most well-known options.

 

>>A list of Skrill forex brokers<<

 

Potential for conflict of interest with managed accounts

Offering managed accounts isn’t something which most credible brokers do. The reason being that there is always a potential for conflict of interest – the trading system may be designed in order to execute a lot of trades, hence generating more commissions for the broker. Then again, both of these companies are highly regulated so there is little worry to be had.

 

Conclusion

 

Tradealot is a UK-based, FCA-regulated forex broker. The company behind them also runs the brand STO. The trading conditions offered at Tradealot are very good, but the fact the minimum deposit isn’t specified leaves us to believe it may be rather high (given what the group offers at their other brand). Whatever the case may be, your investment with this company will be safe, given the legal environment in which they operate.

 

The United Kingdom’s Financial Conduct Authority (FCA) is a globally renowned regulatory agency. The rules which brokers’ who are registered with them must follow are multiple. We will highlight the two key ones, which guarantee the security of your deposit: 

 

>>A list of FCA regulated brokers<<

 

- segregation of client funds. Every deposit you make to such a company is held in a special bank account, which they can’t freely access.

 

- the Financial Services Compensation Scheme (FSCS). This is a collective fund, which will cover your losses, in case your broker goes bankrupt (limited to £50,000). 

 

The key points about Tradealot:

 

Pros Cons
Highly regulated broker (FCA) High minimum deposit
STP model Payment methods not specified
Investment services offered Potential for conflict of interest with managed accounts
Tight spreads  
MetaTrader4 supported  
High leverage  
CFDs on offer  

 

 

Latest news about Tradealot
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Traders` reviews for Tradealot

Spread

Pros

Cons

 

 

Slippage

Pros

Cons

 

 

Requotes

Pros

Cons

 

 

Price feed

Pros

Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

Not to clear article

I dont know why it is stated that Tradealot cannot be checked as part of AFX, if you go to the FCA website and check under brandnames you clearly see that they are a brand of AFX. They also stepped away from their 24,95 a month plan and now have a more sharp offer i think, as they offer institutional STP pricing and low commissions. I do think the author could have looked a bit deeper when checking the FCA website :-)

Forexbrokerz Team:

Thank you, Marc. Review updated.

Marc Johansson 05/19/2018
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