A Straightforward & Detailed ForexTB Review
ForexTB offers some fantastic opportunities to trade the markets, but there are several inconsistencies with the broker that may prevent it from inducing the much-required confidence into its traders’ minds. ForexTB is a financial broker that has its base in Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC). Clients do get some interesting array of financial instruments from the different financial markets, such as Forex, commodities, stocks, indices, and ETFs; thereby taking the grand total of assets to more than 700 financial instruments. ForexTB has managed to offer the most exclusive market access to the largest number of financial assets in the market, but the broker does lack the supporting services to be as effective as other industry leaders.
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How Are Traders Protected Under The CySEC Regulation?
- Website: forextb.com
- Support: +357 22266707
- 5 Alkaiou Street, Office 301
- 2404 Engomi
The CySEC acts according to the directives set forward by the European MiFID. Cyprus was initially known as a tax haven that enabled companies to have a free reign over their policies. However, once Cyprus became a part of the European Union, the country had to adopt several regulatory guidelines to ensure that all businesses operating in Cyprus had to adhere to the rules set forward by the European regulators. CySEC is now home to the most rigorous and efficient regulatory framework that is trusted by traders and investors from around the world. As part of the regulation, ForexTB is also bound by all the CySEC rules for operating fairly and honestly in the European financial markets. Over the past few years, CySEC has added new regulatory policies for offering better protection of traders’ funds. These include a higher capital requirement for brokers, holding funds in segregated accounts at approved banks, continuous auditing and inspection of financial transactions through certified auditors, and protection of funds through the Investor Compensation Fund (ICF). Therefore, CySEC does offer protection for smaller traders for funds up to €20,000, if, for any reason, the broker winds up its business abruptly without settling its debts. ForexTB does, however, guarantee to offer up to €100,000 in protection for funds held in their trading accounts, but realistically, we only expect the CySEC guarantee and would not pay much attention to the broker’s guarantee. If you are a trader from Europe, you can open a ForexTB account without worrying about the regulatory status in your home country. Cyprus is a member of the European Economic Area (EEA) agreement, which allows it the freedom to engage in free trade, economic partnerships, and cross-border sharing of services and products from companies operating within the EU. Therefore, ForexTB has the necessary regulatory clearances to function in any member of the EEA agreement without any local regulatory license. Traders from other parts of the world, however, should check with their local regulators to see whether they are allowed to trade with international Forex brokers. The US and Australia are some of the most developed economies that ban its citizens from trading with any overseas broker without any respective US and Australian regulatory licenses.
ForexTB’s Standard Account Package
ForexTB offers an STP trading account that may act as a market maker or send your orders to a liquidity provider. One of the most significant advantages of a ForexTB account is the lowest minimum deposit requirements, which allows traders to start trading from $1. However, any small amount of money should be complemented by sufficient leverage to ensure that clients can open significant positions in the market. Therefore, the maximum ForexTB leverage of 1:100 does not make sense from a trader’s perspective. Of course, using lower leverage is the safest way to trade the Forex markets; but brokers should offer the option of a higher leverage for smaller traders, especially when they are offered an opportunity to trade with as low as $1. Although the broker specifies no deposit or withdrawal limits, the ForexTB has cleverly disguised its services by only accepting Wire Transfer or DotPay. Due to the lack of availability of other payment options such as credit cards or e-payment processors, traders are forced to make higher deposits through a Wire Transfer payment. Therefore, ForexTB has made it difficult for its customers by taking advantage of the payment systems to collect more deposits from their clients indirectly. We are thoroughly perplexed that ForexTB does not accept any other type of online payment options, especially when other competitors from Cyprus and surrounding EU countries accept different e-wallets and credit cards to facilitate easy deposits and withdrawals. Now coming back to the cost of trading, ForexTB spreads are in the higher range, with most major currency pairs quoting anywhere between 2 to 6 pips during different market conditions. Of course, being a regular trading account, you don’t have to worry about commissions, but we are indeed concerned about the slight conflict of interest if the broker chooses to absorb the opposite end of your order. The saving grace comes in the form of the choice of more than 700 different financial instruments which can be accessed through two different types of ForexTB platforms. Desktop traders can choose either the MT4 terminal as an installable interface for their Windows and Mac devices or the proprietary Patron Web FX Browser platform for web trading. The MT4 doesn’t need any introductions, as it is the most widely used trading software, which is available as ForexTB apps for iOS and Android devices as well. The Patron Web FX Browser, on the other hand, is an extremely useful and graphically advanced trading platform that will simply offer a great user experience than the traditional MT4 WebTrader. The proprietary web trader is an excellent choice for desktop trading, and ForexTB mobile users will also find the Web FX Browser to work perfectly on their smartphones and tablets. However, if you are looking for a stable and reliable connection to the ForexTB trading servers, you should choose the MT4 on both mobile and desktop platforms. The proprietary Patron web trader has several glitches and latency issues, which might hinder a good trading experience. Nevertheless, the web platform should be a great option for traders that are looking for a fresh and futuristic trading interface.
Do I Get A ForexTB Bonus?
ForexTB does not offer any reward programs or incentives for opening an account. We do not recommend trading with bonuses, but being a relatively lesser-known FX broker, we had anticipated the broker to provide some promotions to attract new traders. ForexTB might turn away some traders that are solely in the market for trading with a good amount of bonus capital. ForexTB may not satisfy most of the requirements of modern retail traders, which should make it hard for the company to compete against the industry giants. Nevertheless, ForexTB has been entertaining traders with their stable services, which should help them to survive in the extremely competitive marketplace.