xCFD Review – A New Broker In The Mix
xCFD is a Forex broker that offers numerous financial products under a single roof, which is a convenient way of attracting a huge chunk of the retail traders from the global pool of investors across the various financial markets. xCFD started its brokerage service in New Zealand in 2013 and had ever since been on an upward trajectory by incorporating new products and improving their overall service offerings to meet their customers’ demands. xCFD is a market maker broker and offers a standard FX brokerage service that has a whole range of features that one can expect from a regular STP broker. In this xCFD review, our primary aim is to offer you the best information regarding the performance of the broker, and whether your funds are secured and safeguarded against the most known broker issues.
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- Website: www.xcfd.com
- Toll free in USA and Canada: 1-866-800-0719
- Office address:
- 1019-1022, Novy Arbat str. 21,
- Moscow, 119019
- Russian Federation
Is xCFD Regulated Through Proper Channels?
xCFD does seem to be a genuine and reliable broker, but there is a lot of confusion on the regulatory aspect. xCFD is located in New Zealand and claims to be regulated by the New Zealand’s financial regulatory authority. After an in-depth investigation, it became apparent that xCFD is only a financial company registered in Auckland under the Companies Act, and is not regulated by the FMA. The Financial Markets Authority (FMA) is the New Zealand’s financial regulatory agency responsible for monitoring a broad range of financial companies, which guarantees safety and security of clients’ funds.
The lack of xCFD regulation from FMA prevents the broker from offering any services to traders from New Zealand, and the company is explicitly clear that it does not provide any services for traders from the US, Japan, and Australia. Therefore, it is ultimately clear that xCFD is not regulated, and it is indeed considered dangerous to deal with unregulated brokers, especially in this day and age where even regulated brokers are known to indulge in frauds and unethical behavior.
What Are The xCFD Account Funding Options & Cost Of Trading?
There is only a single type of account offered by xCFD for all clients opening an account with the broker. xCFD used to stipulate a minimum deposit of $100, but they have soon realized that a lack of regulation or any other innovative benefits to the trader will prevent traders from opening an account for a significant amount of money. Therefore, xCFD now offers a trading account for only $10, and traders are also offered an xCFD bonus on all deposits up to 50% on the initial deposit. There is even a free $30 no-deposit bonus option available for traders to test the platform using real money without actually investing a dime, and this is one of the huge benefits of opening an xCFD account. The bonus and profits can only be withdrawn after satisfying several conditions, and it is the responsibility of the traders to evaluate these conditions properly before trading with xCFD.
The maximum xCFD leverage is 1:200, which is certainly a respectable amount of leverage. A margin of 1:200 is neither too huge nor too low, as it is easy for traders to strike a balance between risk and reward. The one aspect where xCFD excels in the industry is when one considers the cost of trading, which is one of the best trading conditions ever offered by an STP market maker broker. xCFD spreads start from 0.1 pips with no commissions, which provides ECN like trading environment without the cost. An xCFD trading account is the best option available in the market if you are looking for the tightest spreads and the lowest cost of trading.
Every xCFD client has access to global financial markets to trade currency pairs, indices, metals, commodities, options, shares, and other ETFs. It is usually tough to find a broker that offers so many different financial instruments for a small deposit, which makes xCFD one of the few mainstream Forex brokers that provides its traders with the option of diversifying their investment portfolio.
Trading On A Proprietary xCFD Platform
The xCFD trading platform is not like any other interface currently available in the market. Unlike conventional platforms such as the MT4, the xCFD platform offers access to the different markets using a revolutionary platform known as the EXANTE. While the EXANTE platform can be utilized across all Windows, Mac, and Linux operating systems, the absence of an xCFD mobile trading platform will surely hurt the broker’s chances of catering to a large group of mobile traders who wish to trade on the go. The xCFD platform has all the essential features that one would expect from a Forex trading platform, but it does not have the dexterity and the performance when compared to the MT4.
Why Should I Choose xCFD?
xCFD has a tough job of convincing traders to open an account, especially since the broker does not have a valid regulatory status. But the advantages regarding the lower cost of trading, small initial deposit option, acceptable leverage, and an excellent customer service channel should enable traders to enjoy an overall excellent brokerage service.
xCFD can indeed work towards improving its positioning in the industry by being regulated by a regulatory body and redesigning their website to offer more information to the trader. The single-page website is confusing, and users will misinterpret the unique design theme to be a cost-cutting measure. Having a feature-rich website will not only help traders to get more information on the brokerage services but will also help clients to trust the company to make an actual investment. The xCFD bonuses, as well as a free no-deposit credit, are excellent incentives for traders to test the broker before making an investment with the company.