Introduction To Trade.com Forex Trading Review
Trade.com is a highly valuable domain name that signifies the company’s intent to go all out in its brand awareness campaigns and to establish its authority in the markets. Trade.com is a CFD broker that manages to cover the entire financial markets by offering different underlying instruments from various asset classes. The broker is relatively new to the markets but appears to have worked out a winning formula that has enabled it to cater to traders through a dependable financial product.
Of course, Trade.com is far from perfect when it comes to the choice of accounts and tradable products, but there are several features that work in the broker’s favour. It is essential for traders to be aware of the numerous issues that plague the industry and has paved the way for the rise of large-scale financial scams. Fortunately, Trade.com does seem to be a genuine broker that is oriented towards providing a secure trading account, but we take a closer look at all the intrinsic features of the broker’s brokerage services through this detailed Trade-com review. We help readers to evaluate the different Trade.com account options, the cost of trading, minimum deposit, leverage, and other vital broker characteristics, so as to ensure that you can find the best Forex trading account that suits your basic trading requirements.
Trade.com Regulation & Parent Company Information
As we mentioned previously, Trade.com is a relatively new service provider in the market and started offering its financial brokerage services in 2014. Trade.com is a domain brand name that is owned and operated by Leadcapital Markets Ltd., a company that has its corporate headquarters in Nicosia, Cyprus. Leadcapital Markets Ltd. is authorised to operate as a financial company and to hold clients’ investments and transact them in the markets under the watchful eyes of the Cyprus Securities and Exchanges Commission (CySEC). The CySEC is one of the most established regulatory organisations in the Forex market that is responsible for regulating one of the largest collections of Forex and Binary Options brokers in the industry.
Trade.com is regulated by the CySEC through the European Markets in Financial Instruments Derivatives (MiFID), which is a standardised framework that was developed by the European Union member nations to maintain a uniform regulatory regime across the EU. Cyprus became an official member nation of the EU during the early 2000s and has ever since been an active participant in the European financial markets. Several companies had opted to choose Cyprus as their primary EU destination for setting up a brokerage, predominantly due to several attractive reasons such as a low tax-environment, ease of doing business, relatively easier business set-up processes, and lower costs of operations.
Contrary to the country’s rising popularity among financial companies, the CySEC has recently started issuing new laws and guidelines that are constantly changing the way in which Cyprus-based brokers are authorised to do business in the region. CySEC is now presumed to be among the best regulators in the market, with CySEC regulated Forex brokers having to adhere to some of the most severe regulatory guidelines that exist in the industry. Trade.com, along with all the other CySEC regulated companies, should now hold a minimum operating capital as net tangible assets, segregate clients’ trading capital from the broker’s operating capital by holding them at tier-1 bank accounts, and provide routine transaction statements and audit reports to the CySEC to enhance financial transparency.
The CySEC has also created an Investor Compensation Fund (ICF) that provides a compensation of up to €20,000 to qualified investors if a broker is rendered insolvent and incapable of meeting its clients’ debt obligations. The chances of a CySEC regulated broker going bankrupt are slim, as they are required to show evidence of maintaining a minimum operating capital according to clients’ investments, but an early closure of brokerage or insolvency procedures are also covered through the ICF program. Segregation of clients’ funds also helps in ensuring that traders are rightly compensated, without having to worry about the broker misusing its clients’ trading funds for any other purposes.
Since Trade.com does not possess a license from the US regulatory authorities, US traders can’t open or maintain an account at the company. Trade.com does not cater to traders from Canada or Japan, and the broker may also deny access to traders from other parts of the world. Get in touch with Trade.com to know whether you can indeed invest in the financial markets with their brokerage account, or you can visit some of our other leading brokers for a Forex trading account that is better suited for traders from your country.
Trade.com Tradable Assets & Associated Leverage
Trade.com has the best trading accounts in the market when it comes to accessing the global financial markets, as all Trade.com users receive complete access to Forex, commodities, indices, stocks, bonds, and ETFs. The availability of multiple asset classes for trading is a significant advantage for both novice and expert traders, as it provides a unique opportunity to invest in different markets to create a diversified investment portfolio. Beginner traders may be required to practice a certain amount of caution while dealing with increased exposure to the markets, as it would be suitable for such traders to keep their choice of assets to a minimum during the initial stages of their trading careers. Here is a brief description of all the markets and products provided by the broker, along with the maximum Trade.com leverage available for individual products.
Forex: Trade.com offers access to around 55 different currency pairs, with a maximum leverage of 1:300. The leverage is slightly lower than what one would expect from the FX market. Traditionally, Forex trading offers a higher leverage that can reach up to 1:3000, but brokers typically offer anywhere from 1:400 to 1:1000 for most traders. Of course, high leverage is only applicable for smaller trading capital, as the leverage is automatically reduced as and when the trade sizes go up.
Commodities: Commodities trading involves investing in products such as Gold and Oil, which are some of the most attractive assets available for trading in the Forex market. Trade.com has a variable leverage option for commodities, as different commodities have varying underlying characteristics. Nevertheless, traders can expect Trade.com leverage to be as high as 1:100 for commodities with a low margin requirement.
Indices: The best way to take advantage of a country’s economy and the performance of its underlying stock markets or industries would be to invest in indices. Trade.com provides variable leverage of 1:20 to 1:200 for indices trading, which gives access to around 26 popular indices of the world. All indices products are offered as Contracts For Differences (CFDs) and enable traders to buy and sell indices CFDs at existing market prices.
Stocks: Trade.com offers stock trading as CFD products, and there more than 1800 different stocks that are available for trading 24 hours a day and five days a week. Of course, stocks will be active only during their regular trading hours, and the Trade.com leverage for stocks varies from 1:5 to 1:20.
Bonds: Government issued bonds are long-term investment options, but speculators can trade the rise and fall of bond prices by opening an account with Trade.com. The maximum leverage for bonds trading is 1:100, which is absolutely necessary for smaller investments.
ETFs: Exchange Traded Funds allow investors to invest in the performance of a fund, rather than individual stocks or assets. ETFs are great for traders, especially with the high leverage of 1:100 offered by Trade.com. The broker offers real-time data on ETFs, along with historical data, which allows traders to make an informed choice through extensive technical and fundamental analysis.
Trade.com Minimum Deposit, Spreads, & Account Protocols
With its advanced trading features and comprehensive access to the financial markets, it is only reasonable for Trade.com to stipulate a relatively high minimum deposit of $1000 for its traders. There are three different types of accounts available to users, all of which are based on the market maker protocol. The Classic account is the primary choice of account that is designed for smaller investors, while the Gold account with a minimum investment requirement of $5,000 is the recommended account option. The Gold account comes with a few additional account benefits such as premium daily analysis and a free subscription to Trading Central, but it is the Platinum account with a $25,000 deposit requirement that is marketed as a VIP account option. The Platinum account has a premium customer support option, which seems to be the only visible advantage over the Gold account. Payments for deposits and withdrawals can be made using Visa, JCB, MasterCard, Diners Club, Qiwi, Skrill, WebMoney, Neteller, and Bank Wire Transfer.
The high investment requirements, although justified while considering the assets available for trading, is obviously not an attractive option for retail traders. $25,000 is close to the investment required for an institutional account that offers Direct Market Access Trading. ECN accounts offer the best in liquidity, volumes, and lower spreads, which are way better than market maker accounts. Trade.com, on the contrary, offers its products as Contracts For Differences, where each CFD is either exchanged between traders through an internal dealing desk or accepted by the broker to become a counterparty to a contract. $1000 is pretty high as an initial investment for a regular market maker account, as traders are provided with the option of opening an ECN account through other brokers for a minimum investment of just $100.
Trade.com has a substantial conflict of interest with its clients due to its market maker accounts. As per regulatory requirements, brokers are required to create a dedicated conflict of interest policy for users’ reference. Such a policy can be found on the broker’s home page or by getting in touch with the broker’s customer service department. Another disadvantage of market maker accounts is the higher spreads involved in transactions. Trade.com spreads start from 3 pips, which will be increased according to the liquidity and underlying market conditions. The basic spread is rather high when compared to the average spread of 1.5 pips for other market maker brokers, but the spreads are lowered to variable spreads beginning from 2.2 pips for Gold and Platinum account holders. Despite the reduction, the Trade-com spreads are certainly high according to modern standards.
There are no commissions for trading, and traders are also not required to own any underlying assets through the entire duration of a trade. CFD products are also beneficial from a stock and indices trading perspective, as it negates the need of paying any fees or commissions for trading an asset. Nevertheless, Trade.com should think about lowering its initial investment threshold for its smallest account category, in order to compete with other retail CFD brokers in the market.
Choice Of Trade.com Platforms
Trade.com has two platform options, the conventional MT4 terminal, and a WebTrader platform. The MT4 is sufficient for most trading requirements, but some products such as bonds and ETFs are only available with the WebTrader. The MT4 is certainly a powerful Forex trading platform that not only guarantees the best trading environment, but it is also the most widely adopted trading interface among retail trades. The WebTrader is not as performance-oriented as the MT4 terminal, which is to be expected due to the web-based layout. Nevertheless, Trade.com provides the convenience of accessing accounts on both platforms, which is a huge advantage for traders who don’t always have access to a standalone trading system.
Trade.com Mobile Apps
Mobile trading is a concept that is finding increased application in the world of Forex trading. For that very reason, most platform developers are now turning their attention towards developing dedicated mobile trading platform, along with a desktop version. The MT4 terminal has dedicated mobile apps for iOS and Android operating systems. Therefore, users can download Trade.com apps through the Google Play Store or the Apple App Store for trading the markets on their smartphone or tablet. Trade.com has also enabled its mobile users to trade using the WebTrader platform, which is also compatible with mobile web browsers. Hence, Trade.com traders have plenty of options when it comes to trading the markets on reliable trading platforms.
CySEC has recently banned any bonuses that were usually provided to traders, which essentially means it is virtually impossible to expect free money from any company regulated by the CySEC. Forex brokers have traditionally been against the entire concept of bonuses, but that hadn’t stopped some brokers from offering a bonus to its clients. Trade.com, on the other hand, is a broker that does not believe in offering bonuses and has a strict policy when it comes to redeeming any free money offers. While it may feel like a disadvantage, it is actually great from traders’ perspective, as bonuses do tend to create multiple issues between brokers and traders.
Instead of a bonus program, Trade.com offers a loyalty-based rewards program that provides cash rewards, trading equity, or other gifts according to the reward points collected by a trader. Higher category account holders qualify for higher reward points, which naturally provide higher cash benefits. A vast number of regulated brokers typically offer bonuses in the form of reward points to ensure that they offer some kind of incentives for traders to keep them loyal to a broker’s services.
Trade.com Demo Account
A demo account is usually available with almost all Forex brokers, and Trade.com has also created a free practice account that can be used to trade the markets using a virtual balance. Trade.com allows its users to trade on a demo account through both the MT4 and the WebTrader, which ensures that traders can get a fair idea about the difference in performances before making their choice. Demo trading is also an excellent tool to try out investments in different markets, and recognise whether traders can be comfortable with the risks involved in other forms of products such bonds, ETFs, stocks, and indices.
Trade.com Customer Service
Trade.com has a live chat function, a web contact form, an official contact address, and local phone numbers in more than 27 different countries to provide a personalised customer service experience. Since Trade.com is protected by European laws, aggrieved investors can also contact the financial ombudsman or approach the court if they feel that they have been wrongly treated by the broker. Nevertheless, Trade.com representatives do ensure that matters are resolved through the best practices, so as to prevent any kind of negative user experience.
Trade.com Online Resources
Trade.com has a fairly large trading kit with tools and resources that are created for the benefit of its users. The broker offers free access to Trading Central and premium daily analysis to all Gold and Platinum account holders, while all Trade.com customers can utilize other excellent resources such as market news, market outlook, and expert analysis from an established analyst. The broker also provides several education programs and other tutorials for amateur traders, along with professional assistance for larger investors through premium customer support.
- European Forex broker regulated by the CySEC.
- Offers a wide range of assets from Stock, Commodities, Forex, Indices, Bonds, and ETFs market.
- Availability of MT4 and WebTrader as primary trading platforms.
- Great trading tools, resources, and educational programs.
- Comprehensive customer service for most regions.
- Minimum investment for an account is slightly higher.
- No bonus offered to traders.
- Higher spreads and increased cost of trading.
Is Trade.com A Scam?
No, Trade.com offers a regulated FX brokerage that is regulated by the CySEC of Cyprus.
Does Trade.com Provide A Demo Account?
Yes, traders can open a full-featured practice account at Trade.com by signing up with an email address and other user information.
What Is The Minimum Investment For A Trading Account?
The minimum investment is $1000 for the Classic Account.
Trade.com is a perfect choice for traders looking to invest in CFD products, especially in assets ranging from stocks, indices, bonds, and ETFs. With a regulated brokerage account, traders are assured of a secure trading experience, but traders should account for a slightly higher trading cost.