XTrade Review – Scam or Legit?
If you are still trading forex the “old fashioned way” with MT4 and a like-minded broker, then you may have missed out on the many innovations that have hit the market in recent years. Next to binary options, the next fastest growing way to trade has been to go the Contracts for Differences (CFDs) route with a firm like Xtrade.com, which has been in the business since 2010. A spin off from “spread betting”, this straightforward trading regimen involves buying a contract with your broker that will pay off if the market moves in your favor. Your reward is based on the difference between your opening and closing position, the units purchased, and leverage chosen. This genre offers more flexibility, and, for this reason, the forex brokers in this arena have chosen to add stocks, commodities, and indices to the mix to broaden your possibilities and trading enjoyment.
What kind of asset choices, you might ask? With XTrade, you can choose between 52 currency pairs, the lion’s share of them, 21 in number, being exotic pairings that you may not find with your traditional broker. XTrade even offers a BitCoin pairing for those in the know. Outside of forex, there are nearly one hundred additional asset choices, each with its own Bid/Ask spread dynamics, leverage amounts, and minimum margin requirement. XTrade also provides several illustrative examples to help you understand how to open a position, close it, and deal with risk management issues. There are no commissions involved. The firm makes its revenue via the Bid/Ask spread and overnight premiums, if applicable. Registration is simple. There is one standard account that comes with a free demo account for practice, and welcome bonuses range from 20% up to 60% and can be more, if you deposit more than $10,000.
Since CFDs are such a different trading instrument, XTrade developed its own version of WebTrader to support their online transactions. No downloads are required, and they also support a number of mobile apps for traders on the go. The firm is headquartered in Cyprus and derives its licensing and authority to operate from CySEC, but XTrade has five offices across the globe and is in compliance with several other domestic regulatory bodies. Peace of mind is definitely a benefit of broadened regulatory oversight. With XTrade, your deposits are segregated from operating capital and protected further, up to 20,000 Euros, by the Investor Compensation Fund in Cyprus. XTrade is operated by XFR Financial Ltd, which is regulated and licensed by CySEC under the license number 108/10. Unfortunately, U.S. clients are not accepted at this time.
Why trade with XTrade.com? The firm lists these reasons:
- Founded in 2010 by industry professionals with diverse experiences in the brokerage industry;
- Headquartered in Limassol, Cyprus, and licensed by CySEC and a number of other regulatory bodies within and without the EU;
- Five global offices supporting traders in 140 countries;
- Client deposits are segregated for safety purposes and protected further up to 20,000 Euros by the Investor Compensation Fund in Cyprus;
- Standard account and a free demo account upon registration – customization may apply if more than $10,000 is deposited;
- More than 150 CFD asset choices, including Currency pairs (51 plus BitCoin), Stocks (74); Indices (12); and Commodities (13);
- Trading platform is proprietary, online only, and requires no downloads;
- Mobile apps are also available;
- No commissions charged – XTrade is compensated for its services through the Bid/Ask spread;
- Leverage can be as high as 400:1 for forex, and as low as 20:1 for stock CFDs;
- Trading support includes professional charts, technical analysis tools, alerts, and training provided by customer service reps;
- Customer service reps are bilingual and accessible “24X6” via live chat, email, or direct phone.
Spreads and Leverage
Spreads and leverage are published on the website for every asset choice. Each asset has its own individual criteria, but as a group, leverage can be 400:1 for currency pairs, 200:1 for commodities and indices, and 20:1 for stocks. XTrade is compensated via the Bid/Ask spreads, which do vary by asset, and margin requirements are also stated separately. Margin calls can be a possibility with CFDs, if the market moves abruptly against you.
Processing CFDs requires an entirely different back office and software protocols. To accommodate its needs in the most effective manner, the management team at XTrade chose to develop its own proprietary trading platform. It has the look and feel of other online systems, is user-friendly, and allows one-touch access to open positions, asset choices, history, and trading tools. No complex downloads are necessary, and mobile applications complete the platform possibilities. For security and safety purposes, all personal information and trading session data are encrypted using the latest in 256-bit SSL technology. Hackers will not ruin your day with this broker.
Deposits and Withdrawals
XTrade offers nearly 40 different ways to deposit funds, $100 being the minimum amount required. In addition to credit and debit cards and banking wire transfers, they support a host of ewallet and domestic payment provider alternatives. Withdrawals must follow the same deposit route, per law, and withdrawals will be a snap, as long as AML documentation is in order, once again as per international law.
Beginner’s and Customer Support
Customer service representatives are available “24X6” and can be accessed via live chat, direct phone, or email. Xtrade also has five global offices to service your direct needs. The reps speak six languages, and the website supports 16 languages. Account managers can address your queries directly or guide you through set up, system familiarization, and training education, if necessary. The website is full of helpful examples that explain how spreads, leverage, and risk management tools apply.
Trading CFDs is one of the newer trading methods to hit the forex market in recent years, and with any innovation, it helps to be with a pioneer in the genre that has years of experience at its craft. XTrade has been at it since 2010, with an experienced management team from the brokerage industry. They have a global footprint with five offices, spread over five continents, service customers in 140 countries, and benefit from broad-based compliance with a number of regulatory bodies in several jurisdictions. If you want to try out CFDs, then XTrade is worthy of your consideration.