Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
24CM is a Cyprus-based CFD forex brokerage with a wide range of trading products. It provides traders with a web-based trading platform, has a spread of 1.5 pips on EUR/USD and requires the industry average minimum deposit of $250. The leverage is also reasonable at 1:50 and we must say that 24 Capital Markets offers pretty favorable trading conditions.
24CM regulation & safety of funds
24CM states on its website to be regulated by the Cyprus Authorities and gives a reference number. After checking with the online registry of Cysec, we can confirm that 24 Capital Markets is in fact included in their regulatory framework. Such strict oversight by a reputable regulatory body should be highly advantageous for the brokerage, because it highly boosts its credibility.
Regulatory bodies such as the FCA or CySec also force a broker to comply with a number of rules that lower the risk of fraud and give assurance for the safety of the clients funds. Something which always tops the criteria in deciding whether a broker is legitimate for trading.
One such rule is the segregation of accounts which forces the brokerage to handle the finances of the clients separately from their own and greatly lowers the risk of commingling. Another is a requirement for a starting capital of € 730 000 which weeds out scammers, since they do not have such liquidity.
24CM’s deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via Credit card, Debit card, Wire transfer and Skrill. We view the lack of a variety of options for deposits or withdrawal as a disadvantage because it limits the possibilities for traders. Furthermore, there are withdrawal fees – clients will be charged 3.5 per cent via Card and $30 if they decide to use a wire transfer. We also came across inactivity fees in the terms and conditions which posit that all accounts which go unused for more than 2 months will be charged € 80. The inactivity fee gets higher with time – with inactive for more than six months accounts being charged a whole € 200. There is also a maintenance fee of €10 a month.