Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Trading.com is the new brand of Trading Point Group, which also runs the well-known XM brand.
The launch date for the Trading.com platform was recently announced for July 20th. At first it will only be available in Europe, under the company’s FCA license, with plans to launch in the US in the near future. This comes after news that Trading Point Group is about to get a license from the National Futures Association (NFA), becoming one of the few brokers, along with IG, OANDA and Forex.com, that are legally licensed to operate on US soil.
Trading.com regulation & safety of funds
For the EU launch of Trading.com, the brand will be operating under Trading Point of Financial Instruments UK Limited, which is licensed by the UK’s FCA. Essentially, Trading.com will be replacing XM UK, the brand name previously associated with the company’s UK entity.
Obtaining a U.S. license is a serious step for any broker, because of the prohibitively high minimum operational capital requirement set by the NFA – $20 million. That is the reason Trading.com will be among the very few brokers that will have the privilege to offer brokerage services to U.S. citizens.
All U.S. regulated brokers should be NFA Forex Dealer Members and Futures Commission Merchants and that means they will have to follow very strict standards of corporate governance, financial reporting and disclosure.
Also, in the US, brokers are not allowed to offer leverage exceeding 50:1.
Trading.com trading conditions
For the European launch, Trading.com will be offering the Ultra-Low Standard and Ultra-Low Micro accounts, which provide spreads as low as 0.6 on FX, with maximum leverage of 30:1. The trading conditions offered to clients will be competitive, mirroring those offered by XM. Trading.com will offer the MetarTrader5 platform in Europe.
Trading.com deposit/withdrawal methods and fees
Most brokers in Europe accept payments with credit or debit cards like VISA and MasterCard, bank wire and popular e-wallets like Neteller, Skrill and PayPal. We are not sure, however, what payment methods Trading.com will adopt for its US customers.
We still do not know the exact trading conditions Trading.com will offer when they launch in the US, as their platform is not yet operational as of the time of writing. It is possible however that spreads will continue to be competitive. And, as we have already noted, the maximum leverage allowed on the US market is 50:1