RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
CoverDealFX is a Cyprus based brokerage that focuses on CFD trading. It holds a license from a top European regulatory agency and provides its clients with a wide range of both trading products. CoverDealFX supports the MetaTrader 5 terminal. The minimum deposit is the standard $250 which we view as an acceptable amount but the spread on EUR/USD is quite high and unfavorable for traders at 3 pips.
CoverDealFX regulation & safety of funds
The brokerage CoverDealFX is owned and operated by the Cyprus-based company CoverDeal Holdings Ltd.
It assures its clients of its legitimacy by following the strictest regulatory standards. The company is licensed by the Cyprus Securities and Exchange Commission with CIF license number 231/14. Cysec is one of the top regulatory agencies in the world. Brokerages licensed by it have to comply with rules such as a minimum starting capital of $730 000 which gives assurance for financial stability. Furthermore, companies that fall under the regulatory oversight of CySEC are members of the Investor Compensation Fund which renders them capable of providing compensations of up to 20,000 EUR per person in the unlikely even the brokerage goes bankrupt. We always recommend readers deal only with regulated brokerages that have been issued licenses by top-notch agencies such as CySEC or The Financial Conduct Authority of the UK which is also among the foremost regulators in Europe and also requires a minimum capital of €730 000. There is also a compensation scheme set up which may recover clients losses up to €85 000.
Another thing worth noting is that the broker claims to be a Straight Through Processing broker, which has its advantages since a STP broker only yields a profit through a trading commission or through a higher spread. This is significant because whether the client suffers losses does not affect the winnings of the broker which is not the case with market makers, which make a profit from their client’s losses – a reality that poses a serious conflict of interest.
CoverDealFX trading software
As was stated above, the brokerage the MetaTrader 5 platform which is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). Beginner traders will find the trading platform easy to use as well, due to its user-friendly lay out.We were able to register for a demo account and get a look at it. As was mentioned above – the selection of trading products available for clients is quite impressive and includes CFDs on precious metals, indices, as well as crypto currencies which we highly value as an advantage for potential clients of the broker. The industry average in Forex trading is a pip and a half which, however, puts the spread offered by CoverDealFX outside what we would call favorable. Furthermore, the brokerage extends a leverage up to only 1:30 which is quite conservative but also the maximum allowed under the latest guidelines by the European Securities and Markets Authority (ESMA).
CoverDealFX deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw only via the standard Visa and MasterCard, as well as bank transfer. There are no withdrawal or deposit fees, nor we could we find any troubling provisions in the terms and conditions of the brokerage. The only provision worth noting is that the brokerage charges an inactivity fee which is quite common in Forex trading.
All accounts that have been inactive for more than a month will be subject to a $15 charge. However, due to the obscene amount of scamming in online Forex trading, we always advise traders to put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.