Minimum Deposit: $1.000
Maximum Leverage: 1:100
My Score: 4.2
Finotrade is a forex broker established in 2018 and started to serve. The broker is a brand of Finotec Trading UK Limited. Parent company Finotec Trading UK Limited is licensed by FCA in the UK. At the same time there are other brands of this parent company. Finotrade is one of these brands as a newly established broker. So Finotrade, although a new broker, is able to say that they are experienced in forex brokerage industry.
In this Finotrade review, you will find information such as account types offered by the broker and their spreads, payment methods, minimum deposit. I will also refer to Finotrade scam or a reliable broker. If you have any other questions that you have in mind, you can ask me. I will try to answer in detail as soon as possible.
Let’s browse together.
Regulation and Investor Protection in Finotrade
I think the biggest advantage of Finotrade is regulation. Because Finotrade is regulated by FCA.
Regulation is usually the most problematic issue in newly established brokers. Because it is very difficult to obtain licenses from reputable regulators such as FCA or CySEC. These regulators have very strict rules. Brokers fulfilling these conditions are already very reliable.
FCA regulated brokers are required to hold 730,000 euros in the company’s bank account as minimum net capital. In addition, the clients’ funds and the broker’s operational accounts have to be on separate accounts in the bank. Thus, if the company encounters a potential financial difficulty, the customer will not be adversely affected.
Perhaps one of the most important advantages of the FCA license is the Financial Services Compensation Scheme (FSCS). All FCA regulated brokers are members of the FSCS. In the event of business interruption, clients’ funds of up to £50,000 are guaranteed by FSCS.
In general, none of the newly established brokers can obtain a license from FCA. Although Finotrade is a new broker, the parent company Finotec Trading is highly experienced and has a large number of brands.
Account Types in Finotrade
FinoTrade offers 4 different account types: Classic, Gold, Platinum, VIP. The most important difference between account types is the minimum deposit amount. For example; the Classic account that looks like the standard account on other brokers has a minimum deposit of $ 1000.
This is a very high amount in terms of minimum deposit. For example, FXPRO, which is also FCA licensed, has a minimum deposit of $ 100. It is also a well known broker all over the world, offering much better trading conditions.
Another important disadvantage is that the minimum trade size is 0.1 lot. That is, micro lots that are equal to 0.01 lot are not available. Today, nano lots are used beyond micro lots, and some brokers like XM Forex or FXTM offer nano account types.
One of the negative aspects of Finotrade is that it does not have a transparent website. It’s hard to find the information you’re looking for. In fact, some important information is not included. For example; There is no information on official websites about spreads.
According to the information I get via demo account type, spreads of 0.4 pips on EURUSD. These spreads are highly competetive. If I compare with FXPRO that another FCA-regulated broker, spreads of 1,4 pips on EURUSD at FXPRO. So, spreads offered by Finotrade is ultra-low but commission may be charged by the broker. There is no information about commission on the official website.
One of the most important problems I see is customer support. When you ask a question via a live chat, you can not communicate with a person. You are constantly being asked for your phone number via a chat bot. Also, the speed of responding to mails is very slow.
I can say the most restrictive among the brokers that I have examined so far for deposit and withdrawal methods. Only wire transfer, SafeCharge which is e-wallet system and Chine Union Pay can be available for funding. You can see that many brokers have dozens of ways of depositing and withdrawing money.