Minimum Deposit: $250
Maximum Leverage: 1:200
My Score: 1.0
Novatrades is a fairly new broker that started offering forex services in 2018. Many investors actually have some worries about Novatrades. Because it is a fairly new brand and there is not much information about it. Such a situation is usually worrisome for investors. However, brokers who are just starting to provide services may not be able to perfect some technical details soon. In the early days there were such worries even about the brokers who were known to be reliable. I can say that every broker goes through this process. However, how they evaluate this process is very important.
Is Novatrades scam or reliable broker? What criteria should we examine to understand this without taking risks? Are account types and spreads offered by Novatrades advantageous? What are the advantages and disadvantages of this broker? Are there any depositing and withdrawal problem? In this Novatrades review, you will read detailed answers to all these questions and possibly the most comprehensive review about it you can find on the net.
One of the most important sources of concern about Novatrades is regulation. Because the company is registered in Marshall Islands, but as far as I understand, there is no license from here. It is normal for brokers that just start offering services to use such off-shore licenses. However, at least, all information about this license must be easily accessible and transparent. I do not see any license information when I enter Novatrades official website. Therefore, there is a lack of regulation.
If you encounter any problems with Nova trades, you can not find a watchdog that you can complain about.
Account Types in Novatrades
|Account Type||Minimum Deposit||Maximum Leverage||Average Spreads|
Novatrade offers 4 different types of accounts: Mini, Bronze, Silver and Gold. The only account type that has a fixed spread feature is Mini; 3 pips for EURUSD. The minimum deposit amount is $ 250 for the mini account type. However, the minimum deposit amount in other account types is not clear. Also, the leverage ratios offered by Novatrades are not competitive. Maximum leverage is 1: 200, which is quite low and not advantageous compared to other brokers.
In addition to these account types, there is also a swap-free account option called Islamic account for Muslim investors who do not want to earn or pay interest due to religious sensitivities. The Islamic account has both fixed and floating spread options. To use an Islamic account, you must contact the broker and apply. The broker may ask you to document your faith.
MetaTrader4 is offered by Novatrade as an online trading platform that many investors are familiar with. However, when I downloaded the demo MT4 from Novatrade for testing, I saw IForex24 on its starting screen. After reviewing other users’ comments, I will also note that Novatrades may be a scam broker targeting Italian investors as a brand related to IForex24 company.