Finexo.com briefly
FINEXO.com is a trade name operated by Trade Capital Markets (TCM) Limited, which is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). Finexo.com is defined as a portal where all types of traders will find the things they need to improve their trading strategies by having access to the most popular assets in the world. Finexo.com has created an online interactive trading community which allows traders to network, share, and copy trading tips and strategies. Clients can trade currency pairs, commodities, indices, and cryptocurrencies, through the popular terminal MetaTrader 4 (MT4), investing at least USD100.
Regulation
EU-regulated brokerage firms are attractive because they must adhere to the latest stringent requirements of supervisors. Finesco.com is a trade name of Trade Capital Markets (TCM) Limited (ex. Leadcapital Markets Limited), which is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 227/14. In addition, Trade Capital Markets (TCM) Limited is authorized by the Financial Sector Conduct Authority (FSCA) in South Africa under financial services provider number 47857. These licenses allow the company to conduct financial services such as reception and transmission of orders and execution of orders on behalf of clients.
Account Types
There are five types of live trading accounts, which differ mainly in the spread and the minimum required deposit amount.
Micro account – The minimum required deposit is USD100 and the average spread for the EUR/USD pair is about 3 pips.
Silver account – The minimum account size is USD1,000 and the spread for the EUR/USD pair is about 1.9 pips. In addition, you will receive daily analysis and a dedicated account manager.
Gold account – The minimum account size is USD10,000 and the average spread for the EUR/USD pair is about 1.5 pips. In addition, you will receive premium daily analysis and access to the Trading Central.
Platinum account – You must invest at least USD50,000 to open it. The average spread for the EUR/USD pair will be about 1.2 pips. In addition to all features of the Gold account you will receive “premium customer support”.
Exclusive account – You must deposit at least USD100,000 to open it. The average spread for the EUR/USD pair will be 1 pip. The account has all the features of the Platinum account.
Market Maker or STP Brokerage?
We have found in the Client Agreement document that Trade Capital Markets Limited acts as “Matched Principal” to client transactions and the company is the only execution venue in relation to client CFD trades. The company may transmit client orders for onward execution to third party liquidity providers, however contractually it is the sole counterparty to all client trades and any execution is done in its name. It is additionally clarified that the company is a principal in the CFDs that clients trade for which it offers prices and acts as the only execution venue for CFDs. Trade Capital Markets Limited is the counterparty to each trade for the CFDs trading. In other words, the company is a market maker and counterparty to all client orders. Being a market maker involves a conflict of interest because when the company executes orders and does not transmit them, it keeps the risk to itself. Every loss for customers is a profit for the company.
The same document reveals that under certain trading conditions including but not limited to highly volatile markets it may be impossible for the company to execute client orders. Under such conditions it reserves the right to execute client orders at the next best price. This means that all types of orders are subject to slippage and will be filled at the next available market price; therefore, stop loss orders are not guaranteed.
In addition, the company provides all retail clients with Negative Balance Protection. The Client Agreement document shows that the company provides retail clients with a guarantee that their losses can never exceed the total funds in the trading account. In the event of a negative balance in a retail client account, the company will not file a claim against a client for that amount.
Fees
In addition to usual fees there also is an inactivity fee. If the client account is inactive for 90 days or more, the company will charge a USD25 monthly fee. If the account is not active for more than 12 months, an annual inactivity fee of USD100 will apply.
There also is a conversion fee, which applies when the account currency is different from the quoted currency of the underlying asset being traded. The fee will be reflected as a percentage of the conversion rate used.
Deposits and Withdrawals
Customers can use several deposit methods such as wire transfer, credit/debit cards, Skrill and Neteller. Some of the payment providers the company uses are Sofort, Giropay, iDEAL, Safetypay, etc. The company does not accept payments by cash.
Withdrawals should be made using the same method used by the customer to fund his trading account. The minimum withdrawal amount for all methods (excluding the wire transfer) is USD20. The minimum withdrawal amount requested for wire transfer is USD100. Any withdrawal request for an amount below the two mentioned above, will incur handling and processing charges as follows: minimum USD10 for all methods (excluding wire transfer) and minimum USD50 for the wire transfer.
In all other cases, all deposit and withdrawal fees are covered by Finexo.com.
Trading Platforms
You can trade via one of the most advanced and popular platforms currently – MetaTrader 4 (MT4). The MetaTrader 4 terminal allows users to trade in the financial markets providing all the necessary tools and resources for analyzing the price movements, making deals, and creating and using automated trading programs (Expert Advisors). MetaTrader platform is available as a desktop version, as a mobile app for Android and iOS devices, and as a web-based version that can be run on any modern browser.
Assets
Forex – You have access to 55 major, minor, and exotic currency pairs. The average spread for the EUR/USD pair depends on the account type and is 3 pips for the Micro account and 1 pip for the Exclusive account.
Indices – You can trade 26 of the major indices globally, such as DAX30, DJIA and CAC40. The average spread for the DAX30 is 2 points for the Micro account and 1.4 points for the Exclusive account.
Commodities – 5 precious metals, 3 energy products, and 8 agricultures are available for trading, including Gold, Silver, Crude Oil, Brent Oil. The average spread for the Gold is USD0.70/0.40 and the one for the Crude Oil is USD0.05/0.02 depending on the account.
Shares – There are CFDs on over 250 companies available for trading. The average spread for the Apple Inc is USD0.0.3. Trades are charged with a commission between 0.08% and 0.20% depending on the account type.
Cryptocurrencies – Finexo.com claims it offers CFDs on Bitcoin, Ethereum, Litecoin and Dash for trading but there is no detailed information about the conditions.
Summary
Finexo.com Trading has a CySEC regulation, which allows it to provide financial services across European Union. It acts as a market maker and the main conflict of interest exists. The company provides a wide range of trading instruments via the popular MT4 platform. There are five types of live accounts that differ mainly in the spreads and initial deposit. If you want to trade in conditions with narrow spreads, you must invest at least USD10,000 (Gold account).
