renesource.com briefly
The website renesource.com is operated by the Latvian financial company AS IBS “Renesource Capital”, which is the largest investment brokerage in the country. The company has a business strategy focusing on investment services and financial consulting. Renesource Capital was established in 1998 and in 2013 it received the license by Financial and Capital Market Commission (FCMC), which allows it to conduct investment brokerage services. Customers can trade forex, CFDs on indices, commodities, and shares, bonds, and options through the set of popular trading terminals such as MetaTrader 4 (MT4), Currenex, Integral, etc. The company claims it is a Straight Through Processing broker, which provides Direct Market Access (DMA) and does not compete with its clients. You can start trading with as low as USD10.
Regulation
Renesource Capital is licensed by Financial and Capital Market Commission (FCMC) in Latvia as a professional participant in securities markets under license number 06.06.04.114/118.2. According to the Investor Protection Law in Latvia, which comes into force for all providers of investment services (including brokerage companies), if the company is unable to fulfill its obligations toward customers, investors could receive compensation. They can receive 90% of the value of the lost capital – up to EUR20,000. In accordance with the FCMC regulations and the Financial Instrument Market Law of the Republic of Latvia, the company will deposit the money of customers separately (segregated) from its own money.
Account Types
There are three types of MT4 live accounts, which differ mainly in the spread and the minimum required deposit.
Micro account – There are 90 currency pairs, Gold and Silver available for trading and the minimum spread for the EUR/USD pair is 0.6 pips. Trading is commission free. The minimum required deposit amount is USD10. The stop out level is 10% (50% for retail clients).
Classic account – There are 90 currency pairs, Gold and Silver available for trading and the minimum spread for the EUR/USD pair is 0.6 pips. Trading is commission free. The minimum required deposit amount is USD500. The stop out level is 30% (50% for retail clients).
Pro account – There are 90 currency pairs, Gold and Silver available for trading and the minimum spread for the EUR/USD pair is close to zero. А commission of USD25 is charged per 1 million USD traded. The minimum required deposit amount is USD1,000. The stop out level is 30% (50% for retail clients).
If you are an experienced trader, you can trade through the Integral or Currenex platforms. The minimum required deposit is USD10,000. Spreads are close to zero at the expense of the USD25 commission per 1 million USD.
In addition, there is the MT4 account for trading CFDs on Commodities and indices. The minimum deposit is USD100 and the standard spread for the WTI Crude Oil is USD0.04.
The trading of shares and options is available through the QUIK platform. There is no minimum deposit required but you must pay a monthly platform fee of USD250. The commission is 0.035% of the trade size.
Market Maker or STP brokerage?
The Order Execution Policy file shows that Renesource Capital executes client’s orders in two ways. It can execute the client’s order in the name of the company against the order of another client or the third party. In this case, the company is the client’s order execution venue – it may not transmit the order to some of its liquidity providers and keep the risk for itself. In other words, it acts as a market maker. The other way is when Renesource Capital forwards the order for subsequent execution to a trading venue or to the company’s counterparty. In this case, the company uses a Straight Through Processing (STP) model to execute orders and it does not keep the financial risk to itself, but transfers it to the liquidity providers; therefore, there is no conflict of interest. However, when it acts as a market maker, every loss for customers is a profit for the company and the conflict of interest exists.
The document does not mention anything about the stop loss and existence of slippage.
The Investor Protection document informs that the ESMA regulation provides retail (private) clients with negative balance protection. During rapidly changing market (high volatility) conditions when the sudden price changes affect substantially the underlying assets, the client’s account balance may become negative. With this measure, the maximum loss that a retail client can suffer from CFD/FOREX trading including all related costs will be limited to the total amount of its deposit on the CFD/FOREX account.
Fees
In addition to all the usual fees, such as spreads and rollovers, there is also an inactivity fee. If the account has shown no activity (no transactions on financial instruments) for 6 months. The inactivity fee that will be charged is EUR35. This maintenance fee cannot produce negative account balance and will not be charged if the account balance is below EUR35.
Deposits and Withdrawals
Deposits can be made only by bank transfer. Standard bank transfer may take from 1 to 3 days, depending on the transfer type. Funds transfers are subject to a commission fee of EUR35.
Withdrawals can only be made to the same bank account from which they were made. The company charges a fee of EUR35. Withdrawals are processed in one business day and the transaction time is within 1-3 business days.
Trading Platforms
You can trade via a set of terminals – MetaTrader 4 (MT4), Currenex, QUik, Integral. For currency pairs, precious metals, and contracts for difference (CFD) trading, Renesource Capital offers one of the most popular electronic trading platforms: MetaTrader 4 (MT4). This is the world’s most in-demand trading platform allowing access and trade on a variety of markets. Renesource Capital provides Non-Dealing Desk (NDD) execution, based on ECN aggregation technology and straight through processing (STP) to multiple liquidity providers on the best bid and best ask conditions. The company’s MT4 technology is integrated directly with major liquidity providers (tier 1 banks, financial institutions, and ECNs) which based on competition and anonymity streams prices and liquidity, the company claims.
Renesource Capital, in cooperation with the international liquidity provider Integral, brings customers’ orders directly to ECN Exchanges. The Integral platform aggregates and quotes from liquidity providers, giving its customers depth of liquidity and best price, which results in the best deal available in the market. It is available to FX Pro accounts only.
Currenex is one of the industry leaders in trade processes and liquidity aggregation. Currenex is designed for professional traders to trade fast and efficiently on a wide range of currency pairs using a variety of order types. Renesource Capital offers its clients direct access to the interbank currency market using Currenex trading platform and FIX protocol.
Assets
Currency pairs – 90 major, minor, and exotic currency pairs can be traded. Spreads depend on the account type and the minimum value for the EUR/USD pair is 0.6 pips for the Micro and Classic accounts.
Indices – You can trade a set of futures and options on indices and commodities available on CME, ICE, NYSE, and LME exchanges. This can be done through the J-Trader, CQG and QUIK platforms.
Commodities – 9 of the most traded commodities are available as CFDs, such as Gold, Silver, Oil, Brent, Natural Gas, etc. The average spread for the WTI Oil is USD0.04.
Shares, Options, ETFs and Bonds are also available for trading through different platforms.
Summary
Renesource Capital has a Latvian regulation and mainly uses the STP model to execute orders, so there is no major conflict of interest. However, the company may act as a market maker as well. You can trade plenty of instruments including currency pairs, commodities, indices, and shares through the set of available platforms. You can deposit and withdraw only by bank transfer and to start trading you will need just USD10. Spreads are variable and the one for the EUR/USD pair starts from 0.6 pips. The Pro account offers raw spreads at the expense of the commissions.
