70trades is a forex broker, offering three account types. While we couldn’t find the qualification criteria, to get a better account type, we did a lot of research on the broker and will be presenting it in this review.
The Company. Security of Funds
Company Country Regulation
Commodius FX Ltd. Vanuatu VFSC
70trades is owned by Commodius FX Ltd., a Vanuatu registered broker. The local Vanuatu Financial Services Commission – VFSC regulator is better than nothing, but we would still not recommend trading with an off-shore company.
The island of Vanuatu is a bit of a hot-spot for dishonest forex brokers. This is mainly due to the fact, you only need $2,000 in order to open a new brokerage there. Of course, not all companies registered there are scammers, but this lack of strictness does attract scammers and ruins the island’s reputation.
Regulation should be an important factor for you, when comparing forex brokers. A company which is registered under the Australian ASIC, for instance, has to keep clients funds in segregated accounts. This effectively means, the broker can not freely access clients’ deposits and spend them in any way. Additionally, ASIC requires AUD 1 million in capital holdings from new brokerages, as a sign of good will. Compare that with the $2,000 requirement in Vanuatu and you will see our cause for concern.
Minimum Initial Deposit
The initial deposit requirement at 70trades is $200. This is a higher than what most other brokers demand. Some even go extremely low, like FXTM which only requires $5 for your first deposit. Keep in mind the minimum requirements should only be used for testing a company’s service. A long-term trading system has to be backed by adequate capital.
Average spreads & Commissions
70trades offers fixed spreads, starting from 3 pips for EUR/USD. This is above than the current industry average. Other fixed spread brokers offer much better conditions, with easyMarkets going as low as 1.0 pip on EUR/USD. While fixed spreads offer some form of stability, you may also want to look into floating spreads.
The maximum leverage, offered by 70trades is 1:200. This is in line with offers by other brokers and definitely enough for a sensible trading strategy.
High leverage can be a double-edged sword, as it amplifies both your winning and loosing trades. In fact, it can be so dangerous, US regulators decided to set a cap for the levels offered to retail clients at 1:50.
70trades offers the PROfit trading platform. At first it does feel a bit weird, when compared to other platforms. The chart window is relatively small, but this can easily be adjusted. Other than our dislike for the classic layout, everything else seems to be intuitive.
That being said some forex veterans will miss their favorite custom indicators and automated systems, available for MetaTrader4.
Methods of Payment
70trades offers quite a few payment methods. They include the typical Bank Transfer, Credit/Debit Card and e-wallets such as Skrill, Netteller and Weboney.
70trades Review Conclusion
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