BBM Trade Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this BBM Trade Review.
BBM Trade Review
Bear Bulls Markets, or simply BBM-Trade is a forex and CFD broker, which offers multiple account types. As you can see from the table above, the deposit requirements are rather fair for the first two levels and get a lot steeper for the second two. Shariah compliant accounts, in which no swaps are charged, are also available.
The Company. Security of Funds
Company Country Regulation
BBM Trade Ltd. Vanuatu VFSC
BBM Trade Ltd. is the company behind the eponymous broker. It is registered in Vanuatu and is regulated by the local authorities – the Vanuatu Financial Services Commission. This is still some sort of regulation, but we are generally skeptical towards off-shore brokers.
As you may already know, many forex brokers are registering in Vanuatu. This is due to the country’s low capital requirement of only $2,000. If you compare it with the similar requirement in, let’s say, Australia you would be shocked. The Australian Securities and Investments Commission (ASIC) demands AUD 1 million in capital holdings, before granting a new company the coveted license. Furthermore, the Commission forces companies to apply segregation of client finds. In essence, this means traders’ money is kept in different bank accounts from the company’s operative ones. This prevents dishonest brokers from spending their clients’ investments on marketing campaigns, salaries and corporate bonuses.
While Australia and Vanuatu both attract forex brokers, the credibility of one of the groups is much greater than the other.
Trading Conditions
Minimum Initial Deposit
The minimum initial deposit at BBM-trade is set at $500. Nowadays this is considered to be a high level. Some brokers target the masses by lowering the entry barrier to a point, where most people can get a taste of trading the global financial markets. As an example, FXTM only requires $5 for a cent-account.
Keep in mind the minimums are suitable for new traders or testing a company’s service. On the other hand, a trading system must be funded adequately, if it is to succeed in the long-term.
Average spreads & Commissions
The trading conditions at BBM-Trade vary a lot, based on your initial deposit. The first couple of levels are not relevant to the current industry standards, while the rest are dependent on the quality of the price feed. Our testing showed the EUR/USD spread fluctuating around 0.5 pips, minutes after the opening bell at Wall Street – one of the most liquid times of the day. Do keep in mind, you have to add the appropriate commissions.
An easy rule to remember is the following – a dollar, per lot in the commissions is worth 0.1 pips in effective spread. To put it in perspective the average EUR/USD spread will be around 1.5 pips for the Platinum account and 1.1 pips for the VIP. These are relatively competivie spreads, given the current offers by other brokers.
Leverage
Leverage ratios at BBM-Trade vary, based on the account type from 1:400 to 1:100. They are all sufficient for serious trading, which involves some risk management concepts. Furthermore lowering your gearing, with bigger accounts seems like a sensible policy.
The key concept which new traders often fail to grasp is that you do not have to fully utilize the maximum leverage which is available to you. Say you have deposited $10,000 and have a 1:100 leverage ratio available. This does not mean, you should open a position (or multiple positions) with a nominal exposure of 1 million ($10,000 x 100) at the same time. If you do so a mere 1% move against you, will wipe-out your entire account. Consider what the same example, with a1:500 level, which many companies offer, by the way.
Trading Platforms
BBM-Trade provides its services via the popular MetaTrader 4 (MT4) platform. It is the world leader, when it come s to currency trading and there is a reason for that. Other than the excellent charting capabilities, it can also load a lot of instruments without lagging (depending on your hardware, of course). Probably its most unique feature is the plethora of custom tools which are available. Everything from new technical indicators, market screeners, which note every move and automated trading systems are available in the MQL marketplace.
Furthermore there are mobile apps, in the two most popular stores. They are full with almost all of the functionality provided by the desktop version. One of the most neat features is that you can load multiple accounts, even if they are with different MT4 brokers on the same app. This basically allows you to easily switch between your different accounts, without taking extra storage on your device.
Methods of Payment
BBM-trade provides several payment options. They include Bank Transfer, Credit/Debit Card, Skrill, CashU, Qiwi, Webmoney and Neteller. Overall, this is a pretty decent selection, which covers both traditional methods and e-wallets.
BBM-trade is an off-shore forex broker. The company provides vastly different trading conditions for the different account holders. While trading conditions for the first two account types are not competitive, the ladder two are in-line with the current state of the industry.
The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
BBM Trade Review Conclusion
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