JDC Markets Review
JDC Markets offers its clients three account types, all of which offer commission-free trading with leverage up to 1:100 and variable spreads. Micro lots are available for trade.
The Company. Security of Funds
Jin Daocheng Ltd
launched in 2016, JDC Markets is a forex and CFD broker, offering wide range of financial instruments for trade on the widely used MetaTrader 4 platform. This is a brand of Jin Daocheng Ltd., a Cypriot Investment Firm (CIF), licensed by Cyprus Securities and Exchange Commission (CySEC). Although JDC Markets claims to offer pure Straight through Processing (STP), the terms and conditions uploaded on the broker’s website, clearly state that it acts as a Market Maker.
Cyprus is one of the most popular forex and binary option hubs worldwide. This is probably due to the fact that both its financial and technology sectors are well-developed and also, to the well-balanced regulation in the country, which is part of the EU. First of all, CySEC requires licensed brokers to hold at least €730,000 in order to prove their good financial standing. Cypriot forex brokers are also required to keep customer funds in segregated accounts, separated from the company’s operating funds, and to report transactions on a regular basis.
As a further guarantee to clients’ funds, all CySEC-regulated companies are members of the Investor Compensation Fund, which is able to pay compensation up to 20,000 EUR, if a regulated company is becomes insolvent.
Minimum Initial Deposit
In order to open an account with JDC Markets, traders have to invest a minimum of $100 which is average for the industry.
Spreads & Commissions
JDC Markets offers floating spreads, averaged 2 pips on EUR/USD on Silver account types, which is above the average for the industry. Gold account holders are able to use typical spreads of 1.5 pips for this pair, which is not a very competitive either, but must invest significantly higher initial deposit.
By comparison, Windsor Brokers’ average variable spreads amount to 0.4 pips on EUR/USD, and feature a commission $4 per standard lot (per side). Windsor brokers is also licensed by CySEC and also requires an initial investment of $100.
For more information, you may look up real-time spreads of more than 10 major brokers at topforexbrokers.com.
The maximum leverage level offered by JDC Markets is 1:100, which is standard for the FX market. However, many Cyprus-based brokers offer considerably higher leverage rates – for example, Windsor Brokers provides leverage up to 1:400, and FXTM – up to 1:1000.
Keep in mind that high leverage levels are not for everyone, as they involve great risks of losses. Make sure you are fully aware of the risks involved in margin trading before using high leverage ratios.
JDC Markets has made MetaTrader4 (MT4) its trading platform of choice, available as a desktop download, web version and mobile apps.
The MT4 offers a number of built-in technical indicators, great charting package, wide range of Expert Advisors (EAs) and extensive back-testing options. Traders can download ready-made or create their own EAs and indicators, if they are handy with code, and let the program do all the work.
However, when we tested JDC Markets’ demo MT4, the spreads turned out to be several times lower than the announced ones. If a broker offers average spread of 0.3 – 0.4 pips on majors, there is no way for the company to be profitcable.
Methods of Payment
Currently JDC Markets offers its clients the only bank wire transfers as payment methods. Credit/debit card payments, as well as popular e-wallet payment systems Skrill and Neteller are not available with this broker.
JDC Markets is a well-regulated forex and CFD broker that offers reasonable conditions for trading on the standard MT4 platform. Unfortunately, the broker acts as a counterparty to all its clients’ trades, so a conflict of interest is possible. Besides, its spreads are above the average for the market on the basic Silver account types. Also, spreads on the demo MT4 are different from the announced ones.
JDC Markets Review Conclusion
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