OnlyTrades is allegedly a forex broker. The company’s website offers multiple versions of the trading conditions and we can’t be certain which are true. Here are a couple of screenshots (Click to zoom in):
Furthermore at the time of writing of this review, real accounts can’t log-in the trading platform, while demo ones can not be created.
The Company. Security of Funds
Company Country Regulation
Marantino Capital Malta N/A
The company behind OnlyTrades is Marantino Capital, which is registered in Malta. That being the case, they do not claim any affiliation with the Malta Financial Services Authority (MFSA). Had they been registered with the watchdog, they would have been a lot more credible.
Malta is an EU Member State, and as such is part of the The Markets in Financial Instruments Directive (MiFID) framework. These are a set of unified rules, regarding the financial services sector, which allow brokerages registered in one EU country to operate freely in the entire single market (although there are some specifics in certain places). One of the key MiFID regulations, in terms of the security of clients’ funds, is the minimum capital requirement of € 730,000. This high entry barrier prevents scammers from registering.
As an example, Cyprus is also an EU Member and is part of MIFID. Furthermore, the country is much more popular with forex brokers. You may have heard of its regulatory agency CySEC. It applies additional regulations, like the mandatory segregation of client funds. In essence, it dictates a broker must keep traders’ capital in special bank accounts, which it can not freely access. On top of that brokers must participate in the local compensation scheme – an insurance like mechanism, which serves to protect clients in case the firm they trade with goes under. If you are dealing with a CySEC-regulated broker, your account will be covered up to €20,000.
Minimum Initial Deposit
OnlyTrades requires a minimum initial deposit of $5,0000. This is way out of line with the contemporary state of the industry, where brokers constantly lower the entry barrier, in order to attract new clients. Take FXTM, for instance – you can open a cent account there with as low as $5.
While we often mention the minimum deposit does not speak volumes, in terms of a company’s credibility, this may be one of the few exceptions. An unregulated entity demanding so much from a new client seems fishy. Brokers, who offer real-stock trading (with no leverage) often require such sums, but that is due to their service (not to mention they are regulated).
Average spreads & Commissions
OnlyTrades doesn’t reveal anything about its spreads. Furthermore the platform can not be started and while this may be a temporary issue, it reaffirms the negative impression. After downloading the platform, we saw 4-digit quotes, with spreads starting from 2 pips. They may be fixed, but there is no way of knowing that. If these are the real conditions, they are at the high range of fixed spreads. As a comparison, FxPro provides fixed spreads, starting from 1.6 pips. That being said they also offer variable spreads, which are usually even lower. In order to compare the spreads, which some of the world’s leading brokers offer, feel free to go to our dedicated real-time spread comparison page.
OnlyTrades allegedly provides a 1:200 leverage ratio. While this may appear to be high in some traders’ eyes, there are brokers who provide even higher ratios, like 1:500.
Keep in mind, trading with high leverage is very risky and can lead to losses, which occur swiftly. Be sure to fully understand the risk involved in forex trading before participationg.
MetaTrader4(MT4) is the platform, by which OnlyTrades provide their services. As we mentioned previously, their iteration does not appear to be running (at least, at this point in time). That being said, MT4 is still a great platform, which is provided by multiple brokerages. It offers one of the best charting solutions out there and an easy-to-learn programming environment. The latter, when combined with the platform’s popularity has led to the creation of thousands of new technical analysis indicators and automated trading systems.
We got the 2 pips spread educated ques from here, although we couldn’t log-in the platform.
Methods of Payment
The methods of payment at OnlyTrades include the more traditional Bank Transfer and Credit/Debit Card and a few on-line solutions, such as Qiwi, WebMoney, Yandex. It is quite obvious the company is targeting the Russian market, with this offering.
OnlyTrades is an unregulated company. As such they basically have very low credibility in our eyes. The company demands a $5,000 initial deposit, which is very high. The presentation of the trading conditions is of very low quality. Dem accounts can’t be created at this point in time an the real ones can’t logg-in the platform. We will update this review if the situation changes, but at this point things aren’t looking good at OnlyTrades
OnlyTrades Review Conclusion
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