Q8 Trade Review
Q8 Trade is a forex and CFD broker from Kuwait (as the name implies in a way). The company appears to be focused mostly focused on the local market. Islamic (swap-free) accounts are available, for this purpose.
The Company. Security of Funds
Company Country Regulation
Q8 Securities Kuwait CMA
Q8 Trade is owned by Q8 Securities. They are regulated by Kuwait’s Capital Markets Authority (CMA). This is a rather exotic jurisdiction, which we do not know much about. It should definitely be more strict than that in off-shore zones, but maybe slightly looser than the one provided by reputable watchdogs, like the United Kingdom’s FCA, for instance.
The Financial Conduct Authority (FCA) monitors the activities of brokers who are registered with it very strictly. Furthermore, it applies rules, which these companies must follow. There are many of them, like the ones guaranteeing the best possible execution, but two stand out the most, when it comes to the security of your funds.
First of all, client funds must be kept in segregated accounts. This means, the broker can not freely access your trading funds and spend it for marketing campaigns, paying salaries or “corporate bonuses”. The second key rule is the mandatory participation in the Financial Services Compensation Scheme (FSCS). This is a mechanism, which collects small payments from participating companies and keeps them in a collective pool. If one of these brokerages were to go bankrupt the mechanism will be used to pay back traders who have funds with it. In essence, this is similar to an insurance company. If you trade with an FCA-regulated broker, your account will be covered up to £50,000.
As we noted in the beginning Q8 Trade appears to be focused on local clients. Other than that the company’s website appears to be missing some information, like a clear specification of trading conditions. Opening a demo account also doesn’t happen with a single click – you have to go through the process of creating a real account. These are slight oversights, which still leave a negative impression.
Minimum Initial Deposit
Q8 Trade does not mention a minimum deposit requirement on their website, which is not the usual practice. Most brokers state it clearly, while some even have account types, based on your initial deposit. Some have even removed the entry barrier, in pursuit of new clients. For instance the FCA-regulated industry pioneers at IG do not have a minimum – you can open an account for as low as you want.
Average spreads & Commissions
Spreads at Q8 Trade are fixed and start from 3 pips. This is not competitive, when compared with current offerings by other fixed spread brokers. As an example, HYCM offers a 1.8 pips spread on EUR/USD.
The maximum leverage at Q8 Trade is 1:100. This is a sufficient level for most traders, although some brokers offer much higher levels nowadays. For instance, XM allows clients to trade with 1:888.
Keep in mind, higher leverage does not equate better trading conditions. It only allows traders to take bigger risks. There is a huge difference between the two.
Q8 Trade provides its services via MetaTrader4(MT4), a Web-based platform. If you have any sort of interest in the forex trading you probably know about MT4 already. It is the most popular currency trading platform in the world and there is a reason for that. In fact the reasons are probably several – form the outstanding charting package, to the automated trading system environment, MetaTrader is the current industry staple.
The web based platform is not as sophisticated. While it may appear to be more visually appealing than MT4, especially to people who are not that experienced in trading, it lacks a lot of the functionality. No technical indicators are available, let alone more complicated tools or automated systems. That being said beginners will probably enjoy learning on it.
Methods of Payment
Q8 Trade offers a few payment methods. They are Bank Transfer, Credit/Debit Card and Knet – a local bank payment system. International clients can not use popular wallets, such as Skrill or Neteller.
Q8 trade is a Kuwait-based forex and CFD broker. The company is regulated by the local Capital Markets Authority. That being said trading conditions are not competitive with the contemporary development of the industry. There are a couple of issues with the company’s website.
Q8 Trade Review Conclusion
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