Hanseatic Brokerhouse Review
Hanseatic Brokerhouse offers its clients a single account type with leverage up to 1:200, variable spreads and the option to trade in micro lots on the MT4 platform.
Unfortunately, the broker’s website contains no information on Islamic (swap-free) and PAMM accounts.
Keep in mind that Hanseatic Brokerhouse does not provide services for persons linked to certain regions, such as Bosnia-Herzegovina, Cuba, Iran, Iraq, Laos, North Korea, Sudan, Syria, United States of America, Yemen, Afghanistan, Uganda, Vanuatu and Canada.
The Company. Security of Funds
Naga Markets LTD
Hanseatic Brokerhouse Financial Services GmbH
Hanseatic Brokerhouse offers trading forex, precious metals, commodities, index & stock CFDs, as well as ETFs and futures on the industry’s standard MetaTrader 4 platform.
There are two companies behind the brand: Naga Markets Ltd., a company licensed by Cyprus Securities and Exchange Commission (CySEC) since 2013; and Hanseatic Brokerhouse Global Markets Ltd., which is regulated by Germany’s watchdog, BaFin.
Both BaFin and CySEC apply certain rules and requirements to licensed companies and sees to their compliance. For instance, they must keep customer funds in segregated accounts, separated from the company’s operating funds, and are required to meet certain capital adequacy requirements. Cypriot brokerages must hold at least €730,000 in order to prove their good financial standing.
As a further guarantee to clients’ funds, all Cypriot brokers are members of the Investor Compensation Fund, which is able to pay compensation up to 20,000 EUR, If the company is in default. In Germany, on the other hand, the statutory compensation per customer of a licensed company is EUR 100,000 for deposits and 90% or a maximum of EUR 20,000 for liabilities from securities transactions.
What is more, every CySEC or BaFin-regulated investment company is also MiFID compliant and therefore entitled to offer cross-border services within the EU under the MiFID regulations.
Minimum Initial Deposit
In order to open an account with Hanseatic Brokerhouse, traders can invest as little as USD (EUR) 1, which is an attractive offer.
Spreads & Commissions
Hanseatic Brokerhouse offers commission-free-trading, however its spreads are above the average, starting out 1.5 pips on EUR/USD.
By comparison, another Cypriot broker, XM, provides variable spreads averaged 0.1 pips on EUR/USD + commission $5 per standard lot (per side). For more information and comparison, check out real-time spreads of 15 leading brokers here.
The maximum leverage level offered by Hanseatic Brokerhouse is 1:200, which is average. Recently, however, CySEC proposed the default leverage offered by Cypriot brokerages to be 1:50 in order to limit traders’ risk exposure.
Nonetheless, many Cyprus-based brokers still offer leverage levels similar to or higher than the ones provided by Hanseatic Brokerhouse. For example, XM provides leverage up to 1:888. You may look up a list of brokers, providing leverage equal to or exceeding 1:500 here.
Hanseatic Brokerhouse supports the standard forex market trading platform MetaTrader4 (MT4), which comes as desktop, mobile and web versions.
MT4 remains the preferred choice of most traders worldwiide, as it provides a full spectrum of trading tools and resources: more than 50 built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options for them. MT4 users can download ready-made or create their own EAs and let the program do all the work.
Besides, the broker has teamed up with German mobile social trading application SwipeStox to offer advanced copy trading options to its clients. The app was launched in February, 2017. It works a bit like the famous dating app Tinder, in which users can swipe left or right on users’ profiles and connect with them. The app lets users either use the available information to execute their own trades or simply follow and copy other traders.
Methods of Payment
Hanseatic Brokerhouse supports a small range of payment methods – credit/debit cards, bank wire transfer, Skrill, Neteller, Sofort, giropay.
Keep in mind that the minimum withdrawal amount with Sofort & giropay (available in Germany) is $1,000.
Hanseatic Brokerhouse is a broker regulated in CyPrus and Germany. It provides online trading services in great variety of instruments on MT4 and also offers the SwipeStox app for advanced copy trading. The main problem with Hanseatic Brokerhouse is that its spreads are a bit high.
Hanseatic Brokerhouse Review Conclusion
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