BTFX offers its clients a choice of five trading accounts. All of them offer variable spreads, leverage up to 1:200 and the chance to trade in micro lots on the MetaTrader 4 platform. ECN environment is also available with this broker. Besides, BTFX provides special trading conditions to VIP clients with deposits of $25 000 or more.
The Company. Security of Funds
Founded in 2011, BTFX is a Maltese broker, offering trading in more than 40 currency pairs, as well as silver & gold through the MetaTrader 4 platform.
Brokersclub Ltd., doing business as BTFX, holds a Category 2 investment services license issued by the Malta Financial Services Authority (The MFSA), which allows them to provide the investment services and to hold or control clients’ money or customers’ assets, but not to operate a multilateral trading facility or deal for their own account or underwrite or place instruments on a firm commitment basis.
MFSA is the single regulator for financial services in Malta and it applies certain rules and requirements to license holders. The MFSA also manages the Registry of Companies and responsibility as the Listing Authority.
Apart from the minimum capital requirement of €730,000, which should be satisfied on an ongoing basis, license holders are expected to have local presence, to put in place adequate internal controls for their day-to-day operations, to maintain a risk management system, regularly report to MFSA, among other requirements.
License holders are also required to abide by ESMA guidelines on the sale of complex products where online forex is specifically mentioned as a complex product. Malta has been a member of the European Union since 1st May 2004. So, every MFSA-regulated investment company is also MiFID compliant and therefore entitled to offer cross-border services within the EU under the MiFID Passporting Regime.
As a further guarantee to clients’ funds, Brokersclub Ltd., is a member of the Maltese Investor Compensation Scheme – a rescue fund for customers of failed investment firms which are licensed by MFSA.
Minimum Initial Deposit
In order to open an account with BTFX, traders have to invest a minimum of $250. Such minimum initial amount is common; however, many other European brokers require less. For instance, CySEC- regulated FXTM demands just $5 from its clients as a start.
Spreads & Commissions
BTFX’s variable spreads on commission-free accounts are average. Its ECN accounts, on the other hand, provide tighter spreads, averaged 0.5 pips on EUR/USD, but also include a commission, which is $7 per lot round-turn. So, basically, trading costs of ECN account holders amount to around 1.2 pips for the EUR/USD pair per standard lot, commission included, which is average for the forex market.
For purposes of comparison, FXTM charges $4 per lot (round trip) and offers average spreads of 0.7 pips on the EUR/USD for its ECN accounts. For more information, you may look up real-time spreads of 15 leading brokers here.
The maximum leverage level offered by BTFX is 1:200, which is considered average. Although we would not advise traders to operate with higher leverage levels because of the greater risk of heavy loss involved, some small traders may not be able to score big profits with low initial deposits. If you need higher leverage levels, many EU brokers offer such – for example, FXTM provides leverage up to up to 1:500. Check out a list of brokers, providing leverage equal to or exceeding 1:500 here.
This broker supports the renown MetaTrader 4 (MT4), and also MyFXBook’s Autotrade.
MT4 is an internationally acclaimed trading terminal, offering a full set of trading tools and resources: a number of built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options. Traders can download ready-made or create their own EAs and let the program do all the work.
Besides, those who are into copy trading may also use Autotrade from MyFXBook directly through their BTFX Live Account.
Methods of Payment
The following payment methods are available to BTFX clients: credit/debit cards, bank wire transfer, and e-wallet payment systems MoneyGram, Neteller, PayPal, and clickandbuy.
BTFX is a Maltese broker that offers online in forex and precious metals through the widely used MT4 platform. Overall, its trading conditions seem good, but those who are into indices and stock CFDs will not find these instruments with BTFX.
BTFX Review Conclusion
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