Direct TT Review
Direct Trading Technologies (or Direct TT), is a forex broker, which provides multiple account types, as described above. Furthermore the company allows access to multiple ways of investing i.e. somebody else making the trading decisions with your capital instead of you.
The Company. Security of Funds
Company Country Regulation
Direct Trading Technologies ltd. New Zealand FMA
Direct TT is registered in New Zealand and is regulated by the local Financial Markets Authority (FMA). The company is part of the Financial Service Providers Register. Overall, this is a solid reason to believe your funds will be safe at Direct TT.
New Zealand used to be a hot-spot for lots of forex brokers, due to the ease of registration. Local regulators started gradually tightening the conditions, with 2013 being a key year for the landscape. The then implemented Financial Markets Conduct Act was the last nail in the coffin for the shady brokers, which eventually (mostly) left the country. Nowadays, in order to operate in New Zealand, a broker must follow lots of rules, one of which is having net holdings of at least $ 1 million, as a sign of good will.
Direct TT appears to be focused heavily on the Middle East market, with representative offices in Saudi Arabia, Kuwait and Lebanon. Some of the company’s marketing materials are also created only in Arabic. Furthermore this broker offers “broker assisted” and managed accounts. As we have previously mentioned, these practices can end up creating conflicts of interest. However there are several such schemes offered by the company, including a mobile app which provides trading signals directly to your smart device.
Minimum Initial Deposit
Direct TT requires a minimum deposit of $500. This is more than what most other brokers require nowadays, which is around $100. That being the case some go even lower, like FXCM with a $50 entry barrier.
Keep in mind, these levels are important for less experienced traders. On the other hand, a strategy, involving stringent risk management would require much more capital.
Average spreads & Commissions
Spreads at Direct TT are higher than what you would expect, if you follow the current state of the industry. The average spread on EUR/USD was floating around 3.0 pips, at the time of our test, which was done in the early US session. Most brokers offer something in the 1.0-1.5 range for this pair. You can take a look at the real-time comparison of spreads, offered by some of the top forex brokers.
Direct TT offers a maximum of 1:400 leverage. Although this may sound like an absurd level, if you are used to trading other asset classes, it is nothing special in the world of retail forex. In fact many brokers offer even higher leverage.
As you are probably aware, such leverage levels can be devastating for your account. Some researchers state, high leverage and not understanding the risks involved with it are the main reasons, for the majority of losses which traders suffer. Do not put your capital at risk, before fully understanding all the risks.
Direct TT offers two trading platforms: MetaTrader4(MT4) and their custom Direct Trading Software, also referred to as the “Institutional Platform”. On the topic of MT4, this is the world’s leading currency trading platform. It offers great charting capabilities and the abundance of custom technical indicators (offered at the MQL marketplace) basically covers all analytical styles you can think of. If automated trading is a thing you are into, there are lots of systems available for MT4. We have reviewed some of theme here. Furthermore the MetaTrader platform has pretty decent mobile apps available for both Android and iOS.
When it comes to the Direct Trading Software, there is no easily accessible demo, so we can’t give an honest opinion about it. From the screenshot provided by the company, it feels similar to the ProRealTime Software, but we can not be certain.
Methods of Payment
The payment options offered by Direct TT are rather limited. They include: Bank Transfer, Credit/Debit Card and CashU. Some other brokers provide funding via e-wallets, such as Skrill.
Direct Trading Technologies is a forex broker, operating from New Zealand. The company is regulated by the local FMA. Trading conditions at Direct TT are not very competitive, with high spreads on their MT4 platform. The other trading software offers access to different asset classes, but is not freely available for testing. The companies appears to be targeting Arab-speaking clients, mainly with a variety of investment solutions – “broker assisted accounts”, managed accounts and even a signal provider app. Some people may enjoy this type of service, but we believe the potential for conflict of interest is too great to ignore.
Direct TT Review Conclusion
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