Novatrades offers several account types: Mini, Bronze, Silver, and Gold. However, it has not specified the different trading conditions for these accounts.
In addition, Islamic (Swap Free) accounts are also available with this broker.
– MT4 available
Novatrades uses the Metatrader 4 (MT4) trading platform and offers it in all forms and shapes – desktop, web and mobile apps. The MT4 is the most popular forex trading software due to its ease of use, solid charting, wide range of automated strategies (Expert Advisors), technical analysis indicators, customization options and more.
However, when we downloaded the broker’s demo MT4 to test it, we saw that it uses the platform of another broker IForex24. Judging by the user reviews on our website, this seems like a scam broker that targets mainly Italian investors.
– Competitive spreads on demo accounts
When we tried out the MT4 provided by Novatrades, we found the spread on EUR/USD fixed at 1.6 pips, which is a good offer, as most fixed spread brokers offer a spread of 2 pips for this pair.
– Reasonable leverage levels
The maximum leverage available at Novatrades is 1:200. This is an average ratio for the forex industry that will suffice the needs of most traders and is not dangerously high. Yet, if you need higher levels.
– An offshore broker, possibly related to IForex24
Novatrades is operated by Novatrades ltd., a company registered in the Marshall Islands. Forex brokers incorporated there are not licensed, nor monitored by any authority. Basically, such offshore companies can do whatever they like with your money.
– Comparatively high initial deposit required
In order to open an account with Novatrades, one has to invest at least $250, which is not that much, however many trusted brokers require less. For example, you can open an account with easyMarkets by depositing $100.
– High spreads announced on website
According to the information on its website, Novatrades offers spreads fixed at 3 pips on EUR/USD. If you prefer trading with fixed spreads, we suggest that you check out the offering of easyMarkets. It is a reputable broker regulated in Cyprus that offers spread fixed at 1 pips on EUR/USD.
– Market maker
Novatrades is probably a market maker, as it offers only fixed spreads. Simply put, this means that it wind when you lose.
-No cryptocurrencies available
Novatrades’ product portfolio is rather extensive, including many forex pairs and CFDs on equities, indices and commodities. However, the broker does not offer trading in cryptocurrency CFDs, despite such being advertised on their website. If you are into Bitcoin and other digitital assets.
The offering of Novatrades is nothing special in the forex world: trading on the good old MT4 with fixed spreads and reasonable leverage levels. What bothers us with regards to this broker is its offshore registration.
Offshore brokers are not to be trusted in general, and Novatrades offers a platform that is provided by IForex24 – another company registered on the Marshall Islands that that seems like a pure scam. What is more, the Italian financial watchdog CONSOB has even issued an official warning against it.
Considering the above, you’d better a reliable and tightly regulated broker instead. One of the best jurisdictions for forex brokerages is those in the UK. Brokers licensed there are required to meet stringent rules on capital adequacy, client account segregation, AML, transaction reporting, etc.
Novatrades Review Conclusion
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