TeraFX offers its retail clients 2 basic account: Micro & Standard one. The Micro account requires quite low minimum initial deposit and of course offers micro lots for trade. Both accounts offer commission-free trading, leverage up to 1:400 and variable spreads, however the ones on the Standard account are lower.
Furthermore, the brokerage offers its institutional clients a Premium/Corporate account with tight spreads, high minimum initial deposit and lower leverage.
The Company. Security of Funds
TeraFX is a No Dealing Desk (NDD) broker providing trading services in more than 60 currency pairs, Index CFDs, as well as precious metals (gold & silver).
TeraFX is the trading brand of Tera Europe Limited, a London-based company, which is authorized and regulated by the Financial Conduct Authority (FCA).
FCA regulation is referred to as one of the strictest in the EU. To acquire a license from the UK financial watchdog, UK-based brokerages have hold (and maintain) a minimum of €730 000 net tangible assets, and to meet various requirements. For example, clients` funds shall be kept in segregated bank accounts, separated from the company operating funds, and licensed companies are required to report regularly to the Commission.
Probably the most important thing in relation to FCA regulation is the compensation coverage of £50,000 (per person) in the event that a licensed broker becomes insolvent. It is provided by the Financial Services Compensation Scheme (FSCS).
Minimum Initial deposit
Minimum initial deposit with TeraFX is $100, which is a comparatively low amount to start with. In comparison, leading EU broker FxPro requires $500 from clients in order to start trading.
Spreads & Commissions
TeraFX offers commission-free trading with variable spreads. The ones on the Micro account type are quite high, starting from 1.8 pips on EUR/USD , and typical spreads on the Standard account are on the upper end of average, as the typical one is around 1.5 pips for the EUR/USD pair.
In comparison, FCA-regulated Trading212 offers variable spreads amounting to 0.9 pips on EUR/USD on its commission-free accounts. You may look up real-time spreads of 15 leading brokers here.
The maximum leverage available to TeraFX clients is 1:400, which is considered a high ratio, yet many brokers offer similar or even higher levels. FxPro, for example, provides leverage up to 1:500. More forex brokers offering leverage equal to or exceeding 1:500 can be viewed here.
Keep in mind that higher leverage levels involve higher risk, not only the opportunity of multiplied profits on a small deposit.
Clients of TeraFX are offered the popular Metatrader 4 (MT4). MT4 is globally popular for its innovative user-friendly interface, advanced charting package (including customizable drag and drop charts), wide range of technical indicators, automated trade options with Expert Advisors and extensive back-testing environment. Here is a list of more forex brokers offering MT4 platform.
VPS service is also available with this broker, so that even if you decide to turn your computer off, your Expert Advisors will be still running. Virtual Private Server hosting allows Forex traders to run automated algorithmic strategies, including expert advisors, 24 hours a day 7 days a week on a Virtual Machine. This minimizes the chance of system downtime due to technology and connectivity failures. TeraFX offers several VPS packages from $25 to $160 a month.
This broker does not provide any deposit bonus, but there is a Refer a friend offer. Its clients may earn $100 for every qualifying account they introduce.
Methods of Payment
Clients of TeraFX can make deposits to and withdrawals from their accounts via bank wire, credit/debit card, and e-wallets, such as Skrill, Neteller & China UnionPAy.
TeraFX Review Conclusion
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