Finmarket Review

Finmarket Review by professional Forex trading experts the “” FX trading team, Finding out everything you need to know about the broker is in this Finmarket Review.

Finmarket Review

Finmarket offers its clients a choice of four account types, based on the initial amount deposited. The broker claims that all accounts offer STP execution and Negative balance protection.

Swap-free services are available on all accounts but Mini. Keep in mind that hedging is allowed solely on VIP & Premium accounts.

The Company. Security of Funds

Company

Country

Regulation

K-DNA Financial Services LTD

Cyprus

CySEC

Finmarket is a forex and CFD broker that offers trading in more than 30 currency pairs, commodities and indices CFDs on the popular MetaTrader 4 platform. The company behind the brand, K-DNA Financial Services Ltd., is a Cyprus Investment Firm that is licensed by Cyprus Securities and Exchange Commission (CySEC). The company also operates forex broker brands LondonFX and GalaxyFX.

Cyprus is currently one of the most popular forex broker destinations due to its well-balanced financial regulation. There is the Investor Compensation Fund, which is able to pay compensation up to €20,000 EUR per person, If a licensed company ceases trading or becomes insolvent. Moreover, every CySEC- regulated investment company is also MiFID compliant and therefore entitled to offer cross-border services in all EU Member States.

However, we would like to mention that when we downloaded Finmarket’s MT4 platform to try out the broker demo account, the name of another company appeared, not the one licensed in Cyprus: FinMarket EOOD. It seems that this is a Bulgarian company, for which there is no information. Do have this in mind if you consider opening an account with Finmarket.

Minimum Initial Deposit

In order to open an account with Finmarket, traders have to invest a minimum of $1000. Such minimum initial amount is quite high, considering that other Cyprus-based brokers require less. For instance, leading EU brokerage XM demands just $5 from its clients as a start.

Spreads & Commissions

According to us, the main disadvantage of this broker is the high trading costs. Finmarket offers very high spreads, exceeding 3.7 pips for the EUR/USD on Mini accounts. On top of that, it also charges salty commission, fees, amounting to $15.00. This means that average trading costs amount to more than 5 pips per standard lot, while most brokers offer spreads within the range of 1.0 – 1.5 pips for this pair. We were so shocked when we made this simple calculation, that asked Finmarkets’ customer support on live chat is it true that they offer such high spreads plus commission fees, and the answer was yes. At least they are honest.

For example, XM’s average spreads on Zero accounts amount to just 0.1 pips on EUR/USD and involve commission of $10 per standard lot (round trip). For further information, you may check out real-time spreads of 15 leading brokers here.

Leverage

The maximum leverage level offered by Finmarket on basic accounts is 1:50, which is a low ratio, yet it is in line with the latest CySEC guidelines. However, most Cyprus-based brokers still offer significantly higher leverage levels – for example, XM provides leverage up to 1:888.

Trading Platforms

Finmarket supports the standard MetaTrader4 (MT4), available as desktop, web and mobile versions.

MT4 remains the preferred choice of most traders (and brokers) worldwide, as it provides a full range of trading tools and features: a number of built-in technical indicators, advanced charting package, automated strategies (EAs) and extensive back-testing environment. Besides, traders can download ready-made or create their own EAs (and Indicators) and let the program do all the work.

Methods of Payment

The following payment methods are available to Finmarket clients: credit/debit cards, bank wire transfer, and ecoPayz.

Keep in mind that withdrawal fees apply.

On the one hand, Finmarket is a well-regulated forex & CFD broker that claims to offer Negative balance protection and STP execution. On the other, however, its trading costs are the highest we have seen. Besides, its MT4 is provided by another company.

The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.

Finmarket Review Conclusion

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