Financial Spreads Review 2024
Website: www.financialspreads.com
Min. Deposit: US$ 250
Leverage: 1:30
Trading Platforms: Proprietary WebTrader, Mobile App
Regulation: FCA
Headquarters: UK
Founded: 2007
Regulatory Licenses:
- FINSA Europe Ltd. - authorized by FCA (UK) registration no. 525164 - website not active
Updated on January 3, 2024
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At Broker Insight, our review methodology for evaluating brokers is comprehensive and multi-faceted, ensuring a well-rounded analysis. We start by examining the broker's regulatory compliance and background, assessing the security and reliability of their operations. This is followed by a thorough evaluation of the range and diversity of trading instruments and markets offered, as well as the variety and suitability of account types available for different trader profiles. We delve into the trading platforms and tools provided, focusing on user experience, functionality, and technological robustness. Fees, spreads, and overall cost structure are scrutinized for transparency and competitiveness. A key component of our review involves testing the effectiveness and responsiveness of customer support. Additionally, we consider the ease and efficiency of the deposit and withdrawal processes. Finally, we incorporate real user feedback and the broker’s community reputation into our assessment to present a holistic and unbiased review that serves as a valuable resource for traders seeking reliable and insightful broker evaluations.
Is Financial Spreads safe or a scam? ▲
Financial Spreads operates under the trading name of Clear Investor Ltd., which is a designated representative of FINSA Europe Ltd., a company based in the United Kingdom. FINSA Europe Ltd. enjoys authorization and regulation by the Financial Conduct Authority (FCA), one of the most stringent financial regulatory bodies. The FCA's oversight ensures a high level of performance, safety measures, and rigorous auditing, providing traders with secure trading conditions.
Additionally, throughout its operational years, Financial Spreads has consistently enhanced its service delivery and trading conditions for its clients, including changing platform providers. However, clients have always been trading under the umbrella of the UK-regulated brand, which offers unmatched conditions. As such, traders can be confident in the adherence to all necessary regulations and laws, along with the complete protection of funds. Financial Spreads ensures that client funds are fully protected in segregated accounts, with the firm operating under the FCA's Client Money Protection rules and the Financial Service Compensation Scheme (FSCS) coverage.
Since its inception, Financial Spreads has transitioned through various trading platforms, ultimately deciding to leverage the best available market technologies to develop its proprietary software. This strategic move has enabled the integration of essential trading tools into a single, comprehensive platform.
The Financial Spreads trading platform is designed to cater to traders of all experience levels by offering powerful trading capabilities, including advanced risk management tools, an extensive charting package, and a full suite of trading features.
Web Platform
The web-based nature of the platform ensures accessibility from any device, complemented by the recent introduction of a mobile application tailored to meet the dynamic needs of modern trading. This mobile app facilitates advanced trading on the move, enabling trading access at any time and from any location.
A complimentary demo platform is also available to all clients, allowing for the practice of trading strategies. Financial Spreads has further enhanced risk management by ensuring that Stop Loss orders are automatically applied to all new trades. Additionally, traders have the option to select a Guaranteed Stop Loss for a small charge when opening a position. This feature is highly recommended as it offers protection under any market conditions.
Financial Spreads simplifies the trading process by offering just one type of account. This approach ensures that traders have immediate access to the full range of products available at Financial Spreads, with all costs integrated into the fixed spread when trading CFDs. Furthermore, spread betting, which presents numerous opportunities for tax-free trading, is highly sophisticated and professionally managed at Financial Spreads.
However, it's important to note that spread betting is exclusively available to residents of the UK.
Financial Spreads prides itself on maintaining tight spreads, offering a competitive trading environment. The spreads start as low as 0.7 pips for the EUR/USD pair and 0.8 pips for the UK100 index. This competitive pricing structure is designed to accommodate traders seeking cost-effective access to the markets.
Pros
Competitive spreads starting from 0.7 pips
No additional account types complicate the trading process
Cons
Spread betting is only available to UK residents
Limited account type options may not suit all traders
An additional cost to be aware of is the overnight or rollover fee, applied to positions held for more than a day. Typically, this fee or credit is calculated based on the interbank rate, plus a percentage markup by Financial Spreads. Below is an example illustrating how Financial Spreads calculates rollover fees. Understanding these fees is crucial for traders who tend to hold positions open overnight or longer, as they can significantly affect the profitability of trades.
Leverage opportunities, which provide the capability to command a larger position in the market, are regulated according to Financial Spreads' adherence to regulatory standards. Due to its compliance with FCA regulations, Financial Spreads can offer retail clients maximum leverage of 1:30 on major currency pairs, 1:20 on minor pairs, and 1:10 on commodities.
Payment Methods
Financial Spreads grants traders the flexibility to choose from a variety of payment methods for funding their trading accounts. Options include Wire Bank Transfers, Credit or Debit Card payments, and digital wallets such as Skrill, catering to the convenience of its users.
Financial Spreads Minimum Deposit
To commence live trading, an opening deposit of merely $250 is required, offering competitive access to trade CFDs or engage in Spread Betting, where applicable. This deposit threshold is notably lower than the $500 minimum enforced by many other brokers, providing an affordable entry point for traders.
Withdrawal Fee
Financial Spreads typically does not impose charges for deposit or withdrawal transactions. However, it is advisable for traders to verify potential fees directly through official sources, as costs may vary depending on the chosen transaction method.
The initial deposit required to open an account and commence live trading with this broker is set at a competitive $250. This amount is relatively accessible and allows traders to enter the market without a significant financial burden. By depositing this minimum amount, traders gain the opportunity to engage in various trading activities, including CFD (Contract for Difference) trading and Spread Betting, where applicable.
However, it's important for traders to be mindful of the margin requirements associated with the specific instruments they plan to trade. Margin requirements can vary depending on the asset class and market conditions, and they play a crucial role in determining the amount of capital needed to maintain open positions in the market.
When comparing this minimum deposit requirement to other brokers in the industry, it's notable that this broker's threshold is lower. Many other brokers typically set their minimum deposit at around $500. This higher deposit requirement can be a barrier for some individuals looking to start trading, especially those who prefer to begin with a smaller investment.
Financial Spreads stands out as a dependable and secure platform for trading activities, offering a diverse range of products including CFD trading and the increasingly popular Spread Betting in the UK, a method of tax-free trading. The firm's commitment to a fixed spread strategy ensures stable trading conditions, even in markets experiencing high volatility, without additional commission charges on CFD trades.
However, an area for improvement is the provision of proprietary educational materials, which currently seems insufficient, though this may not significantly hinder new traders.
While Financial Spreads has established a reputation for reliability through its extensive operational history, the inaccessibility of its website raises concerns. As such, it is recommended to conduct thorough research and exercise caution regarding any offerings from Financial Spreads. We invite you to share your experiences or seek further information regarding Financial Spreads in the comments section below.
