EFTmatic is a legit forex trading company and is a fully regulated and transparent broker with high operational standards, low trading fees, superior service delivery, helping investors reach their objectives. It caters for all types of traders with different levels of experience.
Choose your quick section of our EFTmatic review below.
A Quick Overview of our EFTmatic Review:
- A Quick Overview of our EFTmatic Review:
- EFTmatic at a glance
- Who is EFTmatic?
- Safe or scam
- Pro and cons
- Leverage
- Accounts
- Market instruments
- Fees
- Deposit and withdrawal
- Trading platforms
- How to open an account
- Customer support
- Education
ETFmatic can be described as a company that has sound regulation which should give customers peace of mind when it comes to the safety of their funds.
EFTmatic at a glance |
|
| Broker’s Name | ETFmatic |
| Headquartered | London, England |
| Year Founded | 2014 |
| Regulating Authorities | The Financial Conduct Authority (FCA) |
| Countries not accepted for trade | ETFmatic only accepts clients from the Eu, Iceland, Gibraltar, Liechtenstein and Norway |
| Islamic Account (Swap Free) | No |
| Demo Account | No |
| Institutional Accounts | Yes |
| Managed Accounts | Yes |
| Maximum Leverage | N/A |
| Minimum Deposit | 100 USD |
| Deposit Options | Bank wire transfer, Visa and MasterCard |
| Withdrawal Options | Bank wire transfer, Visa and MasterCard |
| Platform Types | Web investment platform and mobile investment platform |
| OS Compatibility | Mobile and Desktop |
| Tradable Assets | ETFs, ETPs and ETNs, Equities and Bonds |
| Languages supported on Website | English |
| Customer Support Languages | English |
| Customer Service Hours | Not 24/7 and no timetable is provided |
Who is EFTmatic?
According to research in South Africa, ETFMatic is an English forex broker company that is based in London. The broker was founded in 2014 and the company offers trading in ETFs, ETPs, ETNs, Equities and bonds.
They are one of a few robo-advisor companies which are still able to cater to the European market, since most of the other investment brokers of this type are only available to traders in certain other countries. A robo-advisor investment company is a class of financial advisor that provides their advice or investment management exclusively online, which means there is very little human intervention.
Safe or scam
One of the best benchmarks to measure the safety of a broker like ETFmatic, is to establish which regulating authorities are watchdogs over its actions. ETFmatic is regulated by the English Financial Conduct Authority (FCA)
Pro and cons
| PROS | CONS |
| Easy and fully digital account opening | Limited options to customize your investing goals |
| No fee for deposit and withdrawal | Poor telephone customer support |
| GBP, EUR, and USD-based accounts | Higher fees |
Leverage
Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.
Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.
Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you have to have funds in your trading account to ensure sufficient margin.
For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades; otherwise your trading account will be fully hedged.
ETFmatic does not specify what maximum leverage they offer, or if they allow leverage.
Accounts
A forex account at ETFmatic is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.
Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.
Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.
ETFmatic offers the following types of accounts:
- Investments account for individuals
- Investment account for legal entities
- Tax-advantaged ISA accounts for clients in the UK and having GBP-based account
Market instruments
The most popular market instruments available from most brokers for trading include:
Forex
Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.
Commodities
Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.
Indices
Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.
Precious metals
The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.
Energy
The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.
ETFmatic provides their traders access to ETFs, ETPs, ETNs, Equities and Stocks.
Fees
Cost depends on different factors, like spread and margins, and ETFmatic clients may also experience different fee structures according to their country or place of residence.
The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.
Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.
ETFmatic does not offer trading in Forex currency pairs, there is no spread to be aware of.
ETFmatic does however, charge investment fees as well as non-investment fees. The individual accounts annual fees come to roughly $182, which is in line with the current market average.
ETFmatic does charge a 0.48% annual Robo-Service or management fee. The ETF fees range between 0.10% and 0.15% depending on the type of assets ETFmatic invests in.
Deposit and withdrawal
Accounts usually requires a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.
In the case of ETFmatic, you make both deposits and withdrawals using bank wire transfer, Visa or Mastercard. Unfortunately, they do not offer eWallet options.
Trading platforms
The forex trading platform provided by ETFmatic to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.
A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.
ETFmatic provides their clients the use of their very own proprietary platform. There is a web-based platform as well as a mobile platform for trading on the go. Both of these options seem to only be available in English.
Web Investment Platform – This platform features a sleek minimalistic design that is pleasing on the eye.
Mobile Investment Platform – The mobile platform comes standard with everything that is available on the web-based platform. The mobile version is available for both Android and IOS devices.
How to open an account
Similarly to a bank, to register a forex trading account with ETFmatic for the first time, you will be required to go through a basic “know your customer” process, which will allow ETFmatic to ascertain that your submitted details and ensure the safety of your funds and account details.
Customer support
Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.
In the case of ETFmatic customers can reach the support team via telephone or by sending them an email. Response to emails should be received within a day and the agents seem to know their stuff. Telephone on the other hand can take quite a while in order to get through to someone. 24/7 support is not available and ETFmatic does not specify the times in which you can get hold of its customer support.
Education
Before starting to trade, potential clients of ETFmatic should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.
ETFmatic offers access to numerous educational videos that cover a variety of topics, webinars and a full learning academy.
Research
To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.
With ETFmatic they have access useful news feed updates, press releases and quotes. They also offer excellent portfolio and fee reports on their trading platforms which enables you to see exactly which ETFs the algorithm invested in and what their expense costs are.
Awards
Being an awarded company instils extra confidence by traders. Although ETFmatic is acclaimed by customers, there is no indication of awards won on its homepage.
Conclusion
Clients also benefit from ETFmatic’s investor protection plan which has them covered for up to £85,000.00. There are no deposit or withdrawal fees which is really attractive as well as their low minimum investment amount which is only $100.
Disclaimer
ETFmatic warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.
Before deciding to trade with ETFmatic, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.
ETFmatic warns that margin trading involves the potential for profit as well as the risk of loss and those movements in the price of foreign exchange and commodities are very unpredictable, hence ETFmatic cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.
FAQs
Trading environment
How many instruments can I trade with ETFmatic?
You can trade several different instruments with ETFmatic, which include the following:
ETFs
ETPs
ETNs
Equities
Bonds
Which platforms are supported by ETFmatic?
ETFmatic provides the following popular trading platforms:
Web investment platform
Mobile investment platform
Does ETFmatic offer leverage?
ETF does not specify the amount of leverage they offer.
What spreads can I expect with ETFmatic?
ETFmatic does not offer trading in Forex currency pairs so they do not charge a spread.
Does ETFmatic charge commission?
Yes
Is ETFmatic regulated?
Yes, ETFmatic is regulated by the Financial Conduct Authority (FCA).
Is ETFmatic a recommended forex trading broker for experts and beginners?
Yes, they have adequate educational recourses for both beginner and expert traders.
What is the overall rating out of 10 for ETFmatic?
7/10
Accounts
What is the difference between a demo and live trading account?
A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.
Does ETFmatic offer a demo account?
No
Can I convert my demo account to a live trading account with ETFmatic?
ETFmatic does not offer their clients a demo account.
Which live trading accounts does ETFmatic offer?
Investment Account for Individuals
Investment Account for Legal Entities
Tax-advantaged ISA accounts for clients in the UK and having GBP-based account
What are the available deposit currencies for a live trading account?
USD, EUR and GBP.
Deposit and withdrawals
What is the minimum deposit for ETFmatic?
100 USD.
How do you make a deposit and withdrawal with ETFmatic?
ETFmatic offers the following deposit and withdrawal methods:
Visa
MasterCard
Bank wire transfer
The same method that was used to fund an account must usually be used to withdraw money again and monies will only be refunded to accounts that carry the same name as the trading account with ETFmatic.
Does ETFmatic charge withdrawal fees?
No, but fees from financial institution may apply.
How long does it take to make a withdrawal?
ETFmatic claims that withdrawals usually take only a few days. Traders should note however that depending on a specific bank service it may take several days for the money to be available in a client account.
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