WHO IS FRONTEL?
According to research in South Africa Frontel is an English company founded in 2009 with headquarters in Cyprus.
Frontel Corporation is not a brokerage firm or middleman, it performs as a facilitator. The company provide their customers with the necessary tools and education to deal directly with the markets.
Clients have their own trading account which they manage themselves. They therefore have full control and autonomy over their account.
Frontel’s mission is to help clients make money through market understanding and risk management.
Min Deposit
USD 10
Regulators
CySEC
Trading Platform
SmartTrader
Crypto
No
Total Pairs
0
Islamic Account
No
Trading Fees
Low
Account Activation
24 Hours
SAFE OR SCAM
Although Frontel is headquartered in Cyprus it is not indicated whether it falls under the jurisdiction of the area and whether it is regulated by CySEC. It does however stipulate that it places a high stress on security and safety of funds.
PRO AND CONS
| PROS | CONS |
| 1. Cuts out the middleman | 1. Only deposit and withdraw funds through bank transfer |
| 2. One personalized account | 2. No US clients |
| 3. Educational tools | 3. Only one trading platform |
| 4. Research tools | 4. Not regulated |
LEVERAGE
Leverage enables a trader to get a much larger exposure to the market the person is trading than the amount deposited to open the trade. Leveraged products, such as forex trading, magnify a trader’s potential profit – but also increase the potential loss.
Leverage 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 collateral to cover any credit risks that may arise during trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you need to have enough funds in your trading account to ensure enough 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.
At Frontel there is no leverage. Traders use their own discretion.
ACCOUNTS
Frontel offers only one personal account for all your trading needs. It does not have Islamic accounts or a demo 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.
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.
Frontel offers the following service to global clients:
- Forex
- CFDs
FEES
Cost and fees depend on different factors, like spread and margins, and Frontel 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.
With Frontel the tightest spreads have been achieved for customers by pooling and striking deals with a large group of liquidity providers.
The company offers spreads from 0.5 pips with zero commission and no middleman.
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 Frontel, the following methods and minimum deposits are required:
- A minimum deposit of $10 is required to open an account
The following methods can be used to fund accounts and to execute withdrawals:
- Only Bank Wire Transfer of funds from anywhere in the world
TRADING PLATFORMS
The forex trading platform provided by Frontel to its clients is 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.
Frontel provides only one trading platform:
- SmartTrader
With this trading platform Frontel offer a personal place where trading options features transparency, is easy and economical.
Frontel enables direct online trading as well as one-to-one trading. This means that there is immediate access to and interaction with experts. The entire trading process is a personalized experience.
HOW TO OPEN AN ACCOUNT
Similarly to a bank, to register a forex trading account with Frontel for the first time, you will be required to go through a basic “know your customer” process, which will allow Frontel to ascertain that your submitted details and ensure the safety of your funds and account details.
It is not very clear how you should go about to open an account with Frontel.
CUSTOMER SUPPORT
Potential traders need to make sure the broker company they chose will offer enough support whenever they need it.
In the case of Frontel customers can reach the support team in real time by phone, or email. Unfortunately, we could find no indication of what the telephone number or the email address is.
It is also not clear if the services is only in English or in multiple languages.
EDUCATION
Before starting to trade, potential clients of Frontel should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.
Frontel offers educational material which includes streaming of the most recent financial news with the latest headlines.
In addition to this there is enough educational information and material. In the one section beginner traders will find a learning tool to assist them with all the knowledge they will need for understanding trading in forex and CFDs.
In another section you will find trading tools for when a trader is ready to launch into trading or continue with trading, whatever the case may be.
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 do not lose money unnecessarily and trade as profitable as possible.
With Frontel the market is fast-paced and exciting. Customers have access to current news which enables decision-making easily in this dynamic environment.
This is offered on Frontel’s website by means of its daily morning reports and its day-end Trading Day Roundup.
Frontel also offers the Options Premium Calculator which is a powerful tool that shows the optimum price that ought to be paid for an option as well as how the option will evolve. This interface predicts an option’s worth as the market fluctuates.
The company’s trademark is their Market News Desk where they use their wisdom and insight and make effective predictions at the start of a trading day.
AWARDS
Being an awarded company instils extra confidence by traders. Unfortunately, it is not clear whether Frontel has received any awards since its inception in 2009.
CONCLUSION
Frontel is nothing like a normal brokerage and does not operate like one. It facilitates the actions of a trader in assisting them with information, skills and technology to trade efficiently on the market.
It is not clear whether Frontel is regulated or authorized by any financial body but as it does not act as a brokerage but only provide insight and education, this should not be a problem.
The assistance it provides could be helpful for beginner traders and advanced traders will also benefit by the research tools that is on offer.
DISCLAIMER
The Full Disclosure policy of Frontel is what makes for the transparency in options trading, especially if one studies the Strategy Optimizer.
Forex trading carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments, due to leverage retail accounts lose money.
Before you engage in trading foreign exchange, please make yourself acquainted with its specifics and all the risks associated with it.
All information on Frontel website is only published for general information purposes. The company does not present any investment advice or guarantees for the accuracy and reliability of the information.
Any action you take upon the information you find on this website is strictly at your own risk and it will not be liable for any losses and/or damages in the use of the website, according to research in South Africa.
Min Deposit
USD 10
Regulators
CySEC
Trading Platform
SmartTrader
Crypto
No
Total Pairs
0
Islamic Account
No
Trading Fees
Low
Account Activation
24 Hours
FAQs
TRADING ENVIRONMENT
How many instruments can I trade with Frontel?
You can trade several different instruments with Frontel, which include the following:
- Forex
- CDFs
Which platforms are supported by Frontel?
Frontel provides the following trading platform:
- SmartTrader
Does Frontel offer leverage?
It is not clear whether Frontel offers any leverage
What spreads can I expect with Frontel?
Frontel offer spreads of 0.5 pips on average for the major pairs
Does Frontel charge commission?
Frontel does not charge commissions
Is Frontel regulated?
It is not clear whether Frontel is regulated
Is Frontel a recommended forex trading broker for experts and beginners?
Frontel offers a trading environment for beginner and advanced traders, although only in a facilitating manner.
What is the overall rating out of 10 for Frontel?
5/10
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 Frontel offer a demo account?
No, it does not offer a demo account
How long is the demo account valid?
Not applicable as it does not offer a demo account
Which live trading accounts does Frontel offer?
- Personal Account
What are the available deposit currencies for a live trading account?
USD, EUR and GBP
DEPOSITS AND WITHDRAWALS
What is the minimum deposit for Frontel?
Personal account – $10
How do you make a deposit and withdrawal with Frontel?
Frontel only offers deposits and withdrawal methods through:
- Bank Wire Transfer
Does Frontel charge withdrawal fees?
No, but fees from financial institution may apply
How long does it take to make a withdrawal?
It is not clear how long withdrawals take but as it can only take place through bank wire transfers it will probably take a day or two.
FRONTEL AT A GLANCE |
|
| Broker’s Name | Frontel |
| Headquartered | Cyprus |
| Year Founded | 2009 |
| Regulating Authorities | Not indicated |
| Countries not accepted for trade | US |
| Islamic Account (Swap Free) | Not indicated |
| Demo Account | No |
| Institutional Accounts | Not indicated |
| Managed Accounts | No |
| Maximum Leverage | Not applicable |
| Minimum Deposit | Personal account – $10 |
| Deposit Options | Bank wire transfer |
| Withdrawal Options | Bank wire transfer |
| Platform Types | SmartTrader |
| OS Compatibility | Not indicated |
| Tradable Assets | Forex, CDFs |
| Languages supported on Website | English |
| Customer Support Languages | English |
| Customer Service Hours | Probably 24/5 |
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