NetoTrade Review

WHO IS NETOTRADE?

According to research in South Africa NetoTrade is a global licensed brokerage and investment company that specialises in global financial markets.

They are headquartered in the UK and the company was founded by a team of industry professionals that share over 50 years combined experience in the foreign exchange industry.

SAFE OR SCAM?

One of the best benchmarks to measure the safety of a broker like NetoTrade, is to establish which regulating authorities are watchdogs over its actions.

NetoTrade was established six years ago and is registered in the offshore zone of St. Vincent and the Grenadines, they however, are not regulated by any top tier financial institution.

PROS AND CONS

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.

NetoTrade offers a maximum leverage ratio of 1:400.

ACCOUNTS

A forex account at NetoTrade 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.

NetoTrade offers the following types of accounts:

• Mini Account – This account type was designed for beginners, there is a minimum deposit requirement of 500 USD and has spreads from 3.3pips with a maximum leverage of up to 1:400, all trading platforms are available and you even get a 25% welcome bonus.
• Gold Account – designed for traders who are familiar with trading in Forex and require a few more benefits than the Mini Account.

The Gold Account has a minimum deposit requirement of 5000 USD and spreads from 2.2pips, maximum leverage of up to 1:400, a personal account manager, access to educational tools, access to all trading platforms and a 20% welcome bonus.

• ECN Account – This account type is aimed at the more experienced and professional traders.

The minimum deposit requirement is 5000 USD and spreads from 0.3 pips, maximum leverage up to 1:400, a personal account manager, access to educational tools, access to technical analysis reports, all trading platforms and a 15% welcome bonus.

• Platinum Account – This account was specifically designed to meet the needs of seasoned investors, there is a minimum deposit requirement of 50,000 USD and spreads from 1.8pips.

Maximum leverage up to 1:400, a personal account manager, educational resources, technical analysis reports, market update emails, access to all trading platforms and a 15% welcome bonus.

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.

NetoTrade offers the following of the above:

• Forex
• Metals
• Indices
• Stocks

FEES

Cost depends on different factors, like spread and margins, and NetoTrade 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.

NetoTrade does not charge commission per trade and offers the following pip spreads per account:

• Mini Account – Spreads from 3.3pips
• Gold Account – Spreads from 2.2pips
• ECN Account – Spreads from 0.3pips
• Platinum Account – Spreads from 1.8pips

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 NetoTrade the following methods and minimum deposits are required:

• Visa
• Mastercard
• CashU
• Wire Transfer

Credit card deposits are instant, however there is a maximum deposit per week of 20,000 USD, CashU deposits are instant and Wire Transfers are processed within 3 to 5 working days.

The minimum amount that can be deposited or withdrawn is 100 USD, once you have submitted a withdrawal request, it takes up to 3 working days for NetoTrade to process it and a further 5 to 7 working days for the funds to reflect in your account.

Withdrawals can be made via the same deposit methods, there are no withdrawal limits and no withdrawal fees charged by NeoTrade.

TRADING PLATFORMS

The forex trading platform provided by NetoTrade 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.

NetoTrade provides the following trading platforms:

• MetaTrader4
• Web Based Trader
• Mobile Trader

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with NetoTrade for the first time, you will be required to go through a basic “know your customer” process.

This will allow NetoTrade to ascertain that your submitted details and ensure the safety of your funds and account details.

With NetoTrade the process entails logging onto their website, filling in some basic information, answering a few financial questions and submitting certain documents such as your ID.

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 NetoTrade customers can reach the support team via live chat, email or telephone.

EDUCATION

Before starting to trade, potential clients of NetoTrade should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

NetoTrade offers articles on their website for both beginners and advanced traders.

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 NetoTrade they have access to professional insight and expert analysis.

There are video market updates that are sent to you, an economic calendar that allows you to see special events that may have an effect on the markets and the ability to receive special market alerts.

AWARDS

Although NetoTrade is acclaimed by customers, there is no indication of awards won on its homepage.

CONCLUSION

NetoTrade can be described as a company that provides high quality service and features that benefit both experienced and beginner traders, there are no hidden fees or back office trading desk that is trading against you.

NetoTrade provides you with access to the global foreign exchange market and so much more with the safety and peace of mind that come with trading with a market leader committed to fair, transparent pricing and quality trade performance.

DISCLAIMER

NetoTrade 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 NetoTrade, 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.

NetoTrade warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable.

NetoTrade 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 NetoTrade?

You can trade several different instruments with NetoTrade, which include the following:

• Forex
• Metals
• Indices
• Stocks

Which platforms are supported by NetoTrade?

NetoTrade provides the following popular trading platforms:

• MetaTrader4
• Web Trader
• Mobile Trader

Does NetoTrade offer leverage?

Yes, NetoTrade offers a maximum leverage of 1:400

What spreads can I expect with NetoTrade?

NetoTrade offers the following spreads

• Mini Account – Spreads from 3.3pips
• Gold Account – Spreads from 2.2pips
• ECN Account – Spreads from 0.3pips
• Platinum Account – Spreads from 1.8pips

If details on the website is not comprehensive, more information can be obtained from the customer support service.

Does NetoTrade charge commission?

No, more information on commissions can be obtained from the customer support service.

Is NetoTrade regulated?

No

Is NetoTrade a recommended forex trading broker for experts and beginners?

NetoTrade offers a fair-trading environment for all types of traders/beginners/experienced traders.

What is the overall rating out of 10 for NetoTrade?

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 NetoTrade offer a demo account?

Yes

How long is the demo account valid?

The demo account can be used for 30 days

Which live trading accounts does NetoTrade offer?

• Mini Account
• Gold Account
• ECN Account
• Platinum Account

What are the available deposit currencies for a live trading account?

USD, EUR

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for NetoTrade?

500 USD

How do you make a deposit and withdrawal with NetoTrade?

NetoTrade offers the following deposit and withdrawal methods:

• Visa
• Mastercard
• Wire Transfer
• CashU

Withdrawals can be done via:

• Visa
• Mastercard
• Wire Transfer
• CashU

Does NetoTrade charge withdrawal fees?

No, but fees from financial institution may apply

How long does it take to make a withdrawal?

Once you have submitted a withdrawal request, it takes up to 3 working days for NetoTrade to process it and a further 5 to 7 working days for the funds to reflect in your account.