ETFinance Review 2024
Website: www.etfinance.eu
Min. Deposit: US$ 100
Leverage: 1:30
Trading Platforms: WebTrader, MT4
Regulation: CySEC
Headquarters: Cyprus
Founded: 2016
Regulatory Licenses:
- MAGNUM FX (CYPRUS) LTD - authorized by CySEC (Cyprus) registration no. 359/18 - suspended
Updated on April 17, 2024
Quick Links
In crafting this comprehensive review of Errante, we employed a meticulous and thorough approach. We analyzed the broker against a backdrop of over 1000 brokers, scrutinizing its offerings, services, fees, and regulatory status. Our evaluation also included a deep dive into user feedback and direct testing of the broker's platforms and customer service. This holistic methodology ensures that our review is balanced, informed, and valuable to traders seeking reliable forex brokerage services.
ETFinance emerged in 2016 as a brokerage firm dedicated to offering traders worldwide an advanced platform for enhancing their trading potential. Headquartered in Cyprus, it operates as a registered financial investment firm, catering primarily to EU clients but also servicing traders globally. The trading solutions at ETFinance are crafted with paramount elements essential to traders across various levels. Novice traders receive a warm welcome with abundant educational resources, while seasoned professionals can take advantage of cost-effective strategies, customized measures, and additional discounts. The backbone of ETFinance's service is its robust technological infrastructure, which ensures high-quality performance. This includes the provision of popular trading platforms such as MT4 and WebTrader, and efficient execution via numerous liquidity providers. ETFinance's commitment to being a user-friendly and efficient platform has indeed paid off, as evidenced by its growing client base and trading volumes. However, it is also crucial to note some negative findings from our expert research and financial trading analysis. Readers are encouraged to review the ETFinance Updates for more details.
Pros
Offers quality trading conditions and educational resources
Account setup is quick, with free funding options available
Cons
Some regulatory fines have been imposed, necessitating further research by prospective clients
Since its inception, ETFinance has been committed to navigating the markets efficiently, armed with award-winning technology. This commitment has not only been recognized for the functionality of the MetaTrader and WebTrader platforms but also for ETFinance's operational model. The accumulation of numerous awards from world-renowned analytical publications and research entities affirm the broker's high standards and its designation as a leading broker, depending on the specific award category.
Is ETFinance Safe or a Scam? ▲
ETFinance is a CySEC-regulated broker, debunking any concerns of it being a scam. For further assurance, interested parties should consult the Broker Updates section below.
ETFinance operates under the trading name of MAGNUM FX (CYPRUS) LTD, with registration number HE 360548. It is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 359/18. This regulation signifies that ETFinance is a legitimate entity, fully authorized to offer trading solutions within Cyprus, across the EU, and in additional territories through cross-border registrations. Trading with ETFinance means clients are safeguarded by a suite of regulatory obligations. These include the segregation of client funds, the provision of negative balance protection, and the inclusion in a compensation scheme should the broker face insolvency.
Leverage is a powerful tool that amplifies the size of the trading position you can control, potentially increasing your profits. However, it's important to remember that while leverage can magnify gains, it can also amplify losses, making it a double-edged sword. Regulatory authorities often impose restrictions on leverage for retail traders to mitigate the risks of significant losses, especially for those who are inexperienced with its application.
The level of risk associated with leverage is directly tied to the size of your trading position or your exposure to the market. Leverage is typically presented as a ratio, and as this ratio increases, so too does your risk. It's imperative for traders, particularly novices, to understand how to use leverage wisely. ETFinance, being regulated in Cyprus and the EU, adheres to the ESMA's stringent guidelines. As such, it offers lower leverage levels, tailored to each specific instrument, which can be easily checked on their platform. For retail traders, the maximum leverage available is 1:30 for major currency pairs and 1:10 for commodities. Professional traders, upon verification of their status, may access higher leverage of up to 1:400 or 1:500.
ETFinance caters to a diverse clientele with its four account types: Bronze, Silver, Gold, and Platinum. This stratification is cleverly designed to meet the needs of traders at different stages of their journey - from beginners to experts. Additionally, traders who adhere to Sharia principles can opt for an Islamic Account, which complies with specific religious laws by eschewing swaps and offering high leverage among other features ETFinance provides its users with access to over 750 assets, along with comprehensive account management and progressively better cost discounts as traders gain experience. Higher-tier accounts benefit from additional perks such as free VPS service, news alerts, and bespoke solutions.
Opening an account with ETFinance involves a straightforward three-step process: submitting personal and trading experience details for live account confirmation, making an initial deposit, and gaining almost immediate access to trading and markets.
An essential aspect of this ETFinance review is the analysis of the costs and spreads associated with their trading services. Naturally, these expenses vary depending on the type of account you select and the volume of your trading activities. For instance, the Silver account features minimum spreads starting at 0.07, the Gold account offers spreads beginning at 0.05 along with a 25% rollover discount, and the Platinum account boasts spreads from 0.03 with a 50% swap discount.
ETFinance's spreads are notably competitive, positioning themselves in the lower to average spectrum even for those holding a Silver Account. For traders contemplating a partnership with a dependable broker, considering the enhanced conditions of higher-tier accounts is worthwhile. Importantly, ETFinance operates on a spread-only cost model, eliminating commission fees. However, it's crucial for traders to factor in SWAP or Rollover fees for positions held over a day. Typically, these fees amount to -40.73 for long and -39.63 for short EUR/USD pairs, with Gold and Platinum accounts benefitting from reduced rates. Below is a comparison of ETFinance's typical spreads against other CFD brokers, which also includes an assessment of CFD fees, commissions, or inactivity fees where applicable. A detailed comparison with BDSwiss Review is also recommended for a broader perspective.
Aligned with strict regulatory standards, ETFinance ensures secure and compliant money management processes. Should any doubts arise, customers are encouraged to seek clarification from customer support before proceeding with any financial transactions.
Deposit Fees and Options
ETFinance offers multiple options for depositing funds, including the widely used Bank Wire Transfer, Credit Cards, and the e-wallet service Skrill. It's advised to consult customer service prior to making any transfers for a seamless and efficient process. The available deposit methods are:
Bank Wire Transfer
Credit Card, Debit Card
Skrill
Notably, ETFinance does not impose any charges for deposits, though it's prudent to verify any potential fees with your payment provider or bank.
Minimum Deposit Requirement
The minimum deposit requirement at ETFinance is EUR 100 for a Silver account, with higher-tier accounts necessitating larger initial deposits, catering to more experienced traders. Most other brokers have a minimum deposit of $500.
ETFinance Withdrawal
ETFinance provides a fee-free withdrawal process for Bank Wire and Card transactions. However, considering ETFinance's European base, it's advisable to check with your payment provider for any applicable fees due to varying jurisdictional regulations.
ETFinance offers traders the choice between a Web version and the renowned MetaTrader4 platform, accommodating both novice and professional traders with its robust features.
Pros
Option between MetaTrader4 and WebTrader
Userfriendly design
Price alerts and push notifications
Support for various languages
Availability on Web, Mobile, and Desktop versions
Cons
None
Web Trading Platform
The WebTrader, based on the MT4 engine, allows for browser-based trading without the need for installations, ensuring accessibility from any device. However, it's worth noting that Web Trading platforms may offer limited customization and tool range compared to their desktop counterparts.
Desktop Platform
The MetaTrader4 desktop platform is compatible with both iOS and Windows operating systems, celebrated for its extensive charting capabilities and diverse layout options. ETFinance supports a variety of trading strategies, including manual trading, copy trading, and automated trading through popular Expert Advisors (EAs).
Mobile Trading Platform
The mobile app mirrors the simplicity and tool range of its desktop counterpart, providing comprehensive charting capabilities and account management features suitable for trading on the go.
ETFinance's customer support team is accessible via live chat, email, and phone in various languages, operating from Monday to Friday, 7 to 19 GMT.
ETFinance offers an extensive array of educational and analysis materials, including trading videos, courses, webinars, and tutorials. Regularly updated articles and an unlimited demo platform further enrich the learning experience for traders at all levels.
ETFinance stands out for its quality trading conditions, flexible trading platforms, and a wide range of instruments. The brokerage benefits from European CySEC regulation and adherence to the MiFID directive, ensuring a secure trading environment. The MT4 platform's availability, comprehensive educational resources, and supportive materials make ETFinance a suitable choice for both beginners and experienced traders.
ETFinance and Magnum FX Update
Recent findings highlight a warning issued by the UK's FCA against Magnum FX on 28 May 2020 for engaging in illegal trading practices and employing aggressive marketing tactics in the UK. Despite Magnum FX's CySEC regulation, the firm's actions were deemed in violation of MiFID obligations, leading to an order to cease offering financial investment services to UK residents. The official FCA warning cites misleading marketing and numerous complaints as the basis for this action.
ETFinance Latest Updates
As of the latest information, ETFinance's website has become inactive, and the broker has ceased operations entirely. Given the importance of financial security in trading, opting for a broker with top-tier regulations and favorable conditions, such as FXTM, HFM, or FP Markets, is highly recommended.
