top of page

Finotrade Review 2024

Website: www.finotrade.com

Min. Deposit: US$ 1000

Leverage: 1:30

Trading Platforms: MT4

Regulation: FCA

Headquarters: UK

Founded: 2018

Regulatory Licenses:

- Finotec Trading UK - authorized by FCA (UK) registration no. 470392 - no longer active, redirect to another entity

Updated on April 15, 2024

Quick Links


Our Review Method ▲

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.


Finotrade Pros and Cons ▲

Finotrade stands out for its flexible trading conditions and costs, catering to various trader preferences with options for raw, fixed, or variable spreads. The process of opening an account is streamlined, and the broker offers a variety of funding methods to accommodate different user needs. However, there are areas where Finotrade could improve. The broker does not provide comprehensive educational resources for new traders, which may limit learning opportunities for those new to trading. Additionally, customer support is not available 24/7, which could be a drawback for traders who operate in different time zones or prefer round-the-clock assistance.


Pros

  • Offers flexible trading conditions and costs

  • Streamlined account opening process

  • Various funding methods available

Cons

  • Limited educational resources

  • Customer support not available 24/7


10 Points Summary ▲

  • Headquarters: UK

  • Regulation: FCA

  • Instruments: Forex

  • Platforms: MT4

  • EUR/USD Spread: 0.4 pips

  • Minimum deposit: 1,000 US$

  • Base currencies: USD, GBP, EUR

  • Demo Account: Provided

  • Education: Finotrade Trading Academy

  • Customer Support: 24/5


Is Finotrade Safe or a Scam? ▲

Finotrade is a reputable broker, not a scam, regulated by the Financial Conduct Authority (FCA) in the UK, ensuring low-risk trading for its clients. Operating under the trading name of Finotec Trading UK, the broker adheres to stringent regulations and is audited annually to maintain a secure trading environment. Compliance with FCA rules is a hallmark of Finotrade, ensuring the protection of client funds through stringent operational standards. All client funds are held in segregated accounts, separate from the company's own funds, to provide an extra layer of security. Additionally, Finotrade clients are protected under the Financial Services Compensation Scheme (FSCS), which covers funds up to GBP 85,000 per client in the event of the broker's insolvency. This regulatory framework, combined with the broker’s commitment to safety, positions Finotrade as a reliable choice for traders seeking a secure trading environment.


Leverage ▲

Finotrade, a UK-based brokerage firm, adheres to the Financial Conduct Authority (FCA) guidelines, which caution against the use of excessively high leverage by retail traders due to the associated risks. It is crucial for traders to understand how to utilize leverage appropriately to mitigate potential losses. As a result, Finotrade imposes a leverage cap of 1:30 for major currency pairs, 1:20 for minor pairs, and 1:10 for commodities. Nonetheless, professional traders or account managers who can verify their status may be eligible for higher leverage ratios, reaching up to 1:100.


Account Types ▲

Finotrade has developed a range of four account types to cater to the diverse needs of traders. These accounts are designed considering the trading volume, investment size, and service level required by different traders. The available account types include Standard, Gold, Platinum, and VIP, each offering a unique set of features and benefits to match the specific requirements of traders. Additionally, Finotrade focuses on catering to professional investors by offering Managed Accounts and Percent Allocation Management Module (PAMM) accounts, allowing for greater flexibility and investment opportunities.


Trading Platforms ▲

Finotrade has chosen to support its trading activities with the highly acclaimed MetaTrader4 (MT4) platform. MT4 is renowned for its advanced trading features, comprehensive analysis tools, numerous built-in indicators, and exceptional charting capabilities. Its popularity is further enhanced by the provision of automated trading options through Expert Advisors (EAs), making it a favored choice among both professional and casual traders worldwide. Finotrade also extends its support to professional traders by incorporating Virtual Private Server (VPS) technology, ensuring uninterrupted trading operations and enhanced trading efficiency.


Education ▲

Despite being relatively new to the industry, having commenced operations in 2018, Finotrade is backed by a team of industry professionals with over a decade of combined success. The firm is committed to providing a professional trading environment through the industry-leading MT4 platform and offers a variety of account types to accommodate both novice and experienced investors. Furthermore, Finotrade has established its own Trading Academy, aimed at elevating traders' expertise through enhanced knowledge and skill development, thereby fostering a more informed and proficient trading community.


Fees ▲

Finotrade's fee structure is presented as competitive and low compared to other forex brokers in the market. However, a clear breakdown of fees is not extensively detailed on their website, making it somewhat challenging to fully understand the potential costs involved without contacting their customer service. It is crucial for traders to consider both the explicit and implicit costs of trading, including spreads, commissions, and potential account maintenance or inactivity fees. Comparatively, when analyzing fees against a benchmark of over 1000 brokers, including popular brokerages like BDSwiss, Finotrade's fee structure appears to be in line with industry standards for low-cost trading options.


Spread ▲

The Finotrade spread, especially for the EUR/USD currency pair, starts at a floating rate of 0.4 pips. This rate is competitive but subject to additional commission charges depending on the trading account type selected by the trader. The lack of thorough explanation on their website regarding how spreads are calculated or tiered across different account types leaves potential traders guessing or in need of direct consultation with Finotrade's customer service. It's important for traders to understand how spreads can impact their trading strategies, especially during volatile market conditions where spreads can widen significantly.


Deposits and Withdrawals ▲

For adding funds to trading accounts, Finotrade offers several methods including Wire Transfer, SafeCharge, and Union Pay. The minimum deposit required to open a Classic account is set at $1,000, which is higher than the industry standard of $500 set by most other brokers. For more premium account types such as the Gold account, the minimum deposit requirement jumps to $10,000. Although the initial deposit requirements may seem steep, they are positioned to cater to traders with a larger capital base. On the withdrawal front, Finotrade does not impose its own fees for deposits or withdrawals, but traders may still incur charges from their payment providers. For example, SafeCharge typically enforces a 2.95% processing fee for transactions up to $500,000, and Union Pay applies a 3.95% processing fee.


Conclusion ▲

Finotrade positions itself as a favorable option for high-volume traders and sizable investors, backed by its competitive spreads and tailored account solutions. Despite the ambiguity in trading conditions and fee structures, the broker's efforts to maintain low operational costs and provide customized trading solutions are commendable. The FCA licensing adds a layer of reliability and trustworthiness to their operations. However, with the recent 2023 update highlighting an association with another company under the provided reference number, thorough research and direct communication with Finotrade's customer service are recommended before engaging in any trading activities. The broker's commitment to offering either fixed, variable, or raw spread with commission charges demonstrates flexibility in catering to different trading needs and preferences. Therefore, with cautious consideration and personalized consultation, Finotrade could be a viable broker for traders looking for customized solutions and competitive trading conditions.

Comments

Share Your ThoughtsBe the first to write a comment.
City skyline
bottom of page