Independent Review - Brokereo
In the trading world there are many pieces, and any one of them can cost you money if not handled properly. That is why the choice of a good broker is so important. The right broker can do away with several concerns that otherwise might cost you your trading capital.
There are literally hundreds of online brokers to choose from these days, and with many of them you have no idea whether they are any good, or even if they are trustworthy. And that is why we are here conducting the due diligence so you can make a good decision when choosing a broker.
The specific review will take a deeper look at Cyprus-based Brokereo and help you determine if the broker is worth your time. We will look at regulations, assets, trading platforms, banking, and more and then conclude on whether someone should deposit and trade with Brokereo.
When you land on the Brokereo website you will immediately be impressed by the attractive design. You will also find the information is well organized and complete. This is a broker that has got nothing to hide.
As we have already noted Brokereo is a Cyprus-based broker. They deal in CFDs, like so many of the online brokers these days. Being based in Cyprus is a plus since it affords the CySEC regulation as well as compliance with the MiFID II regulations.
The broker is offering up plenty of trading opportunities, spreads look not great, but ok. Plus, there are no commissions or fees. Leverage is within MiFID II guidelines, and there is a Professional account to increase the leverage limits. Overall, at first glance this looks like a solid and trustworthy CFD broker.
Now let us go deeper into each aspect of the broker and see if they hold up to a closer inspection.
Regulation by a third-party can increase the security of trading with a broker, and in that respect Brokereo has you covered. You will see that they are owned and operated by Concorde Investments (Cyprus) Ltd. and operate under CySEC license number 189/13.
The immediate implication is that this CySEC regulation makes Brokereo more legitimate, but there are other reasons to appreciate the regulation. CySEC regulation provides clients with three important protections:
- Account segregation to keep client and broker operational funds separate.
- Negative balance protection to ensure you never owe more than is in your account.
- Customer compensation fund to protect against an insolvent broker.
Registering for an account at Brokereo will not take you all day. In fact, it will not take you more than a minute. Simply click the link to open an account from the Brokereo website, fill in a few personal details, and your account is registered. Of course, afterward you will need to provide some documentation to prove your identity and address, but that is also a quick process if you have access to a scanner or can upload pictures of the required documents.
Brokereo typically reviews these documents and approves the account within 2 business days. After that, all that is left is to deposit some cash (there is no minimum) and get trading.
Beyond these three retail accounts there is also the option to convert to an Islamic account that does not use overnight swaps but retains all the other features. There is also the option to convert to a professional account (terms apply), which allows for leverage of up to 1:500 only for Professional clients.
On top of all that Brokereo also offers a demo account to test out the trading platform and conditions, or to hone your trading strategies.
Brokereo has five asset classes to choose from:
Taken all together traders will find more than 300 assets that can be traded as Contract for Differences (CFDs) at Brokereo. That is plenty to provide diversification and to ensure there is always a good market available to trade.
When looking into trading conditions we found that leverage follows MiFID II requirements and only goes as high as 1:30 for retail customers. We also found spreads to be a bit higher than usual, but that is offset by a lack of commission. The broker operates under an STP execution model that also helps to avoid slippage so what you see is what you get in terms of spreads.
The trading platform is MetaTrader 4. If you have any experience trading forex or CFDs we are sure you have come across MetaTrader 4 as it is the industry standard when it comes to trading platforms. At Brokereo clients can choose from the MetaTrader 4 desktop version, the MT4 WebTrader, and the MT4 mobile version.
All three come with an impressive array of charting and order management features, so the decision over which version to use is down to personal preference. You can use all three and they synch seamlessly, allowing you to place an order in one version, manage the same order in another version, and then close the order in the third version.
MetaTrader 4 comes with 30 pre-loaded indicators, 9 timeframes, and 8 order types. Plus, the MetaTrader community is can build custom indicators and signals and there are thousands of them available from the MetaTrader Community. If it is worth analyzing, you can do it with MetaTrader 4.
Banking is a bit more limited than you typically find with online brokers. Brokereo allows for deposits via bank transfer, credit/debit card, or the e-wallet Klarna. Deposits are done from within MT4 and there is a minimum of $250 per deposit. Deposits can take up to 7 business days, but for credit/debit cards and Klarna they are usually immediate. Bank transfers will usually take one to several days to process.
Withdrawals are made through the same processors and there is no withdrawal fee. Withdrawals can only be made to the funding source, and clients may be required to provide a copy of a bank statement or credit card statement to confirm the account owner.
While excellent trading conditions are needed, there is also a need for excellent customer service. We hope we will not need them but if we do, they can make or break our experience with a broker. In the case of Brokereo the customer service team does not disappoint. They are as good as you would hope, providing a great experience whether you have a simple question or a complex problem.
Support is available through web-based forms, online chat, email, or telephone. The downside is that customer support is limited to Monday through Friday from 8:00 AM to 5:00 PM GMT.
After going through the review do you think it’s worth it to trade through Brokereo? We did.
There is very little not to like and plenty of things we did like, including MetaTrader 4, over 300 assets available, and CySEC regulation.
Tighter spreads would be nice, but that is always true. Unless spreads are zero, they could always be lower. And there are no commissions to worry about at Brokereo, which is particularly nice for high volume traders. There is nothing worse than getting hit with a commission charge on every trade you make.
We would also like to see the customer support hours extended, but Brokereo seems to be following an industry trend towards limiting support to European market hours.
Overall, we see no reason to avoid Brokereo, and we think any trader would be happy with a trading account here.