Independent Review - ETFinance
ETFinance is a fairly new broker based in Cyprus which was founded in 2018. They give their clients, who come from countries across the European Union, access to forex and CFD trading online. The website is available in English, Italian, Portuguese, German, Dutch, and Spanish.
The vision behind the creation of ETFinance is to provide a cutting-edge online trading platform for ambitious traders. The brand is owned and operated by MagnumFX ., and lists OBR Investments Ltd as one of its executing venue.
ETFinance wisely provides Metatrader 4 as the primary trading platform in all its versions – desktop, web, and mobile. By offering clients a popular and powerful trading platform they make it easier to develop a broker-client relationship. Plus the traders get the power of the desktop version for technical analysis alongside the convenience of a web or mobile application.
ETFinance has also created a simple account structure that consists of just three tiers, which is certainly a breath of fresh air in comparison with some brokers that have 5 or even seven tiers of service. We think this simplicity is a winner for the broker and its clients.
The assets on offer are the basic groupings you would find anywhere and should be plentiful enough for nearly every trader out there. There are not many who are seasoned enough to consider trading exotic forex pairs, or thinly traded commodities and stocks.
There’s also an education center providing articles, guides and tutorials, eBooks, and videos on demand. Many of these are basic information, but this is exactly what many newer traders need.
One of the first things we always look for in an online broker is to see if they are regulated. In the case of ETFinance the answer to this question is yes, they are. They are regulated by the Cyprus Securities and Exchange Commission, the CySEC under license number 359/18. To be clear the parent company, is Magnum FX Ltd.
The CySEC regulation also brings the broker under the rulings of MiFID II, through passporting allowing them to accept clients from the European Union. Being covered under MiFID II also provides other protects for clients, such as the requirement to hold all funds in segregated accounts with a reliable European Economic Area (EEA) institution.
Furthermore, the broker is a member of the Investor Compensation Fund (ICF), an organization that insure client’s funds of up to €20,000 in the event that the broker becomes insolvent
It is good to see that ETFinance keeps things simple, offering just three account levels. Silver is for beginners, Gold is for those with more experience, and Platinum is for seasoned traders. And there’s also a demo account available so prospective clients can test the platform and the broker execution. Or use it to test a new trading strategy. The only downside to the demo account is that it is limited to just 14 days.
As far as the live accounts go, they all have access to over 750 assets, and they are all limited to 1:30 leverage under ESMA regulation. Clients are also able to use an Islamic style account at all levels, which removes swaps.
Moving up in account levels adds some extra perks, for example the Gold level adds a 25% swap discount and a dedicated relationship manager. It also opens the possibility for eligible Professional Traders to get a leverage of up to 1:500.
At the Platinum level the swap discount is increased to 50%, and a free VPS is added. And those with Professional Trader status are granted leverage up to 1:500.
In addition to the above, minimum spreads also decrease with each additional level, which provides an incentive for traders to increase their account level as they gain experience.
There are a wide variety of assets available as CFDs at ETFinance, which makes it unlikely a trader will be at a loss for what to trade at any time, or under any given market conditions. Specifically, the broker website shows the following assets available for trade:
Forex pairs – 50
Indices – 20
Commodities – 17
Cryptocurrencies – 33
Also available are CFD’s on ETFs
There are no commissions charged on trades at ETFinance. Spreads are variable and start as low as 0.7 pips for the EUR/USD in the Platinum level account.
It is good to see ETFinance offers the MetaTrader 4 platform in all its flavors, meaning the desktop version, the mobile version, and the Web Trader. MetaTrader is probably the best-known trading platform, and could well be the most popular as well, and for good reason.
The desktop version of MetaTrader 4 is incredibly powerful in its charting and technical analysis capabilities. There are dozens of indicators preloaded, and many hundreds other free indicators that can be downloaded. There are also hundreds of paid indicators and Expert Advisors to expand upon the strategies available from MetaTrader 4.
The Web Trader extends many of the same features, although there are not as many indicators available. The same is true for the mobile version. The strength of these two platforms is in their convenience and in their order entry capabilities. Both feature one-click/one-touch ordering, as well as a variety of advanced order types.
While there are some other trading platforms available that are very good, it’s difficult to beat MetaTrader 4, especially since most experienced traders are also well versed in the use of the MetaTrader 4 platforms.
Deposit options will depend on your country of residence, but in general you can expect to find deposits accepted via credit/debit cards, bank transfers, and some online eWallets such as Neteller and Skrill. There are no deposit fees.
Withdrawals must be processed to the same account as the deposit, and ETFinance reserves the right to charge a €15 processing fee on bank transfers. In addition, the minimum withdrawal is €50 for bank wire transfers. And for withdrawals from accounts that have one or fewer trades a €50 fee will be assessed.
Customer service does not really matter – until you need customer service! Then it is the most important aspect of any broker. Fortunately, in our tests the customer service team at ETFinance was both professional and knowledgeable, answering our questions rapidly and fully.
The only downside to us was the hours of operation for customer service, which is Monday through Friday from 7:00 GMT to 19:00 GMT. That does cover market hours in Europe, but not for the U.S. or for the 24-hour forex markets.
Customer service can be reached via telephone, online chat, email, or through a web-based form.
The feature set at ETFinance is suitable for all levels of traders, as is the assets on offer, and the available MetaTrader 4 platform. Plus, they are a regulated and reliable broker, with insurance protection (ICF) for clients and segregated accounts.
The simple commission-free trading offered is ideal for those just getting started in trading, and even though the spreads are a bit high compared with other online brokers, they are not high enough to put us off from the broker. More experienced traders could also apply for Professional Trader status to take advantage of higher leverage.
We were satisfied with the broker, what it offers, and how it conducts its business. We believe most anyone else would be satisfied as well.