Forexlive.com Independent Review Trading.com
Introduction to Trading.com
Trading.com is a brand new CFD trading broker that was launched in July 2019 by Trading Point Group, the parent company of XM. With the backing of one of the leading global forex brokers Trading.com quickly made a splash, and is being adopted rapidly by traders.
Currently Trading.com provides services only to residents of the European Economic Area (EEA) based on its licensing in the U.K. by the Financial Conduct Authority. Eventually the site plans on becoming licensed by the National Futures Association as well, at which time it will join the likes of IG, Forex.com, and OANDA in offering forex trading in the U.S.
Keep in mind that the NFA requires a minimum operational capital of $20 million, which has effectively kept small and mid-sized brokers out of the U.S. markets. That means there is a large and lucrative slice of business to be captured by those able to become licensed in the U.S.
The parent company was launched a decade ago in 2009 by a group of ex-interbank dealers. Originally branded as XEMarkets, the rebranded XM has become known globally as one of the top forex and CFD brokers. Clients appreciate the wide array of assets available, not to mention the excellent trading conditions.
Trading.com is following that path as well, offering tight spreads and no commissions, the technologically advanced MetaTrader 5 platform, and six asset classes. Plus it has a low minimum deposit of just $5 to get started, 30:1 leverage, and a demo account to familiarize yourself with the platform and Trading.com’s trading conditions.
As part of the research process to write this review, we set up a demo account with Trading.com and accessed their website, desktop, and their mobile trading platform. The process of opening a demo account was straight-forward and quick, taking just 60 seconds. They also say it takes just 4.5 minutes to open a real account.
While there is a disclaimer that says 74.32% of retail investors lose money trading here, we do love the no requote policy and the statistic of 99.35% of all trades being executed in under a second. And of course the MetaTrader 5 platform is an excellent way to analyze charts and place trades. Everything we tried in our initial tests went smoothly, which is no less than we expected from a brand operated by a world-class broker.
Trading.com Regulations & Licenses
Trading.com is part of a large family of companies in the XM Group. The XM Group comprises Trading Point of Financial Instruments Ltd., which is regulated by the Cyprus Securities and Exchange Commission (CySEC 120/10), Trading Point of Financial Instruments Pty Ltd., which is licensed by the Australian Securities and Investments Commission (ASIC443670) and Trading Point of Financial Instruments UK Ltd., a company authorized by the UK's Financial Conduct Authority (FCA705428). The XM family also includes XM Global and XMTrading, which are registered offshore.
Of course the relevant part is that Trading Point of Financial Instruments UK Ltd., which operates Trading.com, is authorized and regulated by the Financial Conduct Authority (FCA) in the U.K. (FCA705428).
When signing up for a demo account we were offered a choice of 11 different languages (English, Czech, Dutch, French, German, Hungarian, Italian, Polish, Portuguese, Spanish, and Swedish). The Trading.com website is available in the same 11 languages, and the MT5 trading platform is available in dozens of different languages.
Retail Trader Accounts
Trading.com offers two accounts type – the Ultra-Low Standard, which uses 100,000 units of the base currency as a standard lot, and the Ultra-Low Micro, which uses just 1,000 units of the base currency as the standard lot. In either case you can open a live account with as little as $5, and in both cases you’ll get leverage up to 30:1, which is the greatest allowed by the ESMA regulations. Of course if you can prove that you’re a professional trader you can get greater leverage.
Both account types give you access to 6 different asset classes, and over 1,250 individual assets.
Demo accounts are available to everyone at Trading.com, and the demo accounts never expire, although they will be inactivated if not used in 90 consecutive days. You get full access to all the same features as a real account, and $100,000 in virtual funds to test to your heart’s content. Plus it takes just a minute to register the demo account and get started.
Trading.com Fees, Costs & Spreads
Spreads as low as 0.6 pips for the EUR/USD pair, and we can confirm this is the spread on that pair on the demo platform, which is supposed to have the same price feed as the live account. Spreads are variable, but seem fair across all the assets being offered by Trading.com.
There are no commissions to consider, and the only other fees we could find is an inactivity fee for accounts that have been dormant for 90 days and a fee for those who would like to use VPS. The inactivity fee is $5 or the balance in the account if it is less than $5. If the account balance is $0 there is no inactivity fee charged. The VPS fee is $28 a month, unless the client has a balance above $5,000 and trades a minimum of 5 round turn lots per month, in which case the VPS is free.
Clients can also run into charges for swaps on trades they hold overnight. Again these swap fees are variable, and swaps can also be a credit to your account depending on the currency pair.
Deposits & Withdrawals
Deposits can be made via bank transfer, credit/debit card, and a number of electronic wallet options. There are no fees for deposits at Trading.com, and clients can deposit in any currency and it will be converted to the base currency of the account at the prevailing interbank rates. With the exception of bank transfers, which can take up to 5 business days, all deposits are credited immediately.
Withdrawals can be made via bank transfer, credit/debit card, and a number of electronic wallet options. There are no fees for withdrawals at Trading.com, and Trading.com will cover any fees imposed by the bank/credit card/electronic wallet, as long as the withdrawal exceeds $200. Withdrawals are processed by the back office within 24 hours and are credited to electronic wallets within 24 hours. Withdrawals by bank transfer or credit card can take from 2-5 days to be credited to your account.
In all cases you can only deposit from and withdraw to an account that is in your name. Also it is not possible to make transfers between two accounts.
Trading.com Trading Platforms
Trading.com uses the MetaTrader 5 platform exclusively and makes the platform available to clients as a desktop application, a web-based application, and a mobile application (for both Android and iOS). MetaTrader 5 is a technologically advanced award-winning forex trading platform, and clients will find it is loaded with features, especially when it comes to technical analysis and chart-based trading strategies.
The MetaTrader 5 web-based platform is full-featured and has all the powerful charting features and indicators traders need to analyze market price action. Clients can take advantage of the full range of languages, of MT5 built-in alerts, of the MT5 signal services and of the solid, reliable performance of the platform
The MetaTrader 5 Mobile Application is available for both Android and iOS mobile devices. In either case clients get full platform functionality on their mobile device, allowing trading to continue even when they have to be away from their computer.
Trading.com allows the use of Expert Advisors, but only via the desktop MetaTrader 5 platform. While that does mean the platform needs to be downloaded to the client’s personal computer, the availability of the Expert Advisors more than makes up for the inconvenience of installing a desktop application. One other limitation of MetaTrader 5 is that it is only available for Windows computers (Windows 7 or higher, Windows 10 strongly recommended.
Trading.com has over 1,250 different assets available to trade over six different asset classes. Trade forex, individual stocks, commodities, metals, energies and indices. There are more than 60 forex pairs available, including all the major pairs as well as many of the more exotic pairs. And you can also chose among 18 spot indices, 13 futures indices, as well as precious metals like silver, gold, platinum and palladium, various commodities including oil, natural gas, sugar, cocoa, coffee, cotton, wheat, high grade copper, corn and soybeans, and a comprehensive list of European and US stocks.
Traders can choose from four types of orders: limit orders, market orders, stop loss orders, and trailing stop orders.
Notification and Alerts
The MetaTrader 5 platform can easily accommodate the use of price alerts, which can be sent to a mobile device via SMS, or to an email address. Traders can also set alerts to be triggered at the release of important economic news events, making sure never to miss a market moving event.
Risk Management Tools
Traders have the basic risk management provided by the various order types.
Trading Tools and Analysis
Trading tools are primarily the vast variety of indicators and chart tools provided through the MetaTrader 5 platform. Trading.com also sends a daily email that details any activity in the traders account, including positions taken or closed, positions still open, profits and losses, deposits or withdrawals. We thought it was a nice feature and a good way to keep all account activity together and always available.
Education and Training
There is currently (December 2019) not an education or training area of the Trading.com website, however there is a placeholder for a trading guide that is coming soon. There is an economic calendar where traders can keep track of upcoming economic data releases and events, and there is also a set of forex calculators to make sure you don’t exceed margin requirements, to calculate pip values and swap amounts, and to calculate profit and loss. We’re sure the XM Group won’t overlook education and training for the traders.
Customer service is available on a 24/5 basis and in all 11 supported languages. You can reach out to the customer support team via live chat, telephone, fax, or email and based on our experience you’ll get a timely and knowledgeable response. Of course the online chat is the fastest way to get a response, but we also received a response to our email questions within an hour, which we feel is acceptable.
Forexlive.com Independent Opinion & Rating
Trading.com is relatively new and so isn’t too well-known yet, however since it is backed by the XM Group it can be trusted. It is also expected to grow rapidly. Thus far it only operates in the European Economic Area, but it is seeking licensing in the U.S., which could rapidly make it one of the largest forex brokers globally. There have also been rumors that the European XM customers will be moved to the Trading.com platform, but we weren’t able to verify that rumor.
We really liked the transparency of the pricing and spreads at Trading.com, and the easy to navigate website. Plus the FAQ section was extensive, and answered nearly any basic question a prospective client might have about the platform, deposits and withdrawals, accounts, features, and the company itself.
The use of MetaTrader 5 as the trading platform was a smart choice too. It’s a well-known platform with an extensive community, and it has been proven as an excellent trading platform.
Customer service was responsive and knowledgeable too, but we would like to see some training and education. It does appear a trading guide is in the works, but the addition of a team of analysts and webinars or seminars would be a very welcome addition to the platform.
Overall though there’s very little to complain about when a broker is backed by a trusted company in the forex industry, is regulated, has a transparent website with excellent spreads, and offers more than 1,250 different assets.