Is XTrade a good broker? We believe they are just another broker. Although they have been growing in recent years due to the number of underlying assets which one can negotiate with, and the heavy investment they are doing through sponsorships such as those from Cristiano Ronaldo. Nonetheless, once can find CFD brokers like Plus500 that are far more famous and do not charge commissions. They offer a wide range of negotiable assets, including forex, shares from companies listed on stock exchanges around the world, indexes and, of course, raw materials (gold, wheat, silver, oil …). However, if you want to do so at a later time, throughout this review we will analyze the requirements that every CFD broker must have by comparing XTrade with its competitors. In addition, we will analyze the varied opinions from customers (76,4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money).
We believe it is a broker that leaves something to be desired, since their services and customer service are average. Even though the company offers many options, before hiring their services, we have to ensure it is a good broker. To do so, we have to conduct an in depth analysis to study its pros and cons. That is why we will conduct a review to study their commissions, reviews from actual traders, whether it is regulated or not, whether it offers a demo account, and other important information before registering.
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Regulation: Is XTrade a scam?
The first step in a review is to always analyze the regulation of the broker regulation. Why? It tells us whether it is a secure and reliable broker. Even though being regulated is not a 100% security certificate, it is a clear sign that they take things seriously and that they are not a scam.
XTrade is a Cyprus based broker, and is therefore authorized and regulated by the Cypriot entity, CySEC. Cyprus is one of many countries in the European Union and Euro Zone such as Spain, so they comply with all treaties, regulations and communities. In addition, its Italian branch is registered in the Italian entity, CONSOB, which would be somewhat similar to the UK´s FCA. In addition, since XTrade is a European broker, it complies with the MiFID community regulations. Having Cristiano Ronaldo sponsor XTrade is seen as something very positive in the trading world and for many people, it offers them a great sense of security, but it does not provide us any information as far as reliability. The important thing is the information we encounter in terms of regulation, and based on that we have to determine if it is reliable or not.
In summary, after studying everything regarding supervision, we believe XTrade is a reliable broker. Nevertheless, we don´t like nothing that´s not registered with the FCA of the UK, which generates some distrust. Taking into account that there are other CFD brokers like Plus500UK Ltd that are registered woth the FCA, we believe it would be interesting to focus our attention on them (76,4% of retail CFD accounts lose money).
Does XTrade pay?
One of the concerns that traders have before investing through a CFD broker is to know whether they will have a problem when withdrawing their money. In this regard, we have to say that after reading comments in forums, XTrade generally speaking, does pay on time even though one may encounter comments about people stating that they had problems withdrawing their money.
If you are still new to trading and don´t want to start directly with real money or you want to test using the simulator to see how CFDs work. In doing so, you will be able to see how the markets reacts, be it Forex with the movement in currencies, or the stock exchange with the quotation of companies, as news emerge affecting the company.
Demos are very useful tools for beginners because they offer you the option of carrying out as many operations as you want and verify in first person the functioning of the financial markets around the world, as well as to negotiate with all available assets, be it stocks, currencies, raw materials or stock indexes. Thanks to this, if you are a beginner, or if you already trade with CFDs, but want to try new strategies, you can use the demo to avoid taking risks.
If you want to use different trading strategies with CFDs without risking your capital, you can do invest through the demo account. The truth is that XTrade´s demo lacks many important options and has significant limitations. If you want to try Plus500´s demo click on the link below, and then click on “free demo account” (76,4% of retail CFD accounts lose money).
If regulation is most important, the second most important thing are commissions and fees. In trading with CFDs, the best brokers do not charge any commission for each operation, but instead use Spreads. The operation of these spreads is as follows: each time we buy or sell a CFD on a certain underlying (for example, oil, or shares of Telefónica or Facebook) the price of opening and closing a position is different. This differential is called the spread, and it is the existing cost to be negotiated. Therefore, we have to look for a broker whose spreads are as low as possible.
For XTrade´s basic account, which requires a minimum initial deposit of only 100 euros / dollars, the spread is fixed and ranges from 4 to 6 pips. If you prefer to register with the premium account, which is of a higher level, the conditions are better, since pips range from 2 to 5.
As mentioned earlier, there are many assets available to invest, so one cannot see each and every one of the spreads, because it would be a very boring review. By simply knowing that the Euro / Dollar currency pair is the most important, and as we see with Plus500, the minimum spread is variable. If you want to learn more about the spreads offered by Plus500, click here (76,4% of retail CFD accounts lose money).
As we have already seen, there are no commissions, but you have to know that if you do not trade for three full months, they can charge you a $ 5 inactivity fee. The normal thing is to not be charged because practically nobody opens a real account to leave it abandoned. Therefore, although there are some associated costs, we can say that hiring the services from XTrade is free.
On the other hand, one of the most interesting aspects of trading with CFDs is its leverage. XTrade stands out from the rest of the brokers, since it offers a maximum leverage of 1:30. If compared with others brokers like Plus500, and even with one of the famous brokers like Markets.com, we will discover that XTrade allows a similar leverage. So, you have the option to invest with a quantity of money of the same level as with the competing brokers of XTrade. Of course, you have to know that by operating with leverage you can lose more money than what you have entered.
Another very important issue is the platform, since that´s where you will spend most time and the tool you will use to invest. XTrade developed their own platform, so it is proprietary technology. Obviously, it offers high-level tools and all the signals you need to invest successfully. However, the signals do not make trading any easy and making money is not a sure thing. You are the one who has to operate and create your own strategy by always taking into account the risks of operating in the financial markets.
All factors and conditions we have seen so far are very great but, what do customers who already invest with XTrade think? Comments in forums and opinions from traders are mixed, some point out great things while others recommend certain improvements.
One of the aspects that has had great opinions is the platform itself, which is very easy to use and does not require any type of download. XTrade has many great reviews due to their free courses. The official website, which is fully available in English and other languages has also received positive comments.
Unfavorable comments are associated with the lack of using Paypal to make deposits, although they have plenty of other alternatives, such as Neteller, PaySafe Card, or traditional methods such bank transfer or credit and debit card. There is also one comment pointing out that they miss not being able to operate with the MetaTrader platform. Finally, one can also find opinions of distrust for not being registered under the FCA.
Rating and additional information
To end this review we want to create a list showing the positive aspects of XTrade, and factors we believe should improve, but let’s be honest, no broker is perfect.
- Demo available for beginners
- Platform compatible with mobile phones (Android and iOS), tablets and computers
- No MetaTrader 4
- Does not allow to withdraw or deposit money with PayPal
- Not registered with the FCA
- Spreads are higher than its competitors
- Can be greatly improvable in CFDs over cryptocurrencies, Ripple, Bitcoin, Bitcoin Gold, Bitcoin Cash or Litecoin
Having rated the different conditions offered by this broker, our assessment is that it is a mid-level company. Our opinion about XTrade is relatively good, but we miss not seeing it registered in UK´s FCA and we don´t like their high spreads.
We believe Plus500 is an option which should be consider for trading with CFDs. Click here if you want to learn more about Plus500 and trade without having to pay commissions (76,4% of retail CFD accounts lose money).