121 Clearing Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this 121Clearing Review.
121 Clearing Review
121 Clearing offers its clients a choice of several account types, all of which offer leverage up to 1:100 and variable spreads, averaged 0.4 pips on EUR/USD. However, the commission applicable varies by account type.
Besides, 121 Clearing provides managed account solutions (MAM accounts) for money managers and investors.
The Company. Security of Funds
121 Clearing provides both retail and institutional traders access to wide range of global markets including Forex, Indices, Commodities and more through the industry’s most popular platform, MetaTrader 4.
121 Clearing is a brand of Finotec Trading UK Limited, a company, which is authorized and regulated by the Financial Conduct Authority (FCA) since 2007. Stemming put of Asia, the company operates a number of brands: CSI-FX, Sky Clearing, Ballistic Markets, Dragon Gain and Noa Prime.
FCA applies stringent requirements and standards to financial services providers in the UK. To acquire a license from the UK financial watchdog, brokerages must hold net tangible assets amounting to €730 000 (and maintain it). Furthermore, clients` assets should be kept in segregated bank accounts, separated from the company operating funds.
Most importantly, financial regulation in the UK involves a compensation scheme. All FCA-licensed companies are covered by the Financial Services Compensation Scheme (FSCS) and in the event of insolvency, there is a maximum compensation cover of £50,000 per person.
Minimum Initial deposit
The minimum initial deposit with 121 Clearing is $500. While such amount is not too high, many UK forex brokers require less or none. For instance, leading global brokerage Oanda (holding a FCA license, among others) has set no such requirement, so one can open a trade with just $1.
Spreads & Commissions
121 Clearing offers competitive variable spreads, starting from 0.2 pips and averaged 0.4 pips on EUR/USD. A commission of $7 – $10 round turn per standard lot also applies, so average trading cost per lot amounts to around 1.1 – 1.4 pips which is average.
In comparison, Oanda offers average spreads of 1.4 pips on the EUR/USD and charges no commission fees. If you need further information, you may look up real-time spreads of 15 leading brokers here.
The maximum leverage available to 121 Clearing clients is 1:100, which is deemed low or mediocre, as most brokers provide at least 1:200. On the other hand, some jurisdictions cap leverage to 1:25 (Japan) or 1:50 in order to limit risk exposures. Since Oanda is regulated in the US, it offers a maximum leverage level of 1:50 on FX products.
If you need higher leverage levels, you can choose from a list of brokers that offer leverage equal to or exceeding 1:500.
Like the majority of forex brokers, 121 Clearing supports the Metatrader 4 (MT4) trading platform, available as a desktop version and mobile applications.
Developed by Russian company MetaQuotes, MT4 is the worlds’ most popular trading platform. It is equipped with its one-click trading, outstanding charting package, a number of technical analysis indicators and signal copying options. Besides, MT4 enables clients to fully automate their trades by choosing from a wide range of Expert Advisors (EA) and let the program do all the work.
Click here to see other brokers that use this trading platform.
Methods of Payment
Clients of 121 Clearing can make deposits to and withdrawals from their accounts via bank wire, credit/debit card (Visa, MasterCard, American Express), e-wallets, such as China Union Pay, and SafeCharge.
SafeCharge involves 2.95% processing fee, while China UnionPay charges 3.95% plus a 35 cent(USD) transaction processing fee, plus additional withdrawal fee of 2% credit fee plus 20 EUR.
Accepted currencies: USD, EUR, GBP.
121 Clearing Review Conclusion
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