iBrokers.Trade Review
iBrokers.Trade Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this iBrokers.Trade Review .
iBrokers.Trade Review
Ibrokers.trade is a company which allegedly offers ECN forex trading. Multiple account types are available, with a very unusual distribution of trading conditions. Most of the types don’t have a set minimum deposit, although the spread offerings differ. Who would choose to open a worse account type, if he gas the option to open a better one? We suspect there are undisclosed minimum deposit requirements. Islamic accounts are also offered, with the trading conditions being worse than those for the Beginner account – spreads starting form the ECN feed + 3.2 pips
The Company. Security of Funds
Company Country Regulation
iBrokers Trading Solutions Ltd. UK N/A
Ibrokers.trade is owned by the UK-based iBrokers Trading Solutions Ltd. The company is registered as an IT one and does not fall under any financial regulation. This is highly troubling or us and is enough to not recommend dealing with the firm.
You may already know this, especially if you have read any of our other reviews, but we will reiterate it again – regulation is the most important factor, when looking at a broker. The legal environment in which a company operates dictates what it can and can not do with your money. For instance, had Ibrokers.trade been registered with the UK’s regulatory agency, the Financial Conduct Authority (FCA), it would have been forced to implement segregated accounts. This is a rule, which dictates clients’ funds must be kept separate from the company’s. In effect, this prevents the most basic forms of fraud. Furthermore the broker would have participated in the Financial Services Compensation Scheme (FSCS) – a mechanism, which functions similarly to an insurance policy, and guarantees clients’ investments, in case their broker goes bankrupt. If you trade with an FCA regulated broker and they happen to go under, your account will be protected, up to £50,000.
Other than the unusual account types and lack of regulation, trading signals are another thing, offered by Ibrokers.trade. They are valued at $199 per month, while new account holders receive two months for free. This is yet another dubious practice, which can only create a conflict of interest – your broker giving you trading signals directly, can either cause you to trade more often (to generate more commissions) or simply give you loosing trades, if they are a Market Maker.
Trading Conditions
Minimum Initial Deposit
As we already mentioned Ibrokers.trade doesn’t require a minimum deposit for most account types. Although we have our doubts about this claim, it may be possible. Other brokers have also set low deposit barriers, in attempt to convince less experienced people to try trading. FXTM, for one, only requires $5 for the creation of a new cent account.
This condition shouldn’t really be a big factor, when comparing brokers. It’s perfectly fine to trade with a low deposit, or even a cent account when you are learning. However experienced traders will tell you, more capital is necessary for serious trading.
Average spreads & Commissions
Ibrokers.trade offers different conditions to the holders of different account types. This is often the case, but such vagueness in the overall presentation is rarely seen. We have no reliable information on what the ECN price feed, offered by this broker is. Even if we taker the most optimistic case, of spreads starting around 0.1 – 0.4 pips on EUR/USD, when you add the commissions, the overall picture is not that impressive. The ECN account may offer decent conditions, although we would not recommend depositing $10,000 with an unregulated company.
Have you ever wondered what spreads are being offered by the top-tier forex brokers? Luckily for you, we have set-up a real-time comparison of their offer, which you can check here.
Leverage
The leverage offered at Ibrokers.trade is capped at 1:100. This level may not seem that high, given the offers exceeding 1:500, but is still more than enough for a solid trading plan.
Leverage can be a double-edged sword. With higher levels, one can potentially trade a lot more aggressively. This oftentimes is the main factor, which causes less experienced traders to blow-up their first account. In the US, regulators have set the maximum leverage, which can be offered to retail traders at 1:50, in order to protect them.
Trading Platforms
Ibrokers.trade offers the popular MetaTrader4(MT4) trading platform. With its great charting capabilities and easy to work with programing language, the platform has became the number one forex trading solution. The only drawback it has is the lack of multiple monitor support. Those who are used to trading with specific layouts layouts, will have to fill their extra screens with esternal sources of information (not that this is so difficult in the current era).
Many custom tools, such as technical indicators, market screeners and automated trading systems are available. That being the case, this is a solid platform for the experienced forex traders, as well as for the newcomers. That being the case, we would recommend testing it with a different broker.
Methods of Payment
Payment options at Ibrokers.trade are rather limited. They include Bank Transfer, Credit/Debit Card and PayPal.
Ibrokers.trade is a UK-based forex broker, which doesn’t fall under any regulation. The company offers a rather strange selection of account types, with no deposit levels to distinguish most of them. That being said, the trading conditions are also not presented clearly, although one can figure out they will be below the current industry average, with most account types. The company also offers trading signals, to its clients. This is a highly dubious practice, as it can create conflicts of interest, regardless of the broker’s business model. We would not recommend dealing with this unregulated company.
The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
iBrokers.Trade Review Conclusion
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