Xtrade is a CFD and forex broker headquartered in Cyprus. As an experienced broker in the market, Xtrade has been a favourite with some investors and traders on account of its wide range of payment methods. For many others, what is Xtrade and what are its strong points remain a matter of debate. Whether it is the trading conditions, customer support, fees, regulation and deposit protection, trading platforms or features, this Xtrade review will cover the various aspects of how this CFD and forex broker functions, and how it compares to established brokers such as eToro.
Xtrade quick facts
Overall score (out of 5 stars)
Bitcoin, Litecoin, Dash, Ethereum, Ripple, Bitcoin Cash, Ethereum Classic, ETH/BTC, DASH/BTC, Bitcoin (EUR), Litecoin (EUR), NEO, Zcash, Monero, Lisk, OmiseGO, Steem, Golem, Civic, Bitcoin Gold and Iota
CySEC, ASiC, MiFID
Wire Transfer, credit/debit card, e-wallets payment gateways online
Regulated by CySEC, AiSIC, and MiFIDClient funds segregated for safety and investor compensation and deposit protection up to 20,000 EurosStandard and free demo account upon registrationMore than 150 CFD assets including 12 indices, 74 stocks, 51 currency pairs and 13 commodities.The trading platform is proprietary and does not require any downloads/mobile apps availableNo commissions – Xtrade compensates through Bid/Ask spreadProfessional charts, technical analysis tools, and trainingMultilingual customer reps accessible 24/5 through email, phone or chat
How we reviewed Xtrade
This Xtrade review analyses the CFD and forex broker on various parameters. These include a choice of cryptocurrencies/alt coins available, fees charged, measures taken for regulation, licensing and safety and even the range of payment methods. A crucial factor in assessing Xtrade trading potential has been to understand the value of its proprietary platform.
Instant access, no downloads and other features of the trading platform were also assessed, such as analytics, charting indicators and more. The Xtrade Review also considers the usability of the website and its ease of navigation for traders. From evaluating the platform Xtrade, bitcoin and other altcoin options to even considering the merits and pitfalls of investing through this broker, this review is a cogent and comprehensive analysis of how Xtrade measures up to skilled players like eToro.
Xtrade was first established in the year 2003 when it was owned by XFR Financial Limited, a company licensed by CySEC to offer contracts for difference. Based in Limassol, Cyprus, Xtrade is now known for offering trading services on cryptocurrencies, foreign currencies, indices, commodities and even shares. It has offices spanning 5 continents and clients across 140 countries. As Xtrade started out as a CFD broker, it has even developed its own trading platform. It offers a fairly wide range of asset choices, open positions, history and trading tools. Apart from the latest 256-bit SSL encryption, this broker has a plethora of features too.
Regulation & Safety
The head office of Xtrade is located in Limassol, Cyprus. For those of you wondering is Xtrade safe, the answer is clear. Xtrade is subject to regulations by the Financial Supervisory Authority CySEC apart from safety features like SSL encryption. This regulator carries out regular checks too.
Xtrade also operates through MiFID guidelines. These guidelines necessitate that customer deposits have to be kept away from operating capital. Brokers also do not have to worry about losing account balances, because Xtrade is a member of the investor compensation fund as well offering deposit guarantees to the tune of 20,000 Euros per client. It should, however, be noted that customer deposits are stored in bank accounts in Greece!
Additionally, there is no negative balance protection. Xtrade leverage makes it possible to multiply credit without a balance that is adequate. Additional margin-call obligations may be incurred in this context too. The trader is, therefore, able to deposit more money even when the account has reached a certain level.
While Xtrade charges no commissions, it is compensated via a bid/ask spread. These are varying by asset, as well. Margin requirements are separately stated. Margin calls can become possible with CFD if markets move suddenly in an unfavourable direction. Trading forex on margin carries a massive amount of risk. Additionally, the high leverage of 1:400 can be a major problem for an individual trader as well.
Before investing in forex/foreign exchange, it is essential to consider investment objectives, experience level, and risk tolerance. Further Xtrade fees are even charged for deposit or withdrawal processing. Bank intermediaries or processing fees can be levied though. Using third-party withdrawal payment methods can cause expenses. Processing time, on an average, is 1 to 5 working days which is just about the industry average.
Xtrade withdrawal fees may be nil, but that’s not the only advantage. Xtrade offers nearly forty payment methods for funding the account, USD 200 being the minimum amount required. Along with bank wire transfers, debit and credit cards, they also offer a number of online as well as domestic/national payment provider options in addition to e-wallets. All of which makes buying bitcoin and other cryptocurrencies relatively easy for a newbie to the market.
Withdrawals follow the same route as deposits and as long as AML documents are in place, withdrawals are easy. So, while the broker clearly offers a narrow range of options in terms of platform and trading accounts, it offers a wide range of payment methods, including Todito Cash, YandexMoney, Neteller, Skrill, Sofort, Moneta RU, Webmoney, Multibanco, Neosurf, QIQI, POLi, Przweley24, Sporopay, iDEAL, Halcash, Giropay, EPS, ePay bg, CashU, Boleto, eKonto, Dinero Mail, Lonanet and Mister Cash among others.
The customer support is available only for the entire trading period, and not non-working hours. So, the 24/5 multilingual customer care reps are an advantage only if you don’t have questions during off hours.
Traders can, however, contact the customer support 24 hours in a day for those 5 working days. Whether you want to opt for live chat, direct phone or email, there are plenty of options. Education is prioritised by this broker which offers tutorials and courses as part of the Xtrade Academy. The Xtrade app is also helpful, though the Xtrade trading platform is severely limited.
The Xtrade mobile trader has only one choice: this broker’s proprietary platform. While the representatives for customer support speak a total of 6 languages and the website supports over 16 languages. Account managers can address queries and guide traders through trading education, system familiarisation and set up. The website even explains tools like spread, leverage and the importance of risk management.
Unique features & Trading Platform
Fixed spreads are a unique feature of this trading platform. Xtrade offers the advantage in the sense that traders know what fees will be charged from day one. Additionally, there are zero commissions. At Xtrade, fixed spreads are extremely on the high side. For the standard account which is the obvious choice for novices, it is pegged at 4 pips. In comparison, a large margin can result, which is something that must not be thought less of or underestimated. For those who can afford it, a premium account, therefore, makes sense. A standard account is available with only a deposit amounting to 100 Euros, and a bonus is added of an equal amount for every successful referral. But this account offers very low equity for trading. Only when the trader makes a deposit of 1000 Euros or above is the premium account accessed where trading is at 2 pips only.
Additionally, traders can choose between majors and minor pairs and even exotic currency pairs. This platform offers traders the choicest shares, indices, and commodities as well. But then there are also many pitfalls. One such is the proprietary Xtrade trading platform. Xtrade does not offer any other platform apart from its own. Traders cannot access MT4 or other robust platforms at Xtrade. Further, Xtrade’s trading platform has only 4 tabs: the overview page, closed and open positions page and the order a trader has made. Trading is viable through these multiple charts, but not very easy. App-friendly, its trading platform offers encryption as well.
How does Xtrade compare to eToro?
Xtrade can’t hold a candle to eToro when it comes to trading platforms, account options, fees and negativebalance protection. On its platform Xtrader Pro, the broker offers limited options. Xtrade also does not offer account management services or access to the robust MT4 platform. While this regulated broker offers a lot of educational material, it’s customer support is only available 24/5, limiting the value of this broker. With only fixed spreads offered, Xtrade can’t make the cut.
Furthermore, eToro provides a sophisticated trading platform with built-in copy-free trading. Swap free accounts are available for Islamic traders. Further again, there are many premium account options, not just one, unlike Xtrade. The eToro clients don’t even pay a single cent for copying trades. In comparison to Xtrade, minimum deposit guarantee for eToro traders extends up to GBP 50,000 as per UK’s Financial Services Compensation Scheme and 20,000 Euros under the ICF of CySEC.
The minimum deposit is just USD 50, as against USD 200 in the case of Xtrade. Additionally, eToro runs ops through its WebTrader platform and has a friendly app versions. WebTrader comes with a variety of features such as one-click trading, take profit and Trailing Stop Loss orders. To check out eToro, try the link.
How to sign up in 5 quick steps
Step 1: Go to the Register section of the site and click on the link. Step 2: Complete the form asking for basic details like name, email etc. and you will be led to the trading account. Xtrade does not charge any registration fees. Step 3: A pop-up message will show you a randomly generated password, which you must change into your own. Step 4: Traders upon registration will also receive a welcome email with their username and password. Step 5: Use your Xtrade login and start trading
Xtrade advantages & disadvantages
✓Minimum deposit at USD 200/100 Euros
✓Additional deposit guarantee and CySEC regulations
✓Tax withheld is not automatically deducted
✓Trading through a proprietary platform
✓Demo account available
✓Demo account available only for 30-day period
✓Trading platform is severely limited
While the minimum deposit is only USD 200, the additional deposit guarantee under the Investor Compensation Fund adds value. Further, trading is through a proprietary platform and tax withheld is not automatically deducted. Demo accounts are also available.
The disadvantages come in the form of high spreads, no negative balance protection, and a severely restricted trading platform.
Conclusion: Is Xtrade a good place to buy cryptocurrencies?
Xtrade is a broker which has been able to consolidate its position in the market to some degree. It offers a wide range of cryptocurrencies, not just the usual Xtrade Ethereum or bitcoin options. Xtrade offers a lot of advantages but it is hardly up to the standard of eToro, the preferred cryptocurrency trader for 2018 as adjudged by many standards and on various parameters. While Xtrade does offer a lot of cryptocurrencies, consider that eToro offers 13 cryptocurrencies which go beyond the usual suspects, like BTC, XRP, and ETC to include ADA and XLM.
Founded in 2007, eToro is the leading platform for cryptocurrency as well as social trading, outnumbering the underlying assets offered by brokers like Xtrade with a wide margin. With over 1000 assets in 5 categories, eToro remains the most favoured online trading platform for a reason. So many traders choose this platform because it comes with added benefits like detailed analytics, sophisticated trading platforms and (of course) one of the lowest minimum deposits in the cryptocurrency trading ecosystem. So, join up today and invest or trade like a professional on the eToro trading platforms.