Pros & cons of ATC Brokers

ATC Brokers Fact sheet

Picking a Forex broker requires a careful assessment of safety features. Trading in FX and CFD markets comes with a large amount of financial risk, and the safety of your money should be a top priority when deciding on a proper broker to use. Several key factors can show how reliable a broker is, including reputation among other traders, regulations, and policies that the broker follows. 

ATC Brokers is considered to be a safe broker as it’s regulated in the UK and Cayman Islands, as per the following: 

• ATC BROKERS LTD. (1 Ropemaker St, London EC2Y 9HT) is authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom (FRN 591361).
• ATC BROKERS LTD. is regulated by the Cayman Islands Monetary Authority (CIMA) (1448274).

It should be noted that the Financial Conduct Authority in the UK is considered to be a top-tier regulator and is respected by traders the world over. The FCA has tighter requirements than the Cayman Islands Monetary Authority, which is why leverage only goes up to 30:1 for UK traders while for global traders the number reaches up to 200:1.

Policies that ATC Brokers follows

Under the regulations of the FCA in the UK and CIMA in the Cayman Islands, the broker is obligated to keep traders’ funds in segregated accounts This guarantees that in the event of the broker going bankrupt, traders will be able to withdraw their funds nonetheless. 

In addition, traders registered with the FCA-regulated ATC BROKERS LTD, are protected by the Financial Services Compensation Scheme (FSCS). The scheme settles disputes between brokers and traders and can compensate up to £50,000 per person per firm. The FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA).

Furthermore, clients of ATC Brokers are protected by negative balance protection (NBP). Most brokers offer NBP to their traders to protect their clients from losses that exceed their total account balance. This feature makes traders sure that no matter how volatile the markets are, they will never lose more money than what’s on their accounts. Forex trading is a leveraged activity, and leverage magnifies purchasing power numerous times. For example, 200:1 leverage means that for every 1 dollar traders deposit, they get to manage 200 dollars worth of assets. It should be noted that the maximum available leverage offered by this broker (30:1; 200:1) is not high enough to be dangerous, as some brokers can offer 1000:1 or above.

There are 54 instruments available for trading with ATC Brokers. Traders have access to trading various asset classes. However, all of them are CFDs. CFDs (Contracts for Difference) are financial derivatives that allow traders to speculate on the price movements of an underlying asset. Trading CFDs comes with many benefits and a few disadvantages:

• When trading CFDs, traders enjoy high liquidity and tighter spreads
• It is possible to short or go long, thus benefiting from both bullish and bearish markets
• CFDs allow traders to trade on a margin, which means they can gain exposure to the underlying asset by depositing only a small portion of the trade’s total value. Leverage helps traders increase their purchasing power.

On the other hand, CFDs are not for investing long-term because rollover fees for keeping a position active for a long time can add up quickly and eat away at your profits. For long-term investing, traders generally buy physical assets, such as real stocks, physical gold, or digital coins. 

Forex trading on ATC Brokers

There are 38 currency pairs for trading with ATC Brokers. Leverage varies depending on where you are registering from and which asset class you are trading. The maximum leverage for UK-regulated clients is 30:1 and for global traders, available leverage goes up to 200:1. There are no spread markups, however, traders are charged a fee of 6 USD per round turn per traded standard lot.

Crypto CFD trading on ATC Brokers

There are 5 crypto derivatives available for trading. This means that in addition to all the benefits we have mentioned earlier in regard to trading CFDs, traders will not have to worry about crypto wallets or cashouts. Since the crypto CFDs enable traders to benefit from speculating on the underlying asset prices without owning them, profits are added straight to your trading account.

Commodity CFD trading on ATC Brokers

Commodities are raw materials that can be traded as CFDs. Commodities such as precious metals are historically viewed as a hedge against inflation. On the other hand, while their value increases over periods, commodities do not offer the best return on investment. When trading commodities as CFDs, you can use leverage to increase your position size. The maximum available leverage for trading gold against USD with this broker is 10:1 and for silver against US dollar, the leverage goes up to 20:1

Available commodities are:

• XAU/USD - Gold vs USD
• XAG/USD - Silver vs USD
• XBR/USD - Brent Crude Oil
• XTI/USD - WTI Crude Oil

Indices trading on ATC Brokers

Indices are often referred to as stock indexes. In finance, indices follow the performance of certain baskets of stocks. For example, the FTSE 100 (UK 100) in the United Kingdom measures the performance of the top 100 UK companies that are listed on the London Stock exchange. For this reason, indexes have a dual purpose: they are great indicators of the health of certain industries or economies, and at the same time, they can be traded as CFDs. 

There are 7 indices available for trading with this broker:

• DAX/EURGerman 30
• STX/EUREUR 50
• FTS/GBPUK 100
• DOW/USDUS 30
• SPX/USDUS 500
• NDX/USDUS 100
• AUS/AUDAustralia 200

Brokers typically offer spread-free and commission-free account types to meet the needs of different traders. For instance, high-frequency trading requires raw spreads, while position traders and swing traders prefer zero commissions. 

The broker was offering spread betting and Standard account types in the past, however, the spread betting account type is no longer available, leaving traders with only the commission based fee method

Pros & cons of ATC Brokers account types

ATC Brokers Live Account

On the live account, the maximum available leverage is different for each asset class and is set to 

• 30:1 for major currency pairs
• 20:1 for non-major currency pairs, gold, and major indices
• 10:1 for silver and other commodities

It’s important to note that the leverage information above is for UK clients. With ATC Brokers under the Cayman Islands’ jurisdiction, the maximum available leverage is set to 200:1.

There are no spread markups and market spreads on EUR/USD is 0.3 pips. On the other hand, there are commissions. The commission is set to a 0.60 USD round turn for a mini contract (10,000 lot size) and a 6.00 USD round turn for a standard contract (100,000 lot size). The commission is on a USD basis, if you are trading pairs that are non-USD, the commission will vary depending on the market conversion rate. The account holders are protected by negative balance protection. 

Getting started on ATC Brokers – Main steps

When it comes to account opening, the process is fully digital and the webpage is user-friendly. We’ll guide you through the entire process step-by-step. The broker operates under Cayman Islands and UK licenses and for this example, we’ll show you how to register on the UK-regulated page. For global traders the experience will be the same, however, minor details might be different such as available leverage. 

Step 1: Open an account

First things first, go ahead and open the main web page of ATC Brokers. You will be able to see “Open an Account” in blue. By pressing this button you will be transferred to the registration page where you are required to fill in your personal details. 

For retail traders, there’s only an Individual live account available. You can pick the base account currency and a trading platform during this process. It’s best to choose the account currency that you use in your everyday life as this will save a lot of money on conversion fees. 

Step 2: Provide more information

As you proceed with the registration, you will be required to provide even more information about yourself, and lastly, you will be able to set a password.

Step 3: Time to verify your account

After you register as a trader, it is important to verify your account. For verification, the broker requires proof of your identity and proof of your residence. You can use government-issued documents such as your ID card, passport, or driving license as proof of your identity. You can use utility bills, bank statements, or any other legal documents for proof of your residence. It should be mentioned that you can scan these documents or take a digital photo straight from your phone camera. However, you need to make sure that photos are of high quality and that there are no shadows or light reflections that affect visibility. 

Step 4: Make your deposit and start trading

The final step is to deposit before starting to trade live. The broker enables you to use various funding methods. Available methods for UK-based clients are bank transfer, credit/debit card (VISA), and Skrill. Global clients can use bank transfers and UnionPay. The credit card option is instant, but bank transfers can take a couple of business days to reflect. 

The trading fees of ATC Brokers are average. The broker only offers commission-based accounts to its clients. The commission is set to a 0.60 USD round turn for a mini contract (10,000 lot size) and a 6.00 USD round turn for a standard contract (100,000 lot size). The commission is on a USD basis, if you are trading pairs that are non-USD, the commission will vary depending on the market conversion rate.

In addition, there are inactivity fees. If there are no completed orders in the trading account for at least 6 months, you will be subject to a dormant account fee. The fee will be equal to the lesser of either the remaining balance in your account or 50.00 units of the currency in which your account is denominated. 

Comparing ATC Brokers fees with other brokers

To better understand the fees of this broker, let’s compare them to some industry leaders. Unfortunately, we do not have a commission-free account since the spread betting account type that we mentioned earlier is no longer available. 

ATC Brokers fees compared to Interactive Brokers fees

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m

ATC Brokers fees compared to CM Trading fees

ATC Brokers fees compared to plus500 fees

ATC Brokers fees compared to XM fees

ATC Brokers fees compared to AvaTrade fees

ATC Brokers fees compared to Capital.com fees

ATC Brokers offers MetaTrader 4 (MT4) with MT Pro software, which enhances the looks of MetaTrader. In addition to the desktop version, there are mobile and web trading terminals available. 

MetaTrader 4 was created in 2005 and quickly became widely popular. Even today, the software remains the most used platform among Forex traders the world over. MT4 has not had a major visual upgrade since it was released, and therefore, the software might look outdated to some. However, the fact that MT4 was designed many years ago is also its biggest strength. MT4 can be easily installed on even low-budget or old computers and the software is very reliable. In addition, the interface is user-friendly, which is why so many traders prefer to use it to this day. 

The platform supports algorithmic trading through the use of Expert Advisors (EAs). Traders can create EAs to backtest their strategies, create custom-built indicators, or trade automatically. There’s a large pool of custom-built EAs available in Meta Market where traders can find free robots or download paid versions of EAs. It’s important to note that if you are planning to purchase an EA and automate your trading, you need to do extensive research, as not all EAs that are there for sale work properly. 

MetaTrader 4 offers extensive pre-installed tools and indicators for technical analysis. Traders love this platform because it’s simple and enables them to analyze markets and place orders at the same time with ease. However, it should be mentioned that MT4 is an industry standard and you can hardly find a CFD broker that doesn’t offer it nowadays. 

In addition, instead of MT4, traders can pick the FIX (Financial Information eXchange) API. The FIX API is a protocol used for electronic communication in finance. It is a standardized messaging system that allows financial institutions to transmit data efficiently and speedily. 

FIX API is for institutional traders, as it enables them to use custom-built applications. The protocol is widely used in FX and equity markets.

ATC Brokers provides access to the mobile version of MT4. The app is available on iPhone, iPad, and Android devices. By using the application, traders have access to using 30 technical indicators for market analysis. Once you install the application, you can use your live account credentials to log in to the software. Mobile apps are essential in trading for various reasons. 

• Firstly, they serve as insurance. Let’s say you have placed an order and forgot to place a stop-loss. By using the mobile app, you have access to markets from anywhere in the world
• Mobile apps are a great help in emergencies such as power outages, internet problems, and so on 

However, while the application comes with various indicators and capabilities, it’s best to use a desktop software for analyses as the larger screen size and more computing power give you a better overview of what is going on in the market.

Education is critical for beginners in FX trading. Currency and CFD markets are very complex and volatile. In addition, beginners need to learn the basics such as trading terminology, as well as how to use indicators, trading platforms, and how to conduct market research. 

Educational material is available under the “Learn” tab from the broker’s main web page. However, it should be mentioned that the information is very limited. There are no webinars or seminars available. In addition, there are no guides on how to use the MT4 platform. Overall, the educational material and research tools offered by ATC Brokers are not satisfactory.

Customer support is a critical factor to consider when choosing a Forex broker. Traders should search for brokers that offer responsive and knowledgeable customer support, multiple communication channels, and access to helpful information. 

The customer service of ATC Brokers is accessible via email, over the phone, and live chat. The agents are very professional. The only minor issue we found is that the live chat button is not easily located when you open the main page. Traders need to scroll all the way down to be able to see the “Chat with us” button. 

To sum everything up, ATC Brokers is a well-regulated broker in the UK (FCA) and Cayman Island (CIMA) and can be trusted. The broker offers a limited number of tradable instruments, 54 in total, including cryptocurrencies, energies, Forex, indices, and metals for trading via the MetaTrader 4 trading platform. The maximum available leverage is 30:1 for UK residents and 200:1 for global traders. There is no swap-free or Islamic account type available and retail traders only get a live account type that is commission based. The educational material is poor, but the customer support is good. Overall, ATC Brokers is an average FX broker.