Pros & cons of Fortrade

Fortrade Fact sheet

Safety and security is a critical consideration when engaging in Forex trading. FX trading involves significant risk, on top of that, there are many money traps and low-trust brokers that take advantage of beginner traders. The best way to know whether your broker is trustworthy or not is to check if it’s regulated. Regulations exist to help build a safe environment for traders. 

Fortrade is well-regulated by top-tier financial bodies, including:

• The Financial Conduct Authority (FCA) of the UK (FRN: 609970)
• The Investment Industry Regulatory Organization of Canada (IIROC). In addition, the broker is a member of the Canadian Investor Protection Fund (CIPF). CRN: BC1148613.
• The Australian Securities and Investments Commission (ASIC) ABN: 33 614 683 831 | AFSL: 493520.
• The Cyprus Securities and Exchange Commission (CySEC) with CIF license number 385/20.
• The National Bank of the Republic of Belarus (NBRB), FRN: 193075810.
• The Financial Services Commission, Mauritius (FSC), SEC-2.1B investment dealer number: GB21026472.

Policies that Fortrade follows

In accordance with the rules and guidelines of its regulatory bodies, Fortrade follows several policies that serve to increase the level of safety and security of its traders. 

The broker provides negative balance protection (NBP) to its clients. NBP is a feature offered by many brokers to protect traders from incurring losses that exceed their account balance. In CFD trading traders can lose more money than they have in their account, particularly when using a high amount of leverage and market conditions are volatile. With NBP in place, traders are guaranteed that they’ll never lose more than what they have in their trading account, and even if it does happen and the balance goes negative, the broker will cover the losses and revert the account balance to zero. 

In addition, Fortrade keeps client funds in segregated accounts. This guarantees that even if the broker goes bankrupt and its assets get liquidated, traders will have access to their funds. 

Fortrade offers more than 408 instruments for trading. The portfolio mainly consists of CFDs. CFD stands for Contract for Difference, which is a financial derivative instrument that allows traders to speculate on the price movements of underlying assets without actually owning them. When trading CFDs speculators enjoy several benefits:

• Leverage: CFDs enable traders to trade with leverage, meaning, they can open large positions using less capital.
• Short selling: CFDs enable traders to profit from falling markets by shorting assets. While investors that purchase real stocks or physical precious metals can only profit when the value of their asset increases, short selling allows traders to make profits in bearing conditions as well.
• No ownership: CFDs do not involve ownership of underlying assets, which makes it more convenient for traders to speculate on prices. 
• Better liquidity: More traders buy and sell CFDs, as a result, CFD markets enjoy better liquidity and tighter spreads than the underlying assets. 

Forex trading on Fortrade

Fortrade offers 50 currency pairs for trading, including major pairs, minor pairs, and exotics. Trading fees are fixed on EUR/USD, GBP/USD, and USD/JPY. There is only one account type available for trading, other than demo and swap-free accounts. Trading conditions are different for each currency class, with the main difference being in available leverage.

Leverage enables traders to increase their purchasing power. For instance, by choosing the maximum available leverage with Fortrade, which is 200:1, traders can have 200 times the purchasing power on their deposits. This leverage is not actually that high since most competitors offer 500:1, 1000:1, or unlimited leverage. However, it should be mentioned that trading with high leverage is extremely dangerous. 

On major and minor pairs the maximum available leverage is 200:1, such as with:

• AUD/CAD - Australian Dollar vs Canadian Dollar 
• AUD/CHF - Australian Dollar vs Swiss Franc
• AUD/JPY - Australian Dollar Japanese Yen
• AUD/NZD - Australian Dollar vs New Zealand Dollar
• CHF/JPY - Swiss Franc vs Japanese Yen
• EUR/AUD - Euro vs Australian Dollar
• EUR/USD, etc. - Euro vs US Dollar

When it comes to exotic pairs, the maximum available leverage is 50:1. You can see an incomplete list below:

• USD/ZAR - US Dollar vs South African Rand
• USD/NOK - US Dollar vs Norwegian Krone
• USD/PLN - US Dollar vs Polish Zloty
• USD/SEK - US Dollar vs Swedish Krona
• USD/SGD - US Dollar vs Singapore Dollar

Lastly, when it comes to trading pairs with the Turkish Lira, the available leverage is even lower, only going as high as 20:1. 

There are no commissions and trading fees start from 2 pips, which are fixed on the EUR/USD pair. Fixed spreads might be a dealbreaker for high-frequency and algorithmic traders as such traders are typically attracted to much lower spreads. 

It should be mentioned that leverage can change depending on your country of residence. For this review, we picked trading policies that are offered to Fortrade’s global customers. For instance, if you are opening an account from the UK, the maximum available leverage will be 30:1, as the Financial Conduct Authority of the UK has much stricter requirements. 

Stock CFD trading on Fortrade

There are 320 CFDs on stocks for trading with Fortrade. The list includes popular company stocks such as:

• Apple Inc.
• Applied Materials Inc.
• AT&T Inc.
• Aurora Cannabis Inc.
• Autodesk Inc.
• Baidu Inc.
• Bank of America Corporation
• Bausch Health Companies Inc.
• Berkshire Hathaway Inc.
• Best Buy Co. Inc.
• Beyond Meat, Inc.
• BioNTech SE
• Booking Holdings Inc. etc.

Spreads start from 0.02 pips. When it comes to leverage, each asset can be traded with different leverage and the rate is between 5:1 to 10:1. 

Commodity CFD trading on Fortrade

Commodities are raw materials and companies mine or grow them. Commodity prices are typically dependent on global supply and demand. 

There are 20 CFDs on commodities available for trading with this broker. The broker offers both hard (energies, precious metals) and soft commodities (commodities that can be grown). Available commodities include:

• Brent Oil
• GOLD
• Heating Oil (HO)
• Natural Gas (NG)
• Palladium
• Platinum
• Silver
• Soybeans (ZS), and more

Leverage is different for each commodity and ranges from 5:1 to 200:1. Spreads on gasoline start from 0.002 pips. 

Indices trading on Fortrade

There are 18 indices available for trading with this broker. Indices (or stock indexes) track the performance of a certain market or economy. They are statistical representations of certain groups of stocks, bonds, or other investment vehicles. For this reason, traders use indices as indicators. In addition, indices can also be traded as CFDs. 

Available leverage for trading indexes ranges from 10:1 to 100:1, and spreads start from 0.11 pips. Fortade provides access to trading some of the most popular indexes, including: 

• Japan 225
• Netherlands 25
• Spain 35
• Swiss 20
• UK 100
• USA 2000
• USA 30
• USA 500
• USA-Tech 100, etc.

Fortrade offers demo, swap-free, and live account types to its clients. The live trading account is called the Real account. The account type offers maximum available leverage of 200:1, but leverage varies from instrument to instrument. Traders need to deposit at least 100 USD to open live accounts. 

Demo accounts help beginners to learn how to trade in a risk-free environment. Demo trading replicates everything that a live account offers. For instance, the trader gets live charts and price quotes and access to using trading platforms. The main difference is that trading is conducted using fake money. Demo trading not only helps novice traders but is also very important for professionals to test and develop trading strategies.

The swap-free accounts offered by Fortrade enable traders of the Muslim faith to open accounts and trade without going against the teachings of the Quran. The swap-free accounts are also known as Islamic accounts and they help avoid paying and receiving interest which is prohibited in Islam. To open this account type, traders need to contact the customer support of the broker to switch from the standard account to this one.

Pros & cons of Fortrade account types

Getting started on Fortrade – Main steps

This section is for traders that have already decided on opening a live trading account with Fortrade. Other than the swap-free account, the broker offers only one live account type for retail traders. Let’s check out how to register and open a trading account step-by-step below. 

Step 1: Open an account

The first step is to go to the broker’s main page where you will see a “Sign up” button in blue. By clicking the button you will be transferred to the registration page. To register, simply fill in your personal and contact information. During the registration, you will be able to choose an account currency. It should be noted that it’s best to open an account in a currency that you use daily. This will help you save a lot of money on currency conversions. 

Step 2: Time to verify your account

Once you register as a trader and open an account, it is recommended to verify your account by uploading the required documents. The verification will give you full access to your personal area and you’ll be able to withdraw funds from your trading account freely.

To verify your account, the broker asks you to upload proof of your identity and proof of your residence. 

For proof of identity, you can use digital photos or scanned versions of one of the following documents: passport, driving license, national ID card, or voting/electoral register card. The documents must contain your photo, personal identification, and expiry date and must be government issued. All corners of the document need to be shown and the document needs to be visibly readable. In addition, you need to upload both sides of the documents. 

For the Proof of Address, you can use any of the following documents: 

• Bank or credit card statements
• Utility bill: gas, electricity, water, landline telephone bill (mobile phones NOT accepted), etc…
• Rental Agreement
• Council Tax bill (valid for the last 12 months)
• Documents issued by a government, public enterprise, or financial institution

In addition, your proof of residence must contain your full name and address, official stamp or logo, and the document needs to be valid for the last 3 months. After you upload your documents, wait for the verification email. 

Step 3: Make your deposit and start trading

The final step after the verification process is concluded is funding your account. The broker offers various funding options. Credit card and online wallet options are instant and bank transfers can take up to 3 business days. The withdrawals may take a bit longer. Available funding options are bank transfer, credit/debit card, Neteller, PayPal, and Skrill.

Trading fees with this broker are not very competitive. The EUR/USD pair is the most liquid and has the lowest FX spreads. With Fortrade, spreads on this currency pair are fixed at 2 pips. In addition, there are dormant account fees that are charged for inactive accounts after 6 months of inactivity. The inactivity fee is 10 base account currency per month (EUR, USD, or GBP). 

Comparing Fortrade fees with other brokers

As already mentioned, trading fees are not great with this broker compared to the competition. Let us compare the fees of Fortrade with other brokers to better understand the difference. 

Fortrade fees compared to Interactive Brokers fees

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

Fortrade fees compared to CM Trading fees

Fortrade fees compared to plus500 fees

Fortrade fees compared to XM fees

Fortrade fees compared to AvaTrade fees

Fortrade fees compared to Capital.com fees

MetaTrader 4 (MT4) is a popular trading platform used by the majority of Forex traders. The software was developed by a Russian company called MetaQuotes in 2005 and quickie grew in popularity. MT4 provides traders with a comprehensive set of trading tools such as trading indicators, automated trading capabilities, and tools for technical analysis.

MT4 is known for having a user-friendly interface. However, some traders find the platform’s looks to be a tad outdated as it was designed back in 2005 and hasn't been changed since. MT4 supports algorithmic trading through the use of Expert Advisors (EAs), which are automated trading tools that can be programmed to trade based on predetermined parameters. 

The main advantage of MT4 over other trading platforms is that it's simple and reliable. The software can be installed on even low-budget computers and run smoothly. Another advantage is that the platform is one of the oldest and the most popular, and therefore, there are a lot of customized trading algorithms and custom-built indicators available in the Meta Market. You can purchase the algorithms or download free ones. In addition, it is possible to create automated trading systems based on your ideas. It should be noted that MT4 uses the MQL4 programming language for creating EAs. 

In addition to desktop software, Fortrade provides its clients with a mobile app and a web trading platform. The mobile app can be found in both the App Store and Google Play. 

The MetaTrader 4 mobile app allows users to access their trading accounts and manage their trades from anywhere, at any time. The mobile app offers many of the same features as desktop software, including real-time charts and quotes, a range of technical indicators, and trading tools. 

Overall, the MetaTrader 4 mobile app is a convenient and reliable tool for traders that want to stay connected with the market while on the move. However, it is worth mentioning that the mobile app has some limitations compared to the desktop version, such as smaller screen sizes and lower processing power. As such, it’s best to use your phone as a helper device and not as the main source of technical analysis.

Many brokers offer education and training for beginners to help them learn the basics of trading. Fortrade offers extensive material for education and tools for research under the education tab. The broker offers:

• Trading Online Seminars
• Trading eBooks
• Beginner's Trading Courses
• Advanced Trading Courses
• Trading Videos
• Top Day Trading Strategies
• Glossary of Terms
• Market Research
• Trading Central
• Trading Central Analysis

Overall, we can safely say that the education and market research tools with this broker can help both beginners to take the first steps and professionals to conduct market research. 

Customer service is extremely important for service provider companies for many reasons. It helps develop and maintain positive relationships with clients, solve complex problems easily, get valuable feedback from customers, and improve services. Fortade understands the importance of well-put-together services and offers great customer support. 

Customer support at Fortrade is available in 15 languages. Existing customers and potential clients can contact the broker via live chat, over the phone, or using email. Live customer service is available 24 hours a day, 5 days a week, on workdays. 

To sum everything up, Fortrade is a trustworthy broker as it’s regulated by multiple top-tier regulatory bodies. The broker offers a wide range of asset types. The number of tradable instruments is over 408, including CFDs on stocks, commodities, ETFs, Forex, and indices. Maximum available leverage is 200:1, depending on your country of residence, and customer support is great. On the downside, trading fees are not as competitive as what industry leaders are offering, and account types are limited. Overall, Fortrade is a good broker.