Pros & cons of FXTB broker

FXTB Fact sheet

Choosing a safe and secure broker is the first step for successful trading. There are various factors to consider when making a decision, but the safest brokers are ones that are well-regulated.

FXTB is authorized and regulated by Cyprus Securities and Exchange Commission (CySEC). Additionally, FXTB follows the policy of providing negative balance protection. Negative balance protection prevents traders from losing more than what they have in their trading account because of leveraged trading. FXTB also keeps clients’ money in segregated bank accounts as per regulatory requirements which means the broker can not touch user funds for its own purposes. The broker is also part of a compensation fund in case of insolvency. With these policies and regulations to support FXTB’s client base, traders should feel safe when trading on the broker’s platform. 

*CFD stands for Contract for Difference and such instruments enable traders to speculate on underlying asset prices without owning them. 

FXTB offers a wide range of tradable instruments, including CFDs, CFDs on stocks, commodities, energies, Forex, indices, and metals. Let’s review each of these instruments below.

Forex trading on FXTB

Forex is a very popular asset class as trillions of dollars are traded on a daily basis on Forex markets. FXTB offers 52 currency pairs which is more than a moderate number. The one thing where it fails to deliver is its super high spreads for all accounts. The average spread for EUR/USD is around 3 pips and while on some account types, it falls below 1.6 pips, to trade with 1.6 pips spread there is a minimum deposit requirement of 250,000 EUR which is too high even for many professionals. This kind of trading spread is not an issue for day traders and swing traders as they prefer spreads over commissions. But this is an extremely unfriendly environment for scalpers as they rely on many small profits throughout the day. 

Stock CFD trading on FXTB

FXTB’s web trading platform offers stock CFD trading and has some useful features like order monitoring and the stop-loss and take-profit features. But it lacks indicators and it will be extremely hard to analyze markets with technical analysis. Traders will have to use third-party software or charting platforms to analyze markets and then use FXTB’s platform to open positions which is uncomfortable. There are 240 stock CFDs in total and the lowest spread starts from 0.05 USD. 

Cryptocurrency trading on FXTB 

Digital currencies are becoming more and more popular as their adoption continues to grow and XTB has 29 crypto CFDs. This is not a low number for Forex brokers and the spreads are also very attractive. The broker seems more suitable for crypto trading. All cryptos are paired against USD and they are available on both the web and MT4 platforms. Crypto CFDs allow traders to trade with instant execution speeds and speculate in both directions catching all opportunities. 

Commodities and indices trading on FXTB 

Commodities CFDs like soft and hard commodities are great instruments for speculating on the prices of underlying assets without directly owning them. There are 26 commodities in total with spreads starting from 0.35 which is competitive. Indices are great instruments as they track certain market sectors and can be used for speculation purposes. Indices CFDs offered by FXTB are 17 in total and spreads start from 0.1 USD. 

There are 4 trading account types at FXTB called Basic, Gold, Platinum, and VIP. The VIP has the lowest spreads for Forex trading but comes with a minimum deposit requirement of 250,000 EUR. This is a very high deposit for 1.6 pips spread on major pairs as many other brokers offer zero spread trading for much lower deposits. The detailed differences between each account type are summarized in the table below

As we can see there are no account types with zero spreads and low commissions, all accounts come with high spreads and no commissions. This is not very attractive for scalpers and traders with low budgets. There is no reason to go for FXTB trading platforms when there are brokers out there with much lower spreads and some of them even with zero spreads. 

Pros & cons of FXTB account types

Getting started on FXTB – Main steps

In this section we’ll show you how to open a live trading account with FXTB. The registration process and account activation are digital and intuitive, and the broker’s web page is very user-friendly. In addition, customer support agents are available 24/5 in 7 languages in case you have any questions. 

Step 1: Open an account

The registration form on their website is self-explanatory, it requires some basic personal information like name, surname, email address, and phone number. After the registration process is done an email will be sent to the client with some details about registration and its specifics, but it is not required to use some kind of code and traders can simply log in to their trading account. 

Step 2: Time to verify your account

After opening an account the next step is to verify your account by providing high-quality photos or scanned copies of your ID or passport for proof of identity. The documents must be valid and issued by the government. After proof of identity, it is necessary to provide proof of residence where a utility bill or bank statement can be used where the user's full name and address are visible. After providing all necessary documents the verification will take somewhere between 2-24 hours to be completed and the trader will be notified by email. 

Step 3: Make your deposit and start trading

Payment methods that can be used for depositing funds include bank transfer, credit/debit card, Neteller, PayPal, Rapidpay, Skrill, Sofort, iDeal, and more. For instant deposits, bank wire is not recommended as it takes 3-5 business days and is a costly procedure. Other methods of payment are free of charge for deposits and will be instantly shown on the account. After topping up your balance, the next step is to start trading. It is recommended that you use MT4 over the web platform, or use another software for technical analysis and then use the web platform for opening positions. 

Comparing FXTB fees with other brokers

FXTB fees compared to Interactive Brokers fees

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

FXTB fees compared to CM Trading fees

FXTB fees compared to plus500 fees

FXTB fees compared to XM fees

FXTB fees compared to AvaTrade fees

FXTB fees compared to Capital.com fees

FXTB provides access to MetaTrader 4 (MT4) with inbuilt advanced features. MT4 allows traders to fully analyze price charts with advanced tools and even automate the trading process. Forex and CFDs are offered on MT4 and stock CFDs can be traded through the broker’s proprietary web platform. This web platform can also be used to trade all trading instruments and is offered for mobile trading as there is no MT4 provided for mobile devices. FXTB MT4 offers over 50 inbuilt technical indicators, full customizability, and three separate chart types. 

There are eBooks, trading tips, glossaries, NFP, fundamental analysis, and technical analysis among the educational resources provided by FXTB to its clients and beginner traders will find many useful bits of info. There are also webinars available to simplify the learning process for beginners with the possibility to ask questions and get answers and solve trading cases and tasks. Everything is explained in simple terms to make the learning experience comfortable and fast. Additionally, the FXTB website has an inbuilt economic calendar making it possible to track all the important macroeconomic news that has a higher chance of affecting financial markets. FAQs are provided for all sections of the website to get quick answers to all frequently asked questions that may naturally arise when trading Forex and other markets. 

Customer support is available 24/5 in 7 different languages and there are several options to contact the broker’s representatives directly. Live chat is the most convenient way for resolving any issues or getting answers to any questions that may arise during the trading process. There is also phone and email support available, but no online form to leave a message. Both the website and the support are multilingual and offer assistance in many different languages. 

FXTB is a regulated broker that offers a variety of trading instruments including Forex, CFDs on stocks, commodities, energies, indices, metals, and cryptocurrencies. The broker prioritizes the safety and security of traders by following regulatory requirements such as negative balance protection, segregation of client funds, and being part of a compensation fund in case of insolvency. The spreads however are significantly higher than industry standards and this is true for even account types with lower spreads, making the broker less attractive for traders who rely on tight spreads to make profits on financial markets. FXTB's web trading platform for stock CFDs lacks indicators and advanced technical analysis tools, which may be inconvenient for traders who prefer to use one platform for both trading and analysis. It will be necessary to use third-party charting software to analyze markets and then use FXTB’s web platform to manage positions which is very inconvenient. All in all, FXTB offers a reasonable number of tradable instruments, but its high spreads and limited account options may not be suitable for traders who prioritize low trading costs and flexibility.