Pros & cons of JFD Brokers broker

JFD Fact sheet

Although the broker offers negative balance protection it is only available on their JFD Group Ltd accounts, for overseas traders, this feature is not active and they have to be more cautious whenever trading with leverage.

JFD Brokers is regulated by two separate authorities. JFD Group Ltd accounts fall under the regulations of the Cyprus Securities and Exchange Commission (CySEC), while the overseas entity is authorized and regulated by the Vanuatu Financial Services Commission (VFSC). When it comes to offering investment services the company follows the directives and regulations of the Markets in Financial Instruments Directive (MiFID II) and is licensed by the same regulators. 

JFD Brokers uses segregated accounts for keeping client funds safe and is part of an investor compensation fund in case of insolvency. 

JFD Group Ltd and JFD Overseas Ltd are the two main account types of JFD Brokers, with both offering slightly different terms according to their jurisdiction. The minimum deposit for both accounts starts from 500 USD or the equivalent in other base currencies. The key difference starts when we consider a negative balance protection for these accounts. The JFD Group Ltd account offers negative balance protection while JFD Overseas Ltd does not. This can have huge implications for traders when trading overseas with high leverage as it goes up to 1:400. Since the JFD Group Ltd account type is under CySEC regulations it can not offer high leverage like the overseas account that falls under Vanuatu regulations. Because of this, the leverage for CySEC-regulated JFD Group Ltd account type is set to 1:30 for major pairs and decreases for other instruments. Scalping, hedging, and Expert Advisors (EAs) are all allowed for both account types and are welcomed by the broker. What’s good about JFD Brokers is that it offers all available trading instruments in 9 different asset classes for both account types, meaning everyone can access all instruments despite their account’s jurisdiction. There are commissions for Forex, CFDs, and commodities. The physical stocks have no trading commission and can be traded without fees which is a very attractive offering considering that Robinhood got its popularity by offering stock trading without commissions. JFD Brokers seems a very good alternative to Robinhood because it is regulated in three jurisdictions. But, the broker does charge for arbitrage activities on physical stocks, amounting to $0.0025 per share with a minimum of $1 US Stocks and 1.5bps (0.015% fee per trade value) with a minimum of 1.5 € for EU, German, and Dutch stocks. 

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Since JFD Brokers offers both CFDs and real stocks there are three professional platforms provided including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and Stock3. MT4 is a professional platform and the broker offers the ability to receive company news and communication directly from the platform. There is an extensive chart history available for all three trading platforms to offer the best back-testing possibilities. JFD Brokers’ MT4 platform is enhanced and feature-rich with increased built-in features including many custom indicators and other plugins. The JFD Multi account manager will allow traders to control all accounts with one click from both the MT4 and MT5 platforms, offering unparalleled flexibility. 

Stock3 is the most interesting platform provided by JFD Brokers as it is an advanced platform for trading stocks that incorporates several useful features. Stock3 comes with inbuilt fundamental analysis tools and social interactivity through several widgets and expert profiles. Webinars are also provided within the software and it offers advanced charting and trading capabilities. All in all, Stock3 enables traders to get an education, do analysis, and trade at the same time from one app. 

There are dedicated sections on the website that offer advanced educational features including webinars, seminars, trading courses, and even video tutorials for beginners. Live events are also constantly updated. For research purposes, there are experts, market news, and analysis. Several experienced traders and experts are providing research content to traders, the value of which can not be underestimated. There is also a trading glossary that will offer a quick explanation of all trading-related terms.

Support is available 24/5 through live chat, email, phone calls, and online forms. Additionally, the website and support are multilingual and offered in different languages. There are 5 languages supported in total. Customer support is fast, responsive, and reliable which is a great plus for the broker. 

JFD Brokers is a well-regulated and safe broker that offers diverse trading instruments from 9 different asset classes. The broker's key selling points include zero-commission stock trading, low spreads for Forex trading, and access to three advanced trading platforms with built-in social capabilities. Although there are charges for deposits, withdrawals, and currency conversions, JFD Brokers does offer negative balance protection for its JFD Group Ltd account type and keeps client funds in segregated bank accounts. Overall, JFD Brokers seems like a very attractive and legitimate broker that offers many useful features and attractive trading terms.