A new broker’s in town… this time it’s ETFinance. Are they any good? Having searched online we decided to share our findings. All the information is in the public domain so please feel free to double check, if you wish. Are ET Finance any good?
So Who Are ETFinance?
ET Finance is a trading name of MAGNUM FX (CYPRUS) LTD registration number HE 360548 authorized and regulated by the Cyprus Securities and Exchange Commission (the “”CySEC””) under license number 359/18. As we can see from The Open Database Of The Corporate World, MAGNUM FX (CYPRUS) LTD was incorporated on 28 September 2016 and domain ETFinance.eu was registered on 29 July 2018 with GoDaddy.
Some ETFinance Reviews from the Internet
New broker, so we decided to spend a bit of time and see what we could find. In no particular order (reviews play a big part if you want to find the best CFD or forex broker):
1. According to forexbrokerz.com it’s “ETFinance is a reliable broker” – not sure how a broker can become so reliable so quickly? Eventually, the truth will come out and we will see the real picture. It takes time and effort to become reliable and reputable but it’s not the case here.
2. According to forexbonuslab.com it’s “They provide high-quality service and they are licensed by multiple highly respected regulatory bodies.” – not entirely true, as ETFinance is regulated only by CySEC. What about the “high-quality service”? The service hasn’t been tested and the whole review has flaws.
3. leaprate.com state “ETFinance.eu is a leading financial services company.” – it took just over a year to become a leading financial services company? Once again, this ETFinance review shows that the service hasn’t been tested.
4. A good review from fxempire.com, “The services and features offered by ETFinance are designed more for beginner traders.”
These are just some of the ETFinance reviews found on the internet, there are plenty more.
Let’s go to the sad part:
1. On TrustPilot, ETFinance has plenty of reviews and it’s not looking promising there either; comments like “scam” or “run away” are all over the place.
What Is Forex
The FX market exceeds the combined volume of both the U.S. equity and treasury markets. Unlike other financial markets, the FX market has no physical location thus allowing it to literally function around the globe 24 hours per day, 5 days a week. Forex market is truly an interbank market comprised largely of a network of banks, corporations and individual speculators each trading one currency for another.
How Does It Work
It’s very simple. Currencies are traded in pairs. FX Trading is the simultaneous buying of one currency and selling of another. A long position means going long the first currency, and short the second one at the same time. A short position means going short the first currency, and long the second one at the same time. The MAJORS are the 6 most commonly traded pairs and comprise over 85% of FX trading. Cross rates involve currency pairs that do not trade against the US Dollar, and really should be left to professional traders. The Majors offer plenty of trading opportunities all by themselves.
Forex market is the most traded market in the world. Foreign exchange rates play a big role in our daily lives as most of the commodities are denominated in the US dollars, thus if the USD grows in value against the other currencies, the very basic commodities as wheat and oil become more expensive for the rest of us. Probably, the main currency pairs are eur/usd and gpb/usd as those currencies represent the biggest trading blocks.
As forex involves so many parties, it drew a lot of speculators; those speculators can influence the exchange rate and cause a chaos on the financial markets.
As more and more people around the world are eager to speculate or “trade”, it invites more brokers to enter the frame. When there’s a demand, there’s always going to be a supply; thus ETFinance is the latest forex broker to enter the market.
Competition is very good for the end users but you have to make sure you do your own research and trade with a reputable and reliable forex broker. It is no surprise that ET Finance entered the market and surely there will be more brokers entering.
What to look for when comparing FX accounts:
3. A range of markets.
4. Spreads (the deference between buy and sell prices).
5. Trading platforms.
A list of regulated and reputable forex brokers.
Conclusion and Facts about ETFinance
1. Major deposit/withdrawal methods are supported.
2. Only CySEC regulated.
3. Platforms: WebTrader, MT4, Mobile App.
4. Limited range of markets for professional traders, well, new traders if it comes to it.
5. Clean and intuitive web design.
6. It does not offer services to residents of United Kingdom, Germany, and Italy.
7. A newcomer, so only time will tell. But it’s not looking good if independent reviews are anything to go by.
If you really want to find a reputable and reliable broker then it’s only right that you open accounts with a few CFD and forex providers and run some tests and see which platform is the best for you. At the end of the day, it is always a good idea to have more than one account and test the features on offer.
It is very important to check the reviews but it is more important that you check the dates of those reviews as there are many outdated ETFinance reviews out there and it’s important you read the most up to date ones. If not sure, better stick to a broker your friend or a reliable source might recommend.
If you are serious about trading (no matter what you trade), it’s better you stick to brokers who have over 10 years of experience in the industry and ideally authorised and regulated by the Financial Conduct Authority (FCA UK). In this review ETFinance didn’t tick many boxes.
Maybe, one day, ET Finance will become a reputable and reliable forex and CFDs broker but it will take some time and highly dedicated service to get there.