ETFinance is an online broker launched in 2018 that offers CFD trading on various assets such as Forex, stocks, indices, ETFs, cryptocurrency and more. The website is operated by Magnum FX (Cyprus) Ltd, a company regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 359/18. The company is also EEA Authorised by the British Financial Conduct Authority (FCA), with reference number 821560.
Editor’s Note: Why ETFinance Sucks In 50 Words
On the Accounts page they advertise super-tight spreads, as low as 0.07 but when you click on “more details”, they show a 2.2 spread for EUR/USD (which is usually the pair with the tightest spread). Now, 2.2 pips are not so bad (albeit it is on the expensive side) but why advertise 0.07? ThatSucks!
Why ETFinance Doesn’t Suck In 50 Words
Despite that spread confusion, ETFinance is a fully regulated CFD broker, with supervision from two of the most prominent regulatory bodies in the business: CySEC and FCA. There are so many unregulated brokers that don’t even give information about their owning company, and that’s why an addition like ETFinance is welcomed.
Is ETFinance A Scam?
With two authorities supervising the activity, you would think there’s no risk of scam. And we are not saying there is, but you always have to be careful when someone is in possession of your money. Some users have complained that ETFinance didn’t let them withdraw, without providing additional details about the problem, others have said they’ve received too many phone calls from the broker’s representatives. However, two of the negative reviews were 99% identical but posted under different names, so either those two guys are telepathic or it’s the same guy who is just trying to spread negative vibes. Bottom line is: be careful, although ETFinance is a regulated broker.
Should I Open An Account With ETFinance?
The broker hasn’t been in business for long, which may be viewed as a disadvantage, but hey, all brokers started somewhere, so we cannot dismiss ETFinance simply on the fact they are new. The trading platform is Meta Trader 4, which is one of the most popular out there, with mobile applications as well and a browser-based version. So you have the best of both worlds: mobility with WebTrader and/or smartphone apps and on the other hand, you can use a full range of technical analysis tools on the desktop (downloadable) version.
The account structure is made up of three tiers: Silver, Gold, and Platinum but unfortunately the deposit requirements are not specified for either of them, which is a major let-down. We’ve tried contacting a support representative but all the info we could get was that we need to make an account and then a manager will contact us with information. I don’t understand why this basic info is locked behind the wall of registering; after all, it is one of the first things you need to know if you are going to open an account. Maybe you would open an account if the minimum deposit is $50, but no way you’ll do it if they ask for $1,000. Not providing this info is a good way to keep clients away, but that’s their decision.
Education consists of trading-related articles, VOD (video on demand), tutorials and e-books. As a note, the videos and some of the other materials are provided by MTE-Media (a company that provides this type of content for a large number of brokers), so don’t expect to learn something completely new, especially if you are a trained trader.
To conclude, ETFinance is a regulated broker, which means they could be a good choice, but unfortunately, they fall short when taking a closer look. The spreads are high, the minimum deposit is not displayed on the site and the info wasn’t made available when we specifically asked for it. We even opened an account and still no info about deposits. A basic FAQ is missing, as well as information about withdrawals. Considering all this, we cannot recommend you open an account with ETFinance, even if they are regulated.
The company’s business address is 79 Spyrou Kyprianou Avenue, 3076, Limassol, Cyprus, and the broker can be contacted at email [email protected] and phone +8006 003 7004.
As mentioned previously, this broker received some negative reviews, but not all of them are believable. For example, we’ve located two almost identical negative posts, coming – allegedly – from two separate persons (or at least the username was different). It’s obvious those posts were actually coming from the same person, so we cannot give them too much credit.
On the other hand, we did locate some believable posts coming from clients who complained about high-pressure phone calls and failed withdrawals. However, “believable” doesn’t mean true, so take it with a pinch of salt.
A lot of basic information is missing from ETFinance’s website and that includes withdrawals. There’s absolutely nothing on the website about methods, processing times or minimum amounts so we had to look deep into their Terms and Conditions. There we found out that the minimum withdrawal is 50 EUR, a fee of 15 EUR will be charged for wire withdrawals, and the processing time is the same day if the request is received before 11:00 AM GMT.
They offer Islamic accounts, an Economic Calendar and an Earnings Calendar. You decide if these can be considered extras, but other than this, the broker lacks anything that can be treated as special features.
ETFinance Overall Ratings
User Friendliness 15/20
The website is missing important information, which doesn’t make it too user-friendly but at least the layout is clutter-free and there are 6 languages available. The platform is great but new users may find it a tad complicated. Demo accounts are available but only for 7 days, US traders are not accepted.
Range Of Markets, Spreads And Leverage 15/20
When it comes to tradable assets, there’s nothing to complain about and all major asset classes are covered: stocks, indices, currencies, cryptocurrencies, commodities and more. The advertised spreads are extremely low (0.07 pips), but unfortunately when logging into the platform we found out that EUR/USD spread is above 2 pips, which is on the expensive side. The spread for BTC/USD is about 60 bucks, which is average. Leverage goes up to 1:30 for Retail clients and up to 1:500 for Professional clients, which is again, the average for the industry.
Fees And Support 13/20
Just like many other things, the fees are not described on the website so we headed to the Terms and Conditions where we learned that the client will pay a 15 EUR fee for wire withdrawals and a 50 EUR fee if the client withdraws before trading more than once. The inactivity fees are very steep: 80 EUR monthly if the account is inactive for 2 to 3 months; 120 EUR monthly if the account is inactive 3 to 6 months and 200 EUR monthly if the account is inactive more than 6 months. Needless to say that you have to be very careful and just withdraw all your money if you don’t plan on trading.
Support is available via email, phone, and live chat, with the latter being almost useless because even the most basic of questions (in this case “What is the minimum deposit”) was answered along the lines: Open an account and someone will get in touch.
Deposits And Withdrawals 15/20
The minimum deposit is not specified and the minimum withdrawal amount is buried deep in their T&C document: 50 EUR. The processing time is the same day if the request is received before 11:00 AM GMT or the next day if the request comes after that time. As for the methods, they only show some logos on the website (Visa, MasterCard, Neteller, Skrill, etc.) but no additional information is provided.
Islamic accounts, Economic and Earnings Calendars, and cryptocurrency trading. Nothing that we’ve never seen before and overall this broker lacks innovative features.
ETFinance Ratings (71) + Regualted (+3) = 74/100