Last Updated: September, 2019.
ETFinance is an online brokerage based in Cyprus. It is operated by Magnum FX, a leading Cyprus Investment Firm that is regulated by the Cyprus Securities and Exchange Commission (CySEC). The brokerage offers a range of products including stocks and shares, commodities, indices and Forex. With a range of financial instruments and award-winning platforms, you may be wondering if ETFinance is the best stock broker for you. Our broker comparison will look carefully at what ETFinance stock trading offers, but in short, here are some of the key features of the company:
- Excellent trading platforms
- Trading via CFDs in a range of financial instruments
- Reasonable trading fees
- 24/7 market access
1.) The trading offer: trade a wide range of instruments
ETFinance stock trading allows customers to easily trade in a variety of financial instruments via CFDs, including commodities, indices, stocks, cryptocurrencies and Forex. Currencies available include major, minor and exotic pairs, while commodities include oil, precious metals and agricultural assets. Popular indices such as the FTSE 100, S&P 500 and DOW30 can also be traded. Market access is available 24/7, and it is quick and easy to sign up for an account, with options for a retail or professional account. The leverage available will depend on the type of account you have and the instrument being traded. Most commodities and indices are available with a leverage of 1:10 on retail accounts, and up to 1:200 on professional accounts. Stocks and shares offer leverage of 1:5 for retail and 1:50 for professional traders. Maximum leverage on currency pairs for professional traders is up to 1:500. Retail traders can enjoy leverage of up to 1:30 on major and minor currency pairs, and up to 1:20 on exotics. Cryptocurrencies are offered with leverage of 1:2. ETFinance also offers other ancillary services, such as the safekeeping and administration of financial instruments, including custodianship and related services.
- Good range of financial instruments and products
- Trading via CFDs available for all relevant assets
- Reasonable leverage offered on both account types
2.) Trading costs: low fees and tight spreads
ETFinance aims to provide a good value service, with no trading fees or commissions on Forex trading, and low commissions on other instruments such as commodities. With currency trading, the broker’s profit is taken from the spreads. ETFinance offers floating spreads, so they will vary, but the spreads are generally competitive. Current spreads for each available currency pair are clearly displayed on the ETFinance website on the Live Pricing page, which can be easily accessed from their Services menu. The spreads for over 80 different markets can vary depending on current market conditions. The commission-free model means Forex traders can trade as frequently as they want, without paying transaction fees, which is an attractive option for active traders. When it comes to trading CFDs with ETFinance, there is no compulsory minimum deposit and very few hidden extras. Opening an account is free, and the broker does not usually levy deposit and withdrawal fees, though inactive accounts may incur a withdrawal fee, and some funding and withdrawal methods may incur fees, depending on your country, bank, credit card company and other factors.
- No commissions or trading fees on Forex
- Competitive spreads
- Low commissions on other instruments
3.) Accounts: various perks and benefits
Opening an ETFinance stock trading account is simple and secure. Clients can choose from a retail or professional account, and account opening, verification and funding is very straightforward. Those with a professional account can access high leverage, with up to 1:500 on currency pairs, 1:200 on most commodities and indices, and 1:50 on stocks and shares. Retail customers can only expect to access leverage of 1:20 to 1:30 on Forex, 1:10 on commodities and indices, and 1:5 on stocks and shares. The margin closeout percentage on a professional account is 15%, whereas on a retail account it is 50%. Professional account holders also have a few other perks, such as access to VIP Platinum Education. Both account types have negative balance protection, a dedicated account manager and access to basic educational resources. Retail account holders have their funds protected via the Investor Compensation Fund (ICF). You may be able to re-categorise your account, depending on your trading activity, but it is important to consider the pros and cons of each account type before doing this.
- Choice of two account types
- All retail account holders are protected by the ICF
- High leverage and other benefits for professional accounts
4.) Trading platforms and mobile trading: ETFinance has a range of reliable platforms
ETFinance offers three different platforms to cater to the needs of different investors. Their WebTrader platform is web-based and can be accessed from any compatible browser. This is a cutting-edge platform which offers an excellent trading experience. The platform incorporates a variety of technical indicators and other trading tools, with a simple and highly intuitive interface. There is also an opportunity for those new to trading, or new to the WebTrader platform, to start out with a two-week demo account, so they can find their way around the platform and try out trading tools and strategies. For those traders who are already using the ever popular MetaTrader 4 platform, there is no need to switch. The MT4 platform is available at ETFinance for use on both desktop and mobile devices, with its wide range of features and integrated tools, technical indicators and auto trading facilities. ETFinance also provides easy mobile trading via a well-designed mobile app, which is available for iOS and Android devices. The free mobile app provides an excellent user experience, but it should be remembered that the browser based WebTrader platform works on any device, so not all mobile traders will find the app necessary.
- Cutting edge, web-based platform, accessible from any device
- MT4 platform also available
- Easy mobile trading via the app or any compatible browser
5.) Usability of the website: clean and simple
The website is clean and modern with a very simple, uncluttered design. The minimalist design allows for a great user experience, focused on information and functionality. Navigation is initially intuitive via a top bar menu on the homepage that leads users to all the most important pages on the site such as products, platforms, education and legal information. Scrolling down the homepage will lead you to other important sections of the site and essential information, such as contact details, including the opportunity to start a live chat with support staff and ask any questions you may have. Selecting ‘Products’ in the top bar menu will give you a drop-down menu to navigate to the individual pages for indices, commodities, Forex, etc, all of which have further information specific to those instruments. At the top right of the homepage, or any other page, you can sign in to your account, and set your language preferences. You’ll also find information on how to open, verify and fund your account. The website is very simple, and certainly not cluttered with any surplus pages or design elements, but all the important information you would expect to find is there, along with easily accessible support if you have questions or queries.
- Clean and simple design
- Very easy to navigate
- All important information is there
6.) Customer support: there is room for improvement
The website is so simple that information can seem a little sparse. If you dig around however, you will find all the vital data you need, including terms and conditions, regulations and licensing. We did note that at the time of our ETFinance brokerage review, the website lacked a FAQ page and help section for new customers, which is a feature the majority of online brokers include, and many traders find useful. A searchable help section, in particular, can be invaluable when new or potential customers have queries or are researching the platform and products available. ETFinance does provide an extensive video on demand (VOD) library, offering basic and advanced trading tips, and the customer service section itself is certainly satisfactory. There are options to get in touch with customer support staff by phone or email, as well as via the very convenient and always popular live chat. Customer support staff are helpful, polite and knowledgeable, and respond to email within a few hours. Customer support is available 24 hours a day, Monday to Friday, with the phone line manned from 7 am to 7 pm GMT, throughout the trading week.
- No FAQ page or help section
- Live chat, phone and email options available
- Some form of support is accessible 24 hours a day, 5 days a week
7.) Methods of payment: secure and convenient options
ETFinance offers several secure and convenient ways to deposit and withdraw funds once your trading account is live. Customers are able to transfer funds via some third-party online wallets such as Skrill and Neteller, as well as by major credit cards and debit cards. There is also the option to deposit and withdraw funds by bank transfer. The broker does not offer as wide a range of payment options as some of their competitors, with no option to pay by PayPal or paysafecard at this time. Withdrawal requests can be made online by logging into your account and submitting a withdrawal request within your Client Area. To make a withdrawal, you will need to provide full details of the method that you used to deposit, including any supporting documentation. It may be necessary, for example, to provide a bank statement, including your bank’s IBAN or bank reference number, in order to request a bank transfer. In accordance with international anti-money laundering requirements, traders are only able to withdraw funds to a bank account held in the same name as the trading account. Withdrawals from active accounts are free, but ETFinance may charge a withdrawal fee of 50 Euros if there is insignificant trading activity on the account prior to withdrawal.
- Several payment methods
- No minimum deposit
- High withdrawal fees on inactive accounts
8.) Additional offers: training videos, account managers and demo accounts
Professional account holders at ETFinance can access VIP educational resources, contests and other perks, but there are no promotions or bonuses currently available to retail account holders. Retail account holders can still access the basic education section, a dedicated account manager, and a free demo account if needed, although this is only available for 14 days. ETFinance stock trading does provide a high-quality general education section, which is in the form of a Video On Demand (VOD) library, with plenty of free training videos for both new and more experienced traders. These videos cover a range of trading basics, and go into detail on various technical indicators and common trading strategies. There are videos on everything from understanding candlesticks when using technical analysis tools, to Fibonacci trading strategies, and chart formation patterns. The videos can effectively be studied as an online course, with individual topics broken down into two or three lessons, successfully covering more complicated aspects of the same strategy, technique or trading tool.
- Some special offers and perks for professional account holders
- Free demo account, that is restricted to 14 days
- Plenty of training videos on a variety of trading topics
9.) Regulation and deposit protection: regulated and licensed by CySEC
ETFinance is a branded online brokerage owned by Magnum FX (Cyprus) Ltd, which is a leading Cyprus Investment Firm. The company is fully licensed and regulated throughout the EEA by the Cyprus Securities and Exchange Commission (CySEC). The broker is also governed by the European Securities and Markets Authority (ESMA), under which it is obligated to provide certain types of protection to its account holders, such as the customer compensation protection provided via the Investor Compensation Fund (ICF). This protection is made available to all clients holding retail accounts with the broker. ETFinance takes the issue of keeping customer assets safe seriously, storing customer funds in segregated accounts. This means that in the unlikely event of insolvency, client funds are protected as the personal assets of the brokers’ clients, and cannot be treated as recoverable assets owned by the company itself. To further protect clients, ETFinance follows best practices regarding customer data protection, using rigorous firewalls and Secure Sockets Layer (SSL) encryption to ensure top quality data protection.
- Fully licenced and regulated by CySEC
- Client funds are stored in segregated accounts
- Customer compensation is provided via the Investor Compensation Fund
10.) Awards: uses the award-winning MetaTrader 4 platform
Our stock broker comparison reviews always include taking a look at how well a broker is respected within the industry, and we generally assess this partially by looking at any awards it has won. As a relatively new brokerage, it is unsurprising that ETFinance has not yet had time to accrue awards and accolades within the industry. This may well change in the future, as the broker has certainly done everything necessary to establish a quality brokerage, but only time will tell, of course. ETFinance have ensured that one of their trading platforms, at least, is an award winner. As many experienced traders will know, the MetaTrader 4 platform is well-known and highly respected in the trading world, and has previously won awards, including the Best Forex Trading Platform at the Finance Magnates London Summit Awards in 2016 and 2017, and the Best Multi-Asset Trading Platform at the same awards in 2016. The broker is also starting to get positive reviews on brokerage review sites, such as ForexBonusLab.com where ETFinance recently received a five-star rating in an independent broker review.
- Relatively new brokerage, so has not yet accrued awards
- Offers the award winning MT4 Platform
- Has received some positive reviews
- Wide range of instruments to trade as CFDs
- Licensed and regulated, with high-level security in place
- Choice of quality trading platforms, including MT4
- Relatively young company with few reviews or awards
- Demo ETFinance brokerage account is restricted to only two weeks
- No FAQ page or searchable help section
Conclusion: our verdict on ETFinance
ETFinance offers an excellent option for online traders at all levels, including less experienced traders and those with limited funds. The broker offers a large number of assets and instruments, from Forex and cryptocurrencies to stocks and indices. Retail accounts offer customer compensation protection, negative balance protection and multi-lingual support. Our ETFinance brokerage review highlighted the positive user experience provided by their website, and the trading platforms are high quality. ETFinance has a short-term demo account available, dedicated account managers, on-demand training videos and decent leverage. An extensive and searchable help section would be a nice addition, but customer service is responsive and helpful when queries arise. The broker has high level security in place regarding data encryption, customer asset storage and compensation procedures. You may be asking yourself, is ETFinance good? For traders who want a reliable multi asset brokerage, with the opportunity to trade via CFDs, ETFinance is certainly a brokerage to consider.Please be advised that certain products and/or multiplier levels may not be available for traders from EEA countries due to legal restrictions.