Xtrade Editor’s Verdict
Xtrade is a multi-asset broker which has its headquarters in Belize, as well as a second office in South Africa. Founded in 2003, Xtrade is a rare broker that does not offer the MT4 or MT5 trading platforms, nor cTrader; instead, the broker solely relies on its proprietary Xtrade WebTrader. The broker also fails to support automated trading and focuses rather on manual trading; moreover, it does not allow third-party solutions to connect. Social trading is equally missing at Xtrade. Xtrade deploys an unacceptably high fixed spread cost structure with an average asset selection.
Overview
New traders can consider the educational section at Xtrade, which also publishes daily trading ideas. It appears that Xtrade has changed over the past decade and decreased the quality of its trading environment.
Cyprus FSC Belize 2003 Market Maker $250 Proprietary platform
Regulation and Security
After dropping two regulators, the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC), Xtrade maintains sole oversight with the Belize International Financial Services Commission (IFSC). While the broker does have an office in South Africa, it does not list a license with the South African Financial Sector Conduct Authority (FSCA). Reituca Marketing Ltd, a Cypriot-registered international business company (IBC), processes all Xtrade International Ltd payments.
Client deposits remain segregated, but Xtrade does not list the banking institutions. It notes an investor compensation fund without providing details. While this broker remains compliant with its sole regulator and has a clean track record, more transparency is necessary to improve trust. Xtrade does not specify its auditors, nor does it voluntarily publish order execution statistics. Each trader needs to assess if what Xtrade offers is sufficient to trust this broker with their deposits, personal information, and trading accounts.
The Belize IFSC is the sole regulator of Xtrade after this broker dropped ASIC and CySEC regulators.
Client deposits remain segregated. Xtrade notes an investor compensation fund without providing details. It also has an office in South Africa but does not list an operating license by the FSCA.
Fees
Xtrade is a market maker and profits directly from client losses. The commission-free trading environment features unacceptably high fixed spreads of up to 5.0 pips on the EUR/USD. It equals a cost of $50 per 1.0 standard lot, making Xtrade one of the most expensive brokers in operation. Xtrade refers to swap rates on leveraged overnight positions as a premium buy and premium sell charge; traders may access them from inside the trading platform under Details, or from the CFD list on the website. It does not levy internal costs for deposits and withdrawals, but third-party charges apply. Xtrade levies an excessive $50 monthly inactivity fee after three months and a $100 monthly dormant account maintenance fee after twelve months. Overall, Xtrade maintains an unacceptable pricing environment.
The fixed-spreads at Xtrade are the highest in the industry.
Xtrade maintains one of the most expensive overall cost structures.
What Can I Trade
Xtrade offers traders 56 currency pairs, 16 commodities, five bonds, and five ETFs. The bulk of assets consist of 280 equity CFDs, complemented by 13 index CFDs. The overall selection of 375 assets across six categories remains below average. Despite a reference to it in the education section of the website, Xtrade does not offer cryptocurrencies. New traders will find the choice sufficient to start trading financial markets, but more advanced traders will find that they do not have sufficient trading opportunities.
Xtrade offers a limited choice of assets, placing it near the bottom compared to all brokers.
Account Types
Xtrade does not provide any information about its account type. It appears that the same option is available to all traders, from a minimum deposit of $250 with a maximum leverage of 1:400, according to data found scattered across the website. It represents an unacceptable approach and suggests carelessness at Xtrade. A one-page introduction to the account features is not only a minimum requirement but a necessity for new traders to understand what they are signing up for, and to determine if it will suit their needs.
Trading Platforms
The proprietary trading platform, Xtrade WebTrader, is the only one offered at this broker. It is also available as a mobile version. While Xtrade introduces it as a next-generation trading platform, it lacks core functionality, including support for automated trading solutions, as it only serves manual traders. Xtrade also fails to introduce its trading features. It makes bold claims inspired by marketing efforts but does not provide details. A one-page trading platform introduction only shows a clean user-interface. The lack of transparency suggests that it remains a sub-standard solution, more than fifteen years behind its prime.
Xtrade fails to introduce its trading platform and deploys misleading marketing for a sub-standard solution.
Overview of Trading Platforms
MT4 | |
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MT5 | |
cTrader | |
Proprietary Platform | |
Automated Trading | |
Guaranteed Stop Loss | |
Scalping | |
Hedging | |
OCO Orders | |
Interest on Margin |
Unique Features
The most expensive trading environment in the industry, a below-average asset selection, and a sub-standard trading platform are the unique features that stand out at Xtrade. The lack of transparency regarding its trading account and failure to introduce its trading platform is also noteworthy. Traders should also consider that Xtrade dropped the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC) as its regulators. From an analytical perspective, all signs point towards a broker in regression and one in a restructuring phase, resulting in an uncompetitive trading environment.
Research and Education
Xtrade does publish some financial news content on a daily basis; however, the content is quite brief and fails to provide usable trading signals. In its place, traders receive a snapshot of the asset and its recent price action. While a blog is available, the last written update was made in October 2019, while the most recent video submission was in December 2019. It also has a cryptocurrency section, but Xtrade does not offer cryptocurrencies as tradable instruments. The daily videos provide the best quality offering for traders seeking research from Xtrade; unfortunately, the analysts use the MT4/MT5 trading platforms in the videos, neither of which are available at Xtrade. It confirms the lack of functionality of the proprietary Xtrade WebTrader, together with the misleading marketing that continues to label it as a next-generation trading platform.
Xtrade publishes daily financial news.
They consist of a brief market commentary without trading signals.
The last updates on the Xtrade blog are from 2019.
Traders get daily videos with trading ideas, the best research provided by Xtrade via third-party contributors.
The video analysts use the MT4/MT5 trading platforms, confirming that the proprietary Xtrade WebTrader is a sub-standard alternative.
The education center at Xtrade features video tutorials on how to use the trading platform. Xtrade notes several features in the register and interface video, which it fails to mention elsewhere on the website. As such, it remains unclear what exactly remains available after this broker implemented changes. Traders can open a free and unlimited demo account, but Xtrade may not make all features available. Xtrade offers most of the educational value through 21 courses, with multiple lessons from a third-party provider. All video content is short, and quantity trumps quality. New traders can pick up some valuable information, and the approach is ideal for millennial traders who prefer videos of less than two minutes, accessible from their mobile phones. While Xtrade attempts to offer education, it does not appear genuine, and new traders will find a more comprehensive solution, free of charge, elsewhere. Xtrade requires registration to access most lessons, which is acceptable as long as traders do not have to commit to a minimum deposit for educational resources.
The eight video tutorials cover functions of the proprietary Xtrade WebTrader.
New traders have access to 21 courses with numerous lessons in short video format of often less than two minutes.
Customer Support
Customer Support Methods |   |
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Support Hours | 24/5 |
Website Languages |  |
Xtrade provides 24/5 customer service via phone, e-mail, and live chat. The FAQ section attempts to answer basic questions, and a glossary is also available. It also features a dedicated complaint resolution process, aiming to deliver exceptional customer service. While Xtrade does not provide response times, it does indicate an effort to assist its traders.
Traders have access to 24/5 customer service, with the live chat function the most convenient form of contact.
Xtrade also offers a dedicated complaint resolution process.
Bonuses and Promotions
Xtrade grants traders a four-step welcome bonus. A first deposit bonus of between 30% and 60% will depend on the initial deposit amount; for example, a minimum deposit of $2,000 qualifies for a 60% bonus. Phone verification results in a $20 cash bonus; in addition, Xtrade will provide clients with one free trade. If the first trade results in a loss, Xtrade will reimburse the loss, up to $500. Completing the mandatory account verification process unlocks an additional 20% deposit bonus; limited to $1,000, it will be credited within 48 hours of the initial deposit. It should be noted that it appears that Xtrade allows clients to make a deposit without account verification. Xtrade also provides a cashback bonus of at least $10 if a trader completes 10.0 standard lots per month. It does not state $10 per lot, making it only a minor reimbursement for the excessive fees, as each traded lot results in $50 of revenues for Xtrade if the spread is 5.0 pips, as listed on the most liquid currency pair, the EUR/USD. Terms and conditions do apply, and traders must read and understand them before requesting a bonus from Xtrade.
Xtrade maintains a four-step welcome bonus program.
It also offers a cashback program, despite not charging commissions. It confirms that this broker is well aware that it is home to the most expensive trading environment.
Opening an Account
An online application form processes new accounts. The first step merely asks for a name, e-mail, and phone number. Since Xtrade is a regulated broker, account verification is mandatory to comply with AML/KYC requirements. A copy of the trader’s ID and one proof of residency document usually satisfies this final step.
The Account Opening process is straightforward and in line with other brokers.
Deposits and Withdrawals
Xtrade lists an extensive selection of payment options, but most countries remain limited to bank wires and credit/debit cards. The logos of a series of online payment processors exist on the website, but no further information is available. No country on the payment selection page shows them as a choice. Given that, it remains unclear what funding or withdrawal options clients can actually use. Xtrade does not charge deposit or withdrawal fees, but third-party costs may apply. Withdrawal processing times, per the FAQ section, can take up to ten business days.
While Xtrade lists over 55 payment options, most countries show only bank wires and credit/debit cards.
Summary
Xtrade appears to have taken several steps backward after dropping two of its regulators. It maintains the most expensive trading environment among all online brokers, and offers traders a below-average asset selection and a sub-standard trading platform. The research and educational services remain average, complete transparency is missing, and the overall trading environment lacks competitiveness. Xtrade does not support automated or social trading, and provides only limited trading tools to clients. The introduction of its products and services remains sloppy. Traders will find significantly superior conditions elsewhere. Xtrade is a regulated broker with a clean track record, in operation since 2003. Traders can consider it a safe broker. All withdrawal requests go via the secure back-office, and traders can access it from the trading platform. No, Xtrade is a legit online broker. Yes, it is. Currently, it operates under the oversight of the Belize IFSC. Xtrade provides an unlimited demo account to traders.FAQs
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