Times are changing for the private investor. The Internet has created a new world of opportunities but also pitfalls. There are many forms of investment choices including ETFs, Gold Certificates, Equities and a plethora of other products that often are confusing and daunting for the average investor. Today we profile Forex trading. While perhaps not as thrilling as investing directly in Bitcoin, it does seem to be less risky proposition. Online trading allows clients to invest in a wide range of asset classes and enables them to control their portfolio online from their computer or phone. It also allows for investing in fiat currencies, commodities and also stocks through leveraged positions. Today we look at one such company, a recent entrant to the market - “TradeFred”, we delve into their product offering and give our review of their trading platform.
Why we like TradeFred
- Security of trading with a regulated broker
- Range of tradable assets
- Negative balance protection
- Comprehensive educational materials
- VIP Department for higher tier clients
CFD Trading with TradeFred
We’ve been following the developments in the world of online trading for some years now, and in that time, we’ve looked at offerings from a considerable number of forex brokers. All of these “forex” brokers have always offered currency trading. Not all, however, offered CFDs. CFDs, or ‘Contracts for Difference’, are a form of trading with an agreement between two parties to exchange the difference in value between the opening and closing prices of an asset. For example, you open a contract to buy 100 ‘Apple’ shares at $10 (we wish…). The value of the stock rises to $12, so you sell the contract back to your broker and make $200 profit (100 x $2) in the process. With CFDs, traders do not own the actual asset, so they are a very affordable way to trade products which might be out of reach. Let’s say real prices for ‘Apple’ shares are at around 150$... and the 100 share example starts to look expensive at $15,000. CFDs give investors the opportunity to trade products which under different circumstances might be out of reach. After all, not everybody has $15,000 spare and if we apply prudent money management of not risking more than 5% on any one trade, opening a $15,000 trade would require an account size of $300,000. That’s a lot of money by anybody’s standards. CFDs are leveraged products, and the maximum leverage on offer at TradeFred for CFDs on shares is 1:200 (!). To make it easier to understand, let’s use a 1:10 leverage on offer example: that means that for our ‘Apple’ share example the balance requirement becomes $1,500. Much more accessible than $15,000 and gives the same buying power – 100 ‘Apple’ shares. That’s one of the most attractive features of trading CFDs, the low margin requirement. It’s important to point out here that leverage works both ways. It can magnify profits, but it can also increase losses. No matter what your trading style or the assets you trade, money management is a crucial component. This ties in very nicely with another feature we like about TradeFred – Negative Balance Protection. Negative Balance Protection means you can never lose more than you have in your account. Don’t overlook this feature.
TradeFred At A Glance
TradeFred takes a very clean approach to their trading environment. With a wide range of assets available and MT4 in multiple versions (Desktop, Mobile, and Browser-based) this broker represents a comprehensive solution for all types of traders. We particularly liked the comprehensive educational resources.
TradeFred offers a range of trading accounts with a minimum opening balance of 250 base currency on their base account. This gives you access to a no-dealing desk environment with all supported versions of MT4. Traders get access to the very comprehensive education resources the broker offers as well as attendance to their webinar sessions. A very nice plus in our opinion.
TradeFred provides support in English, Arabic, Russian, German and Italian with telephone, email and live chat options. We like to test a broker’s support department, and in the case of TradeFred, they handled all our queries professionally and proficiently. One thing we did like about their support was the way in which they dealt with some of the more difficult questions we threw at them. An enjoyable experience overall.
Should you trade with TradeFred?
With their excellent regulatory framework, TradeFred makes good sense for any trader. They are a particularly good choice for traders looking to add CFDs to their portfolio. The library of educational material and regular webinars make TradeFred particularly attractive to new traders who would be looking to improve their trading skills while working with a regulated broker. Traders around the globe have reacted very positively to TradeFred, and the reviews on the broker are overwhelmingly positive.
Key Broker Facts
- CySEC: Cyprus Security and Exchange Commission (258/14)
- ASIC: Australian Securities and Investments Commission
- VFSC: Vanuatu Financial Services Commission
Trading Platform: MetaTrader for Desktop, Mobile and Browser-Based
Supported Languages: English, Arabic, Russian, German and Italian
Account Base Currencies: USD, GBP, EUR, AUD
Minimum Account Opening Deposit: 250 base currency
Assets: Forex Currencies, CFDs on Commodities, Indices and Stocks.
Leverage: Up to 1:500 (on all assets)
Deposit / Withdrawal Methods Credit / Debit Cards, Bank Wire, E-Wallets
- Lot Trading
- Segregated Accounts
- Demo Account
- Swap-Free Accounts
- Automated Trading Features
We recommend TradeFred for online trading. They are CySEC and ASIC regulated and have a lot of great features you won’t find with some other brokers.
If you are interested to sign up for a trading account, please fill out the form below and TradeFred representatives will call you to provide more information.
Trading is risky. You may lose your invested capital