Conotoxia Review

Conotoxia is a trademark of the group of companies of Conotoxia Holding Group. Conotoxia Ltd. was founded in 2016 in Cyprus and is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 336/17.

Conotoxia Ltd. offers more than 60 currency pairs, 5 commodities (Gold, Silver, Gas, Brent Oil and WTI Oil),11 global indices and 10 cryptocurrencies. Currency pairs include the most popular ones like EUR/USD or USD/JPY and pairs with MXN, SGD, or TRY. Due to the cooperation with LMAX, the company’s sole liquidity provider, clients can be sure that all orders are executed with ultra-low spreads, Conotoxia announces.

The company provides the well-known cTrader as a trading terminal. cTrader is a complete trading platform that is equipped with a full set of features and is designed for every type of client. It is intended specifically for STP/NDD trading and allows clients to see the exact detail of each deal. Some other features are level II pricing (quotes and volumes directly from liquidity providers), advanced charting, chart trading (placing orders directly from charts using the click-and-drag function) and the ability to build your own indicators through the language C#.

There are four types of trading accounts that differ in commission charged and the minimum required trade volume. All accounts offer spreads close to zero (for major currency pairs) and the minimum deposit sum is USD100. In the Basic STP account you will be charged USD4 per 100,000 traded units in currency pairs and the minimum trade volume is 0.01 lots. The Standard STP account offers commission of USD4 per 100,000 units traded volume and you must open positions with at least 0.1 lots. The commission on the Algo Trading STP account is USD3.5 per 100,000 units and cryptocurrencies are available for trading. The Advanced STP account offers a commission of USD3.5 and requires a trading volume of at least 0.5 lots. Both Algo Trading STP account and Advanced STP account require a minimum traded volume of USD2,000,000 per month. Customers can fund their account by bank transfer, credit/debit cards, Google Pay, Apple Pay, Entercash, Klarna (ex Sofort), iDeal, UnionPay, Poli, Trustly, the company’s own currency wallet, etc.

The Terms and Conditions document shows that all retail clients are covered by negative balance protection. It is written: ” In the event of a negative balance in a retail Client account, the Company will not file a claim against the Client for that amount, except in cases where the Client has used illicit methods to create it.” It is also written: ” Conotoxia offers negative balance protection (the ‘NBP’) on a per-account basis for its retail clients. NBP means the limit of a retail client’s aggregate liability for all CFDs connected to a CFD trading account with the Company to the funds in that CFD trading account.” The same document informs that orders are filled at prices that, due to market volatility, may differ from the prices at which the order has been activated. Execution may occur at a less favorable rate than that specified in the order. Customers bear the risk of execution of the order at less favorable price than indicated. The stop loss order may not provide assumed limitation of loss on the open position. So, stop loss orders are not guaranteed. Market orders are subject to slippage and the company explains that the market order is an order to buy or sell at the current market price that is available. The system automatically will place an identical order on company’s execution venues which they will execute the ‘market order’ at the next best available price.

The Order Execution Policy informs that the company acts as an agent on the client’s behalf. The company is without exception an agent to the client and not an Execution Venue. The Client acknowledges that the orders entered with Conotoxia LTD are passing to a third-party Execution Venue. Currently the company has one liquidity provider that is the sole execution venue, and this is LMAX Exchange Ltd. This confirms the claim that Conotoxia LTD uses the Straight Through Processing (STP) model to execute orders.

We can conclude that Conotoxia LTD is a strictly regulated brokerage company that offers one of the most popular platforms for trading – cTrader. The company uses the STP model and this eliminates most of the conflicts of interest inherent in market makers. Retail clients are covered by negative balance protection and the trading conditions are attractive. However, narrower spreads are at the expense of the commission and there are not so many instruments available for trading.