CoverdealFX is a registered trade name of Coverdeal Holdings Limited. It is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 231/14. This company announces that the client funds are held in reputable European banks.
Trading assets include over 50 currency pairs, 15 commodities, 10 indices, nearly 200 global shares, German 10-Year Bond, and 5 cryptocurrencies.
Customers can trade through two of the most popular terminals in the industry – MetaTrader 5 (MT5) and Sirix. MT5 trading platform has a wide set of trading tools including technical and fundamental analysis, automated trading, and social copy trading. You can use available automated robots or write your own ones directly from the platform. The company offers a suitable environment for your robots through its virtual hosting service. Sirix is another convenient and user-friendly web-based trading platform. The minimum deposit amount to open an account is USD250.
CoverdealFX announces it uses an STP (Straight Through Processing) model to execute orders. The company explains that all customer orders are transmitted directly to liquidity providers, without the need for running them through a dealing desk. The big advantage of using STP brokers is that an STP broker only makes money by adding a small commission (markup) to the spread. Unlike market makers, that make a profit from their client’s losses, the STP brokers get the same fee (markup), regardless of whether the client wins or loses. This also means there is no conflict of interest.
The company announces that stop loss orders are exposed to a gapping market and CoverdealFX cannot guarantee the price at which they will be filled. The Leverage and Margin Policy reveals that all retail clients are covered by the Negative balance protection. This means clients may never lose more funds than those deposited in their trading account. The Order Execution Policy document confirms that the company acts as a pure STP broker. It is written that: ‘We offer EXECUTION ONLY trading to our clients. We will execute all clients’ orders as “Agents”, “Matched Principal” or “Riskless Principal” to the trade. We facilitate each order you place with us by placing an identical order (our Back to Back Order) on our execution/dealer venue or counterparty.’
In general, CoverdealFX is a strictly regulated company that acts as an STP broker. It offers two popular online trading platforms – MetaTrader 5 and Sirix, and retail customers are covered by the negative balance protection. However, the minimum deposit amount and spreads are relatively high and Bitcoin trading is not available. In addition, the company declares that its single Execution/Dealer Venue is Magnasale Trading Ltd. and if there is some connection between two companies, a conflict of interest arises.