The website cwgmarkets.co.uk is owned and operated by CWG Markets Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA), under the firm reference number FRN 785129. CWG Markets Ltd keeps client funds in segregated accounts with trusted financial institutions according to the regulations of the FCA UK.
The company product portfolio consists of over 100 instruments. More than 60 of these are currency pairs and the rest are commodities and indices and. The firm claims that spreads are near zero and it delivers low latency and rapid execution speed due to the key location of its servers (at London data center – LD5). A quick check shows that the average spread of the EUR/USD pair is 0.3 pips. As an EU-regulated brokerage firm, the maximum leverage for majors is 30:1.
CWG Markets provides world innovative and advanced platforms such as MetaTrader 4 and 5. Meanwhile, it also provides PAMM/MAM software multi-account management system designed for asset managers using MT5 platform. The MetaTrader terminal allows investors to complete trading within seconds, receive information on quotes of various financial instruments in real time, apply technical analysis, receive financial and economic information in real time and implement automation of their trading strategies.
There are three types of accounts. The Classic account requires USD200 to open, the spread for major currency pairs starts at 1 pip with no other commission. The Advanced account also requires USD200 to open, spreads are close to zero at the expense of a USD3/lot commission. The Institutional account requires at least USD50,000, spreads are almost zero and the commission is USD1.5/lot.
The Order Execution Policy document shows that the company executes an order by dealing as an agent, or as matched principal on client’s behalf, which will be executed on an over-the-counter basis. This means CWG Markets uses a Straight Through Processing (STP) model to execute the client orders and there is no conflict of interest like that of market makers. The same document warns that orders will be executed promptly with rare opportunities for price slippage to occur. The Terms of Business document reveals that placing a non-guaranteed stop order will not necessarily limit your losses to the intended amounts, because market conditions may make it impossible to execute such an order if the underlying market moves straight through the stipulated price. The same document informs that the company secures all retail clients for negative balance protection. This means retail clients cannot lose more than they have in their accounts. However, professional clients are not covered by such protection.
Overall, CWG Markets is an STP broker based in the UK and regulated by the FCS. It offers the most popular platforms in industry – MT4 and MT5 but only few trading instruments. If you are classified as a retail customer, you will be covered by negative balance protection.