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EBH Review

EBH is a trading name of European Brokerage House that is licensed by the Financial Supervision Commission of the Republic of Bulgaria under license number RG-03-197/31.03.2020.

Trading assets include 40 currency pairs, 6 global indices, 4 commodities (Gold, Silver, Brent Oil and WTI Oil), and 5 cryptocurrencies. The average spread for the EUR/USD pair is below 1 pip at the expense of the commission of USD3.5 per USD100,000 traded volume per side.

There is one account type for all clients regardless of the invested sum. The initial minimum deposit is USD100 or equivalent in another currency. The company uses the Non-Dealing Desk (NDD) fulfillment with the market execution model (slippage occurs, without re-quotes). Customers can fund their account by bank transfer, credit/debit cards, Skrill, and Neteller.

Customers can trade through two of the well-known terminals – MetaTrader 4 (MT4) and MetaTrader 5 (MT5). As the most popular trading platform in the world, MT4 contains many analytical tools and enables clients to trade with automated trading systems (expert advisors). The platform has its own programming language called MQL, which customers can use to create their own expert advisors and indicators. MT5 is not only the next version of the MT4, but it is an entirely new terminal with improved trading capabilities such as new order types and market depth display (level II quotes). Both platforms are available as a desktop version and as a mobile application for iOS and Android devices. In addition, customers can use the web-based version without the need to install any software. The company explains in detail the differences between MT4 and MT5.

The legal documents show that all retail clients are covered by negative balance protection. The company explains that leverage trading leads to risk of losing more money than initially deposited but it operates with no debit balance guarantee. If, under extreme circumstances your balance becomes negative, EBH adjusts it to zero. That means you will never owe the company some money.

The Order Execution policy document informs that Stop Loss, Take Profit, Buy Limit, Buy Stop, Sell Limit and Sell Stop are executed at the requested price. However, under certain trading conditions it may be impossible to execute the above at the requested price and EBH has the right to execute them at the next best price. In case of market execution mode this situation is commonly referred to as slippage and it can be both positive and negative for all order types. So, the stop loss orders are not guaranteed, and all types of orders are subject to slippage.

The General Information document shows that EBH executes client orders as a single execution venue – acting as a market maker; or as an intermediary transmitting client orders to third party venues (liquidity providers). We see that the company may also act as a market maker and a conflict of interest arises because EBH will benefit when you lose.

In general, EBH is a strictly regulated Bulgarian brokerage company that offers competitive trading conditions including low spreads, low initial deposit and two of the most popular platforms. However, shares are not available for trading and it is not clear what type of company EBH is – market maker or STP broker.

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