The company nextmarkets Trading Limited operates through the website nextmarket.com The firm is registered in Malta and licensed and is regulated by the Malta Financial Services Authority (MFSA) as a financial services company under licence IS/ 77603. nextmarkets Trading Limited is a subsidiary of nextmarkets GmbH based in Cologne.
Trading assets include 21 currency pairs, 5 commodities, 7 indices, global shares, 5 ETFs, and 2 cryptocurrencies. The spread for the EUR/USD pair starts at 0.6 pips while this for Bitcoin is USD10.
The company has developed its own web-based trading platform that looks clean and easy-to-use. The terminal is also available as an application for iOS and Android smartphones. You can trade on your own or you can follow some of the expert analysts who provide traders with ideas in real time. This is a kind of a copy trading that the company calls Curated Investing. The company shares its impressive results on the website, and they show that nextmarkets is the online broker with highest customer profitability in Europe.
The minimum deposit amount is EUR250 or the equivalent in different currencies, and customers can feed their accounts by credit card or bank transfer. Please note that you can withdraw a minimum of EUR150.
Let us look at the legal documents provided. The Terms and Conditions document shows that retail clients are protected against a negative account balance that might occur due to the market moving against the client. It is also noted that the Negative Account Balance Protection provides a ‘backstop’ in case of extreme market conditions and shall apply on a per account basis so that a Client’s maximum loss from trading CFDs, including all related costs, will be limited to the total funds related to trading CFDs in the relevant account. The same document reveals that the company will act as CFD market maker (principal) and not as the client’s agent. It is also written that nextmarkets Trading Ltd. acts as a market maker and trades with clients on a principal-to-principal, over the counter (OTC) basis in CFDs. Interaction with market makers is usually associated with a conflict of interest. Although the company is regulated by the CySEC, it has an interest when its customers lose because this is an additional profit for it. The Risk Disclosure document informs about stop loss order that it refers to an existing long or short position and closes out this position with a market order at the next possible price as soon as a certain price specified in the stop loss order is reached. There is a warning that this price is not guaranteed, which means the stop loss orders are not guaranteed. The Best Execution Policy document shows that during the higher volatility there is a possibility for a significantly different price when executing the order from the last quoted price at the time of placing an order by the customer. This means market orders are subject to slippage.
We can conclude this is a European regulated financial company that offers online trading as a market maker with decent spreads and negative balance protection. Novice traders will be pleased with the opportunity to copy the deals of experts. However, there are only a few instruments available for trading.