This website www.patronfx.com/eu is operated by Forex TB Limited. The company is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 272/15.
Trading assets include currency pairs, commodities, indices, shares and cryptocurrencies. The website provides live quotes and we checked that the spread for the Bitcoin is below USD40, which value is in the lower range for this instrument.
There are four types of trading accounts that differ mainly in the required initial deposit. The Basic account entails EUR250 to open and the spread for the EUR/USD pair starts at 2.5 pips. The Gold account requires at least EUR25,000 to open and the spread for the EUR/USD pair starts at 2 pips. You must invest EUR100,000 to open a Platinum account and the spread for the EUR/USD pair starts at 1.6 pips. The VIP account requires at least EUR250,000 to open and in return you will get a spread starting at 1.1 pips.
Accounts can be funded by bank transfer, credit/debit card, Skrill and Neteller. PatronFX does not charge any withdrawal fee but you are subject to some fees charged by the corresponding banks. If the money will be sent to your credit or debit card, you will be charged a 3.5% fee, while if your funds will be sent to your bank account, you will be charged USD/EUR/GBP30.
In addition to the common fees such as spread and rollover, the company also applies an inactivity fee. If there are no transactions (deposits, withdrawals or any trading activity such as opening and closing positions) in your trading account for more than a month, your account will be classified as inactive and you will be charged a monthly fee of EUR80. PatronFX explains that it charges this fee because the trading platform is constantly available to you for trading, regardless of your actual use.
Customers can trade through the MetaTrader 4 (MT4) platform. The PatronFX MT4 platform offers three separate chart types, over fifty technical indicators, and interface customization.
There is an Education section on the website where you can find a glossary of terms, eBooks, and an economic calendar. However, to view the things in detail, you must be logged into your account.
The Client Agreement document shows that the company guarantees Negative Balance Protection for the client. This means that the company ensures that losses/costs of the client will never exceed the total balance held in the client’s trading account. The same document reveals that the company arranges for the execution of client orders with another entity (the Liquidity Provider) and does not execute them itself as a principal to principal against the client. The client is hereby informed that the company receives monthly commissions from the Liquidity Provider calculated as a percentage of the volume of orders sent for execution every month. That means PatronFX acts as a pure Straight Through Processing (STP) company and each trade of the client is transmitted to its liquidity providers. PatronFX provides guaranteed stop loss orders that are available on certain underlying assets only and are subject to additional conditions (wider spread, once placed it cannot be removed etc.) All other types of orders are subject to slippage.
Overall, PatronFX is a CySEC-regulated European brokerage company that uses the STP model for order execution. It provides negative balance protection and guaranteed stop loss orders. However, trading conditions are not so competitive – the minimum deposit sum jumped to EUR25,000 from EUR250 to open the next level account. In addition, the spread for major currency pairs is relatively wide – more than 1.1 pips for the VIP account.