Stone Edge Capital is a trading name of the financial company Stone Edge Capital (Cyprus) Limited. It is based on Cyprus and is regulated by the Cyprus Securities Exchange Commission (CySEC) under license number 311/16.
The company provides investors access to global markets, with a wide product range that includes currency pairs, cryptocurrencies, commodities, shares, options, ETFs, and Bonds. The company announces it uses the Straight Through Processing (STP) model to execute orders of currency pairs, connecting customers directly to the liquidity providers. All futures contracts are filled through the Direct Market Access (DMA), which allows orders to be placed directly to the relevant exchange.
Customers can trade through the company’s own platform that is only available as a mobile version for iOS and Android devices. The Stone Edge Trader provides easy access to global financial markets and a variety of financial assets from any place. The terminal has an easy-to-use interface developed in accordance with the requirements of traders.
The Best Execution Policy document shows that the company will enter into transactions with the client as principal (counterparty) or as an agent. Depending on whether the company transmits the client’s order to another (external) brokerage which is a member of an exchange or to a liquidity provider for execution, or via STP through a dedicated trading platform, the company may or may not be contractual counterparty to the client. Therefore, the company will act as an Execution Venue for some client orders whereas a multilateral trading system may serve as the Execution Venue for STP trades. This means that Stone Edge Capital may also act as a market maker to some transactions, which leads to a conflict of interest.
Although this is a CySEC regulated company, we could not find anywhere that there is negative balance protection. Moreover, the Risk Warning document reveals that foreign exchange trading involves a relatively high level of risk. This makes the potential gain quite high, even if the deposit is relatively small. If your total exposure on margin trades exceeds your deposit, you risk losing more than your deposit. Thus, it is not clearly stated that all retail customers are covered by negative balance protection.
Overall, this is a relatively new brokerage company that has a CySEC license. Not all trading conditions are clearly stated. The platform has only a mobile version and the lack of the MetaTrader terminal will not attract experienced traders.