TeleTrade Review

TeleTrade briefly

The website Teletrade.eu is operated by TeleTrade-DJ International Consulting Ltd. It is an EU licensed and regulated investment company, established in 1994. TeleTrade has 28 international awards, the last of which was received in 2017, when TeleTrade was awarded by Capital Finance International for “Best Forex Broker in Europe”, the company claims. Clients can trade a wide range of financial instruments including currency pairs, commodities, indices, shares, and cryptocurrencies, through the popular terminals MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

Regulation

One of the most important things you need to know about the company is whether and where it is regulated. TeleTrade is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), under license number 158/11. It operates in the European market in accordance with the Markets in Financial Instruments Directive (MiFID). All client’s funds deposited at TeleTrade are completely segregated from the company’s own funds and are kept in separate accounts in reputable European banking institutions. TeleTrade is a member of the Investor Compensation Fund (ICF), which means that clients may be eligible to receive compensation for any claims made due to the inability or failure of the member of the Fund to fulfill its financial obligations.

Account Types

There are three types of live trading accounts available that differ mainly in the spread offered.

Standard MT4 account – The minimum deposit amount is EUR100 and the spread for the EUR/USD pair starts at 1.6 pips. Trading is commission free. Clients have access to more than 200 instruments (7 instrument types). A 0.1% commission applies when you trade CFDs on US shares. The company recommends this account for all kinds of traders.

NDD MT4 account – The minimum deposit amount is EUR100 and the spread for the EUR/USD pair starts at 0.8 pips. Commissions will be charged for trading. No Dealing Desk execution (NDD) offers immediate access to the interbank market without an intervention of a dealing desk, which means there is no further pausing during the order confirmation. Clients can trade 7 types of instruments and the commission is 0.1% for CFDs on shares and 0.007% for other types of instruments.

Real ECN account – Spreads are close to zero at the expense of the commission. The minimum deposit amount is EUR100 and the spread for the EUR/USD pair starts at 0.2 Pips. Electronic Communication Network (ECN) is a network, which is designed to match buy and sell orders and can be defined as a bridge that connects smaller market participants with the liquidity providers through an ECN forex brokerage. Clients can trade 4 types of instruments with a commission of 0.008% per contract size.

What Type of Broker the Company Is

The Best Execution Policy document shows that the clients can trade with TeleTrade as a counterparty (whereby the company acts as a principal) or with a third financial institution (whereby the company acts as an agent). When the company acts as a principal, it will be the main execution venue or the sole counterparty in all clients’ orders and when the company acts as an agent, some other financial institution will be the execution venue. This means that TeleTrade can act as a market maker on its sole discretion. When customer orders are transmitted for execution, there is no major conflict of interest, through the Straight Through Processing (STP) model, but when the company executes orders, it keeps the risk to itself. In this case, the conflict of interest exists and any loss to customers is a gain for the company.

The same document reveals that customers can choose two ways to execute orders. If they select the instant order execution, there may be requotes. If they choose market order execution, there will be no requotes, but all types of orders are subject to slippage and will be filled at the next available market price; therefore, stop loss orders are not guaranteed.

In addition, the company provides all retail clients with Negative Balance Protection. The Terms of Business document shows that if, in case of a forced close, the amount of funds in the account becomes negative, all retail clients are entitled to be paid compensation that will offset the account balance to zero (Zero Balance Protection).

Fees

In addition to usual fees there also is an inactivity fee. Any trading account held with the company that is inactive for more than three consecutive months will be considered as inactive. This means the client has not performed any trading transactions on his account during the last 3 months. Inactive accounts will be subject to a monthly fee of EUR50.

Deposits and Withdrawals

Customers can use several deposit methods such as wire transfer (it can take up to 3 days), credit/debit cards (instant payment), Skrill, Neteller, and FasaPay. There are various commissions on deposits and for example you will pay 3.5%, if you deposit by credit card and 2.9% if you deposit by Skrill.

Withdrawals should be made using the same method used by the customer to fund his trading account and to the same remitter. They can be made via bank wire, credit/debit cards and e-wallets such as Skrill, Neteller, and FasaPay. Each method involves different fees. For example, credit cards withdrawals are charged with a 2.35% + EUR1 commission. Bank wire fee is EUR1 for SEPA payments and 0.1% (USD55 to USD200) for Non-SEPA payments.

Trading Platforms

You can trade via two of the most used terminals worldwide – MetaTrader 4 (MT4) and MetaTrader 5 (MT5). In addition to all known features, you can use the MultiTerminal of MT4. It is intended for simultaneous management of multiple accounts. This will help those who manage several accounts simultaneously. MetaTrader terminals are available as a desktop version for Windows and MAC machines, and as a mobile app for Android and iOS devices.

Assets

Forex – You have access to 60 popular major, minor, and exotic currency pairs. The minimum spread for the EUR/USD pair depends on the account type and is 1.6 pips for the Standard account and 0.2 pips for the Real ECN account.

Indices – You can trade 9 of the major indices globally, such as DAX30, DJIA and US500. The average spread for the DAX30 is 2.2 points and the one for the DJIA is 6 points for the Standard account.

Commodities – 12 precious metals, 3 energy products and 8 agricultural commodities are available for trading, including Gold, Silver, Crude Oil, Brent Oil, and some cereals traded. The average spread for the Gold is USD0.37 and the one for the Crude Oil is USD0.12.

Shares – Nearly 100 of major companies such as Apple, Verizon, Vodafone, etc. The minimum spread for Apple shares is USD0.03.

Cryptocurrencies – 19 of them are available for trading, including Bitcoin, Litecoin, Ethereum, etc. The spread for Bitcoin is USD36.

Education

There is a dedicated educational section called Education, where you can find some information about the courses offered and to subscribe for them You can read about some of the trading strategies and CFDs trading. There are some videos containing practical explanations of the MetaTrader platform. In addition, there is an Analytics section where you can find market news, technical analysis, and a third-party economic calendar.

Summary

TeleTrade has a CySEC regulation, which allows it to provide financial services across European Union. It may use the STP model to execute orders, but it can also act as a market maker. The company provides a wide range of trading instruments via the popular MT4 and MT5 platforms. There are three types of live accounts that differ mainly in the spreads. If you wish to trade with narrow spreads, you must choose the real ECN account, where, however, commissions are charged.