TradeDirect365 is a trading name of Finsa Pty Limited. It was founded in 2014 and is authorized and licensed by the Australian Securities and Investments Commission (ASIC) under license number 422661. Client’s funds are held by Finsa Pty Limited in a segregated client account with a top-tier Australian bank (Westpac Bank).
TD365 is an Australian CFD broker that provides a transparent pricing approach, with low commissions and tight, fixed spreads on a simple-to-use, intuitive CFD trading platform, the company presents itself on its website. It also notes that the leverage can be up to 1:200 and the stop loss orders are guaranteed.
The company portfolio includes currency pairs (major FX, minor FX, and exotic FX), commodities (Gold, Silver, Brent Oil and WTI Oil), global indices, global stocks, and cryptocurrencies. The spreads of all instruments in the CloudTrader platform are fixed and the one for the EUR/USD pair is 0.8 pips and the one for Bitcoin is USD70. However, the spreads are variable when you use the MetaTader terminal and the one for the EUR/USD pair starts at 0.5 pips.
Customers have a choice of two platforms for CFDs trading – the popular MetaTrader 4 (MT4) terminal and the company’s own-developed CloudTrade platform. MT4 is the world’s most popular platform that automates client strategies by using expert advisors. CloudTrade is a web-based terminal and is also available as a mobile app. The company represents it like that: “CloudTrade is our version of what we believe most CFD traders want from an online trading platform. A simple, clutter-free, reliable trading interface that facilitates trades with razor sharp execution.” It also explains that The TradeDirect365 platform runs on Chrome, Firefox, Safari, and Internet Explorer 10+ web browsers by using a combination of AJAX, HTML5 and CSS3 to create it. Customers have access to all available instruments through the CloudTrade platform and to all instruments, except for stocks through the MT4 terminal.
There are two types of trading accounts depending on the platform – the CloudTrade CFDs platform and the MetaTrader 4 terminal. There is no minimum deposit to open an account, however your trading account will need to be funded before you can trade.
TradeDirect365 provides Negative Balance Protection to its retail clients. The company explains that the negative balance protection is a precautionary measure that brokerage firms take to safeguard their clients. Negative balance protection policy ensures that traders will not lose more money than deposited if their account goes into negative because of their trading activity. This means you will not owe money to the firm. The Client Agreement document shows that TD365 will accept all Orders and enter into all CFD Transactions as principal and not as your agent. This means the company is a market maker and a conflict of interest arises. The same document informs that TradeDirect365 offers another useful feature. The platform allows you to use a Guaranteed Stop Loss Order (GS Order). You can nominate to use the GS Order when you open a trade. The company explains that the GS Order is a form of risk management that may assist you in limiting your losses if the market goes against your position. There is a minimum charge to use a GS Order and a set distance where you select your Stop Loss level. A GS Order is an instruction by you to close a CFD position at the exact price that you set, even if our quote goes through that price. It is effectively a form of insurance that guarantees your exit price even when a market is experiencing high volatility and the market gaps. Keep in mind that if you do not mark the stop loss order as a guaranteed it is the regular one and is subject to slippage and gapping – it is not guaranteed. It is written that unless otherwise stipulated, the execution of an Order is not guaranteed and is subject to Gapping. In such instances, the Order will be executed at the first available market price.
In general, TradeDirect365 is an Australian company that acts as a market maker and provides protection against a negative balance. You can trade many instruments through the company’s own terminal, as well as through MT4. This is one of the few companies that still offers fixed spread instruments, so trading on the news remains an option.