Is NAGA Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with NAGA try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether NAGA is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker NAGA
NAGA (‘NAGA’) is a trademark of The NAGA Group AG which was founded in 2015. Naga Group AG is a German FinTech company publicly listed on the Frankfurt Stock Exchange. The company implements modern technologies and innovative solutions in order to compete with traditional financial institutions represented by banks and brokers in the investment market. Over 1 million active traders and passive investors currently use NAGA's Group brokerage services.
| 💰 Account currency: | USD, EUR, GBP, PLN |
|---|---|
| 🚀 Minimum deposit: | $250 |
| ⚖️ Leverage: | up to 1:30 |
| 💱 Spread: | From 0.7 pips (EUR/USD) |
| 🔧 Instruments: | CFDs on Forex, Stocks, Futures, Indices, Cryptocurrencies, Commodities, ETFs and real stocks |
| 💹 Margin Call / Stop Out: | 100% / 50% |
Pros and cons of NAGA
👍 Advantages of trading with NAGA:
•Wide range of trading instruments.
•The opportunity to earn passive income using the social trading platform.
👎 Disadvantages of NAGA:
•High spreads on standard accounts.
•Lack of trading bonuses such as a Welcome bonus, account replenishment, etc.
•Limited choice of payment systems for replenishing the balance and the withdrawal of funds.
•The broker does not provide cent accounts.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
-
A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is NAGA Regulated? Broker’s license
Security (Protection for Investors)
NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange. The NAGA Group AG is the holding company of various companies, such as NAGA GLOBAL LLC, NAGA MARKETS EUROPE LTD, NAGA Technology GmbH, NAGA Pay GmbH and has a close link with NAGAX Europe.
CySEC is a government regulator that monitors the activities of financial companies registered in Cyprus. Licensees must comply with the directives of the legislative and regulatory framework of the European Union, as well as guarantee customers the safety of their funds and personal data and maintain customers’ confidentiality.
👍 Advantages
- Clients’ funds shall be held in segregated accounts and are not associated with the broker's capital
- Protection from negative balance
- In case of a dispute with the broker, any client can file a complaint with the regulator
👎 Disadvantages
- No welcome bonus
- No ECN accounts
- No US clients accepted
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by NAGA, which you can see below.
To identify explicit or hidden commissions by NAGA, the Traders Union experts studied the trading conditions offered by the broker. The company charges clients with a trading fee in the form of a floating spread. There is no commission per lot for all types of accounts. The broker also charges a non-trading withdrawal commission of $0-5 per transaction. The commissions of payment systems (i.e., Visa, wire transfers, etc.) for funds withdrawal on the broker's website are not indicated.
| Account type | Spread (minimum value) | Withdrawal commission |
| Iron Trader | from $25 | Yes |
| Bronze Trader | from $23 | Yes |
| Silver Trader | from $19 | Yes |
| Gold Trader | from $17 | Yes |
| Diamond Trader | from $9 | Yes |
| Crystal Trader | from $7 | Yes |
Brokers that are similar to NAGA
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of NAGA conditions with its closest competitors.
Comparison of NAGA with other Brokers
| NAGA | RoboForex | Pocket Option | Exness | TeleTrade | Forex4you | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MT5, Mobile Apps, Web App |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5 |
MT4, MobileTrading, MT5 |
Min deposit |
$250 |
$10 |
$5 |
$10 |
$1 |
No |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:10 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.7 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.8 points |
From 0.1 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
Yes |
NAGA is a regulated international broker whose terms and conditions are perfect for professional traders and experienced investors with a focus on stocks.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
TeleTrade is a broker for traders who value the variety of trading instruments and trade using their PC or a mobile app. The company is a good broker both for beginners and experienced traders.
Forex4you is an all-in-one broker for active and passive trading, rates well for both novice traders and professional level traders.
Conclusions
NAGA cannot be considered absolutely reliable. The broker operates on a license of an offshore regulator. This creates certain risks regarding security of your funds. The broker has a good reputation. However, you can work with companies with an offshore regulation only at your own risk.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.