Is SurgeTrader 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 SurgeTrader try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether SurgeTrader 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 SurgeTrader
SurgeTrader is a prop company that offers traders capital from USD 25,000 to manage after passing the exam. It is a multinational company headquartered in Florida (USA). Financing is provided by the venture fund Valo Holdings.
| 💰 Account currency: | No data |
|---|---|
| 🚀 Minimum deposit: | USD 250 |
| ⚖️ Leverage: | 10:1 with an upgrade to 20:1 on forex and metals |
| 💱 Spread: | From 1 point |
| 🔧 Instruments: | Currency pairs, cryptocurrencies, commodity market assets, stock assets |
| 💹 Margin Call / Stop Out: | No data |
Pros and cons of SurgeTrader
👍 Advantages of trading with SurgeTrader:
•Reliability. Venture capital is provided by an international venture fund. Trading is carried out through affiliate broker ThinkMarkets, which is licensed by a number of regulators worldwide - FCA (UK), ASIC (Australia), CySEC (Cyprus), JFSA (Japan), FSCA (South Africa), and the FSA (Seychelles).
•No restrictions on the use of strategies. Any strategy may be applied, subject to the trading rules of the company. Permissible strategies include algorithmic trading, hedging, scalping, and Martingale.
•High income of the trader is 75% of the money earned.
•A wide range of assets includes more than 100 instruments as well as cryptocurrencies.
•No risk. If the maximum loss and drawdown requirements are met, the loss is covered by SurgeTrader.
•Transparency and loyalty. All legal documents and conditions are available on the website in the public domain. The company allows violations of trading rules if they are random and not systematic.
👎 Disadvantages of SurgeTrader:
•The high exam cost is from USD 250-6,500. In case of violation of trade requirements, the discount for re-taking the exam is up to 20%.
•Tough conditions. The daily drawdown is no more than 5%, and the maximum loss is up to 4%.
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:
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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 SurgeTrader Regulated? Broker’s license
Security (Protection for Investors)
SurgeTrader is an international private company partnering with Valo Holdings venture fund. The company operates under US financial laws. Trading is carried out using the technologies and platforms of the ThinkMarkets, which is licensed by a number of regulators worldwide - FCA (UK), ASIC (Australia), CySEC (Cyprus), JFSA (Japan), FSCA (South Africa), and the FSA (Seychelles).
Surge Trader safety and regulation👍 Advantages
- Oversight of reputable global regulators
- SurgeTrader cooperates with well-known investment funds and managers
👎 Disadvantages
- Bureaucracy and complexity of resolving a disputed issue for private traders from jurisdictions other than the United States
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 SurgeTrader, which you can see below.
The Traders Union analysts carried out a comparative analysis of the commissions that will need to be paid to SurgeTrader when working on Forex through the ThinkMarkets broker. The prop company does not charge commissions, its income is 25% of the profit earned by the trader. But there are commissions of payment systems and on spreads.
| Account type | Spread (minimum value) | Withdrawal commission |
| ThinkZero | From $1 | No |
| Standard | From $4 | Yes |
Brokers that are similar to SurgeTrader
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 SurgeTrader conditions with its closest competitors.
Comparison of SurgeTrader with other Brokers
| SurgeTrader | Topstep | FTMO | Funded Trading Plus | Earn2Trade | The Funded Trader | |
|---|---|---|---|---|---|---|
Account currency |
No data |
AUD, CAD, COP, GBP, JPY, EUR, MXN, and USD |
USD, EUR, GBP, CZK, CAD, AUD, CHF |
USD |
USD |
USD |
Minimum deposit |
USD 250 |
$1 |
From €155 |
$119 |
$90 |
$189 |
Leverage |
10:1 with an upgrade to 20:1 on forex and metals |
1:100 |
Up to 1:100 |
Up to 1:30 |
No |
Up to 1:200 |
Spread |
From 1 point |
Float |
No data |
From 0 pips |
A fixed payment for a contract for each instrument + fees charged by regulators, liquidity providers, and futures exchanges |
Not available |
Instruments |
Currency pairs, cryptocurrencies, commodity market assets, stock assets |
Futures of the CME group: for stocks, commodities, bonds, and metals |
Currency pairs, stocks, stock indices, commodities, cryptocurrencies |
CFDs on currency pairs, indices, precious metals, energies, and cryptocurrencies |
Futures and micro futures |
Forex, indices, commodities, and gold |
Margin Call / Stop Out |
No data |
The broker closes all open positions automatically every Friday |
No data |
Set by a broker |
No |
Not available |
SurgeTrader is a relatively strict prop that supports professional traders with venture capital investments.
Topstep is a broker for active traders who are ready to improve their skills. The company cooperates with clients regardless of trading experience and, when opening an account, takes into account the results of trading on a simulation account.
FTMO is a prop company for traders with trading experience, hard testing conditions, and attractive conditions for those who go into real trading. FTMO - Pros and Cons for Beginners.
Funded Trading Plus is registered in the UK and provides quite loyal working conditions for traders with diverse experiences. It offers complete freedom of action, and there are no restrictions on methods, strategies, and challenge deadlines. Scalping, hedging, and use of advisors are allowed. The profit split for real trading is fair and brokerage fees of its partners are below market average. Also, the prop firm offers a partnership program with substantial payouts and occasional promotions.
The Earn2Trade company is meant for retail futures traders who want to become professionals and manage substantial capital.
The Funded Trader proprietary firm works with a well-known broker. Eightcap has successfully operated in the global market for many years, and there are no regional restrictions. The firm’s website is fast, convenient, and easy to learn. The features of standard accounts are on average better than those of its competitors, and the initial fee is relatively low. The Funded Trader imposes minimum restrictions on its partners in an effort to avoid excessive risks. Now it has over 6,000 partners and 500+ professionals worldwide who teach in trading academies, and who are trained by The Funded Trader.
Conclusions
SurgeTrader is a quite reliable broker for trading. SurgeTrader operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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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.