Is Trade Nation 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 Trade Nation try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Trade Nation 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 Trade Nation
Trade Nation has been on the market since 2014 and has an expanded network of representative offices that provide their services to traders from over 190 countries. Its clients can both trade CFDs and use spread betting. The company allows hedging, scalping, social trading, and trading by signals. Trade Nation offers more than 1,000 financial instruments that can be traded with fixed or floating spreads on its in-house TN Trader platform or MetaTrader 4. The broker’s activities are regulated by FCA 525164 (Financial Conduct Authority | the UK), ASIC 422661 (Australian Securities and Investments Commission), FSCA 49846 (Financial Sector Conduct Authority | South Africa), SCB SIA-F216 (Securities Commission of the Bahamas), and FSA SD150 (Financial Services Authorities | Seychelles). None of the offices works with U.S. traders.
| 💰 Account currency: | USD, GBP, AUD, EUR, DKK, SEK, ZAR, and NOK |
|---|---|
| 🚀 Minimum deposit: | $1 |
| ⚖️ Leverage: | Up to 1:30-1:500 |
| 💱 Spread: |
MT4 account types — from 0 pips TN Trader account types — from 0.3 pips |
| 🔧 Instruments: | Currency pairs, stock indices, energies, metals, bonds, cryptocurrencies (spot), U.S. stocks, UK stocks, European stocks, and South African stocks |
| 💹 Margin Call / Stop Out: | 100%/50% |
Pros and cons of Trade Nation
👍 Advantages of trading with Trade Nation:
•Licensed activities in compliance with international laws and trading rules;
•No requirements for the initial deposit;
•Account types with floating and fixed spreads;
•Partnership programs with different reward models;
•No brokerage fees for deposits and withdrawals;
•Cent and demo accounts;
•Negative balance protection for retail clients.
👎 Disadvantages of Trade Nation:
•Technical support isn’t available in instant messengers;
•Traders cannot choose a servicing division;
•Fixed spreads are subject to trading hours and change three times a day.
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 Trade Nation Regulated? Broker’s license
Security (Protection for Investors)
Trade Nation is a FinTech holding company with five representative offices. It is regulated by FCA and ASIC.
The Trade Nation office licensed by FCA under number 525164 is a member of the Financial Services Compensation Scheme, which allows its clients to receive refunds of up to GBP 85,000 per request. The broker licensed by ASIC under number 422661 provides its services only to Australian residents.
Also, Trade Nation is licensed by FSCA under number 49846, FSA under number SD150, and SCB under number SIA-F216. These regulators are more loyal. They allow brokers to work with traders from other countries, except for the U.S., to provide larger leverage, and to use cryptocurrency payments.
👍 Advantages
- Traders’ deposits are segregated from the broker’s capital
- Regular monitoring of financial performance and net profits of all subsidiaries
- Negative balance protection for retail clients
👎 Disadvantages
- Cryptocurrency trading is not available in all countries
- Low leverage for retail traders from the UK and Australia
- Compensation is paid only by the office regulated by FCA
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 Trade Nation, which you can see below.
Trade Nation’s trading fees depend on the asset class and the platform. MT4 account types have floating spreads from 0 pips that expand at market movements. On TN Trader, spreads are fixed. However, their values change three times a day for the same asset subject to trading hours. For example, a fixed spread for EUR/USD from 07:00 to 22:00 (GMT) is 0.3 pips; from 22:00 to 23:00, it is 5 pips; and after 23:00, it is 0.6 pips. Trade Nation charges only spreads without additional trading fees on Cent and Standard accounts. The fee on the Raw Spread account is $3.5 per lot. Also, there are no fees for inactivity, account maintenance, deposits, or withdrawals.
| Account type | Spread (minimum value) | Withdrawal commission |
| MT4 Standard | $0 | No |
| MT4 Cent | $0 | No |
| MT4 Raw Spread | $0 | No |
| TN Trader Standard | $3 | No |
| TN Trader Cent | $0.03 | No |
Brokers that are similar to Trade Nation
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 Trade Nation conditions with its closest competitors.
Comparison of Trade Nation with other Brokers
| Trade Nation | RoboForex | Pocket Option | Exness | Eightcap | Tickmill | |
|---|---|---|---|---|---|---|
Trading platform |
Trade Nation Platform, MT4, Mobile platforms |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5 |
MT4, MT5, Tickmill Mobile App |
Min deposit |
$5 |
$10 |
$5 |
$10 |
$100 |
$100 |
Leverage |
From 1:10 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:30 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
Yes |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.6 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0 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 |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$30 |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
Trade Nation is suitable for active and social trading. It offers a wide range of financial instruments and allows traders to use popular Forex strategies.
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.
Eightcap has favorable working conditions due to a large choice of instruments, tight spreads, high leverage, and no withdrawal fees. Integration with popular trading platforms and basic deposit/withdrawal options greatly facilitates work with the broker and reduces the entry threshold. In addition to comfortable conditions and low financial costs, traders get free educational materials and special services for technical analysis. Some solutions, like Capitalise.ai, have no constructive counterparts. A relative disadvantage is the absence of opportunities for passive income. Also, the broker works only with CFDs, so other groups of trading instruments are not available.
Tickmill is a suitable broker for both professional traders and novices. The company is good for robotic trading as well as for short-term strategies.
Conclusions
Trade Nation is a quite reliable broker for trading. Trade Nation 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.