Is XTrend Speed 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 XTrend Speed try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether XTrend Speed 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 XTrend Speed
XTrend Speed is a classic broker providing CFD trading services for all major types of financial assets. The company works with traders from over 170 countries. The regulator of XTrend Speed is FSCA 23497 (South Africa), and CySEC (303/16) is the regulator of Xtrend's subsidiary, which represents the mobile platform Micro Trading.
| 💰 Account currency: | USD, EUR, GBP |
|---|---|
| 🚀 Minimum deposit: | From $10 (from $50 for Xtrend) |
| ⚖️ Leverage: | From 1:300, depending on the asset |
| 💱 Spread: | From $0.04 for the minimum order |
| 🔧 Instruments: | Currency pairs, shares, indices, metals, oil, and cryptocurrencies. |
| 💹 Margin Call / Stop Out: | 50%/ no information |
Pros and cons of XTrend Speed
👍 Advantages of trading with XTrend Speed:
•Low start deposits. The entry threshold is from $10 for XTrend Speed and $50 for the mobile XTrend platform.
•Popular MT4 platform for active traders. Simple mobile platform functionality. Perfect for novice investors who do not practice active trading.
•There is social trading with strict requirements for signal providers.
•The leverage is up to 1:300.
•Compliance with client service rules with the European MiFID II Directive requirements. Segregated accounts and an insurance fund.
👎 Disadvantages of XTrend Speed:
•Withdrawal commission.
•The website doesn’t provide all the information you need to understand the trading terms and advantages of the broker.
• Registration and communication with the Support Service are required.
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 XTrend Speed Regulated? Broker’s license
Security (Protection for Investors)
XTrend Speed is registered in South Africa, and the jurisdiction's regulator is FSCA. The Xtrend mobile brand is registered in Cyprus where the regulator is CySEC. Both companies have membership in independent compensation funds, which guarantee the trader a payment of up to €20,000 in case of the broker's bankruptcy.
👍 Advantages
- Licensed by a reputable regulator
- There is a compensation fund
👎 Disadvantages
- Difficulty of private investors filing claims
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 XTrend Speed, which you can see below.
The experts at the Traders Union analyzed the trading terms and tariff policy of the XTrend Speed broker and its Xtrend mobile division. The analyses noted a lack of transparency in the formation of the overall client commissions. In particular, the website of XTrend Speed has no clear information about spreads and withdrawal fees. Xtrend's website lists the commission for withdrawal and provides a tariff grid: from 0.04 USD for Forex; from 0.4 USD for Gold and Silver, etc. Based on the bid/ask prices at the XTrend Speed website, we can conclude that for the EUR/USD pair the spread is from 0.4-0.5 pips.
| Account type | Spread (minimum value) | Withdrawal commission |
| МТ4/STrader | from $4 | Yes |
Brokers that are similar to XTrend Speed
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 XTrend Speed conditions with its closest competitors.
Comparison of XTrend Speed with other Brokers
| XTrend Speed | RoboForex | Pocket Option | Exness | FxPro | FxGlory | |
|---|---|---|---|---|---|---|
Trading platform |
Micro Trading (Xtrend), STrader (XTrend Speed), MetaTrader4 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading, MT5, cTrader, FxPro Edge |
MT4, MobileTrading, MT5 |
Min deposit |
$10 |
$10 |
$5 |
$10 |
$100 |
$1 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
8.00%% |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 2 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 |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
Yes |
Yes |
No |
No |
No |
No |
XTrend Speed is a combination of classic platforms and social and mobile trading. MT4 and STrader are for active and algorithmic trading. The mobile application is for manual trading for novice investors who don’t practice active trading.
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.
FxPro is a reliable broker company that offers market access to all traders, regardless of their level of knowledge and experience. Broker's clients are protected from negative balance; their activities are carried out in comfortable conditions and with competent professional support.
FxGlory is a universal broker for active trading that is likely to be interesting for European traders.
Conclusions
XTrend Speed is a quite reliable broker for trading. XTrend Speed 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.