Is ForexTB 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 ForexTB try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether ForexTB 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 ForexTB
ForexTB is a European broker licensed by CySEC 272/15 (Cyprus), which can be classified as a classic mid-level company. The broker offers a standard set of trading assets, consisting exclusively of CFDs. ForexTB provides traders with access to the OTC markets only.
| 💰 Account currency: | USD |
|---|---|
| 🚀 Minimum deposit: | From USD 250 |
| ⚖️ Leverage: | Up to 1:30 (for retail), up to 1:400 (for professional traders) |
| 💱 Spread: | From 1.8-3.2 pips |
| 🔧 Instruments: | Currency pairs, commodity assets, stocks, indices, and cryptocurrencies |
| 💹 Margin Call / Stop Out: | 50% — for retail clients |
Pros and cons of ForexTB
👍 Advantages of trading with ForexTB:
•Its main platform browser is a proprietary design. It has a minimum number of gadgets but has optimal functionality. It is suitable for beginners and there is a limited version that is available without registration.
•CySEC license. Although the regulator is offshore, all its licensees are subject to the MiFID I and MiFID II directives.
•A large selection of payment systems is working with this broker. The trust of counterparties is an advantage for the broker.
•Professional support service. The answers to the questions are as short as possible and to the crux of the question.
•Relatively small commissions for CFDs on commodity markets assets.
👎 Disadvantages of ForexTB:
•There is no complete description of the assets available and no specifications.
•Lack of details on the trading conditions.
•The conditions for withdrawing money are "deeply hidden".
•Relatively high spreads are from 3.2 pips for the EUR/USD pair on an account with a minimum deposit.
•Restrictions on withdrawing money without commission, depending on the type of account.
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 ForexTB Regulated? Broker’s license
Security (Protection for Investors)
The ForexTB broker is licensed by CySEC (Cyprus) and operates under the provisions of the European directive MiFID II. ForexTB strictly adheres to the rules of its regulators, guaranteeing honesty, transparency, and personal data protection for each client.
👍 Advantages
- Licensed by one of the reputable regulators
- Constant control over the fulfillment by the broker of its obligations is carried out through external audits
👎 Disadvantages
- In most cases, claims of private traders are considered through the оmbudsman
- Difficulty filing a claim for traders from jurisdictions that do not coincide with the broker's jurisdiction
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 ForexTB, which you can see below.
Experts at the Traders Union analyzed openly available documents that regulate the broker’s cooperation and trade conditions. As a result, several commissions charged by the broker were revealed. In addition to spread and swap fees, ForexTB has inactivity and withdrawal fees. Each commission depends on the type of account used and the instrument traded.
| Account type | Spread (minimum value) | Withdrawal commission |
| Basic | From $32 | Yes |
| Gold | From $29 | Yes |
| Platinum | From $23 | Yes |
| VIP | From $18 | No |
Brokers that are similar to ForexTB
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 ForexTB conditions with its closest competitors.
Comparison of ForexTB with other Brokers
| ForexTB | RoboForex | Pocket Option | Exness | Octa | FxGlory | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, ForexTB |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MetaTrader4, MetaTrader5 |
MT4, MobileTrading, MT5 |
Min deposit |
$250 |
$10 |
$5 |
$10 |
$25 |
$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 1.8 point |
From 0 points |
From 1.2 point |
From 1 point |
From 0.6 points |
From 2 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution, Instant 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 |
No |
Yes |
No |
No |
No |
No |
ForexTB is a broker for traders who work according to classic intraday and long-term strategies on timeframes from H1.
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.
The Octa broker has tried to adapt its conditions as much as possible to the various trading strategies used by traders. However, at the moment the company is more focused on active market participants, rather than passive investors.
FxGlory is a universal broker for active trading that is likely to be interesting for European traders.
Conclusions
ForexTB 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.