Is Spreadex 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 Spreadex try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Spreadex 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 Spreadex
Spreadex is a CFD and Forex broker that has been operating since 1999. The platform offers clients access to six classes of trading instruments. Here you can trade currency pairs (Forex) and contracts for difference (CFDs) on stocks, bonds, indices, commodities, and ETFs. Spreadex is headquartered in the UK and is regulated by the UK Financial Conduct Authority (FCA, 190941). Betting on sports is a secondary activity of the company.
| 💰 Account currency: | USD, EUR, GBP |
|---|---|
| 🚀 Minimum deposit: | From USD 2 |
| ⚖️ Leverage: | up to1:30 (Forex) |
| 💱 Spread: | From 0.6 pips |
| 🔧 Instruments: | Currency pairs (60), CFDs on stocks (3000), indices (30), commodities (27), bonds (6), ETFs (200) |
| 💹 Margin Call / Stop Out: | 100%/50% |
Pros and cons of Spreadex
👍 Advantages of trading with Spreadex:
•Tight spreads (from 0.6 pips for EUR/USD).
•Withdrawal fee - 0%.
•3,500+ trading instruments.
•Free broker analytics.
•Minimum deposit from USD 2.
👎 Disadvantages of Spreadex:
•There are no investment instruments.
•Support is not 24/7.
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 Spreadex Regulated? Broker’s license
Security (Protection for Investors)
The broker has a representative office located in the UK. The official name of the management company is Spreadex Limited.
The broker carries out its activities transparently. Spreadex is licensed by the UK's Financial Conduct Authority (FCA). The Financial Activity Authorization Number is FCA No. 190941. The company has negative balance protection. Funds are held in segregated accounts.
👍 Advantages
- Client funds are segregated from Spreadex capital and held in segregated bank accounts
- Negative balance protection always active
- In case of violation by the broker of the obligations prescribed in the offer, the client can file a complaint with the regulator
👎 Disadvantages
- Financial transactions are possible only after verification
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 Spreadex, which you can see below.
Experts at the Traders Union have analyzed the commission policy of Spreadex. There is only one type of trading account available on the platform, so the fees are the same for all traders. The broker charges a commission in the form of a spread. The minimum spread for EUR/USD is 0.6 pips. There are no commissions per lot or per trade on the platform. Withdrawals are carried out without commissions. For deposits, less than USD 50, a commission of USD 1 is charged, regardless of the transaction method.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From $6 | No |
Brokers that are similar to Spreadex
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 Spreadex conditions with its closest competitors.
Comparison of Spreadex with other Brokers
| Spreadex | RoboForex | Pocket Option | Exness | Deriv | InstaForex | |
|---|---|---|---|---|---|---|
Trading platform |
Spreadex |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
Deriv bot, Deriv MT5, Derivix, Deriv Trader, SmartTrader |
MT4, MultiTerminal, MobileTrading, MT5, WebTrader |
Min deposit |
$2 |
$10 |
$5 |
$10 |
$5 |
$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 |
Yes |
Accrual of % on the balance |
No |
No |
No |
No |
1.00%% |
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 |
Instant Execution, Market Execution |
Market Execution, Instant Execution |
Market 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 |
Spreadex is a CFD and Forex broker that specializes in mobile trading. The broker targets Asia and the British Isles.
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.
Deriv is a broker for beginners and professional traders who prefer to make trades on their own, as well as use auxiliary programs for more efficient trading.
InstaForex is the best option for traders with any level of experience. For active professional traders, there is a large pool of non-standard technological solutions for more accurate analysis. For novice traders, there are comfortable starting conditions, such as a $1 minimum deposit under the regulation of FSC and a $200 minimum deposit with the broker regulated by CySEC. There are PAMM accounts and social trading for investors.
Conclusions
Spreadex is a quite reliable broker for trading. Spreadex 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.