Is Squared Financial 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 Squared Financial try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Squared Financial 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 Squared Financial
Squared Financial is a Fintech investment and wealth management company that has been providing brokerage services since 2005. It has offices in Cyprus and the Republic of Seychelles. The broker is owned and operated by Squared Financial (CY) Limited, a group licensed by reputable regulatory bodies such as the Cyprus Securities and Exchange Commission (CySEC, 329/17) and the Seychelles Financial Services Authority (FSA SC, SD024). In 2020, Squared Financial was recognized as the most transparent broker by the Global Awards.
| 💰 Account currency: | EUR, USD, GBP, CHF |
|---|---|
| 🚀 Minimum deposit: | 250 EUR |
| ⚖️ Leverage: | 1:30 |
| 💱 Spread: | From 0.0 pips |
| 🔧 Instruments: | Crypto CFDs, Futures, Forex, Energies, Metals, Indices, Stock CFDs |
| 💹 Margin Call / Stop Out: | 100%/50% |
Pros and cons of Squared Financial
👍 Advantages of trading with Squared Financial:
•Licenses of international regulators such as CySEC and FSA SC.
•Wide range of trading tools — 7 asset classes with different levels of volatility.
•Tight floating spreads starting from 0.0 pips on Elite type of accounts.
•Provides the most popular trading platforms like MetaTrader 4 and MetaTrader 5.
•Huge selection of payment systems for deposits and withdrawals. Many electronic payment systems allow you to make payments instantly.
👎 Disadvantages of Squared Financial:
•There are no Micro accounts.
•To access an account with tight spreads from 0.0 pips, you need to deposit $5,000.
•There is no round-the-clock online chat on the website or in the personal 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 Squared Financial Regulated? Broker’s license
Security (Protection for Investors)
Financial holding Squared Financial (CY) Limited is registered in Cyprus. It consists of two companies: Squared Financial (Cyprus) Limited (CySEC License No.329/17) and Squared Financial (Seychelles) Ltd (FSA SC License No.SD024).
CySEC (Cyprus Securities and Exchange Commission) and FSA SC (Seychelles Financial Conduct Authority) are international bodies that oversee the activities and financial position of brokerage companies reporting to them. All Squared Financial’s clients are insured by Lloyd’s of London, which guarantees $1,000,000 net loss return per client in the event of the company’s closure or bankruptcy.
👍 Advantages
- Customer accounts are separated from the broker’s corporate accounts
- All trading operations are carried out following the Client Agreement
- An insurance policy is available to cover damages related to the broker’s financial insolvency
👎 Disadvantages
- Regulators impose a fine on the broker only in case of registering systematic violations of obligations
- It is impossible to open and top up an account without passing the 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 Squared Financial, which you can see below.
Traders Union’s analysts analyzed the trading conditions of Squared Financial and found that the broker withholds only trading commissions from its clients. Squared Financial applies spread on all accounts. Elite accounts also have a $5 commission per lot for all Forex instruments. The broker does not charge a fee for depositing and withdrawing funds. Fees charged by payment systems for making payments on the company’s website are not specified.
| Account type | Spread (minimum value) | Withdrawal commission |
| Pro | from $12 | No |
| Elite | from $0.1 | No |
Brokers that are similar to Squared Financial
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 Squared Financial conditions with its closest competitors.
Comparison of Squared Financial with other Brokers
| Squared Financial | RoboForex | Pocket Option | Exness | Octa | FxPro | |
|---|---|---|---|---|---|---|
Trading platform |
MetaTrader4, MetaTrader5 |
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, cTrader, FxPro Edge |
Min deposit |
$250 |
$10 |
$5 |
$10 |
$25 |
$100 |
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 |
No |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.6 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 |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
Squared Financial is a broker that offers favorable trading conditions for both active traders and passive investors. At the same time, market participants with any level of training can successfully implement their strategies with this broker.
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.
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.
Conclusions
Squared Financial 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.