Is UTRADE 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 UTRADE try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether UTRADE 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 UTRADE
UTRADE is a Singapore-registered broker that has been providing foreign exchange, CFD, and securities trading services since 1965. It is a part of UOB Group, the largest financial holding company in Singapore. Currently, it has 5 representative offices in Asia and is regulated by the Monetary Authority of Singapore (MAS, 197000447W). UTRADE offers accounts not only for individual trading in international markets but also for passive investments in managed portfolios.
| 💰 Account currency: | USD, SGD |
|---|---|
| 🚀 Minimum deposit: | 3,000 SGD |
| ⚖️ Leverage: | Up to 1:20 |
| 💱 Spread: | Floating, from 1.8 pips |
| 🔧 Instruments: | Currency pairs, CFD on shares, indices, commodities, ETFs, bonds, Daily Leverage Certificates (DLC), mutual funds |
| 💹 Margin Call / Stop Out: | 100%/50% |
Pros and cons of UTRADE
👍 Advantages of trading with UTRADE:
•Reliable regulation by the state supervisory body represented by the Central Bank of Singapore.
•Vast array of assets for Forex trading.
•Availability of investment solutions for passive income without independent trading.
•Opportunity to make transactions not only from UTRADE proprietary terminals but also from classic MT4.
•Access to currency and CFD trading with leverage.
•Quality analytics, research, and news from international markets, including the USA.
•Availability of an affiliate program with high rewards for trades of connected referrals.
•On-site training and 24/7 online support.
👎 Disadvantages of UTRADE:
•Non-optimal conditions for beginners — minimum deposit from 3,000 SGD (~2200 USD), shortage of cent accounts.
•High spreads on most accounts — from 1.8 pips on the major currency pairs.
•Long waiting period for the account opening confirmation and the complicated verification require the provision of a large number of confirming documents.
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:
-
A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
-
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.
-
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 UTRADE Regulated? Broker’s license
Security (Protection for Investors)
The UTRADE brand belongs to UOB Kay Hian Pte Ltd which is a part of UOB Group financial holding. United Overseas Bank, one of Singapore's five largest banks, is also part of it.
The UOB Kay Hian entity is supervised by the Monetary Authority of Singapore (MAS), Singapore's main financial regulator, which is a division of the country's Central Bank. UTRADE is not only a licensed Capital Markets Services broker but also an officially registered financial advisor (Exempt Financial Adviser).
👍 Advantages
- The company uses segregated trust accounts to securely store customer funds
- Licensee is obliged to provide MAS with a full financial report annually
- Company's financial results are published on the website and are available for public review
👎 Disadvantages
- Full identity verification is required to open an account
- Broker does not cooperate with US residents or citizens
- Deposits and withdrawals to electronic wallets are not available
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 UTRADE, which you can see below.
The experts at the Traders Union determined that the type and size of commissions at UTRADE depend on the traded asset. The broker keeps floating spreads for currency trades. The lowest of them apply to the EUR/USD pair, which is from 1.8 pips. The commission for CFD trading online is 0.2-0.4% of the transaction amount, depending on the market. For operations with CFDs on indices the broker charges 0.30-2 USD for opening and closing a position. All commissions for CFD trading are subject to the 7% goods and services tax, which is automatically deducted from the account the next morning. The broker does not charge for maintenance of the account, for provision of the terminals, or for depositing or withdrawing funds.
| Account type | Spread (minimum value) | Withdrawal commission |
| UTRADE Delta | From $18 | No |
| MT4 Account | From $18 | No |
Brokers that are similar to UTRADE
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 UTRADE conditions with its closest competitors.
Comparison of UTRADE with other Brokers
| UTRADE | RoboForex | Pocket Option | Exness | FBS | Tickmill | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, UTRADE CFD Pro |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading |
MT4, MT5, Tickmill Mobile App |
Min deposit |
$3000 |
$10 |
$5 |
$10 |
$1 |
$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 |
Yes |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.8 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.2 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 |
$5 |
$30 |
Cent accounts |
No |
Yes |
No |
No |
Yes |
No |
UTRADE is intended for experienced and professional traders who are ready to invest large sums in trading with a reliable regulated broker that charges high commissions.
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.
FBS is a broker for those who appreciate a variety of trading instruments and prompt support. The company is suitable for both beginners and experienced traders working on PCs and smartphones.
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
UTRADE is a quite reliable broker for trading. UTRADE 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.
- Is City Index Regulated? Is it safe?
- Is ATC BROKERS Regulated? Is it safe?
- Is Axiory Regulated? Is it safe?
- Is UFX Regulated? Is it safe?
- Is WForex Regulated? Is it safe?
- Is CMTrading Regulated? Is it safe?
- Is Varchev Regulated? Is it safe?
- Is IronFX Regulated? Is it safe?
- Is GANN Markets Regulated? Is it safe?
- Is Spreadex Regulated? Is it safe?
- Is FXCM Regulated? Is it safe?
- Is Purple Trading Regulated? Is it safe?
- Is WELTRADE Regulated? Is it safe?
- Is Colmex Pro Regulated? Is it safe?
- Is Tradeview Regulated? Is it safe?
- Is FXTM Regulated? Is it safe?
- Is iFOREX Regulated? Is it safe?
- Is AMP Global Regulated? Is it safe?
- Is AAFX Regulated? Is it safe?
- Is Trading 212 Regulated? Is it safe?
- Is InstaForex Regulated? Is it safe?
- Is Self Bank Regulated? Is it safe?
- Is BlackStone Futures Regulated? Is it safe?
- Is Core Liquidity Markets Regulated? Is it safe?
- Is Trade Nation Regulated? Is it safe?
- Is Tradeo Regulated? Is it safe?
- Is NPBFX Regulated? Is it safe?
- Is XTB Regulated? Is it safe?
- Is JustForex Regulated? Is it safe?
- Is LMAX Regulated? Is it safe?
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.
Related Articles
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.