Your capital is at risk
71% of retail CFD accounts lose money
ETFinance is an online CFD broker which offers trading opportunities in a variety of markets. Based in Cyprus, the platform is owned and operated by MAGNUM FX (CYPRUS) LTD, a company which is authorized and regulated by the Cyprus Securities and Exchange Commission (the “CySEC”). In addition to forming part of the European Investor Compensation Fund, ETFinance has built a solid reputation by offering a reliable and secure environment where to trade cryptocurrencies, indices, forex, and more.
The relatively young broker has already won the award for fastest-growing CFD broker in Europe and has teamed up with award-winning partners to offer a well-rounded solution to its customers.
This ETFinance review will cover all the important aspects of the platform, providing you with the necessary details to make an informed decision.
It is important to understand that CFDs are complex and high-risk financial instruments. When trading CFDs, there is a higher chance that traders lose money rapidly, due to leverage. 71% of retail investor accounts lose money when trading CFDs with ETFinance. You should ensure that you understand how CFDs work and be able to afford any potential losses before investing in such instruments.
Your capital is at risk
ETFinance is considered to be a safe and secure platform where users can store their funds with confidence. Apart from being a regulated platform, retail customers can benefit from the Investor Compensation Fund in case of theft. In keeping with European and industry best-practices, user funds are stored in segregated accounts, which means that even in case of insolvency, your funds are protected. Additionally, the platform implements a variety of security protocols, consisting of firewalls, encryption and safety audits.
ETFinance offers three different trading platforms which cater to different needs of different traders. The WebTrader platform is available online and can be accessed from any supported browser. Offering an excellent trading experience, this platform includes a variety of technical indicators and trading options. It features a highly intuitive interface, which you can conveniently get used to through the demo account, which is available for 14 days following account registration.
If you already have experience using the popular, MetaTrade 4 platform, ETFinance gives you the opportunity to continue using it whilst trading on its terms. Available on both desktop and mobile, the MT4 platform offers a wide range of charting and analysis tools, as well as convenient trading options, such as auto trading.
The third trading platform provided by ETFinance is the mobile trading application, which is available to both Android and iOS users. Free to use, the mobile app provides an engaging user experience which gives you the opportunity to trade conveniently on the go.
All three trading platforms give you the opportunity to trade a variety of Contracts for Difference (CFDs). These financial instruments provide traders with an opportunity to profit from an asset’s price movements without needing to directly purchase the asset. As a result, trades can be placed faster and there is no need to store the asset securely until it is sold. Further information on these instruments can be found on our in-depth CFD guide.
In addition to trading CFDs in cryptocurrencies, commodities and forex, ETFinance also gives you the opportunity to trade forex, a variety of stocks, ETFs and a number of commodities. By using one of the three trading platforms offered by the broker, you can trade all of these instruments and markets directly.
Since ETFinance does not let users buy or sell cryptocurrencies directly, it does not offer a cryptocurrency wallet. The platform can only accept traditional fiat currencies, such as EUR and GBP, which it stores in segregated accounts in banks or financial institutions. Whenever you open or close a trading position, the funds are taken or deposited into this wallet.
The current ETFinance website is not very easy to navigate, and finding information can be quite difficult. This is disappointing, as it gives a poor first impression to new users. Finding trading fees for any market is also very difficult, with no FAQ page or help centre to assist you. In order to get information regarding payment methods and fees which are applicable to your own profile, you will need to open and verify an account.
The platform lets you open one of three possible accounts, namely Silver, Gold and Platinum. Each account is designed for a different type of trader and features different options and tools.
Creating a new ETFinance account is a straightforward process. Since the platform is regulated, it needs to fulfil certain Know Your Customer (KYC) criteria. This means that in order to verify your account you will need to submit different forms of documentation.
To open a new account on ETFinance, all you need to do is:
Once you have completed the sign up process you should receive an email address from the ETFinance team asking you to verify your email by clicking on a link.
You can log into your ETFinance account at any time by following these steps:
In order to comply with its licencing requirements, ETFinance requires that all users submit identification and residency documents in order to verify their account. This practice helps ensure that all users on the platform are genuine, lowering the risk of fraudsters. In order to verify your account you will need to upload:
The ETFinance team endeavours to check the documents and verify successful accounts within 2 business days. However, during busier periods, it may take longer.
Buying Bitcoin CFDs on ETFinance is easy and intuitive, no matter which trading platform you opt to use. Whilst specific instructions vary depending on which of the three platforms you choose to use, you would normally follow these steps to buy Bitcoin CFDs:
It is important to remember that CFDs are complex trading instruments which come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. Hence, you should consider whether or not you fully understand how CFDs work and make an informed decision on whether you are willing to take the high risk of a substantial loss.
When you are ready to cash out on ETFinance, all you need to do to close an open position is:
With your position closed, funds are transferred into your account and can be transferred to your bank account via bank transfer or an alternative method. The only applicable cost of closing a position is the respective spread.
As mentioned earlier, the platform does not support cryptocurrency payments and does not let you buy or sell coins like a traditional exchange. Instead, you can use fiat currency to buy and sell cryptocurrency CFDs. The platform offers an extensive selection of cryptocurrency pairs to choose from, as illustrated by the following screenshots.
In order to open and verify an account with ETFinance, you need to reside within a supported country. Due to the financial instruments offered on the platform, certain restrictions apply.
ETFinance supports users from the EU, UK, Australia, and Canada. Whilst there isn’t a comprehensive list of supported countries on the platform’s website, you can check whether your country is supported during the initial sign up stage.
There are very few countries which are excluded from the platform, with the most prominent being the United States of America.
ETFinance boasts about the fact that it does not charge any commission fees, whether users are trading cryptocurrency CFDs or any other market supported by the platform. The company’s fee structure is fairly simple, however, it is not readily accessible, especially for non-registered users. Here is a guide to help you understand the platform’s fees:
Unlike many of its competitors, ETFinance does not charge any deposit or withdrawal fees, except in the case of inactive or rarely-used accounts. Similarly, there are no charges for payments via credit or debit cards or bank transfers. However, the bank may charge you a fee for such transfers.
Every currency pair is subject to trading limits which are shown in the order confirmation box. Due to the platform’s strict licensing conditions, you need to wait for your account to be verified before opening any positions.
When making deposits ETFinance requires a minimum value of €215 deposited, no matter the payment method. Maximum deposits vary by method. Generally, limits depend on the payment method and payment provider used. For wire transfer and credit cards, there is no limit except for the client’s own account or card limits, and the minimum withdrawal amount is €50.
ETFinance supports a variety of convenient payment methods to facilitate transfers in a safe and secure environment. Depending on your country of residence you can avail from:
For each supported payment method, ETFinance will provide you with the applicable minimum and maximum deposit limits.
ETFinance takes its security responsibilities very seriously and implements several measures to protect user details and funds. All accounts on the platform must be secured by a password which can be up to 12 characters long. In addition, user funds are protected under the Investor Compensation Scheme.
It is difficult to get an understanding of the platform’s customer support since the broker is relatively new and reviews are fairly limited. What is certain is that ETFinance provides users who open a Gold or a Platinum account with a dedicated account manager to support their needs. Traders in the Silver tier can make use of a live chat function which is available between 07.00 – 19.00 GMT, Monday to Friday. Alternatively, as a registered user, you can submit a ticket directly through your user interface.
ETFinance provides a variety of video tutorials and educational support to make the most out of your trading experience.
The platform has not yet announced any upcoming releases and does not currently promote a blog. You can be amongst the first to find out about any platform news by becoming a fan of the platform on its social media pages.
Both ETFinance and eToro offer a variety of cryptocurrency CFDs and other financial instruments, but only eToro lets you buy actual digital coins, including Bitcoin. The eToro platform features a convenient CopyTrader tool which lets anyone automatically copy trades done by successful traders, giving even traders with no experience an opportunity to turn a profit. Whilst eToro charges a fixed withdrawal fee, ETFinance does not, however the former provides a much more user-friendly and clear fee structure.
Plus500 specialises in offering Contracts for Difference, whilst ETFinance offers a wider variety of financial instruments. Both platforms charge variable spreads with no commissions, however only Plus500 offers a clear and well-structured fee system. Plus500 accepts smaller deposits than ETFinance and lets users access the demo account anytime, not just for the first 14 days. ETFinance and Plus500 are both regulated and part of the Investor Compensation Scheme.
Whilst both ETFinance and IQ Option are regulated platforms, the latter is not part of the Investor Compensation Scheme. Both platforms offer similar markets and financial instruments, with IQ Option accepting significantly lower minimum deposits and lets users pay with PayPal. In addition, IQ Option offers 24/7 customer support and access to a free demo account at any time, unlike ETFinance which imposes a 14-day limit on this product.
ETFinance is a relatively new brokerage platform which has significant room for improvement. However, it has already shown to be worthy of investors’ attention, having won an award itself and having also partnered with an award-winning trading platform. Traders can look forward to accessing a variety of markets through several financial instruments. This is all available with some of the lowest fees in the industry.
eToro is one of the leading, fastest-growing, multi-asset trading platforms that offer trading in stocks, cryptocurrencies, commodities, and more.
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Plus500 is one of the leading trading platforms that offer CFD trading in shares, indices, forex, cryptocurrencies, ETFs and options.
Plus500UK Ltd authorised & regulated by the FCA (#509909). 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.