CoverDealFX Review Is Cover Deal FX a Scam or Legit Forex Brokerage

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

CoverdealFX Review – is it scam or safe?

CoverdealFX is a forex and CFD broker, regulated by the Cyprus Securities and Exchange Commission (CySEC) – a well respected institution, which has the resources and the expertise to guarantee the safety of your funds.

Account type Min. deposit Max. leverage Spread s
Standard Account $250 1:30 3 pips

CoverdealFX Advantages:

As we already noted with its CySEC license CoverdealFX ranks among the reliable brokers, where your funds will be safe.

All CySEC brokers are required to file regular reports, to allow external audits, to provide their clients with a negative balance protection, to keep their money in a segregated, protected form creditors, trust account, to maintain at all times at least 730 000 EUR of operational capital, and even to participate in a client compensation fund, which in practice guarantees up to 20 000 EUR of your trading capital even in the unlikely case your broker files for bankruptcy. Here you may check our list of brokers regulated in Cyprus:

As far as we get it there should be some typo mistake in the CoverdealFX presentation, because if their EURUSD spread is really 30 pips it would be the highest spread we have ever seen. See for yourself:

So probably what CoverdealFX want to tell us is that their spreads start form 3 pips, which is also about twice higher than the spreads we usually consider attractive. Here you may also check our list of brokers, offering tighter spreads:

CoverdealFX is a reliable CySEC regulated broker, which offers a nice selection of forex pairs on the MetTrader5 platform. And CoverdealFX says to be a STP broker, but on the negative side offers spreads that are somewhat higher than the ones we usually consider attractive.

Broker Advantages

FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.

XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.

FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.

FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.

FBS is a broker with cool marketing and promotions. It runs an loyalty program, offers a $100 no-deposit bonus for all new clients outside EU willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.

FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage – one of the highest in the industry.

CoverDealFX review – What you should know about Coverdealfx.com

Beware! CoverDealFX is an offshore broker! Your investment may be at risk.

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

CoverDealFX is a Cyprus based brokerage that focuses on CFD trading. It holds a license from a top European regulatory agency and provides its clients with a wide range of both trading products. CoverDealFX supports the MetaTrader 5 terminal. The minimum deposit is the standard $250 which we view as an acceptable amount but the spread on EUR/USD is quite high and unfavorable for traders at 3 pips.

CoverDealFX regulation & safety of funds

The brokerage CoverDealFX is owned and operated by the Cyprus-based company CoverDeal Holdings Ltd.

It assures its clients of its legitimacy by following the strictest regulatory standards. The company is licensed by the Cyprus Securities and Exchange Commission with CIF license number 231/14. Cysec is one of the top regulatory agencies in the world. Brokerages licensed by it have to comply with rules such as a minimum starting capital of $730 000 which gives assurance for financial stability. Furthermore, companies that fall under the regulatory oversight of CySEC are members of the Investor Compensation Fund which renders them capable of providing compensations of up to 20,000 EUR per person in the unlikely even the brokerage goes bankrupt. We always recommend readers deal only with regulated brokerages that have been issued licenses by top-notch agencies such as CySEC or The Financial Conduct Authority of the UK which is also among the foremost regulators in Europe and also requires a minimum capital of €730 000. There is also a compensation scheme set up which may recover clients losses up to €85 000.

Another thing worth noting is that the broker claims to be a Straight Through Processing broker, which has its advantages since a STP broker only yields a profit through a trading commission or through a higher spread. This is significant because whether the client suffers losses does not affect the winnings of the broker which is not the case with market makers, which make a profit from their client’s losses – a reality that poses a serious conflict of interest.

CoverDealFX trading software

As was stated above, the brokerage the MetaTrader 5 platform which is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). Beginner traders will find the trading platform easy to use as well, due to its user-friendly lay out.We were able to register for a demo account and get a look at it. As was mentioned above – the selection of trading products available for clients is quite impressive and includes CFDs on precious metals, indices, as well as crypto currencies which we highly value as an advantage for potential clients of the broker. The industry average in Forex trading is a pip and a half which, however, puts the spread offered by CoverDealFX outside what we would call favorable. Furthermore, the brokerage extends a leverage up to only 1:30 which is quite conservative but also the maximum allowed under the latest guidelines by the European Securities and Markets Authority (ESMA).

CoverDealFX deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw only via the standard Visa and MasterCard, as well as bank transfer. There are no withdrawal or deposit fees, nor we could we find any troubling provisions in the terms and conditions of the brokerage. The only provision worth noting is that the brokerage charges an inactivity fee which is quite common in Forex trading.

All accounts that have been inactive for more than a month will be subject to a $15 charge. However, due to the obscene amount of scamming in online Forex trading, we always advise traders to put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.

CoverdealFX Review – What to expect from the broker

CoverdealFX is a Forex and CFD Broker that features on its trading platform CFDs on commodities, bonds, indices, stocks, cryptocurrencies. CoverdealFX is a subordinate company of Coverdeal Holdings Limited, a corporation that is regulated and overseen in Cyprus by the CySEC (just like Globtrex). The average spread is for EUR/USD 30 pips*, real trading is possible with the minimum deposit of $250. The CoverdealFX website is available in English, Czech and Spanish.

What do we cover in our CoverdealFX Review?

General Risk Warning: 74–89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Basic information about the broker

  • Website address: www.CoverdealFX.com
  • Leverage: up to 1:30
  • Instruments: CFDs – forex 53), commodities (15), bonds (1), indices (14), stocks (199), cryptocurrencies (5)
  • Minimum deposit: $250
  • Demo account: Yes
  • Methods of deposit and withdrawal: Wire Transfer, Credit and debit cards (Visa, MasterCard or Diners Club)

CoverdealFX Trading Platform

For FX and CFD trading, CoverdealFX offers MetaTrader 5. MT5 is A popular platform used not only for executing trades but also for analyzing financial markets and automated trading. This trading platform can be downloaded to any computer or can be accessed via just a web browser or a mobile application. The trading platform gives access to over 260 trading instruments.

CoverdealFX Spreads

As any other CFD broker, CoverdealFX charges a spread fee. For the most current spread charges, please visit the CoverdealFX.com website. Here is a spread comparison table that contrasts CoverdealFX spreads with popular industry competitors.

Asset EUR/USD USD/JPY GBP/USD AUD/USD
CoverdealFX* 30 30 30 40
Plus500** 0.6 0.7 1.1 0.6
IQOption** 1.2 0.9 1.5 1.6

*Average spreads recorded on 10.06.2020 at 15:42 GMT, data were taken from the instrument specification page that the broker features on its website. **Spreads recorded on 26.09.2020 at 11:26 GMT from the trading platform of the broker.

CoverdealFX regulation

Coverdeal Holdings Limited is authorized and regulated by the Cyprus Securities and Exchange Commission under license number 231/14.

The CySEC regulation gives CoverdealFX the right to provide cross-border services to other members of the European Economic Area.

To sum up the CoverdealFX Review

CoverdealFX adheres to strict regulatory guidelines of the CySEC (CIF license number 231/14.). The broker offers a wide variety of CFDs and features two very popular trading platforms. Nevertheless, the spread fee that applies to popular forex pairs is enormous.

Your review can make a difference to other traders, please leave a comment if you have any personal experience with CoverdealFX.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

Binary Options Trading School
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: