ActivTrades Review: How Trusted and Reliable is this Forex Broker?

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Founded in 2001, ActivTrades is a global brand with multiple entities, including ActivTrades PLC, which is authorized and regulated in the United Kingdom (UK) by the Financial Conduct Authority (FCA), and regulated in the United Arab Emirates (UAE) by the Dubai Financial Services Authority (DFSA). The forex broker also has a Bahamas-based entity, ActivTrades Corp, authorized and regulated by the Securities Commission of the Bahamas.

ActivTrades offers the suite of MetaTrader platforms developed by MetaQuotes Software Corp, as well as its own ActivTrader web-based platform. The broker provides 47 forex pairs and CFDs on two metals, 15 indices, seven futures contracts, and 517 shares.

Although the spreads are not the lowest, ActivTrades offers users other perks that counterbalance the fees.

ActivTrades Review

Many traders shop for a broker to work with and find endless reviews on the web, and not all are genuine. There are lots of websites that specialize in broker reviews and lots of talk about brokers in various forums, social media channels, and groups. While some information comes from a real trading experience of people that have used brokers’ services, some have a hidden agenda of promoting the broker(s). Promoting a forex broker is a legitimate and normal practice, as long as it’s done in a transparent way.

As of today, there are very few websites with trusted brokers’ reviews. One of the most trusted is forexpiecearmy.com, due to its security level which filters fake reviews. Anyway, use your intuition when you read ActivTrades reviews. 

ActivTrades’s overall rating on the largest portal for broker reviews is average to poor. What do ActivTrades’ disgruntled traders complain about?

Alleged spread manipulation is always an issue with online trading operations, as is the apparently unfounded denial of profits from traders. Some of the clients are not happy with the execution, complaining about widening spreads. Others are complaining about leverage downgrade, and some about delayed, bureaucratic withdrawals. 

Here are just 3 examples:

Unpleasant experience

Just to express my dissatisfaction concerning a unpleasant and unprofessional demanding related to a withdrawal:
– Some days ago I felt the necessity of suspend my trading activities, due a persistent familar problem. As such I sent an email to customer support informing such a situation and at same time requesting a entire witdrawal. For my surprise I received an email from the broker with two strange demands:

(1) In order to proceed I must prove my bank account credentials with IBAN, Swift, etc, by means of an bank extract.
(2) I must send a print screen of my bank web site, with all the details visible (acc number again, and other personal data), including my server date and time on right down corner screen.

Regarding demanding #1, it was strange given the fact several deposits and withdrawals were done since 2014 to and from the very same bank account. Nothing has changed since my first day with Activtrades!

Regarding demand #2 I felt like being treated like a criminal, may be suspected of money laundry. I have significant experience with business environment and I’m quite sure that demand #2 was absolutely unjustified and not solving any potential issue related to money laundry or other criminal issue. Advised by my business lawyer, I sent both two informations in order to not delaying the withdrawal. In sum, a normal process that could take up two days at most, this one was done in one week (Monday morning to Friday afternoon).
Unjustified, unpleasant and unprofessional behaviour.

– Vitor, Maia, Portugal, Feb 27, 2019

My recommendation – stay away, definitely. Unserious up to suspicious broker

Slippage. Than Problem with withdraws. Leverage less as declared (1:20). I have ordered the withdrawal to my bank account, so message, it wouldn’t be possible, just to paypal 🙂 One would like to save on Paypal Fee, why are you still lying, money-laundry fighter? My recommendation – Stay away, definitely. Unserious up to suspicious broker

– Elektra, Elektra, Germany, Jan 28, 2019

Bad latency problems almost 2-3 times per week

First i had problem just after connecting with account. Latency was before login 2ms, after login >20ms. I did write with support and they did solve this problem.
Now their servers are autoconnecting to slower servers “only” 2-3 times per week and you have reconnect to a faster one manually.
This is a realy bad behaviour and caused huge slippage!

– FastScalper, Deutschland, Germany

source: https://www.forexpeacearmy.com/forex-reviews/3665/activtrades-forex-brokers?page=1&per-page=10

activtrades reviews
source: forexpeacearmy.com

Is ActivTrades Trusted?

ActivTrades is considered high-risk, with an overall Trust Score of 68 out of 99 according to forexbrokers.com experts test. ActivTrades is not publicly traded and does not operate a bank. ActivTrades is authorized by one tier-1 regulator (high trust), zero tier-2 regulators (average trust), and one tier-3 regulator (low trust). ActivTrades is authorized by the following tier-1 regulators: Financial Conduct Authority (FCA).

FCA regulation is famous for being among the strictest. To acquire a license from the UK financial watchdog, UK-based brokerages have to prove their good financial standing financial stability – to hold a minimum of €730 000 net tangible assets – and to meet various requirements. For example, clients` funds shall be kept in segregated bank accounts, separated from the company operating funds, and licensed companies are required to report regularly to the Commission.

Probably the most important thing in relation to FCA regulation is the fact that it involves a compensation scheme in the event that a licensed broker becomes insolvent. The Financial Services Compensation Scheme (FSCS) provides a maximum compensation cover of £50,000 per person.

The Bahamas entity on the other hand does not provide any kind of funds or client protection. 

ActivTrades seems popular only in 2 countries. Their main markets are Brazil and Italy according to the number of brand searches (source: ahrefs.com). ActivTrades has some limited business in Spain, Germany, France, and UK.

activtrades review
source: Ahrefs

ActivTrades Trading Conditions

Account types

ActivTrades offers its clients a single account type that would probably suit the needs of most traders, as the minimum initial deposit is quite low and micro-lots are available for trade. Clients can trade with MetaTrader 4 or MetaTrader 5, two of the most popular and reliable trading platforms available in the industry with competitive variable spreads and leverage up to 1:400.

Additionally, ActivTrades offers swap-free (Islamic) accounts with zero rollover interest and therefore Sharia-compliant. Also, there are solutions for Asset Managers with this broker – the Managed Accounts Allocation Manager (MAAM) is the ActivTrades tool enabling asset managers to operate their client’s investments on both MT4 and MT5.

Spreads and Commissions

Regarding commissions and fees, ActivTrades lists an average spread of 0.9 pips in the EUR/USD pair, applicable to all its platforms, including professional account status. 

ActivTrades also charges a minimum of one euro commission for its share-trading service in Europe, and while its market data is free, it is not offered in real-time in MetaTrader 5 (MT5). For US market data (including international ADRs and ETFs) the broker charges just one euro per month, in addition to a minimum commission per trade.

The forex spreads on offer by ActivTrades are not great,  and some may found it ironic that the broker doesn’t have an Active Trader program (in terms of offering liquidity rebates, spread discounts, or other VIP-style accounts to high-volume “active” traders).

Minimum initial deposit

In order to open an account with ActivTrades, one has to invest $100, however, the recommended minimum capital to start forex trading is $500.

ActivTrades Platforms and Research

Trading Platforms

Clients of ActivTrades are offered a choice of several trading platforms: Metatrader 4 (MT4), MetaTrader 5 (MT5), and the broker’s in-house ActivTrader.

ActivTrades’ own proprietary platform ActivTrader allows new and experienced traders to be part of the market. The easy-to-use platform is available for desktop and mobile and boasts a range of intuitive features. Like any decent forex trading platform, it also has a one-click trading functionality to trade in a heartbeat and allows you to manage your risk and exposure with stop loss and take profit orders.

MetaTrader 4 is globally popular for its innovative, on-the-go trading capabilities, advanced charting package, a wide range of technical indicators, automated trade options with Expert Advisors, and extensive back-testing environment. Not to mention its fast and user-friendly technology, designed to let you trade with ease.

>> Here is an MT4 user guide

VPS service is also available with this broker so that even if you decide to turn your computer off, your Expert Advisors will be still running.

The MT5 was developed and marketed as an improvement on MT4, yet many brokers still prefer the earlier technology, since many of MT4’s indicators and EAs are not supported on the MT5 platform. The reason for this is that MetaTrader 4 Language (MQL4) is not compatible with MetaTrader 5 (MQL5).

Nonetheless, ActivTrades` MT5 offers some advantages compared to the MT4, such as Improved tick charting, faster strategy tester, economic calendar, more timeframes (21) and order types. You may look up more about how to use MT5

>> Read also MT4 vs MT5

ActivTrades does not provide notable upgrades to enhance the experience, in addition to custom indicators, like the MetaTrader Supreme Edition add-on plugin.

Research

ActivTrades provides an array of research tools, including periodic reports in its Active Trade analyses and market analysis on its blog. The broker also has a suite of tools related to MetaTrader, including its Smart pattern and Smart forecast custom indicators, as well as an expert advisor-powered SmartOrder 2 module that enhances the MetaTrader experience with additional order types.

Methods of Payment

Clients of ActivTrades can make deposits to and withdrawals from their accounts via bank wire, credit/debit card, and e-wallets, such as Skrill, Neteller & Sofort. ActivTrades also has a prepaid card which is available to clients in certain countries. 

For all Credit cards and Debit cards outside the UK, a 1.5% fee is applied. ActivTrades do not charge for payments using any other method, although you might be charged from your bank when sending funds to your account using bank transfer.

You may hold an account in EUR, GBP, CHF, or USD.

Bonuses and Promotions

ActivTrades features a cashback program for traders who exceed $50 million in notional trading value. Interest is paid on an available free margin; however, both forex bonus programs are available only for traders from the Bahamas operating subsidiary.

ActivTrades doesn’t offer a welcome bonus to its new clients. To get started with a no deposit bonus forex, please check our list.

Conclusions

Acquiring additional licenses outside of the EU and being in business since 2001 helps support ActivTrades’ Trust Score on ForexBrokers.com. The broker has a robust MetaTrader offering with its suite of indicators.

While the broker may lack some classical research components, including offerings from third-party providers, its MetaTrader-related tools help justify its trading costs with average spreads of 0.9 pips on the EUR/USD. Finally, the addition of insurance of up to £1 million, in excess of what is provided to eligible traders by the UK’s regulator, for extraordinary events such as the firm’s insolvency, is applicable only to clients of the firm’s UK entity.

Downsides of trading with ActivTrades include a €10 monthly inactivity fee after a year of no trading, higher pricing, and a less solid education and research offer compering to industry leaders. Plus, a high number of negative reviews regarding execution, widening spreads and withdrawals.

GET A FOREX PRO ON YOUR SIDE

To trade forex and CFDs, you need a well-regulated broker, where your money is safe, one that features a user-friendly trading platform with ultra-light execution, tight spreads, and fees. Trading with a trusted forex broker is crucial for success in international currency markets.

Here’s the Overall rankings for the best online brokers who participated in our 2021 Broker Review, sorted by Overall ranking.

FAQ

Is ActivTrades trusted?

ActivTrades is considered high-risk. ActivTrades is not publicly traded and does not operate a bank. ActivTrades is authorized by one tier-1 regulator (high trust), zero tier-2 regulators (average trust), and one tier-3 regulator (low trust).

What is the minimum deposit required at ActivTrades?

Accounts may be opened with as little as $100 or a currency equivalent.

REVIEW OVERVIEW
Regulation & Security
Deposit & Withdrawals
Platforms & Tools
Spread & Commissions
Range of Markets
Education
Customer Support
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Cristian Cochintu is a highly experienced trader, author, and analyst, currently Chief Operation Officer at Investing Magnates. Trading Style Analytical Profile: More Technical, Less Fundamental Time Frame: Long-Term (weeks to months) Type: Position Experience Started trading in Forex in 2004 and expanded to Stocks in 2007 Has worked with Admiral Markets since 2009 starting as a market analyst Has spoken at numerous online seminars, trader expos, and conferences over the years

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