eTrader – Discover Their Parent Company’s Past
eTrader offers online investors both forex and CFDs. The company behind this broker is Goldenburg Group Ltd. The group has been active since 2014 and has a host of other brokers, including FX Global, TopForex, TradeCentrum, TopTrader, and Top Binary. This last broker offers binary options, an investment product that is illegal in many jurisdictions globally. eTrader maintains current registration with CySEC, the Cypriot financial regulator.
High Deposits and High Leverage
To get started with eTrader, new users must put down a minimum deposit of $250. However, many competing brokers require only $100. Their spreads aren’t great. EUR/USD is a common metric for how a broker’s spreads are, and this broker’s spread is at three pips. This is is much higher than most brokers, more than double what some are offering. The broker offers leverage of up to 1:200, although the ESMA mandated 1:30 limit. Leverage this high can be highly dangerous for novice traders.
eTrader’s Trading Platforms
Traders with eTrade have access to MetaTrader 4, the industry-standard trading platform. It has many charting and automated trading features. Beyond this, the broker also gives access to the open-API platform xStation. The platform offers many intuitive features like one-click trading, and its layout is highly optimized.
Parent Company Given Huge Fine by CySEC
In May 2019, CySEC issued a $189,800 fine against Goldenburg Group Ltd, the parent company behind eTrader. CySEC did not specifically name eTrader. This fine was for issues with one of the company’s other brokers, TopForex. Several smaller fines made up the fine.
The single largest portion of the fine was $55,280 for failing to keep adequate records of services rendered to customers and their transactions. There were two fines of $44,650 each for a breach of the regulation requiring brokers to deal honestly with their clients. The group received a fine of $33,500 for failing to ensure that any third-party companies they dealt with were meeting standards. The final penalty was $5,581 for not meeting the criteria for tied agents.
Find Out More Today
The fines against brokers run by the same company as eTrader certainly give reason to be cautious of their services. If you believe your broker hasn’t been acting in your best interest, call us today for a free consultation. We’ll help you determine if what your broker did was against the rules, and if they are, we’ll help you recover your funds.