Nostrobank offers forex trading through three account types. Spreads at this brokers are fixed. There have been several complaints against the company in popular forums.
The Company. Security of Funds
Nostrobank is owned and operated by KEYDS SCOTLAND LP, a subsidiary of Keyds Lydya Ltd. which is registered in Marshall Islands. The company does not stand under any specific financial regulation, which is a concern for us. The company also owns Pips-fx.com, a review of which you may find here.
You may already know this, but financial regulatory agencies are state entities which impose certain restrictions on companies in the sector. Different regulators apply different principles and practices. For instance, Australia’s ASIC requires brokers to have capital holdings of at least AUD 1 million, as a sign of good will. Furthermore, client’s funds must be kept in “segregated accounts”, which implies the company can not use them freely.
There were a few complaints against Nostrobank on a popular forum, from users who claim they can’t withdraw their funds. This combined with the lack of regulation leads us to believe the company may be a scam.
Minimum Initial Deposit
Nostrobank has set the minimum initial deposit requirement at $500. This is a relatively high level, compared to what most brokers nowadays. For instance, IG does not even have a minimum requirement. Keep in mind this should not be a major factor for you, as trading successfully requires more capital and a solid risk management plan.
Average spreads & Commissions
Spreads at Nostrobank are fixed, starting at 3 pips for EUR/USD (for the mini account). This is higher than other similar offerings, as most fixed spread brokers nowadays provide better conditions. For instance, HYMC offers 2 pips for this pair for the Mini accounts and even slightly tighter spreads for the other account types.
Nostrobank has set a maximum leverage of 1:200, which is in line with what you would expect nowadays. Some forex brokers even offer higher levels, such as 1:500.
Trading with higher leverage does not necessarily mean you are getting better conditions. High leverage allows you to take higher risks, which can lead to serious losses. Be sure to fully understand the risks involved with margin trading, before participating in it.
Nostrobank offers the popular MetaTrader 4 (MT4) platform as well as their own web-based solution. MT4 is popular with many brokers and there is a reason for that. The platform is easy to use, has a great charting package and provides the world’s most famous automated trading environment – you can check out our reviews of Expert Advisors here.
We couldn’t get the web-based platform running for the purposes of this review. That being said, this may be a temporary issue.
Methods of Payment
Nostrobank offers only Bank Transfer and Credit Card as its deposit methods. Funds can be withdrawn only via Bank Transfer. Keep in mind these operations can take up to several business days.
Nostrobank Review Conclusion
For more information about currency trading brokers visit TopForexBrokers.com forex brokers comparison website, Tip ForexSQ.com foreign exchange trading experts please by share this article about Nostrobank Review.