Core Spreads Review South Africa – Unbiased Pros & Cons Revealed ( 2020 )

Core Spreads Review South Africa

Core Spreads Review South Africa

 

WHAT IS CORE SPREADS?

 

According to research in South Africa, Core Spreads is a trading name of Finsa Europe Limited which is authorised and regulated by the Financial Conduct Authority (under Firm Reference number 525164).

The company acts as a spread-betting and CFD broker headquartered and regulated in the United Kingdom, and operates a STP (straight through processing) back office model.

The company offers the opportunity to trade by way of spread-betting, which can be very advantageous for U.K. taxpayers as profits generated by spread-betting are not subject to capital gains tax (CGT) in the U.K.

Core Spreads provides its clients with access to thousands of markets via two trading platforms, CoreTrader2 and MetaTrader4.

Whether traders are interested in trading CFDs or spread betting, with Core Spreads they are able to trade Forex in more than 30 of the most popular currency pairs, as well as gold, silver and Brent crude oil with Core Spread’s commodities options.

Users can also trade across UK, European and US Shares and a host of popular indices.

 

SAFE OR SCAM?

 

Core Spreads is authorised and regulated by the Financial Conduct Authority (FCA) and is fully compliant with the European Securities and Markets Authority (ESMA).

Client funds are held in ring-fenced, segregated bank accounts with Barclays. These accounts are fully separate from Core Spreads’ own funds, and they can never be used for operational expenses, or hedging.

In addition, Core Spreads’ clients are also covered by the UK’s Financial Services Compensation Scheme (FSCS), which guarantees a return of your funds up to £50,000

As a broker which is authorized by one of the strictest regulatory bodies in the industry, Core Spreads is able to provide traders with a safe and secure trading environment, and guarantee their protection against any unforeseen financial disruptions.

 

CORE SPREADS REVIEW OF PRO AND CONS

 

PROS CONS
1. Wide range of tradeable 1. No educational tools
2. MetaTrader4 available 2. Limited research tools
3. Tight spreads
4. Well regulated

 

LEVERAGE

 

Core Spreads provides the highest possible leverage which it is authorized to do under the auspices of the FCA.

Leverage is powerful tool which can potentially maximize a trader’s potential returns, but also carries a high risk of significant losses, particularly for those investing large sums of money.

It is for this reason that many regulatory bodies, including the FCA, decided to cap the maximum leverage which brokers could offer at 1:30. As such, Core Spreads offers the following leverage options:

  • 1:30 for major currency pairs,
  • 1:20 for minor currencies
  • 1:10 for commodities

 

Added to this, the company also allows traders the option to speculate cryptos with leverage of 2.5:1, an option which is only available to professional traders.

 

ACCOUNTS

 

Core Spreads offers two types of accounts, but the trading parameters are similar for both. The difference lies in whether a spread-betting account using the custom CoreTrader platform is opened, or a regular account using the MetaTrader4 platform.

Spread betting customers use the proprietary CoreTrader platform, while CFD traders use the MetaTrader4 (MT4) platform. Spread bettors have access to equities markets, while CFD traders do not.

 

MARKET INSTRUMENTS

 

Core Spreads offers over 1,605 different instruments to trade, including over 30 currency pairs. A brief summary of the most popular markets is provided below.

 

Forex

Forex is always quoted in pairs so the currency is traded versus another, for example, EUR/USD (Euro vs US Dollar)

The company’s tight spreads are fixed all day, every day with EUR/USD offered at just 0.6 tics wide.

 

Shares

Traders can speculate on the rise or fall of individual shares without actually purchasing the asset, and speculate on the world’s most traded shares including Apple, Google and Facebook.

Hundreds of companies, from the UK, US and across Europe, are available to trade in the Core Trader platform.

 

Indices

Clients can trade on a wide range of global Indices. The DAX, FTSE, and Dow Jones are all available with market leading low spreads.

Core Spreads’ FTSE market can be traded with a spread of just 0.8 points on the CoreTrader platform.

 

Commodities

There are three classes of commodities that can be traded, Energy, Metals and Agricultural Products

Core Spreads allows clients to Speculate on the price movements of Gold, Silver and Oil with instant execution.

 

FEES

 

Like most brokers, Core Spreads takes a fee from the spread, which is the difference between the buy and sell price of an instrument.

Core Spreads’ minimum spread for trading EUR/USD is 0.6 pips – which is relatively low compared to average EUR/USD spread of 0.70 pips.

As an example, if a trader were to buy one standard lot of EUR/USD (100k units) with Core Spreads at an exchange rate of 1.1719 and then sell it the next day at the same price, they would likely pay $9.15

Only slight differences may occur on the various platforms operated by Core Spreads. MT4 offers variable spreads and low commission charges, which is great for seamless trading across most traded markets.

While the CoreTrader platform offers tight spreads, some of the lowers spreads are fixed, which gives traders the option to choose between the offerings and define what fee strategy works best for their strategy.

 

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DEPOSIT AND WITHDRAWAL

 

Depositing funds into a Core Spreads account is an easy and secure process. Funding can be done using credit cards, debit cards, or wire transfer.

Withdrawals can be made using the same available mechanisms. Core Spreads does not impose any minimum requirements on deposits or withdrawals, but the channels themselves may do so.

As there is no minimum deposit requirement, to make a trade clients simply need to deposit a ‘margin’, which is effectively a fund which covers any potential losses on a trade.

The margin needed on the account is a percentage of the notional value of the trade, which can be less than 1%.

 

TRADING PLATFORMS

 

Core Spreads provides the option of the ever popular MetaTrader4 platform, or its own proprietary CoreTrader platform.

 

MetaTrader4

The MetaTrader platform is used on the CoreMT4 Account, which provides access to highly competitive variable spreads and industry-low commissions on one of the most popular trading platforms in the world.

Since a wide range of brokers support MetaTrader4 due to its exceeding popularity, Core Spreads has chosen to differentiate its use of the platform by providing some of the tightest spreads in the market.

The company also offers ultra-low commissions of $1.5/lot per side for all clients, regardless of the volume traded.

 

CoreTrader

CoreTrader can be used as a spread betting platform and has garnered some positive reviews from users.

The platform provides some of the lowest fixed spreads in the market with no commission, and can be traded on the web or an app.

CoreTrader features some of the most important trading tools in a streamlined and clutter-free interface, providing fast and reliable software with rapid execution, making it a great choice for spread betting traders.

 

HOW TO OPEN AN ACCOUNT

 

The Core Spreads FX review process of opening a new account is fully digital, hassle-free and fast.

As Core Spreads is regulated by the Financial Conduct Authority, every new client must pass a few basic compliance checks to ensure that they understand the risks of trading and are allowed to trade.

 

When new clients open an account, they will likely be asked for the following:

  • A scanned colour copy of your passport, driving license or national ID
  • A utility bill or bank statement from the past three months showing your address

 

Clients will also need to answer a few basic compliance questions to confirm how much trading experience they have, so it may take least 10 minutes or so to complete the account opening process.

While new clients might be able to explore Core Spreads’ platform straight away, it is important to note that they will not be able to make any trades until they pass compliance, which can take up to several days, depending on the situation.

 

CUSTOMER SUPPORT

 

Core Spreads has a decent customer support offering with the support team available 24/5 (Sunday 10PM – Friday 10PM, London Time). However, many other brokers do offer 24/7 customer support.

The company can be contacted via phone or email at its London offices, and there is also a live chat option to resolve more pressing client queries. However, support is offered in less than three languages.

 

EDUCATION

 

Core Spreads has no educational resources available on its website, such as webinars, e-books or training courses, which many other brokers provide.

There are some basic introductory pages describing CFD trading and spread betting, but this is hardly enough to fulfil the training needs of new traders.

This may be due to the fact that the company targets more established and experienced retail clients, and newbie traders would most likely have to train elsewhere before signing up with Core Spreads.

 

RESEARCH

 

Core Spreads does not offer traders much in the region of research tools, apart from daily market analysis and trading insights.

This is a great pity, as embedded research tools are a great means of allowing traders to execute their strategies in a streamlined and effective manner, and are therefore provided by most other brokers in the industry.

 

AWARDS

 

Despite Core Spreads superb and highly competitive offering, the company has not logged any awards to date.

 

CONCLUSION

 

Core Spreads’ most notable features worth emphasizing is their offer of decent liquidity, competitive spreads, and few restrictions on trading, with a wide range of markets including individual stocks and shares.

Although scalping is not allowed, automated trading is possible when using the MetaTrader4 trading platform.

Core Spreads offers a choice between two trading platforms, namely the well-known and popular MetaTrader4 platform, or their custom platform CoreTrader.

Expert Advisors can be run through the MetaTrader4 platform. CoreTrader can be used as a spread betting platform and has garnered some positive reviews from users.

Core Spreads seeks to provide a clean and simple interface, while differentiating itself in three key areas, namely cost of trading, platform technology, and dedicated customer service.

As a market maker, Core Spreads may have lower entry requirements compared to an ECN broker who benefits from a higher volume of trades and typically has larger capital and minimum trade requirements.

Market makers typically have a lower minimum deposit, smaller minimum trade requirements and no commission on trades.

As with most brokers, margin requirements do vary depending on the trader, accounts and instruments. Interested traders can see the latest margin requirements on the company’s website.

Finally, Core Spreads’ sound regulatory status under the auspices of the FCA provides traders with a highly secure trading environment, which is a definite plus point with regards to the volatile forex market.

 

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DISCLAIMER

 

Financial spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.3% of retail investor accounts lose money when trading spread bets and 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.

Tax Treatment depends on your individual circumstances and may be subject to change in the future. Tax law can be changed or may differ if you pay tax in the UK or other jurisdiction.

The information on the company’s site is not directed at residents of the United States or any particular country outside the UK.

This information is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Core Spreads is a trading name of Finsa Europe Ltd (a company registered in England and Wales under number 07073413) which is authorised and regulated by the Financial Conduct Authority (under firm reference number 525164).

The information on the company’s website is not targeted at any set group(s) or individual(s) of any particular country.

It is not intended for distribution to residents in any country where such distribution or use would breach any local law or regulatory requirement, according to research in South Africa.

 

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