ActivTrades Review 2023

Trust

ActivTrades Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

Here is what we found concerning the 5 entities operated by ActivTrades:

• ActivTrades PLC is authorized and regulated by the Financial Conduct Authority (FCA) in the UK. The FCA ranks as a Tier-1 regulator on our system.
• ActivTrades Corp is a subsidiary of ActivTrades PLC, and it’s authorized and regulated by the Securities Commission of the Bahamas (SCB). The SCB is ranked as a Tier-3 regulator on our system.
• ActivMarkets – Empresa de Investimento S.A. is a public limited company, authorized and regulated in Portugal by the Comissáo do Mercado de Valores Mobiliários (CMVN). We rank the CMVN as a Tier-1 regulator on our system.
• ActivTrades Europe SA, a public limited company, is authorized and regulated by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg. The CSSF is ranked as a Tier-1 regulator on our system.
• ActivTrades Corretora de Cámbio, Títulos e Valores Mobiliários Ltda. is a financial institution duly authorized to operate by the Central Bank of Brazil and regulated by the Securities and Exchange Commission of Brazil (CVM). We rank CVM as a Tier-2 regulator on our system.

We have summarized the most essential aspects of ActivTrades in terms of regulation and safety in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. But licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account with beforehand.

We have listed the most important protections to look for in a broker:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All of ActivTrades’ entities comply with this requirement.
• Negative balance protection. Negative balance protection is a safety mechanism that removes the risk of a trader’s losses exceeding their account balance. This is especially important in volatile markets. All ActivTrades subsidiaries provide negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company should become insolvent. ActivTrades has issued an ‘excess of loss policy’ by Lloyds that is available to clients of all 5 entities; it is in excess of $10,000 and up to $1,000,000. Additionally, clients of the FCA-regulated entity are also protected under FSCS by up to a maximum of GBP 85,000; clients of the CMVN-regulated entity are covered under SIIL by up to a maximum of EUR 20,000; and clients of the CSSF-regulated entity are protected under ICS by up to EUR 25,000.
• Maximum leverage. Capping the maximum leverage limits the maximum market exposure to retail traders. Top-tier regulators usually allow a maximum leverage of 1:30, while offshore brokers can allow a maximum leverage of anywhere between 1:500 to 1:2000.

Is ActivTrades Safe to Trade With?

ActivTrades goes above and beyond when it comes to safety. In addition to being licensed by some of the strictest regulatory bodies in the industry (FCA, CSSF, and CMVN), it has issued private indemnity insurance on its own initiative. The broker is MiFID 2-compliant – meaning that it adheres to the most rigorous regulatory framework in the industry – and keeps its clients’ funds segregated in some of the biggest banks in the industry, such as Lloyds, Barclays, RBS, and Citibank.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, how big the company is, and how transparent it is in terms of readily available information.

Since its foundation over two decades ago, ActivTrades has grown into a globally trusted broker, and for good reasons too. After reviewing their T&Cs, documents, and services, we found ActivTrades one of the most transparent brokers in the industry.

In addition to having a ‘best execution policy’ and an exhaustive Client Agreement, where traders can read everything about ActivTrades’ service, the company is being regularly audited by PwC – one of the four biggest accounting firms in the world.

An example of ActivTrades’ high transparency is its exhaustive information regarding the various commissions traders may be charged for trading ETFs and share CFDs from different venues. These charge discrepancies are not hidden but are easily accessible on the website.

Information on the website, as a whole, is easily accessible and easy to grasp. Even novice traders can familiarize themselves with the broker’s services fairly quickly. And even if something is not entirely clear to them, they can contact the reliable customer support team.

In summary, our findings indicate that ActivTrades can be regarded as having a very good level of trust and stability due to the following factors:

• Authorized by several top-tier regulators.
• Has issued private indemnity insurance by Lloyds.
• Regularly audited by a top accounting firm.

Fees

ActivTrades’ Trading Fees

ActivTrades’ Spreads

We tested ActivTrades’ spreads during the most actively traded times – the London open at 8:00 a.m. GMT and just after the U.S. open at 2:45 p.m. GMT. The test was conducted on 3 March 2023.

Broken down by asset class, we determined that ActivTrades charges low-to-average spreads on FX pairs and indices; average spreads on commodities; high spreads on cryptocurrencies; and low spreads on CFD shares.

ActivTrades’ Swap Rates

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

The recorded swaps are normal, given the underlying volatility levels that were present during our review. It is important to point out that the broker does not determine the rollover charges, which are instead subject to changing interest rates at the interbank level. It is always worth checking the swap charges before opening a position because it can save you a lot of money, especially if you are uncertain as to which instrument to trade next.

ActivTrades also offers swap-free trading via its Islamic Account. To read more about its terms and conditions, please visit this page.

ActivTrades’ Commissions

ActivTrades’ single retail account type represents an amalgamation between STP and ECN accounts. It affords commission-free trading (except for some CFD shares and ETFs) and has raw spreads with an added markup that is below the industry average. The commission on U.S. stocks is 0.02 cents per share, meeting the industry average.

This combination is suitable for implementing high-frequency and high-volume trading strategies, though this is more accurate for the former. High-frequency strategies usually involve the execution of multiple small orders over a relatively short period, such as the case of intraday trading and scalping.

And in addition to having spreads and commissions accommodating such strategies, ActivTrades’ progressive trailing stop and fast order execution make precision trading even easier.

ActivTrades’ Non-Trading Fees

The broker charges inactive accounts that have laid dormant for at least one year with an administration fee of GBP 10 in the currency of the account. The fee is deducted monthly until activity resumes or the account balance drops to zero. The rate of ActivTrades’ inactivity fee is pretty standard for the industry.

Are ActivTrades’ Fees Competitive?

ActivTrades’ fees are indeed very competitive and well-balanced. The broker’s offering is suitable for implementing a wide selection of trading strategies.

Platforms and Tools

The ActivTrader platform outperforms the commercial MetaTrader 4 and its successor in many ways. Its array of trading indicators and drawing tools is several times bigger than what is available on the other two. Its design is much more user-friendly and better suited to accommodate sophisticated technical analysis. In addition to supporting widely used features like one-click trading, ActivTrader also has its own unique attributes, such as the above-mentioned progressive trailing stop.

Its mobile app is also highly customizable and practical. It allows traders to stay connected to the market at all times and make quick adjustments to their running positions. The app has an even clearer design, making it especially easy to use.

ActivTrades has no social trading option, and automated trading is unavailable on its proprietary platform. However, traders wanting to engage in algorithmic trading can take advantage of the Expert Advisors (EAs) features of MetaTrader 5. ActivTrades accommodates fast order execution (in under 0.004 secs), which is ideal for automated trading.

ActivTrades’ Web Platform

General Ease of Use

ActivTrader is powered by Trading View – one of the biggest and most sophisticated social networks for traders – giving it an edge over other retail platforms. It has a very intuitive and user-friendly design. The charts window occupies the middle portion of the window, a watch list of selected instruments is positioned on the left, and all essential account info is at the bottom.

One feature that makes ActivTrader stand out against MetaTrader is the possibility of searching for instruments by asset class. This makes the trades selection process a lot easier, especially given ActivTrades’ vast amount of tradable instruments.

Charts

The chart screen is crucially important because it represents price action, which must be illustrated clearly and concisely. Also, a platform needs to include multiple technical indicators and drawing tools so that traders can make sense of the underlying price movements. ActivTrader meets and exceeds these criteria.

Here is a breakdown of the key components of ActivTrader’s charts:

• 103 technical indicators. ActivTrader has an impressive amount of different kinds of indicators. Traders can choose from hundreds of oscillators, range-based and trend-based indicators, volume indicators, and more. Multiple indicators can be used for all types of market environments – from ranging and consolidating to trending.
• 81 drawing tools. The platform also supports a vast amount of drawing tools, such as trend lines, regression channels, and Fibonacci retracement levels, which are used for determining major support and resistance levels, potential breakouts and breakdowns, and other repeatable price patterns. This extensive assortment is particularly useful for chart artists looking for frequent patterns that appear in the price action periodically.
• 9 timeframes. The one aspect in which ActivTrader underperforms compared to MT5 is with regard to the number of available timeframes. MT5 has 21, while ActivTrader only 9. Still, this is enough to implement both short-term and long-term trading strategies.
• 11 chart types. ActivTrader offers traders the possibility to represent price action in 11 different ways, compared to MT4&MT5’s very limited assortment of only 3 chart types. This diversity is very important as it affords traders the possibility to observe price action from multiple angles.
• Proprietary tools. Unique to ActivTrader, the platform incorporates some excellent proprietary tools, such as SmartIndicators, SmartOrders, SmartPatterns, and others, that enhance the overall trading experience.

Orders

The three most common order types available to traders include

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order actually gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop loss orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

ActivTrader also affords pullback entries. Similarly to the progressive trailing stop, this allows traders to better manage price fluctuations by gaining more favorable entries into trend-continuation trades.

ActivTrader’s Mobile App Version

The ActivTrader mobile app is lighter than the desktop version, and yet, it incorporates the same features. Traders can use it to monitor their account’s performance on the go and adjust their running positions in case the market turns. The app provides quite a lot of information, and yet it never feels cramped, despite having to be run on low-resolution devices.

General Ease of Use

The ActivTrader is easy to handle, helped by its intuitive design, and traders can learn how to use it fairly quickly. It has an efficient charts window, despite the above-mentioned resolution problem.

In addition to monitoring the market, traders can also use the app to manage their accounts. The possibility to update any open trades is probably the app’s biggest advantage, as it allows traders to limit their running losses and bolster their profits in a volatile market environment.

Charts

The ActivTrader mobile app consists of the following features:

• 97 trading indicators. The ActivTrader app offers nearly 100 technical indicators, such as oscillators, trend-based, range-based, and volume-based indicators. They can be used to study price action behavior when the price is ranging or trending, as well as to forecast potential breakouts and reversals.
• 72 drawing tools. The app also incorporates a significant number of drawing tools, such as trend lines, channels, and Fibonacci retracement levels. These are used to outline specific patterns that appear periodically in the price action.
• 9 timeframes. ActivTrader’s 9 timeframes allow traders to study price action behavior in the short term and the long term. This variety is essential for implementing a wide range of trading strategies, from intraday trading to day and position trading.
• 11 chart types. ActivTrader also offers traders the ability to represent price action in multiple ways, such as a line, area, or using different kinds of candles. Being able to choose from so many variations is very helpful as it affords a multifaceted overview of price action behavior.

Orders

The ActivTrader app also supports the three major order types and their variations:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets actually filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop loss orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price.

Tradable Instruments

What are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the price of the underlying without physical delivery. For example, a long position on gold would generate a profit as the price rises or incur a loss as it falls. This is achieved without having to purchase actual bars of gold. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With ActivTrades?

Listed below are the tradable instruments offered by ActivTrades, broken down by asset class:

• 49 Currency Pairs: Majors (15), Minors (16), Exotic (18)
• 22 Commodities: Futures (17), Spot (5)
• 1055 CFD Shares: U.S. (545), Europe (314), UK (87), Asia (41), South America (42), other (26)
• 30 Indices: Cash Indices (14), Index Futures (16)
• 12 Cryptocurrencies: Major and Minor
• 7 Bonds: U.S. (3), Europe (4)
• 72 ETFs: U.S. (69), Europe (3)

The bulk of ActivTrades’ offering is comprised of share CFDs from major markets – U.S., Europe, Asia, and South America. Traders from all over the globe can benefit from this well-balanced selection of shares from some of the biggest companies in the world. ActivTrades also has a decently sized offering of major, minor, and exotic FX pairs and a sizable assortment of commodities, indices, and ETFs.

Customer Support

For general queries regarding ActivTrades’ services, you can turn to their Help Center. Otherwise, you can contact them via one of the methods listed above. Help is available in English, German, Italian, Chinese, Russian, and other languages. The broker offers free calls back.

ActivTrades’ Customer Support Test

When we test a broker’s customer support team, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

We conducted our test of ActivTrades on 3 March at 11:00 a.m. CET via the live chat option, which can be accessed from the bottom-right corner of the main page. Chatting with the support team can be done on the website or via Messenger, Telegram, or Whatsapp. Before being connected to an agent, you’ll be asked to provide an email and a telephone number.

We inquired about their minimum deposit requirements and the functioning of their progressive trailing stop. An agent connected to the chat several minutes after we had submitted our question, which was during a particularly busy time of the day. His answers were adequate and straight to the point.

Deposit and Withdrawal

ActivTrades Deposit Methods

*Except for when third-party charges exceed the account’s traded volume disproportionally

ActivTrades Withdrawal Methods

*Except for when third-party charges exceed the account’s traded volume disproportionally

ActivTrades offers enough payment methods affording charge-free deposits and withdrawals. However, third-party fees may apply. In some cases, when the volumes traded on the account are disproportionately lower compared to the third-party fees incurred by the broker, these may be passed onto the trader. Additional information is available here.

ActivTrades processes all deposit and withdrawal requests within the same working day, however, transaction times may reach up to 8 business days, depending on the chosen payment method.

Account Types and Terms

Why is Choosing the Right Account Type Important?

Your account should reflect your goals, needs, and ambitions on the market. If you have modest means and plan to be opening smaller-sized positions more frequently, then you should better choose an account that does not have any fixed commissions per traded volume. In contrast, if you expect to be placing much larger orders less frequently, then you should be more preoccupied with finding an account with tighter spreads and be less concerned with fixed commissions.

What Account Types Does ActivTrades Offer?

ActivTrades’ single retail account offers a combination of low floating spreads, starting from 0.5 pips, and commission-free trading. The only exceptions are ETFs and share CFDs. The account is designed to accommodate high-volume and high-frequency trading. Hedging and scalping are also permitted.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger-sized positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

ActivTrades Account Opening Process

The account opening process is quite straightforward and can be done in just a few minutes. We have broken down the process into the following easy steps:

• Step 1. Click the ‘Sign up’ button at the top-right corner of the main page.
• Step 2. Fill in your personal information, such as name, country of residence, and email address.
• Step 3. Provide information regarding your trading experience.
• Step 4. Fill in financial and account information pertaining to your employment history, wealth, trading preferences, and others.
• Step 5. Select a platform and base currency, and declare you have read and agreed to the T&Cs.
• Step 6. Verify your account by uploading proof of ID and address.
• Step 7. Confirm your email address.

Why is a Demo Account Important?

ActivTrade’s demo accounts serve a twofold purpose. They introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up an ActivTrades demo account from here.

ActivTrades Supported Countries

ActivTrades Corp does not accept clients from the following jurisdictions: American Samoa, Canada, Northern Mariana Islands, U.S. Virgin Islands, United States, Japan, and United States Minor Outlying Islands.

Research

ActivTrades offers regular market breakdowns, probing analyses, and screens currently unfolding trading opportunities. The content is presented both in video and written format, affording greater flexibility to a wider range of traders. The broker has a dedicated YouTube page where the bulk of its research and educational content gets published, as well as on the company website.

Despite its well-balanced research content, however, the lack of any third-party materials prevented ActivTrades from scoring higher in this category. Incorporating market analyses from outside sources is needed to afford an alternative perspective on the market and its development.

Research Tools

We have broken down ActivTrades’ research content by category:

• Economic calendar. The economic calendar is a broker’s most fundamental research tool. It makes traders aware of upcoming trading events, such as economic releases and policy decisions that are likely to cause a significant market reaction.
• Weekly outlook. ActivTrades publishes weekly breakdowns of upcoming market events of significant importance. The underlying trading opportunity is examined in more detail than what is presented in the economic calendar. The weekly outlook is usually supported by technical numbers. However, there are no supporting charts.
• Market Analyses. ActivTrades provides broader market analyses suited for those wanting to get a better sense of the underlying market sentiment. This type of content is more multifaceted and delves deeper into the subject material, utilizing fundamental analysis.
• Smart Forecasts. Available through the Client Portal, the smart forecasts underscore currently developing trading opportunities on multiple instruments. There is a brief technical breakdown of key support and resistance levels, potential reversal areas, and target levels. The forecasts are also supported by comprehensive charts illustrating how the price action is likely to develop next.

Education

On ActivTrades’ website and its YouTube channel, traders can find multiple educational videos on how to use the platform; written articles (in the Macro Analysis section), and exhaustive webinars. We checked them and found that they contain very useful insights into the intricacies of trading. There are various topics covered, ranging from technical analysis, such as trading pullbacks, to the psychology of trading and cultivating the appropriate mindset.

The Bottom Line

In the over 20 years since it was founded, ActivTrades has established itself as one of the best-known derivatives brokers in the industry. With its global exposure and strong licensing by some of the strictest regulators, the broker is chosen by hundreds of thousands of traders globally.

ActivTrades is authorized in 5 jurisdictions by trusted regulators, including the FCA, CSSF, and CMVN. It offers over 1100 tradable instruments from different asset classes at competitive pricing. Its account types are not particularly diverse, though they are highly efficient. The broker’s proprietary platform ActivTrader has a highly intuitive design and a rich collection of tools. Being powered by Trading View, it ranks among the best in the world.

ActivTrades excels in its security, exemplified by its decision to issue private indemnity insurance and in its attention to detail. The broker offers unique features, such as its progressive trailing stop order. And given its access to deep liquidity and ‘best execution policy’, we found ActivTrades to be the best match for traders looking for precision trading.

The broker has no major drawbacks, though its service would benefit from including third-party research tools, more diverse account types, and a systematic educational course for novice traders.

In summary, we found ActivTrades’ service to be great for both beginners and seasoned traders.

FAQ