SquaredDirect Review 2019

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SquaredDirect Review

“SquaredDirect is a direct market access broker, that offers a Straight-through processing (STP) model”

SquaredDirect is an FX and CFD brokerage service which offers the trading of currencies, as well as commodities, indices, and stocks as Contracts-for-Difference assets. SquaredDirect lends the use of its platform to both beginner and intermediate level traders.

According to the broker’s website, SquaredDirect’s business model is to act as an intermediary between their clients and various Top-Tier Liquidity Providers, which means they offer direct market access, without an intervening dealing desk. This model of business is known as the Straight Through Processing (STP) model, because it allows traders’ orders to be transmitted directly to the liquidity providers at the interbank market, for execution with no dealing desk interference.

SquaredDirect hosts its trading servers with LD4-Equinix in London. Direct Market Access through STP means that market-making and price manipulation practices cannot occur, therefore there is no conflict of interest between the broker and the trader.

The SquaredDirect brand is owned and operated by Squared Financial (CY) Limited, a company based in Limassol, Cyprus. The brand was founded in 2017 and obtained its regulatory authorization from CySEC the same year.

Investor Protection & Regulations

“Squared Direct offers high-level protection through CySEC regulation”

Broker regulation is at the center of investor protection in forex. That is why SquaredDirect has completed the process of obtaining authorization from the Cypriot regulatory authority. SquaredDirect (formerly known as ProbuxFX) is owned and operated by Squared Financial (CY) Limited, Cyprus.  It is the company that is authorized and regulated by CySEC with license no. 329/17. Regulatory information on Squared Financial on CySEC’s website can be viewed here.

Note that the approved domain on CySEC website is ”www.probusfx.com” which has been rebranded to SquaredDirect.

Regulation is the first step. There are other measures that are taken to protect investors. One of these such measures is the segregation of traders’ funds in a bank that is separate from the bank used by the broker for its business operations. This insulates the funds of investors from any happenings within Squared Financial.

The third layer of investor protection comes in the form of the Investor Compensation Fund, operated by the Cyprus Securities and Exchange Commission (CySEC). This fund, also known as ICF, is patterned after similar funds that have been in operation in the UK and Australia for several years now. This fund is composed of mandatory contributions from all Cypriot Investment Firms (CIFs) and allows investors to seek compensation from the fund if they feel they have been shortchanged by their brokers. This gives investors the confidence to know that they have a channel for redress if they feel that their funds have been tampered with in any way.

Furthermore, SquaredDirect also aims to protect the user data of its clients and has therefore ensured that all its sites and downloads are hosted on secure servers, protected with the latest encryption software.

Tradable Products

“This is a list of all financial products that can be traded on SquaredDirect”

What are the currencies and CFD assets that are offered on SquaredDirect for trading? Here is the comprehensive list.

Currencies

  • AUDCAD
  • AUDCHF
  • AUDJPY
  • AUDNZD
  • AUDUSD
  • CADCHF
  • CADJPY
  • CHFJPY
  • EURAUD
  • EURCAD
  • EURCHF
  • EURGBP
  • EURJPY
  • EURNOK
  • EURNZD
  • EURPLN
  • EURSEK
  • EURTRY
  • EURUSD
  • GBPAUD
  • GBPCAD
  • GBPCHF
  • GBPJPY
  • GBPNZD
  • GBPSEK
  • GBPUSD
  • NOKSEK
  • NZDCAD
  • NZDCHF
  • NZDJPY
  • NZDUSD
  • USDCAD
  • USDCHF
  • USDCNH
  • USDHKD
  • USDHUF
  • USDJPY
  • USDMXN
  • USDNOK
  • USDPLN
  • USDSEK
  • USDSGD
  • USDTRY
  • USDZAR

Metals

  • XAU/USD (gold)
  • XAG/USD (silver)

Indices

  • EU Stocks 50 Index
  • France 40 Index
  • German Index Eurex
  • UK 100 Index
  • US 100 TECH Index
  • US 30 Index
  • US 500 Index

Energy CFDs

  • XBR/USD (Brent crude)
  • XTI/USD (WTI/light crude)

Depending on the account type, trading on the EUR/USD starts from 0.1pips (Standard and Premium) to 1.1 pips (Classic account), with commissions paid on trades that range from 1.8 Euros/USD per Standard Lot (Premium account) to 4.5 USD/Euros per Standard Lot (Standard account). Trades on FX and CFDs on the Classic account are commission-free.

Account Opening

“The broker offers three account types to choose from, classic, standard, and premium which come with different features and benefits such as varying minimum deposits and spreads”

Traders on SquaredDirect are offered three types of live accounts:

  • Classic
  • Standard
  • Premium

Classic account

Classic account holders are offered mobile trading, no-commission trading (all in spreads), variable spreads, an average spread of 1.1 pips as well as $200 minimum account opening requirement. Minimum trade volume is 1 micro-lot, and hedging is allowed, Leverage provided is 1:30, but this can be extended to 1:200 under certain conditions.

Standard account

Standard account holders have all the features of the Classic account available to them, but they also have the advantage of having indices and energy CFD assets available to them to trade; something which Classic account holders do not have access to. Standard account holders pay commissions of 4.5 Euros/US Dollars per $100,000 trade and have to open accounts with a minimum of 500 units of either Euros or US Dollars. The average spread on trades is 0.1.

Premium account

Premium account holders have access to all the features of the Standard accounts, but also have the advantage of using the FIX Protocol. Commissions on trades are also lower than what obtains in the Standard account; 1.8 USD/Euros per Standard Lot trade. The average spread on trades is 0.1. This is the account for the high rollers, as it requires a minimum of $10,000 to open this account.

*This is all according to the broker’s website.

But they also have a demo account which allows traders to use virtual funds of between $1,000 and $50,000 to perform practice trades.

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An online registration form like the one shown above must be filled in order to open an account with SquaredDirect. Use your names as shown in your ID document to make verification easy and seamless. Enter all details required: full name, email, country of residence, phone number, platform type, leverage and preferred currency (which cannot be changed). Agree to the terms and conditions and click the relevant buttons to complete the process.

SquaredDirect complies with all international anti-money laundering legislation and requires all accounts to be verified and run by the account holders themselves. Account holder verification (also known as Know Your Customer or KYC) is done by submitting a government-issued ID such as an international passport or drivers’ license, and a document that proves the residence of the account holder (such as a utility bill or bank statement). Once you have been verified you may deposit and start trading immediately.

Once you download the MT4 using the link provided earlier in this review, you can create a new demo account, or log in using your real account details that have been sent to your email. You can choose from either the demo server or live account server.

SquaredDirect offers its services to citizens of all countries except those on international financial blacklists or who are blocked from performing offshore trading by local laws. Countries that cannot trade on SquaredDirect include:

  • Afghanistan
  • Belgium
  • North Korea
  • Japan
  • Iran
  • Iraq
  • United States
  • Syria
  • Yemen

Deposit & Withdrawals options

“Deposit and withdraw funds using card methods or bank wires”

Funding and withdrawal options on SquaredDirect include the following methods:

  • Credit/debit cards: Only cards issued by VISA, Maestro, and MasterCard are allowed on SquaredDirect. Processing time is 1 hour only for card funding and withdrawals.
  • Bank wires to the company account at Bank of Cyprus are available to all traders, with processing times of 2-3 days.

No commissions are charged by SquaredDirect, but the card processors or banks may charge a service fee. The process of deposits and withdrawals are straightforward and uncomplicated.

Third-party transactions are not allowed; all transactions must emanate from the cards/bank accounts of the trading account owner.

*This is all according to the broker’s website.

Web & Desktop Trading Platforms

“Trade FX and CFDs using the SquaredDirect MT4, downloadable from the MQL Community website”

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The only platform offered by SquaredDirect is the MT4 platform.

With SquaredDirect MT4, you are assured of the following benefits:

  • Multi-timeframe charts and various analysis tools.
  • Opportunity to use custom software such as EAs and indicators.
  • Trading signals from the MT Signal Trading Service.

The SquaredDirect MT4 offers desktop, mobile, and web-based versions. The desktop version of SquaredDirect’s MT4 can be used on computers with Windows, Linux and Mac operating systems. This is an improvement on many versions of the MT4 which are only compatible with Windows computers.

The mobile versions of the SquaredDirect MT4 are available on the iOS and Google Play stores. These are generic brands of the MT4 and only require the SquaredDirect login details.

Then, of course, there is the web-based version of the platform, which can be accessed from anywhere with a URL and login details. It is also optimized for mobile display, enabling traders with smartphones and tablet devices to use the browser-based version of the SquaredDirect MT4.

SquaredDirect’s MT4 platform is easy to use and this makes it suitable for beginners and indeed, all levels of traders.

Privacy & Security

“The structure of this forex brokerage, application of the time-tested anti-money laundering rules and high-grade cyber-security measures intended to make it harder to have trading funds stolen”

User verification is an integral part of the process of securing user data and account funds. The verification process entails the following:

  • Submitting a copy of your international passport/drivers’ license/national ID card.
  • Submitting a proof of address.
  • Submitting a selfie of the account holder holding these documents.

Unlike what obtains in unregulated exchanges which are found in the cryptocurrency market, account verification in forex is a must and must be done before a trader can even operate the account.

Once the account is verified and functional, you can trade with the desktop, browser-based platform or mobile app.

The MT4 has traditionally been known to make the act of trading very easy. There are keyboard shortcuts to many of the functions on the platform. For instance, you can press the F8 button to change chart characteristics, if you do not want to use the long route of clicking Charts -> Properties. F4 opens the MQL coding interface. A lot of other shortcuts exist.

The browser-based platform is a lighter version of the desktop client.

Mobile Trading Platforms

“There is the mobile app for iOS and Google Play devices, as well as the web trader which is optimized for mobile”

The SquaredDirect brokerage also offers a mobile trading platform. There is a mobile app for iOS and Google Play devices, as well as the web trader which is optimized for mobile. Typically, the mobile app is a stripped down version of the platform which features candlestick and bar charts. These charts also allow for easy placement of indicators or use of EAs. So from a technical point of view, the mobile platform is an improvement on previous versions, since it not only allows trade entries to be made but also technical analysis. However, there have been few complaints of bugs that affect the ability to log in and stay logged in, as well as usage of those functions.

The full range of assets can be found on the mobile apps. Also, several functions that are found on the desktop version are retained in the mobile apps. These include charts, the ability to monitor trades and pricing, order history, all 9-time frames, and about 30 technical indicators. You can also use the demo account on the mobile apps, although you need to create a demo account on the main site.

Trading Features

“SquaredDirect MT4 offers the use of EAs, custom indicators, and connectivity to the MQL Marketplace”

SquaredDirect MT4 offers the use of EAs, custom indicators, and connectivity to the MQL Marketplace. Some of the trading tools/features of the SquaredDirect MT4 are:

Indicators, divided into a trend, momentum, Bill Williams, Volume and Custom Indicators.

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Various chart functions and their keyboard shortcuts…

You can also add or remove assets from being displayed in the Market Watch window. Click Ctrl+U, then add or remove symbols by clicking the + or – signs.

Order placement can be done using the Navigation tabs, the charts (right click -> New order), or from the New Order button on the platform. One-click trading can be enabled or disabled, but beginners are advised to disable this function until they master the use of the platform.

Leverage is set to 1:30 on all platforms but can be adjusted to 1:200. There is no explanation as to how this is done, as the new ESMA rules stipulate that leverage for forex trading cannot exceed 1:30. Integration with the MQL Marketplace is possible and is done using the Market tab in the terminal window. This allows traders to buy indicators, EAs, and scripts from the Marketplace, and pay directly from their account balance.

Commissions & Spreads

“SquaredDirect charges variable spreads, with the EUR/USD spread at 0.1pips for the standard account and 1.1pips on the classic account”

Trading with any of the live account types will incur spreads, which are variable. This means that the spreads are not fixed, and could either widen or narrow according to the volatility of the market at the time the trade order is made.

Spreads on EUR/USD are the lowest and are used as the benchmark to see how cost-effective each account type is with regards to the spreads. Premium account holders pay the lowest spreads, which can be as low as 0.1 pips or even 0.0 pips on the EUR/USD. Standard account holders pay spreads of 0.1 pips on the EUR/USD, while Classic account holders pay spreads of 1.1 pips on the EUR/USD.

Standard and Premium accounts attract a commission on trades. There are no hidden costs whatsoever.

* These figures are all according to the broker’s website

Bonus & Promotions

“SquaredDirect don’t offer bonuses or promotions due to CySEC restrictions”

No bonuses or promotions are run on SquaredDirect. This is because the Cypriot regulator has banned the use of incentive bonuses for account opening purposes.

Customer Support

“A variety of ways to get in touch with support representatives”

Customer support is accessible in English via:

  • Live Chat
  • Phone: + 357 25260333
  • Email: support@squareddirect.com
  • Callback
  • Social media: facebook.com/squareddirect
  • Online contact form.

It takes about 2 minutes after filling the form for a representative to come online via live chat. Responsiveness to social media posts takes about a few hours. Communication via live chat tends to have delays between communications. Emails were responded to within 1 day.

Research

“Rudimentary research tools provided for Standard and Premium account holders”

Some element of market research is provided to holders of the Standard and Premium accounts. All traders have access to market news from Reuters and the Economic news calendar. Market research is obtained from Trading Central; an external platform.

Education

“SquaredDirect offers an educational suite for its traders, featuring video tutorials and trading guides”

An educational section is offered on the SquaredDirect site. It can be accessed by clicking the navigation bar to the right of the screen and clicking the LEARN tab.

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The learning section has a learning room, video tutorials, and trading guides. The video tutorials cover trading analysis, the process of placing trades on the platform, trading psychology and a walk-through of the MT4 platform. These educational materials are made easy to understand so that beginners can easily grasp the concepts of trading and understand how to use the SquaredDirect platform. A $50,000 demo account is offered. The process of opening one has already been described.

Trading Experience

“SquaredDirect’s MT4 offers a solid trading experience for all levels of traders”

The SquaredDirect MT4 platform is geared towards traders at all levels. This is because of its simplicity of use, availability of virtually all functions on the user interface, and the ease with which beginners grasp the use of the platform.

FAQ

  • Where is SquaredDirect based?

SquaredDirect is based in Limassol, Cyprus.

  • How does SquaredDirect make money?

SquaredDirect makes its money from spreads and commissions. Since it claims not to be a market-maker, it does not make money by marking up prices.

  • How do I deposit in SquaredDirect account?

You can deposit funds using cards (VISA, MasterCard, Maestro) or via bank wire.

  • What is the minimum deposit for SquaredDirect?

Minimum deposit depends on account type. It is $200 for a Classic account, $500 for the Standard account and $10,000 for Premium account. Deposits can also be made in Euros.

  • How do I withdraw money from SquaredDirect?

You can withdraw funds using cards (VISA, MasterCard, Maestro) or via bank wire.

  •  What is the max leverage in SquaredDirect?

1:30 (but according to the broker, can be extended to 1:200).

  • How do I open an account with SquaredDirect?

Click on the “Open Live Account” tab in the navigation drop-down menu, make a selection from either Individual or Corporate account and fill in the details in the online form.

  • Does SquaredDirect use MetaTrader?

The MetaTrader4 is the platform used by SquaredDirect.

Conclusion

Working with a regulated brand comes with its own advantages. Regulation by CySEC specifically offers certain benefits such as enrolment in the Investor Compensation Fund, where clients deposits are protected up to 20,000 euros.

According to SquaredDirect, another of the benefits that its clients will get is negative balance protection. This means you will never have a negative amount in your account, as can be the case with most other brokers.

The broker offers a variety of account types, for different types of traders with different needs and a fairly in-depth education section of the site for newbie traders.

Meanwhile, trading charges are reasonable at 1.1 pips on the EUR/USD for a classic account and seem to be competitive with the rest of the marketplace and in our experience, the customer support team are fairly quick at answering queries.

The fact that only the MT4 platform is offered for trading may be a drawback. Several established brokers operating in Europe have multiple trading platforms to appeal to all categories of traders.

SquaredDirectOverview

Company Information

Broker DetailsInfo
Regulated byCySEC
Headquarters CountryCyprus
Foundation Year2017
Publicly TradedNo
Number Of Employees100

Deposit Options

Credit Card, Wire Transfer

Withdrawal Options

Credit Card, Wire Transfer

Trading Account Options

Account TypeInfo
Min. Deposit$200
Max. Leverage1:200
Mini AccountNo
Demo AccountYes
Premium AccountYes
Islamic AccountNo

SquaredDirect Trading Features

Suitable For

Trader LevelYes/No
BeginnersYes
ProfessionalsYes
Day TradingYes
Weekly TradingYes
Swing TradingYes
Social TradingYes

Customer Service

TimeYes/No
24 Hours SupportYes
Support During WeekendsNo

Customer Support Languages

English

Trading Services

ServiceInfo
Supported Trading PlatformsMT4
Commission On TradesYes
Educational ServiceYes
OCO OrdersYes
Automated TradingYes
API TradingYes

Supported Instruments

Instrument TypeYes/No
CurrenciesYes
CommoditiesYes
CFDsYes
IndicesYes
ETFsNo
StocksNo
BondsNo
CryptocurrenciesNo

SquaredDirectUser Reviews

Rate this broker
  • 5.0
    Prompt customer support
    Tyler
  • 5.0
    Fast withdrawals, great service, happy
    Günter
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