ProvidentTrade Review – Can you trust it with your money?
ProvidentTrade Forex Broker is an online financial platform that offers different trading features to customers from all around the world. There are a lot of such companies available on the internet nowadays, and it might be hard for one to decide which one is the best. In order to make your decision-making process a little easier, we decided to do a review of this platform, where you can discover all the necessary information. The first and most important part for us is whether the company is regulated or not. As the main webpage itself claims, Provident Trade is a product of a Red Line Capital and is licensed by FSCA (also known as the Financial Sector Conduct Authority). After digging out, we discovered that the online register of FSCA has ProvidentTrade in the list of licensed brokers, meaning that this fx brokerage is regulated.
The platform comes with the option to choose the leverage amount of your trading account from 1:1 to 1:500. As for spreads, they start from 0.4 pips on EUR/USD. If you decide to sign up for ProvidentTrade FX Brokerage, you will be able to use MetaTrader 4, a handful tool that lets traders access more than 12000 markets.
The minimum deposit to start trading with this company is set to $50. If you are a bonus lover, then we have some bad news as ProvidentTrade does not issue any promotional offers right now for newcomers or experienced customers right now. We were not able to find specific types of accounts, however, after signing up, you can trade forex, commodity, shares, and indices.
Is ProvidentTrade legit?
Yes, ProvidentTrade is a legit company holding a license issued by the South African FSCA to operate as a forex broker. However, we need to mention the fact that FSCA is not a very strong financial regulatory body. The main problem is that FSCA does not name any trading names that companies use, which makes it easier for different websites to clone regulated companies, making it impossible for you to determine their trustworthiness. The lack of sufficient information makes it a little hard for us to tell you that you can trust this company with your money – we advise you to find out other online financial platforms where you will not have to worry about privacy issues.
ProvidentTrade Review – Trading Features
Besides regulation, there are a lot of other things one should keep in mind while choosing the trading destination. Such brokerage companies have a lot of trading features which makes them more or less attractive. In order for you to make a decision based on all the important stuff, we decided to provide you with all the important trading features that Provident Trade has.
The maximum leverage is up to 1:500, which is quite excessive compared to the industry’s average, especially if you are new to the trading industry. The website mentions that using different accounts, it is possible to choose leverage from 1:1 to 1:500, however, there is no further information about which type of account has the lowest leverage, which makes it impossible for us to evaluate whether leverages are looking good or not.
The site mentions that their spreads start from 0.4 pips, however, the lowest we were able to discover was 1.5 pips on EUR/USD, which does not really correlate with the industry’s standard. Moreover, the most reputable brands offer spreads as low as 0.1 pips, meaning that in terms of this indicator, Provident Trade can not really be considered a competitive broker.
As we already mentioned earlier in this ProvidentTrade Review, there is no separate section indicating specific types of accounts, which is a big minus because knowing specifications and requirements is crucial while choosing an online trading platform. Hiding it means that either trading features are not very impressive, or the company does not care much about providing its customers with valuable information. Whichever is the case, the absence of info is never a good thing.
The minimum deposit requirement is set to $50, meaning that users will not be able to trade unless they deposit $50 into their account. We need to mention that this amount is quite competitive as the industry’s standard is somewhere between 50 and 100 USD, however, this alone is not enough for us to give our recommendation to Provident Trade.
Bonuses are a great way for such platforms to give customers the ability to add extra value to their current bankrolls. Sadly, Provident Trade does not provide clients with such a possibility, which is a little surprising, as it would let them attract new customers to their platform.
All in all, the trading features available on Provident Trade do not look very good to us. The leverage along with spreads are high, there are no promotional offers and the website lacks a lot of information. It might be true that the minimum deposit looks good, but we can all agree that it alone can not outweigh all the other disadvantages.
ProvidentTrade – Final Verdict
Finally, we believe that this forex broker actually has some good potential in the future, but for now, we advise you to not use it. The main reason behind this fact is that they are regulated by a not-very-strong financial regulatory body, making it a little hard for you to fully trust them with your financial assets. If something inconvenient happens (e.g they steal your money), and it turns out that the website is a clone, you will not be able to do anything in terms of legal actions. It is always a good idea to go for more reputable, competitive, and high-quality platforms that are nowadays available on the market.