Tera FX Review 2023
Operating from the City of London and regulated by the UK’s Financial Conduct Authority (FCA), TeraFX is a retail trading broker that is committed to providing traders with an exceptional trading experience. It provides all clients with first-rate customer service, reliable dealing technology, and a transparent No Dealing Desk (NDD) execution model.
In this post, we reviewed the company’s brokerage services, examining its regulations, platforms, global access, registration, account options, leverage, trading fees, customer support, education, and reputation.
Regulation and Security
TeraFX is a straight-through-processing (STP) broker authorized and regulated by the Financial Conduct Authority (“FCA”) in the UK with the FRN registration number 564741.
The broker’s details, including the scope of permissions, trading name, related parties, contact details, address, and more, can be verified using FCA Online Register.
Investor protection and compensation
As a UK-based, authorized, and regulated financial services firm, the broker’s UK-resident clients are afforded the protection of the Financial Services Compensation Scheme (FSCS), subject to scheme eligibility.
The FSCS insures cash and assets held by the broker. Therefore, if, in an unlikely event, they are unable, or likely to be unable, to pay claims, clients can apply to the FSCS for compensation. Any claim will be limited to £85,000 per individual.
Segregated client funds
TeraFX is a regulated broker, and as stipulated by the FCA client money rules, TeraFX must segregate all its retail clients’ funds from its funds.
All the broker’s retail clients’ funds are held in separate bank accounts with the world’s top-tier banks. This ‘ring-fenced protection’ means that Tera cannot use these funds for operational purposes, and its creditors cannot lay claims to such funds.
Tera FX is committed to its privacy obligations by protecting clients’ personal information using the best encryption and SSL technology. The storage and transmission of clients’ sensitive data on its platforms are safe and secure.
Negative Balance Protection
This safety mechanism ensures no client is responsible for paying back a negative balance when margin calls and stop-outs do not function correctly. As such, no client can lose more than they invested.
Is Tera FX available worldwide?
Operating from London, Tera FX offers its brokerage services to traders from all parts of the globe where the use of such services would not be contrary to local laws and regulations. Click here to see the full list.
TeraFX understands the importance of a reliable trading platform. As a result, they provide traders with the MT4 trading platform.
The MT4 platform is a user-friendly trading platform with some advanced features to satisfy both amateur and experienced traders. It is considered the gold-standard software for trading forex and CFDs on many assets, including indices, commodities, and popular cryptocurrencies. The platform is available as a desktop application for Mac and Windows computers, a web-trading terminal, and a mobile app for smart mobile devices.
To help traders access their online trading accounts even while on the go, the broker provides them with the mobile version of the MT4 trading platform. The MT4 mobile version can be used on iPhones, iPad, Android, or Windows system devices.
By installing the MT4 app on your mobile device, you get access to live quotes and can take positions in 41 currency pairs, including the Forex Majors, Index CFDs, Precious Metals, and Commodity CFDs. You can easily download the apps from the relevant app stores to access your trading accounts and check trading positions on the go.
Other trading tools
The broker also provides traders with some other helpful trading tools, including the following:
The broker provides traders with an economic calendar to help them keep track of market-moving events and announcements. The economic calendar provides traders with exact dates, times, and currencies involved, as well as the degree of volatility that is expected following the events. This is indicated by yellow, orange, or red bars, which stand for low, average, or high volatility.
TeraFX also provides traders with free VPS service. VPS is the acronym for Virtual Private Server: a remote service that functions independently, just like a physical computer does, but with its elements adjusted to the specific users’ needs.
TeraFX collaborates with one of the best VPS providers to grant access to exceptional free VPS hosting, so it becomes easy for traders who want to run a 24/5 algo trading systems to do so without worrying about network connection or power outage.
TeraFX offers a range of account types that suit all types of qualifying traders. Each of its five types of accounts (Starter, Premium, ECN, PRO, and Corporate) suits different traders.
The Starter is the most basic account offered by the broker. It has a minimum deposit requirement of $100 and leverage of up to 1:30. The account charges zero commissions on all trades. Clients can open the account in either USD, EUR, GBP, or PLN. The account offers access to 82 financial instruments, which can be traded through the MetaTrader 4 trading platform.
Like the Starter account, the Premium account comes with a minimum deposit requirement of $100. It has most of the features of the Starter account, including zero commission fees and leverage of up to 1:30. The Premium account can be opened in various currencies, including USD, EUR, GBP, or PLN. It allows clients to trade up to 147 financial instruments, which can be traded through the MetaTrader 4 trading platform.
The ECN account features competitive commission fees that start from $2. But the commission fees vary with the financial instruments. The ECN account also has a minimum deposit requirement of $100 and offers leverage of up to 1:30. The account users enjoy raw and variable spreads. Accounts can be in either USD, EUR, GBP, or PLN. All ECN account holders can trade up to 82 financial instruments on the intuitive MT4 trading platform.
The TeraFX Pro account is an advanced trading account that comes with various exciting features, including leverage of up to 1:200 for traders who qualify as professional traders. The commissions are available on-demand and subjected to the financial instrument being traded. Accounts can be opened in either EUR, USD, GBP, or PLN. The account also allows hedging strategies.
The corporate account is a special account type at TeraFX. According to the broker’s website, anyone who wants it will have to contact TeraFX customer support for more information.
Every account type has a different requirement; click here to find document requisites for your preferred account type.
TeraFX offers traders the option of opening a demo account which can be utilized in various ways, including but not limited to the following:
- As a practice account for beginner traders who wish to improve their trading skills and experience in a risk-free environment using virtual funds
- For evaluating the broker’s trading conditions in a risk-free environment to compare with others
- For forward-testing trading strategies without putting real money on the line
To open a trading account with Tera FX, click the “Open Live Account” button at the top right corner of the broker’s website. It will take you to an online application page, where you will be required to provide your details: your first name, last name, email, and phone number, as you can see in the form below:
After completing the form, you will be required to complete your profile page and answer some questions about your finances and trading experience. The broker will also require you to submit your means of identification (a government-issued ID) and proof of address (a utility bill or bank statement not more than three months old) to verify your account.
Deposit and Withdrawals
TeraFX allows traders to deposit and withdraw funds, to and from, their trading accounts using different payment options. The supported payment methods include Visa and Mastercard payment cards, e-wallets, or bank transfers. Accepted currencies are USD, EUR, GBP, and PLN.
Payment cards have a minimum deposit of $100 and are processed instantly. E-wallets that can be used are Neteller, Skrill, Sofort, and UnionPay. All e-wallets have a maximum deposit of $5,000 and are processed instantly. Bank transfers take 1-5 business days to be processed, though there are no limits.
TeraFX’s withdrawals take longer to process, with payment cards taking two to five business days and wire transfers and e-wallets taking one to five business days.
Deposits and withdrawals are free. However, withdrawals from accounts with zero trades are charged $25.
Due to anti-money laundering regulations worldwide, deposits and withdrawals must be made from and paid to the same person as the trading account holder. No third-party payments are allowed.
TeraFX offers a range of forex pairs and CFDs for trading. They include fifty-nine forex pairs, six metal CFDs, 12 stock indices, four cryptocurrencies, and two energy instruments.
Trading different instruments offer some diversification, which may help to reduce risks.
Commissions and Fees
TeraFX’s trading fees include spreads and commissions. There are no commission charges on the Starter and Premium accounts. The ECN account charges a commission fee of $2 per lot per side. The broker offers raw and variable spreads on all the live trading account options. Swaps are charged on trades that stay open over the night.
Tera FX offers a leverage of up to 1:30 on all the live trading accounts. But those who qualify as professional traders can get up to 1:200 leverage on the Pro account.
Leverage enables traders to increase their position size by borrowing from the broker. But while it helps increase your potential profits, it can also magnify losses when misused.
Analysis and Education
TeraFX’s website has many educational resources, including technical analysis, research overviews, webinars, seminars, a glossary of trading terms, video tutorials, learning articles, ebooks, news, and FAQs that answer some of the clients’ most common questions. Click here to explore the resources.
The broker’s client support team is available 24/5 to respond to all general, technical, and account-based inquiries. They can be reached via various contact channels, including live chat, email (firstname.lastname@example.org), and telephone (+44(0)203 048 4764). You can also request a callback from their contact page or reach them via social media channels — Twitter, Facebook, or Instagram.
Reputation amongst Traders
The broker has received some positive reviews, especially on ForexPeaceArmy where many traders praised its transparent trade executions.
At the time of writing this TeraFX review, no industry award is displayed on the broker’s website.
Can beginners trade with Tera FX?
Yes, beginners can trade with Tera FX given that the broker provides some training resources and offers a demo account to help new traders get familiarized with its trading platforms.
Tera FX is an FCA-regulated online trading broker that offers a full suite of resources to help you grow as a trader. The broker offers ECN execution on certain account types and provides traders with the intuitive MT4 trading platform in desktop, web, and mobile versions. The minimum deposit amount required to start trading is $100.