Friedberg Direct Review
Friedberg Direct is part of the Friedberg Group, one of Canada’s oldest brokerages in stocks, commodities, and Forex. The group was founded in 1971, at the dawn of the modern retail brokerage industry. Due to regulatory issues, Forex / CFD broker FXCM has withdrawn from the Canadian market, redirecting its potential Canadian resident clients to Friedberg Direct, who offer a very similar service to what FXCM were providing in trading in Forex currency pairs, major stock indices, and major commodities, powered by the same technology and on near-identical terms.
Friedberg Direct a Forex / CFD broker headquartered and regulated in Canada by the Investment Industry Regulatory Organization of Canada. They state that they operate a no dealing desk model, without any dealing desk interference. A relatively wide range of assets for trading are offered, in all the major and minor Forex currency pairs, 11 major stock indices, a few major commodities (gold, silver, copper, natural gas, and crude oil), and even Treasury Bunds.
One of the most attractive features of an account with Friedberg Direct is that it is insured by the CIPF (Canadian Investor Protection Fund) for up to CAD 1 million.
There is no significant choice of account types with Friedberg Direct, just a variety of legal structures (individual, partnership, corporate etc.). An account requires a minimum deposit of $5,000 or the equivalent of CAD 5,000, whichever is cheaper. An average spread of 0.2 pips is offered on the benchmark EUR/USD currency pair, plus a commission of CAD 10 per lot traded round trip. This equals an effective spread plus commission of 1 pip, which is very competitive.
Maximum leverage offered is just a fraction under 20 to 1, equal to a minimum margin requirement of 5.2%. The minimum trade size for Forex is 1 microlot (0.01 full lots).
There is a choice between several trading platforms: MetaTrader 4, Ninja Trader, or FXCM’s proprietary Trade Station. These are the most popular, widely used and respected trading platforms in use within the retail Forex / CFD brokerage industry. Trade Station may be used as software or as a web-based platform through a web browser, and as an application on smartphones and tablets.
A demo account is available, as is typical with nearly all spot Forex and CFD brokers.
Friedberg Direct’s pricing model allows traders to easily scalp the market, while providing increased execution benefits to stop and limit orders. In addition, Friedberg Direct clients benefit from no re-quotes, fast, efficient and transparent execution, with no restrictions.
The most notable feature of Fridberg Direct worth emphasizing is that they offer excellent liquidity, very competitive spreads, and few restrictions on trading, on a wide range of markets. Scalping is allowed, and automated trading is possible. They are highly regulated and offer a relatively safe environment for traders, subject to the conservative margin requirements imposed by Canadian regulation.
Friedberg Direct prides themselves on selling their reputation and execution ability, so you won’t find many of the bells and whistles that are often touted within the industry. Instead, they emphasize their goals simply. Transparency comes from their no dealing desk mode. We are not certain how rigorous the no dealing desk approach is in reality, but the regime of spreads / commissions is very competitive and is hard to beat for the major Forex pairs at the retail level anywhere.
Friedberg Direct has no educational offering. We see nothing wrong with this, as a massive range of high-quality trading education can be found for free on the internet, so there is little value in putting together a half-baked educational offering as too many brokers do, just for the façade of having an ‘education center’. It is also worth questioning whether most brokers, generating a majority of their income from their client’s losing trades, are in a strong position to be “educating” their clients.
Bonuses and Promotions
There are no bonuses and promotions on offer at the time of writing. Such activity is prohibited by Canadian regulation.
Depositing funds into a Friedberg Direct account is an easy and secure process. Funding can be done using credit cards, debit cards, or wire transfer.
Friedberg Direct has a minimum requirement on deposits or withdrawals of CAD 50.
A maximum of $10,000 per calendar month may be deposited by credit and/or debit card.
Customer support is based in Toronto, Canada, offering 24-hour support while markets are open from Monday morning in Australia to Friday evening in New York.
Friedberg Direct has a well-rounded and professional offering for traders looking to trade using spot and CFD instruments through a reasonably wide range of assets, particularly Forex currency pairs and global equity indices, but notably also major commodities such as metals and energies. Fans of no-nonsense trading looking for a confident and no-frills broker may find their offer especially interesting, and quite possibly attractive enough to open an account. The offering is a nice synergy between the technology and resources of FXCM, with the reputation and reputation of one of Canada’s oldest and most reputable broker – accounts are fully owned through Friedberg Direct, not FXCM.
Most importantly of all, the spreads and commissions offered are be extremely competitive.
- Very Competitive Spreads
- Deposit Protection
- No Bonuses
- No Education Offering
Review info: Friedberg Direct
Review Date: 2018-02-04
Rating : 2.5
Reviewed By : Sara Patterson (Google+)