Friedberg Direct Review
Richard Montana | March 28, 2022
Friedberg Direct are a regulated Canadian brokerage that provides clients with online trading of Forex and CFD instruments via a choice of professional trading platforms along with additional customised trading tools. The broker provides educational materials and around the clock support but has limited account types and funding options whilst they do not offer individual stock trading. The trading broker review team did not find the broker to have the tightest spreads or lowest commissions when compared to other online brokers.
Pros / Cons
- Regulated brokerage firm
- Powerful proprietary Trading Station platform
- Advanced trading tools such as real volume & traders’ sentiment
- Range of liquidity providers
- Virtual Private Server (VPS)
- Educational resources
- No individual stock trading
- Min $5,000 deposit
- Max $10,000 deposit per month via credit/debit card
- Long account opening process compared to other brokers
- Limited account funding options
- Not the tightest spreads or lowest commissions
Friedberg Direct provide Canadian traders with forex, stock indices and precious metals trading that is powered by FXCM technology. The relationship between Friedberg Direct and FXCM was formed with the purpose to allow Canadian residents access to FXCM’s suite of products.
The group of family owned Friedberg companies began in 1971, specializing in managing money in non-traditional asset classes. Today, Friedberg manages over $2 billion in assets for a wide variety of retail and institutional investors.
Friedberg Direct is the online discount brokerage division of Friedberg Mercantile Group Ltd. offering direct access to non-US persons to online trading through dynamic, online trading platforms.
A core part of Friedberg Direct’s business is the commitment to providing clients with competitive spreads and reliable execution speeds with no re-quotes and no stop/limit restrictions. Friedberg Direct’s liquidity providers include global banks, financial institutions and other market makers.
Friedberg Direct also has a number of liquidity providers that stream pricing through the FastMatch Electronic Communication Network. Friedberg Direct’s Prime Brokers include Citibank N.A. and Jefferies Financial Services, Inc.
Each liquidity provider streams through a direct feed of executable buy and sell prices to Friedberg Direct. Friedberg Direct’s Price Engine selects the best buy price and the best sell price, which result in the best available spread.
Friedberg Direct is a division of Friedberg Mercantile Group Ltd who are headquartered in Toronto, Canada and a member of the Investment Industry Regulatory Organization of Canada (IIROC), the Canadian Investor Protection Fund (CIPF), and all Canadian Exchanges.
Trading accounts are opened with and held by Friedberg Direct which clears trades through a subsidiary within the FXCM Group of companies. Clients of Friedberg Direct may, in part, be serviced through subsidiaries within the FXCM Group. The FXCM Group does not own or control any part of Friedberg Direct and is headquartered in London, United Kingdom. Please see our FXCM review for more information.
The relationship between Friedberg Direct and FXCM was formed with the purpose to allow Canadian residents access to FXCM’s suite of products, while maintaining their accounts with a regulated Canadian firm.
FXCM offers access to many powerful forex trading platforms through your Friedberg Direct account.
Friedberg Direct provide traders with the popular MetaTrader 4 (MT4) platform. MT4 is one of the most widely used forex and CFD trading platforms that is well known for having a short learning curve and user-friendly interface. The platform can be customised to suit the needs of different traders whilst it has an abundance of built-in trading tools to conduct detailed market analysis and daily trading activities in an efficient manner. When you trade on MT4 with Friedberg Direct there are no 3rd party bridges and no auto account syncs.
The MetaTrader 4 trading experience offers many features including:
- Real time bid/ask price quotes displayed in the market watch window
- Multiple order types, chart types & time frames
- Hundreds of analytical tools including technical indicators & drawing objects
- Automated trading via expert advisors (EAs)
- Strategy tester to back test EAs over historical data
- MQL programming interface to create customised trading tools
- MQL market place for additional trading tools & signals
- Large online community to connect with other MT4 traders
- Set price alert notifications via SMS, email & platform pop-ups
- MT4 is available for desktop, web & mobile devices running iOS/Android
It is worth noting that accounts on the MetaTrader 4 platform have maximum account equity restrictions. Friedberg Direct MetaTrader 4 gives traders the ability to trade incremental sizes allowing for order sizes up to 50 million per trade on the same currency pair.
MT4 has an inherent limitation on the maximum numbers of quotes processing within a short period of time. This means that there is the potential for variations in pricing displayed between servers. These differences may not have an impact on prices available for execution but can impact the prices used to trigger orders. During volatile market situations, there is a risk of potential latency of price quotes which may result in delays in order execution.
Trading Station is the brokers proprietary forex and CFD trading platform that offers powerful analytical tools for chart traders, advanced functionality and much more.
Amongst the prominent features of the Trading Station platform are:
- Integrated news & economic calendar
- Education, research & market analysis via trading tools
- Advanced technical & fundamental indicators
- Real volume & trader sentiment
- Customised trading analytics & indicators
- Robust charting with various chart types & time frames
- Strategy optimization & back testing
- Price alert notifications
- Available for desktop, web & mobile trading app
Friedberg Direct clients can use NinjaTrader with FXCM technology. NinjaTrader users receive competitive pricing and quality execution from FXCM’s large network of forex liquidity providers, which includes global banks, financial institutions, prime brokers, and other market makers.
Friedberg Direct offers its clients a variety of tools and resources to help them become more educated and sophisticated traders.
There is an economic calendar to stay up to date with the latest market news which can be used as part of your fundamental analysis. You can filter news according to currency, volatility and date/time. Each news release shows the previous, consensus and actual results.
The broker has a generous selection of additional tools to further enhance the online trading experience including indicators, automated strategies, standalone apps, scripts and add-ons. There is a unique selection of tools for all types of trading styles.
Virtual Private Server
A virtual private server (VPS) enables you to run your trading platforms 24/7 without needing to have your computer switched on. This can be useful for traders who need to run automated trading systems around the clock and those who have an intermittent internet connection.
Friedberg Direct offer a VPS to all client through third-party VPS providers. Clients who trade notional volume with an average of 500K per month for the previous 3 months will have the cost of VPS service reimbursed.
Friedberg Direct provides market Insights and educational resources to help traders improve their trading skills and knowledge. This helps to show the brokers support for informed trading. There are a variety of trading guides, tutorial videos, articles, a trading glossary and more. These cover a range of different trading topics including market analysis, trading platforms and strategies.
Friedberg Direct offer some of the world’s largest markets with competitive spreads and execution speeds. The broker has a selection of forex, indices, commodities, energies and precious metals. You can trade forex and CFDs with no restrictions on stop and limit orders.
Friedberg Direct offer the following account types:
- Individual account – minimum $5,000 deposit
- Joint account – minimum $5,000 deposit
- Corporate account – minimum $10,000 deposit. There is a one-time account processing fee of 100.00 CCY for the onboarding of corporate, trust, partnership and LLC accounts. This fee will be waived with an initial deposit of 10,000.00 CCY or greater.
There is an Acitve Trader account that is designed for high-volume investors. You can get discounts on your spread costs based on the volume you trade. Active Trader benefits include dedicated support, premium services and custom solutions. Active Trader accounts offer spreads plus mark-up pricing or spreads plus commission pricing depending on your equity level and trading volume.
Friedberg Direct offer free forex and CFD demo trading accounts so you can practice your trading strategies risk free with $50,000 in virtual funds. Demo trading can also be a useful way of trying out the brokers service and familiarising yourself with the trading platforms.
Two components make up your total transaction costs when trading forex with Friedberg Direct: commissions and spreads. You trade on the direct quotes that the broker receives from liquidity providers with transparent commissions that start from $7 per standard lot. In some instances, accounts for clients of certain intermediaries are subject to a mark-up.
Friedberg Direct representatives are available 24 hours a day, 5 days a week via SMS and live web chat support. They can also be reached by telephone and email.
You can browse and search the brokers collection of articles answering the most common questions about trading platforms, product offerings and more in the help center on the Friedberg Direct website.
Friedberg Direct account deposit and withdrawal options are limited to credit/debit card and bank transfers. Most online brokers will offer alternative payment processors including eWallets such as PayPal, Neteller and Skrill. These payment methods can be more convenient for many traders.
Transactions made via debit and credit card may be instantly available to you in your Friedberg Direct trading account. There is a minimum $50 deposit via credit/debit card and $10,000 maximum per calendar month on credit/debit card deposits. Accounts funded via debit or credit card may be subjected to receiving withdrawals via the same debit or credit card. Thus, you will need to let the broker know if you no longer have the card that you used.
Bank transfers may take one to two business days (domestic) and three to five business days (international) to clear but can take longer. There are no administrative fees from Friedberg Direct to deposit funds although some fees may be charged by your bank. A withdrawal fee will be charged for all bank wire requests.
Friedberg Direct strictly do not accept third-party payments. All funds deposited into your trading account must be under the same name as your Friedberg Direct trading account. The broker does not take cash deposits or internal transfers.
Accounts can be opened in USD and CAD. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency. Your account and all account activity will be denominated in the selected currency, including profit, loss and withdrawals. Friedberg Direct cannot guarantee exchange rates for deposits not made in the currency denomination of the account.
On the Friedberg Direct website there is a link to the online application form that will take around 15 minutes to complete.
You will need to provide supporting documentation for your account application including photographic identification (e.g. passport or drivers license) and proof of address (e.g. bank statement or utility bill). If you apply for an account online, you will receive the client acknowledgement form which you are required to complete, physically sign and send via email to the broker.
Within 24 hours of the receipt of your application you will receive an email with an update on the status of your account. If the broker is unable to verify your identity the email will include details on how to complete your application.
Friedberg Direct will only conduct business with a client for whom it considers such business to be appropriate and in assessing appropriateness, will rely on the information provided by the client in their application form. Clients should let the broker know if there are any changes in circumstances which could impact their eligibility.
Friedberg Direct is an online trading solution for clients in Canada who want to use FXCM’s trading technology. The broker has a choice of advanced and powerful trading platforms that are packed with an abundance of trading tools. They also offer additional trading tools free of charge to clients which can help enhance the overall trading experience. There are educational materials to support new traders and a friendly customer support team on hand to answer any questions.
Whilst the trading conditions are competitive and include a good range of liquidity providers, we did not find the broker to have the tightest spreads or lowest commissions when compared with some other brokers that we have reviewed. We would also like to see Friedberg Direct offer a wider selection of trading account types and funding options.