Richard Montana | August 2, 2022
Founded in 2019, XBTFX is an online brokerage firm that offers you Forex, Crypto, and CFD trading online via the sophisticated and user-friendly MetaTrader 5 (MT5) platforms. I found the broker to have competitive trading conditions including good execution speeds and a range of account funding options. They provide copy trading and managed accounts for both money managers and investors. This might be worth a look at if you have a good strategy you want to share or if you do not have the time or knowledge to trade manually. If you are a beginner then there is an educational blog with some useful articles and demo accounts to practice you trading skills. There is no minimum deposit to get started if and when you are ready to make the switch over to a real account. I think they are worth a closer look at for anyone who likes to deal in cryptos and is looking for lesser restrictions on their trading capabilities.
Pros & Cons
- Powerful MT5 platform with large range of advanced built in tools
- Cryptocurrency trading and account funding
- Blockchain deposit and same day withdrawals
- Good choice of trading instruments across different asset classes
- Copy trading services and managed accounts for traders/investors
- Unique "STP Lock" feature
- Educational blog to help beginners
- Low minimum deposit of just $1
- Free demo trading accounts
- Islamic swap-free accounts
- Prompt 24/7 customer support
- No wire transfer or credit/debit card funding
- Cannot accept traders from some countries
- Currently not regulated
- No contact telephone number
XBTFX is a Cryptocurrency-based trading platform that can provide you with Forex, Crypto, and CFD trading online from anywhere around the world. You can conveniently deposit, exchange, trade, and withdraw using a good range of around 16 Cryptocurrencies and stablecoins. Stablecoins are cryptocurrencies where the price is designed to be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities.
The broker gives you direct market access (DMA) to over 200+ FX, Cryptocurrency, Commodities, and Indices for investing and trading online through the popular and powerful MetaTrader 5 (MT5) platforms for all of your devices. This means anyone can get quick and easy to the global markets.
I am pleased that they have implemented an STP/ECN execution model. I much prefer this to a dealing desk where the broker can be between your trades and the markets. With no-dealing desk (NDD), you are connected directly to the liquidity providers (LPs) and thus, there is no conflict of interest or dealing desk intervention in most cases. This should mean better pricing with minimal slippage.
In addition to very competitive trading conditions, they also offer quite high leverage of up to 1:500 on supported markets, competitive spreads, blockchain deposits, and same-day withdrawals. There is also a dedicated support team on hand around the clock to answer your queries as and when needed.
This is a unique feature that I havent seen any other broker provide. The XBTFX brokerage model is based on full transparency which is why they have an innovative feature that they call the “STP Lock”. If you decide to use the maximum leverage, the broker cannot possibly hold that exposure consistently and maintain the required margins on their liquidity accounts. This is why they transparently state that accounts with 1:500 leverage can be in situations where XBTFX acts as a dealing desk. As some of you may not want this type of execution, they have implemented the “STP Lock” which can be requested and means that the account’s leverage will be capped at 1:100. I like how this guarantees that the broker’s orders are executed at all times using STP. I believe that since the broker addresses this clearly on their website, it shows that they are willing to be transparent and upfront about their trading conditions.
One of the most important things many traders look for in a broker is the regulation they have, if any. XBTFX is registered by the Financial Services Authority (FSA) of Saint Vincent and the Grenadines. However, they are not regulated at this time but have stated that regulation is in the pipeline. I will update this XBTFX review accordingly should they add regulation. Whilst lack of regulation may deter some users, it does mean that they are able to give you access to certain products and features that a regulated broker cannot. If you would prefer to trade with a regulated broker, AvaTrade are one of my top choices. They also have a good range of trading products and services, including cryptos.
The broker does not provide services to residents of the United States of America, Québec (Canada), Belgium, North Korea, Sudan, or any other jurisdiction where the services offered would be contrary to local law or regulation. If you find that they do not provide services in your country, you can check out our broker comparison tool for alternatives.
The broker lets you choose between the industry standard MetaTrader platforms. MetaTrader 4 is very easy to use with plenty of features and functionalities to create your very own customised trading environment. I would consider it more of a forex trading platform. MetaTrader 5 is an institutional multi-asset platform offering advanced trading possibilities and technical analysis tools, as well as enabling the use of automated trading systems (trading robots) and copy trading. However, both platforms can give you an excellent introduction to the world of online trading and investing. They are well known to be very beginner friendly whilst still packing enough of a punch for those of you with more complex trading strategies. Another great advantage is that you can find the MetaTrader platforms available at most brokers which would make it easier to switch providers down the line.
MetaTrader 4 (MT4)
I personally find MT4 to be much easier to use due to its simple interface as compared to MT5. It may also be due to the fact it was the first platform that I mastered and have never felt the need to switch as it does everything that I need it to and more. You can follow market prices, analyse charts, place and manage trades. Despite being released back in 2005, it still stands strong as one of the top platforms today.
Some of the key features of the MT4 platform include:
- Track your favourite instruments
- Open multiple chart windows
- Choose from 9 chart timeframes
- Access 50+ technical indicators
- Use drawing objects to study price
- Set alert notification on price & indicators
- Trade fully automated with expert advisors
- View your account on web, desktop & mobile
MetaTrader 5 (MT5)
XBTFX provides you with the popular, powerful, and user-friendly MetaTrader 5 (MT5) platform that is developed by software company MetaQuotes and freely available to use on desktop (Windows/MAC), web and mobile devices (iOS & Android). It is an all-in-one platform for trading Forex, Stocks, and Futures. I like how the web platform runs in most web browsers without needing to download or install any software. The web version is always up to date so you can trade bug free. The mobile version is useful for those of you who wish to access your trading account and trade whilst on the go from anywhere in the world with an internet connection. I am a big fan of trading apps as I like to be able to check my positions and manage my account from anywhere at any time.
Some of the more prominent features of MT5 include:
- Over 200 Instruments, including Cryptos, Indices CFDs, Forex, CFDs on Precious Metals, and Energies
- Level 2 depth of market (DOM) price quotes
- 1 single login to 7 platforms across multiple devices
- Raw spreads from as low as 0 pips
- One-Click trading
- Multiple order types
- Multiple chart timeframes
- Multiple chart styles (line, bar, candlestick)
- Vast array of built-in technical indicators to conduct detailed market analysis
- Automated trading with expert advisors (EAs)
- Multi-currency strategy tester to backtest EAs over historical data
- Built-in economic calendar
- Hedging allowed
The broker has PAMM accounts for money managers and investors. A PAMM ( Percentage allocation management module ) allows clients/traders to create their own investment fund and scale their success with fee payments from investors for profits made on their accounts or volumes. All investors’ accounts are combined into one big trading account where the money manager opens positions. Investors cannot trade – they simply receive any profits & losses in proportion to their investments. XBTFX PAMM can be used with a leaderboard of strategies for all clients as well as privately with custom allocation settings. All users can become investors in PAMM accounts regardless of how much money you have. It works in the same way with as little at $30 or as much as $300,000. Either way, the platform will calculate their share in positions and distribute the PnL to their accounts.
The MAM (multi account manager) allows sophisticated traders and fund managers to manage multiple trading accounts at the click of a button. It features an impressive 10 allocation methods to allocate positions to clients’ accounts with the formulas they are used to. Money managers sometimes work with clients who have different risk tolerances. In this case, MAM masters can deactivate investors and allow them to skip some positions without unsubscribing them. Activation and deactivation do not close opened positions.
The copy trading platform gives traders the opportunity to copy trades from professional traders, seamlessly via the MetaTrader 5 Platform. Successful traders can continue trading on their usual account but at the end of the week or month, get paid for their success by charging fees as they choose. The platform is powerful yet easy to use, with all the basic and advanced functions needed to run a copy trading service. Followers retain full control over their accounts but there can be no guarantee of results.
XBTFX does not have any stand-alone tools but the abundance of trading tools already included within the MT5 platform will usually be more than enough to meet the needs of most retail traders. You will also find that MT5 also gives you the option of choosing additional tools that are available online so that you can improve the functionality of the platform and further customize it to your needs. There are plenty of free and paid tools in the MQL marketplace which you can access from directly within the platform. If you have an idea for a custom tool, you could even get someone from the MQL community to program it for you or code it yourself using the MQL editor.
XBTFX has a trading blog that contains useful content including market news articles, company updates, and educational materials. I find this to be extremely useful in helping beginners learn all about trading on their platform.
XBTFX offers trading on traditional markets and cryptocurrencies. There is a good choice of asset classes and hundreds of instruments. You can trade FX currency pairs, commodities, global stock indices, shares and cryptos. I think there should be enough for most people looking to create a diversified portfolio. The XBTFX MetaTrader 5 trading platform allows you to trade shares with leverage and low spreads from the top exchanges in the USA, EU, Asia and Russia.
- Equity Indices
- Precious Metals
At XBTFX, they offer both Standard and ECN account types that can match the needs of beginner and experienced traders alike, with flexible trading conditions and leverage up to 1:500 available on certain markets although crypto leverage is capped at 1:50. I like how both accounts support all types of trading including hedging, scalping, HFT, etc. I appreciate that they don’t have a minimum deposit requirement. You will find some brokers want you to deposit at least a few hundred just to open an account. Base MT5 accounts are in Bitcoin (BTC), Ethereum (ETH) and some other cryptos. When it comes to crypto brokers, they are certainly up there in terms of available cryptos.
Standard accounts are geared towards those of you who prefer zero commissions and all trading fees built into the spread. I like this account as it simplifies the trading process and gives you the advantage of having the costs calculated in the profit and loss of the trade instead of seeing commissions charged in addition to this. Standard accounts are commonly preferred by position and swing traders.
ECN Accounts are zero mark-up raw spread accounts that get charged a fixed commission of $4/lot per deal. ECN accounts are usually preferred by those of you who are looking to separate commissions from trading profit and loss. I believe it is also preferred by scalpers who require the lowest spread possible to trigger low time frame orders without an added spread. I would personally use this account for running my automated systems that are spread dependant.
If you are new to trading, you can create a demo account that will allow you to trade with virtual BTC without exposing you to any risk, as your gains and losses are simulated. Once you have tested your trading strategies and learned about market moves and how to place orders, you can take the next step to open a trading account with real funds if and when you feel ready to do so. I would always test a broker on a demo account to begin with just to make sure they have suitable conditions for my strategies.
XBTFX offers Islamic crypto and forex trading accounts for traders that are required to comply with Sharia law. Islamic forex accounts, also known as swap-free accounts, have no swap, or rollover interest on overnight positions. Customers with an Islamic account do not pay or earn swap interest on all instruments in the XBTFX MT5 platform, including cryptocurrency pairs.
The XBTFX support team is on hand 24/7 to answer any questions you may have via email and live chat. Alternatively, you can get in touch with them via Twitter, Facebook, or Reddit. For clients, the broker recommends the use of the integrated support system. This the quickest way to get an answer. There is also a knowledge base on the broker’s website that covers some commonly asked questions. I would’ve liked to see a telephone number being provided so this is an area the broker may consider improving on in the future.
The broker supports flexible methods of deposits and withdrawals in multiple cryptocurrencies and stablecoins. Users can exchange cryptos instantly in one click and make blockchain deposits. I appreciate that they also provide same-day withdrawal options while also charging no fees on deposits or withdrawals. There will be blockchain fees which as you may know, can be quite hefty. We are still in the early stages of crypto adoption so let’s hope that things improve in terms of transfer fees in the future. I have been in a scenario where the blockchain fee worked out more than the amount I wanted to deposit. For this reason, I think it would be better if the broker could support some digital wallets. However, I do appreciate the anonymity that some of you may want and crypto does give you that to some extent.
Please note that trading accounts can only be denominated in USDC/USDT & BTC. If you’re depositing with another of the supported cryptocurrencies, you will need to exchange that balance into BTC or USDC/USDT first to start trading. You can exchange your available cryptocurrency balances directly from the Account Management back-end – fees are shown on the broker’s website. Exchanging between stablecoins and other cryptocurrencies will require you to complete a Level 2 KYC Verification. You might not like how they have imposed a limit for exchanging into stablecoins. Limits are currently set to a maximum exchange into stablecoins from other cryptocurrencies to the equivalent of $20,000.
Overall, I found XBTFX to have a generous selection of trading instruments with competitive trading conditions on the excellent MT5 platforms. They are primarily geared towards traders who use Cryptocurrencies while providing them with a range of modern payment options. I like how they also provide an educational blog with some informative trading articles. I like how they implement copy trading and managed accounts. However, the main area that I believe they could improve in would be regulation whilst providing a contact telephone number would also be beneficial. If you are looking for the anonymity of crypto and range of features that an unregulated broker can provide, you might want to check them out and even see how things go on a demo account before making any commitment.