Excotrader Review – Broker with a flexible leverage

Excotrader is registered in Saint Vincent and the Grenadines with a registration number 25143 IBC 2018 by the Registrar of International Business Companies. The company was established in 2018 and since its establishment has managed to attract forex and CFD traders from around the globe.

The broker offers access to various trading instruments, including: Forex, Crypto currencies, indices and commodities. In addition, there’s a very flexible leverage, ranging from 1:1 to 1000:1 with this broker. Which can be helpful for intraday traders that are low on funds as well as more experienced traders that are looking for scalping opportunities.

The broker keeps traders’ funds in segregated accounts. Account segregation is critical for the safety and security of your funds as in the event of bankruptcy, you are guaranteed that your funds will be returned to you.

Excotrader allows hedging. Hedging is a complex risk management strategy that is not allowed in various countries. Hedging requires experience and great attention to detail. It simply means to open another trade in the opposite direction to your existing one. Why would any trader do that? The answer is simple, to protect their long term investments from short term fluctuations. Let’s say you are swing trading EUR/USD and an upcoming new announcement can damage your position. The hedged position gets closed once the threat is gone. Using hedging strategies can eliminate risks. On the downside, hedging is like an insurance that has trading costs.

The broker allows use of Expert Advisors using MetaTrader 4 platforms. Expert Advisors or EAs for short are trading algorithms that are used to automate trading. EAs not only help in automation, but there are backtesting EAs available in the Meta Market as well. Backtesting trading strategies helps traders compare strategies to historic performance and get clues whether their system is profitable or not. The broker offers 2 account types, and they both have many similarities and differences. Let’s discuss each in more detail.

Excotrader account types – made for all types of traders

The broker offers EXCO ECN and EXCO STP account types. It’s important to note that the available leverage is up to 500:1 for trading FX pairs on both account types. In the case of other instruments, EXCO Trader provides the following leverage levels. Indices have up to 100:1; Commodities up to 100:1; Bonds up to 100:1; and lastly Cryptocurrencies up to 5:1.

Available leverage also depends on your equity. On 500 USD equity, there’s 1000:1 leverage available. Above that level to 3,000 USD equity, the leverage falls to 500:1. And between 3,000 USD and 10,000 USD offered leverage is 100:1. Leverage is often referred to as a double-edged sword, and high leverage can sometimes have a negative impact on your performance. Leverage enables traders to increase their purchasing power using borrowed funds. As a result, increased position size can lead to great winning and great losses. High leverage can quickly double account balance or blow up.

Because CFD trading is using high leverage, traders can lose more money than what’s on their deposit. To prevent a trader’s funds from going negative, Excotrader provides Negative Balance Protection. There’s a 30% Stop Out level for both EXCO ECN and EXCO STP account users. Whenever a trade goes against prediction and trading balance decreases to 30% equity, the broker automatically starts closing active traders to avoid balance going negative. Prior to the Stop Outs, traders receive margin call emails, and they can manually close their trades or deposit more funds so that the margin levels increase.

As already mentioned, trading accounts of Excotrade has lots in common and there are also many differences.

EXCO ECN account

On EXCO ECN account, leverage is 500:1, available platforms are MT4 and Mobile app and there’s 30% Stop Out level. The account holders have access to all the assets offered by this broker, including: Forex, Cryptocurrency, Commodities, Indices. Spreads on major currencies such as EUR/USD start as low as 0.5 pips. On the other hand, there’s a 2 USD commission per traded lot round turn. Trading fees are very reasonable and attractive, considering the fact that most other brokers have much larger trading fees. To open the EXCO ECN account, minimum 100 USD initial deposit is required.

EXCO STP account

Similarly to the EXCO STP, EXCO ECN account offers 500:1 leverage, available platforms are MT4 and Mobile app, and there’s 30% Stop Out level. The account holders have access to all the assets offered by this broker, including: Forex, Cryptocurrency, Commodities, Indices. What differs in these two accounts is trading fees. The STP has no commissions, on the other hand, there’s 1 pip spread markup. In addition, opening the STP account has lower initial deposit requirements, which is only 50 USD. The STP account is for position traders and beginners, while ECN is for intraday traders that trade more frequently.

EXCO Account Access Levels

Based on your deposit amount, you can open different account levels.

Trading assets offered by Excotrader

With Excotrader, you can trade popular markets such as Bitcoin, Ethereum, EUR/USD, JPY/USD, Gold (XAU/USD), US 500 and more. The list of asset classes include:

Forex pairs: EUR/USD, GBP/USD, JPY/USD, EUR/JPY, AUD/USD and more. Leverage is up to 500:1. And spreads depend on the account type. Keep in mind that spread markups are only trading fees and in a live trading environment, you might experience market spreads that are naturally occurring due to the difference between bid and ask prices. In order to reduce trading fees, professional day traders only trade highly liquid markets such as major currency pairs, major indices and commodities. In addition, it’s important to note that while the FX market is open 24/5, the most active trading sessions are New York and Tokyo.

CFDs on Indices: Have a double purpose, they indicate the health of a sector, and they can also be traded as CFDs. When trading Indices with Excotrader, available leverage is up to 100:1. Indices show the performance of a basket of stocks. For instance, the S & P 500 or US 500 index follows the performance of the top 500 US publicly traded companies. Even if you are not planning on trading them, keeping an eye on indices is recommended. A drop in the US 500 price indicates that US companies are struggling and vice versa, a rise in the index price will be a positive sign. The stock market has an impact on other markets, such as Forex and commodity markets.

Crypto CFDs: there are BTC/USD, ETH/USD, LTC/USD, etc. for trading as CFDs. What’s great about CFDs is that you can benefit from price moving in any direction without actually owning the asset. You can buy when the price is increasing and get the benefit from a bull market, and short when the market is bearish. CFDs are contracts for difference and give traders the ability to do so. Which is not available when trading physical tokens. What’s more, when trading crypto CFDs, traders can use leverage to their advantage. Excotrader offers up to 5:1 leverage for trading cryptos.

Commodities as CFDs: Commodities are raw materials. Excotrader offers precious metals and energies for trading. Commodity prices are determined by the global demand and supply. Available leverage for trading commodities is up to 100:1. Keep in mind that some currencies are highly correlated with commodity prices, and keeping an eye on these assets will be beneficial even if you are not planing on trading commodities. For instance, Canada is a large producer of oil, consequently, a large portion of its economy is reliant on oil prices. Currencies of Canada, New Zealand and Australia are referred to as commodity pairs due to the fact that their valuation is highly correlated with commodity prices.

Summary

To sum everything up, Excotrader offers a great trading opportunity for both novice and experienced traders. Offered instruments are Forex, Cryptocurrency, Commodities, and Indices. Minimum initial deposit required to open an account is only 50 USD and the maximum leverage available is up to 1000:1. What’s more, there are EXCO ECN and EXCO STP account types to choose from. EXCO STP is for position traders and EXCO ECN is for intraday traders due to the fee structure. In general, trading fees and trading conditions are great with this broker.