FinecoBank Review 2024
What is FinecoBank?
FinecoBank is an Italian bank that offers a wide range of financial services. It is recognized for its digital banking services, personalized financial consultancy, innovative trading solutions, and private banking. FinecoBank has received numerous positive reviews and has a high customer satisfaction rate. In the context of forex, FinecoBank provides a service called Forex CFDs which allows customers to trade CFDs with underlying currencies traded on the Forex Exchange (Forex) market. This service is available in real-time and in push mode from both the PowerDesk2 platform and directly from its website and through the mobile app. The Forex CFD service allows margin trading, where each trade requires an amount equal to a reduced percentage of the value of the transaction. Customers can take a Long (bullish) or Short (bearish) position compared to a given exchange rate. For example, if a customer purchases a CFD Fx on EURUSD at a price of 1.2800 (long position on the EURUSD exchange rate), they will make a profit if the price of the CFD subsequently exceeds 1.2800, or a loss if it falls below 1.2800. It’s important to note that the CFD Fx service differs from the traditional Multicurrency service that allows customers to carry out the GBP/foreign currency (dollar/Euro/CHF) exchange directly online with immediate availability of the currency for any amount and without the leverage effect that characterizes the spot exchange rate trading of the Forex market. Overall, FinecoBank’s Forex CFDs service provides a comprehensive and flexible platform for forex trading, catering to the needs of both novice and experienced traders.
What is the Review Rating of FinecoBank?
- 55brokers: 55brokers rated FinecoBank with a score of 90. This rating was last checked at 2024-01-06 03:47:03. Forexbrokersinfo multiplies the 55brokers rating times 10 to normalize the rating to 100.
- Forexbrokers: Forexbrokers rated FinecoBank with a score of 90. This rating was last checked at 2024-01-07 00:03:02. Forexbrokersinfo multiplies the 55brokers rating times 10 to normalize the rating to 100.
- Trustpilot: Trustpilot rated FinecoBank with a score of 96. This rating was last checked at 2024-01-06 13:54:02. Forexbrokersinfo multiplies the 55brokers rating times 10 to normalize the rating to 100.
- Wikifx: Wikifx rated FinecoBank with a score of 15. This rating was last checked at 2024-03-12 13:14:02. Forexbrokersinfo multiplies the 55brokers rating times 10 to normalize the rating to 100.
What are the Pros of FinecoBank?
FinecoBank, a trusted multi-asset broker offering forex and CFDs, has several advantages that make it a compelling choice for forex trading. Regulation and Trust: FinecoBank is regulated as a bank and is publicly traded on the Italian stock market. It is a member of the National Compensation Fund and the National Interbank Deposit Guarantee Fund in Italy. This provides a high level of trust and security for its customers. Wide Variety of Assets: FinecoBank offers a larger variety of over 10,000 tradeable markets, ranging from exchange-trade securities, funds, options, and CFDs including on forex and shares. This wide range of assets provides traders with numerous opportunities to diversify their portfolio. Competitive Pricing: FinecoBank offers competitive pricing on index CFDs. In terms of forex trading, it provides low spreads starting at 0.8 pips. , which can lead to significant cost savings for active traders. Advanced Trading Platforms: FinecoBank offers numerous trading platforms, including FinecoX powered by ChartIQ, and the PowerDesk desktop platform. These platforms come with advanced screeners and charts for forex traders. , providing them with the tools they need to make informed trading decisions. Educational Content: FinecoBank has significantly expanded its content for English speakers in the areas of research and education. This can be particularly beneficial for new traders who are looking to learn more about forex trading. Customer Base and Assets: As of December 31, 2022, FinecoBank holds EUR 106.6 billion in assets and caters to more than 1.4 million customers. This demonstrates the bank’s stability and popularity among traders. However, it’s important to note that FinecoBank’s services are primarily available to residents of Italy or the U.K., and EU residents must be present at a physical branch to open an account. Also, FinecoBank does not offer daily market analysis across its platforms and website. , and demo/virtual accounts are not available.
What are the Cons of FinecoBank?
FinecoBank, a multi-asset broker offering forex and CFDs, has several disadvantages that potential users should consider:. Limited Market Analysis: FinecoBank’s platforms and website lack daily market analysis. This could be a significant drawback for traders who rely on daily market insights to inform their trading decisions. Position Limitations: The maximum position is limited to 99 standard lots on EUR/USD. This restriction could limit the trading strategies of users who wish to trade in larger volumes. Absence of Demo Accounts: FinecoBank does not offer demo or virtual accounts. This could be a disadvantage for beginners who wish to practice trading in a risk-free environment before investing real money. Residency Restrictions: To open an account online with FinecoBank, one must be a resident of Italy or the U.K. Residents of the EU must visit a physical branch to open an account. This could be inconvenient for potential users residing outside these regions. Less Versatile Mobile App: The economic calendar on the mobile app is not as versatile as the web version. This could limit the functionality for users who prefer to trade on mobile devices. High Forex Fees: FinecoBank has high forex fees. This could significantly impact the profitability of forex traders. Expensive Financing Rates: Holding positions overnight (i.e., financing rates) are also expensive at FinecoBank. This could affect traders who hold positions for extended periods. Account Maintenance Fee: FinecoBank charges a monthly account maintenance fee. This could be a disadvantage for users who prefer brokers without such fees. Risk of Losing Money: Trading with FinecoBank involves risks, and losses can exceed deposits. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62.02% of retail investor accounts lose money when trading CFDs with this provider. Please note that all trading involves risks, and it’s important to understand these risks before starting to trade.
Is FinecoBank Regulated and who are the Regulators?
FinecoBank, an Italian bank specializing in online brokerage, is indeed regulated by several authorities. It has been designated as a Significant Institution under the criteria of European Banking Supervision and is directly supervised by the European Central Bank. In addition to this, FinecoBank is authorized and regulated by the Bank of Italy and Consob, the Italian Market Regulator. It is also subject to limited regulation by the top-tier Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). These regulatory bodies ensure that FinecoBank adheres to the highest standards of financial conduct, providing a secure and trustworthy platform for its users. The bank’s diverse product selection includes stocks, funds, bonds, ETFs, forex, options, futures, and CFDs. However, it’s worth noting that the mutual funds and derivatives offered by FinecoBank are restricted, and the bank does not offer crypto. This comprehensive regulatory oversight, combined with FinecoBank’s wide range of financial products, makes it a reliable choice for forex trading and other financial activities. It’s always important for traders to ensure that their chosen platform is regulated by reputable authorities, as this provides an additional layer of security and accountability. With FinecoBank, traders can have confidence in the bank’s commitment to maintaining the highest standards of regulatory compliance.