FinecoBank is an Italian based bank that offers a diverse range of financial products through the Powerdesk and Stock Screener platforms. Its portfolio of tradable assets include Contracts For Difference (CFDs), Super CFDs, BTP, BUNDS, Futures, Bonds, Shares, and the Exchange Traded Fund (ETF).
Most of FinecoBank’s business is commercial banking, which brings it under the regulation of Italy’s c-bank Banca d’Italia. The bank is also under the ambit of the National Compensation Fund and the National Interbank Deposit Guarantee Fund which ensures protection of the depositor’s assets.
In most ways, Fineco banks trading services are like those offered by European Forex Brokerages that are affiliated to banks. A good example is Rietumu FX, which is under the aegis of the Latvian Rietumu Bank. Just like Rietumu FX, forex trading is not the main business of FinecoBank.
Nevertheless, Fineco bank offers thousands of international stocks which span across 26 of the world’s financial markets. It has 6,000 common bonds with no stipulations on a minimum deposit. So, even though fineco bank is not considered a fully-fledged forex broker, it has enough on offer for both new and seasoned traders. Also, having a bank in the background adds to the credibility and trust of a forex broker.
The website has an English version for EU customers, but with a strong focus on Italian market.
As far as trading in securities goes, FinecoBank offers one type of trading account whose minimum deposit is €100. The EURUSD is the most sought after trading pair.
The leverage on deposit stands at 1:30 with their spreads starting at 3 pips, just slightly above the industry average of 2 pips a spread. Its clients enjoy wide spreads which even after the deduction of commission remain impressive. For the more prolific traders, the bank offers packages at zero commission with leverage of up to 28 times for retail customers and 100 times for professional customers.
Among its high-end spreads, are USDZAR with 175 pips spread and EURMXN and EURZAR with spreads of 100 pips each. In general, FinecoBank offers three pricing models, which are dependent on the amount of trading done by a single account. The categories are Standard fee, Active Traders fee and a reduced fee.
The bank allows for easy and convenient deposits and withdrawals. All a trader has to do is open an account with the bank, after which he receives a credit or debit card with which to access one of the many FinecoBank and UniCredit ATMs. The client has the option of choosing between a free GBP debit card or a EUR 9.95 debit card. In addition, the brokerage also offers the smart withdrawal option, where traders can make withdrawals through the Fineco App.
When it comes to UK shares, bonds and ETFs, FinecoBank charges a flat rate of £6.95 per transaction, coupled with a stamp duty of 0.5% of the transaction cost. This sweet deal is, however, subject to conditions. To qualify for this rate, the trader must be incredibly active in terms of their monthly dealings. Depending on the level of activity a trader has, they can even get to enjoy an even lesser rate.
For brokers who manage to achieve a target of £500 in a month, the commission fee payable to FinecoBank drops to £500. This adjustable commission is good news for the big-time traders with a lot of transactions at their disposal. As with any other market, the economies of scale favour the big players in every industry, and FinecoBank securities trading is no different.
Furthermore, the traders who qualify for this highly preferential rate of £3.95 get to enjoy it not just reasonable rates on any further trades they undertake for that calendar month, but the next calendar month too! Should they fail to hit their targets after that, the billable fees revert to the initial £6.95 per month in the subsequent months.
When it comes to overseas securities, FinecoBank offers fixed fees of €6.95 for the moderate retail trader and €3.95 for the prolific high-volume transaction traders in Europe. A similar rate applies to its US market. This is a very competitive rate in a market which sees some of Fineco’s competitors offer rates ranging £15- £20.
Even more good news is that FinecoBank does not charge any inactivity charges on its traders, nor does it levy any quarterly charges. Unlike other outfits, the bank has no administration fees whatsoever or settlement and safekeeping costs (otherwise known as custody charges).
Worth noting, however, is that due to strict regulation by the European Securities Markets Authority (ESMA), the authority has restricted the level of leverage that traders may use. For retail traders, their maximum leverage stands at 1:30 on forex options, 1:20 for the minor currencies and 1:110 on the commodities market. As usual, professional traders can get more preferential rates depending on the security in question and the level of activity that the trader has in the market. Presently, Fineco’s leverage is at 1:100.
Access on Desktops and Mobile
FinecoBank’s customers get quick and easy access to liquidity thanks to the intuitive and customizable Powerdesk app that is available to traders at an average monthly fee of €19.95. The software allows the bank’s clients to set their targets or margins, create automated sales, view their spreads as well as any news on their securities.
Besides, there is also the Stock screener platform for the sophisticated trader, which allows them to sell and purchase bonds and explore areas of interest within the market. Its technical filters aid traders in making more informed choices. For the always mobile investor, the brokerage also has a mobile application-the Fineco App, through which clients can keep abreast with their trading.
The low riding costs and the diverse portfolio offered by the platform makes FinecoBank worth a try. This suggestion is mainly for those investors who are hard-pressed for time and do not have a lot of room to investigate the various investment vehicles. They can benefit from the low operating costs offered by FinecoBank.
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- A low monthly minimum deposit of €100 only.
- Stringent regulation given the host of authorities overseeing its operations
- Quick, intuitive access through the Powerdesk, Stock screener and Fineco App which allow traders to navigate the information using pre-set headings and filters.
- Easy account opening procedure.
- It is a multi-currency account, which is good news for those wishing to trade directly using local currencies outside the UK.
- Free trading for the first three months as there are no platform fees on the initial €100 deposit.
- New traders can get a quick and accessible grasp of how the system works thanks to the free training organized by the bank through its webinars.
- No annual fees.
- There are no quarterly fees or inactivity charges.
- Site is mainly in Italian and seems to target the non-Italian speaking market principally. Ironically, however, the website is published in Italian, although Fineco’s market model appears to primarily target a diverse market of traders who wish to go beyond the UK by trading in European and US stocks, bonds, exchange-traded funds, and other financial instruments.
- For low volume retail traders or those that fail to meet the monthly trading volume targets, Powerdesk requires a monthly fee.
- Fineco’s leverage is a bit low when compared to that of other European brokerage houses, such as XM which in select cases offers upto1:888
- Wide spreads and low leverage leave FinecoBank’s traders with little wiggle room as compared to that provided by other firms such as FxPro based on the same minimum deposit.
- Since forex and securities trading is not the bank’s primary business (its core business being banking), most of the bank’s energy is expended in the banking sector, leaving the securities department under-attended sometimes to the detriment of its clientele
7 Binary Options review: FinecoBank: 3.5 stars