Frequently Asked Questions
CoverdealFX is a domain operated by Coverdeal Holdings Limited, a Cyprus Investment Firm regulated and licensed by the Cyprus Securities and Exchange Commission (CySEC), license number 231/14 to offer the Investment services:
- Reception and transmission of orders in relation to one or more financial instruments
- Execution of orders on behalf of clients
- Dealing on own account
- Safekeeping and administration of financial instruments including custodianship and related services
- Granting credits or loans to one or more financial instruments, where the firm granting the credit or loan is involved in the transaction
- Foreign exchange services in connection with the provision of investment services
- Investment research and financial analysis
CoverdealFX is an STP broker. STP stands for Straight Through Processing, which means that customer orders are sent directly to liquidity providers, such as banks or larger brokers, without the need for running them through a dealing desk. The big advantage of using STP brokers is that an STP broker only makes money by adding a small commission or marking up the spread. Unlike standard brokers who stand to make a profit from their client’s losses, an STP broker gets the same mark, regardless of whether the client wins or loses. This also means there is no conflict of interest. STP brokers benefit more when their clients win their trades as they can charge a higher fee.
Is CoverdealFX regulated?
CoverdealFX is a domain operated by Coverdeal Holdings Limited, a Cyprus Investment Firm regulated and licensed by the Cyprus Securities and Exchange Commission (CySEC) to offer the
Investment services of:
- Reception and transmission of orders in relation to one or more financial instruments
- Execution of orders on behalf of clients
Ancillary services of:
- Safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management
- Granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the firm granting the credit or loans is more involved in the transaction
- Foreign exchange services where these are connected to the provision of investment services
- Investment research and financial analysis or other forms of general recommendation in relation to the following financial instruments:
- Transferable securities
- Money-market instruments
- Units and collective investment undertakings
- Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash.
- Options, futures swaps, forward rate agreements and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event
- Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled provided that they are traded on a regulated market, a MTF or/and an OTF.
- Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in point 6 of this section and not being for commercial purposes, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are cleared and settled through recognized clearing houses or are subject to regular margin cells.
- Derivative instruments for the transfer of credit risk
- Financial contracts for differences
- Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event, as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market, MTF or an OTF, are cleared and settled through recognized clearing houses or are subject to regular margin cells.
Coverdeal Holdings Limited is regulated under the Cyprus Investment Firms Law (L 87 (I) 2017).
CoverdealFX operates from Cyprus. Cyprus is a full member state of the European Union. Due to its competitive tax regime, skilled workforce and strict regulations, Cyprus has a growing financial sector which is quickly becoming a regional powerhouse.
CySEC (Cyprus Securities and Exchange Commission) is the commission charged with regulating Cyprus’ financial markets. http://www.cysec.gov.cy It ensures that CIF’s (Cypriot Investment Firms) adhere to strict financial guidelines in accordance with the laws and regulations of Cyprus and the European Union. CySEC is a public body that supervises and controls operations and transactions carried out in the Stock Exchange, it’s listed companies, brokers and brokerage firms.
CySEC duties include but are not limited to:
- Supervising and controlling licensed investment services companies, collective investment funds, investment consultants and mutual fund management companies
- Carrying out inspections and imposing administrative sanctions and disciplinary penalties to brokers, brokerage firms, investment consultants as well as to any other legal or natural person whom falls under the provisions of the legislation
- Granting operational licenses to investment firms, including investment consultants, brokerage firms and brokers
Cyprus is a full member-state of the European Union and as such shares similar powers to financial supervisory authorities in Europe (such as the UK’s FCA).
MiFID (Markets in Financial Instruments Directive)is the EU legislation that regulates firms who provide services to clients linked to ‘financial instruments’ (shares, bonds, units in collective investment schemes and derivatives), and the venues where those instruments are traded. MIFID was revised with a MIFID II which took effect in January 2018, to improve the functioning of the financial markets in light of the financial crisis and to strengthen investor protection. MiFID II provides regulatory harmony for investment services across member-states operating in the European Economic Area.
At CoverdealFX we understand that the security of your funds is a primary concern. Rest assured that we consider the implementation and strict adherence to financial guidelines – both internal and external – a top priority, and concrete safeguards are built within the system to ensure an efficient trading experience.
CoverdealFX was founded in 2014 by a group of professional traders, investment managers and software engineers.
From beginners to professionals, CoverdealFX services all levels of forex traders. Providing 24/5, multi-lingual support, CoverdealFX offers a flexible platform with powerful tools to assist you in all your online trading needs.
Opening a CoverdealFX account is easy. Simply click register online and fill out the personal information page. Once your account has been successfully created, you will need to submit verification documents to complete the registration process. These can be faxed, scanned or emailed. As soon as your documents have been approved, you will be able to fund your account and begin trading.
In order to activate your account the following documents are required:
- An identifying document such as a passport, drivers license or official ID
- Proof of Address such as a utility bill or bank statement (Must be no more then 6 months old)
After registering, you will receive a welcome email with a verification link. Please check your email and follow the link. If the verification link does not work, please try copying and pasting the link into your browser’s address bar. If this does not resolve the issue, please contact the CoverdealFX support team via chat or email at: firstname.lastname@example.org.
CoverdealFX will consider accepting corporate accounts; however, corporate accounts will only be accepted after undergoing and passing a rigorous compliance process. If you are interested in applying, please contact email@example.com for further details.
To change your account details, please contact your Personal Trading Assistant or a member of our support team.
CoverdealFX DOES NOT charge any commission or fee as a result of your trading. CoverdealFX is compensated for its services through the Bid/Ask spread.
No. CoverdealFX does not manage funds for its clients as this may create a conflict of interest. In order to remain 100% impartial, and always have our clients’ interest in mind, we do not manage funds. However, while you will be managing your own investments, you will be assigned a Personal Trading Assistant to help you along the way.
CoverdealFX does not deduct taxes from client accounts. It is the individual client’s responsibility to handle his or her own tax obligations in accordance with local law.
All open positions are automatically rolled or swapped over to the next business day. Traditionally, all spot trades in the FX market are performed for a period of two working days (when the delivery of the transaction takes place). Hence, in order to avoid the delivery of the trade, the positions are automatically closed for the original trade date and reopened for the next trade date. To give maximum advantage to our clients, the open and close rates of the rollover are kept the same as the open position rate. A premium is then added or subtracted based on the difference in interest rate between the two currencies being traded.
Only under certain conditions (e.g. client terminal malfunction) and only certain orders (close, editing of stop loss and take profit). A client is welcome to call the RTO department 24 hours a day Monday to Friday. The RT officer will quote the customer a two way price (bid and ask) and the customer may place the authorized order(s). The RT officer will confirm the trade.
CoverdealFX clients can trade using a leverage of up to 30:1, depending on the asset they wish to trade and the trade size. Leverage of 30:1 means that a client is able to open a position which is up to 30 times the size of his or her deposit. For example, if a client has deposited $1,000 he or she will be able to open a trade up to $30,000 in value. A minimum 50% margin must be maintained at all times. To learn more about CoverdealFX trading conditions and margin requirements for assets, please visit our Leverage and Margin Policy and Trading conditions.
Absolutely. The WebTrader platform will trigger a margin call notification when your account equity level falls to 100% (or less) of the required margins by your open positions. If the equity of your account falls to 50% of the required margin then the platform will close all open positions.
Due to very low liquidity (and until further notice), trading hours will open on Sunday at 22:00 GMT and close on Friday at 22:00 GMT.
It is worth keeping in mind that Foreign Currency & CFD trading carries a high degree of risk and may result in serious financial loss. Foreign Currency & CFD trading is not suitable for everyone. The high degree of leverage and volatility involved in Forex & CFD trading means that transactions can result in heavy losses as well as significant gains. We recommend that you trade with extreme caution and care. For help and guidance, make sure to take full advantage of all our services and highly trained support team. We also have a comprehensive library of educational resources available on our website. To help minimize potential losses, we also provide essential trading tools such as stop loss orders. However, such tools do not remove the significant element of risk that is involved in forex trading. To learn more about the risks involved with Forex & CFD trading, please visit the risk disclaimer page.
The questionnaire is designed to establish whether the CFD’s trading is appropriate for you and to ensure that you have fully understood the potential level of risks associated with trading of these type of products. Broker’s follow laws and regulations which require them to process the identification and verification of clients in order to monitor ongoing business relationships of clients in accordance with the Anti Money Laundering policy. It is necessary for this information to be verified to ensure the actions of the client correspond with the provided information and with the information evaluated by the broker.
Deposits & Withdrawals
CoverdealFX accepts a variety of payment methods, including:
- Credit/Debit card (Visa, MasterCard or Diners Club)
For a full list of payment methods please login to your account and go to the deposit page.
CoverdealFX does not charge clients when they deposit funds into their accounts. However, we recommend you check with your bank or credit card company for any money transfer costs and/or extra charges.
The time it takes for funds to appear in your account may vary depending on the deposit method used: 1. Credit/Debit Cards take approximately 24 hours to process (from time of receipt), 2. Wire Transfer Deposits take approximately 1 – 2 business days to process (from time of receipt)
In order to withdraw funds you can either log in to your account and select the “Withdraw Funds” tab and follow the instructions there or fill out a withdrawal request form. You can also scan and email the request form to: firstname.lastname@example.org
In order to process your withdrawal request in a quick and efficient manner, please refer to the following guidelines:
- Funds can be transferred directly to your bank account by wire transfer or returned to your credit card. However, a withdrawal can only be made using the exact same method you used for depositing. For example, if you deposited using a specific credit card, your funds can only be returned to that same credit card.
- Withdrawal requests are usually processed within one business day of receipt of all required documentation.
- In order to withdraw funds from your account you must maintain your margin requirements in case you have open positions. If you request a withdrawal of funds from your account and we cannot comply without closing some of your open positions, we will not be able to fulfill your request until you have closed sufficient positions to enable your withdrawal. Please Note: In compliance with international anti-money laundering regulations, CoverdealFX is allowed to transfer funds only to a bank account or a credit card bearing your name which was used for your initial deposit. The credit card copies should be provided upon registration and approved by CoverdealFX compliance department.
CoverdealFX does not charge any deposit or withdrawal fees. However, please keep in mind that some banks might charge transaction fees. These fees are not covered by CoverdealFX.
We work hard to make sure your funds are transferred in a prompt and efficient manner. Regular money transfers normally take approximately three to six business days for approval; however, please keep in mind that there are several factors which might affect the speed in which your account is credited/debited. These factors include, but are not limited to, the specific service you use to wire/request funds. Approved wire transfer withdrawals are forwarded to our bank on the day of their approval and are usually sent out from our bank on the same day. Wire transfers often make their way between several banks in several countries, and this can take a little longer as foreign financial institutions usually require a few working days to remit funds around the world. Once processed, for any withdrawal via bank wire transfer or credit card, please allow up to 7 business days for the funds to reach your bank account. Please Note: In compliance with international anti-money laundering regulations, CoverdealFX is allowed to transfer funds only to the bank account or credit card bearing your name which was used for your initial deposit. The credit card copies should be provided upon registration and approved by CoverdealFX compliance department.
Your Account Manager is ready to help you with any questions you might have. To obtain a quick response, you can reach your Personal Trading Assistant via email or telephone. If your Personal Trading Assistant is unavailable, our highly trained support team will be on hand to answer your questions. Rest assured that there is always a staff member available to take care of all your needs. Feel free to contact us at anytime.
We operate only with reputable payment institutions and payment providers such as:
1. SafeCharge Limited, an Electronic Money Institution authorised and regulated by the Central Bank of Cyprus and is a principal member of MasterCard, Visa and Unionpay International (CUP). SafeCharge Financial Services Limited is authorised and regulated by the Financial Conduct Authority as a Payment Institution. Both SafeCharge companies are wholly owned by SafeCharge International Group Limited.
2. Bank of Cyprus Group, bank in Cyprus and is regulated by the Central Bank of Cyprus and the European Central Bank.
3. Česká spořitelna, a bank in Czech Republic and regulated by the Central Bank of Czech Republic and the European Central Bank.
CoverdealFX offers 3 trading platforms:
- MT5 Desktop platform,
- CoverdealFX Web Trader synchronized with MT5,
- CoverdealFX iOS and Android Trader synchronized with MT5.
To learn more about the trading platforms, please visit the Trading platforms.
The recommended PC requirements are: Intel Pentium IV 3.0GHz, 512 MB RAM, or higher Monitor: A minimum resolution of 800×600 pixels Operating system: Microsoft Windows XP, Windows 2000 Web browser: Microsoft Internet Explorer 6.X Internet connection: Broadband internet connection with a min 1.5 MB download speed Note: Systems that do not meet these requirements may experience limited functionality.
Margin call is at 100% of margin level. If you reach margin call, then you will be addressed either to close some of your open positions or make deposit to strengthen your current open positions.
Stop out is at 50% of margin level. If your margin level decreases to 50%, your positions will start automatically closing.
A Trailing Stop is a stop-loss order that automatically adjusts itself as the market rate moves in the direction of your open position. The trailing price literally trails behind rising prices, allowing you to capture more profits while ensuring that if prices suddenly drop you are still protected by the automatic Stop-Loss order. Important Note for MetaTrader 5 Platform: Since Trailing Stop works on the client terminal side, unlike Stop Loss and Take Profit, that work on the server side, it won’t work if the client terminal is closed. If the client terminal is closed, only Stop Loss that was placed by Trailing Stop before the terminal was closed, can trigger.
Yes. Once you have logged-in to CoverdealFX trading platform you can customize the platform’s layout according to your personal preferences. This enables you to organize windows, add charts and create new workspaces.
In short, the Foreign Exchange market, also referred to as the “Forex” or “FX“ market, is the largest and most liquid financial market in the world, with a daily turnover volume of roughly 4 Trillion US Dollars. Forex trading is the buying and selling of one country’s currency against another. To learn more about the Forex market, please refer to the Education page.
The spread is the difference between the bid price (selling price) and the ask price (buying price). Example: If the quote for the EUR/USD pair is 1.2910 against 1.2913 then the spread is 3 pips.
Pip is an acronym for Price Interest Point . This represents the smallest value of measurement for forex currencies.
A rollover is when interest is paid or deducted from open positions. Trading currencies always involves two different currencies with their own individual interest rate. When you buy a currency that has a higher interest rate than the sold currency, you will be paid interest. However, when you buy a currency with a lower interest rate than the sold currency you will pay interest, and money will be deducted from your account. A rollover applies only to overnight trades.
The Forex market is open for trading 24 hours a day, five days a week. The market opens on Sunday evening at 22:00 GMT when Asian markets open, and concludes on Friday night when the New York markets close.
Stop Loss orders are used to reduce risk by closing a losing trade once a market passes a trigger value pre-determined by the trader. CoverdealFX will do its best to fill your trade at the price requested. However, because the order will close your trade at the best available price once activated, the Stop Loss is exposed to a gapping market. For the sake of absolute transparency, this means CoverdealFX cannot guarantee a Stop Loss.