Bacera Review – Forex Trading Under The Australian ASIC Regulatory Guidelines
Australia is proving to be a highly desired investment destination for Forex brokers from around the world due to the ease of doing business in the country, and the great investor-specific regulatory policies that are issued by the Australian Securities and Investment Commission (ASIC). ASIC is responsible for supervising and regulating the activities of all non-banking financial entities in Australia, which does present a unique opportunity for traders to invest in the financial markets without worrying about being susceptible to broker abuse of financial scams.
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Bacera is another modern Australian Forex broker that is regulated by the ASIC, which requires the company to display evidence of at least $1 million in operating capital so as to satisfy the ASIC’s stringent broker capital requirements. Every ASIC member firm is audited according to international standards of financial regulations and is subject to the scrutiny procedures and penalties as issued by the ASIC according to the broker’s conduct in the Australian financial markets.
Bacera operates under the trading name of Bacera Co Pty Ltd, which has an Australian Financial Services License and the company makes it explicitly clear that all of the broker’s products and services are provided under the Australian laws and regulations. Even international clients are subject to the laws applicable in Australia, and the broker will not entertain any requests from jurisdictions that fall outside Australia. Therefore, the broker also refrains from offering its services to US-based traders, due to the distinct regulatory restrictions imposed by the CFTC and the NFA of the US. Bacera may not be as reliable as some of the other leading brokers from Australia and other parts of the world, and we will uncover the actual facts of trading with the company through this detailed Bacera Forex broker review.
The Minimum Deposit Necessary For A Bacera Forex Trading Account
Bacera limits the choices of accounts to two different options. The first account option is a Standard account, which by the company’s own accord, is the most popular choice among Bacera clients. The Standard account is available for clients that are willing to make an initial deposit of $300 (AUD) that grant access to a minimum Bacera spread of 1.7 pips. The spreads on major currency pairs would have been considered as moderately competitive if the company had no other hidden fees of trading. However, Bacera does charge a commission along with its primary spread, which does make trading Forex with Bacera an expensive proposition. We don’t see any legitimate reason for Bacera to charge commissions on their spreads, as Bacera is primarily a market maker broker that offers Forex trading as Contracts For Differences (CFDs). Therefore, charging a commission on top of the spreads is strictly not desirable, especially when real ECN accounts from other competing brokers offer the promise of 0 pip spreads along with highly competitive commissions.
You would naturally assume that the second type of Bacera Forex trading account, known as the Pro account, might offer some added incentives. For a minimum deposit of $20,000, traders do get access to lower spreads starting from 1.1 pips and a slightly reduced commission per trade. Nevertheless, the spreads are still higher than average ECN accounts, but if you are comparing them directly to other market maker accounts, Bacera spreads may appear to be competitive.
Both accounts offer traders the opportunity to use a maximum Bacera leverage of 1:400 for both Forex and other CFDs, with traders getting a chance to trade 29 different currency pairs, 17 different CFD instruments, and a wide range of indices, shares, and commodities as supported CFDs. Although the company promises the best quality of services, you should realize that all market maker accounts do have a significant conflict of interest between a broker and its clients. Traders are advised to read through the different trading rules to ensure that they fully understand the various trading conditions imposed by Bacera on its customers.
The broker does allow hedging and scalping, albeit with multiple trading conditions. Traders are not allowed to indulge in frequent scalping strategies, trading with different trade sizes on different currency pairs that have vast differences in a number of lots traded, trading the news and economic releases consistently, or hedging the markets on two different accounts. These restrictions are certainly not a true representative of Forex trading, as an investor should have complete freedom over their trades to trade without any limitations. There are also numerous conditions on limit orders and stop loss orders, which may add further strain to your trading strategies.
Account Funding Options, Bacera Bonus, & Security Of Funds
Bacera trading accounts can be funded through a bank wire, a credit card transfer, or through Union Pay, all of which are some of the widely adopted payment options in the Forex industry. On the flipside, Bacera does not accept any other online payment options such as Skrill, PayPal, or Neteller, which are predominantly popular among the online trading community. Regardless, all funds are held in segregated accounts and are carefully scrutinized by the ASIC to ensure that the broker does not misuse its clients’ funds. Segregated accounts do help brokers to differentiate its operating capital from that of its clients’ money, which helps in meeting their clients’ debt in the event of bankruptcy or insolvency. The ASIC is also very stringent in its guidelines to ensure that all investors are protected under the excellent ASIC regulatory framework, which provides one of the best regulatory protection for investors from Australia and from around the world.
Deposits greater than $5000 and less than $200,000 are eligible for a 20% deposit bonus, along with a free iPhone or a MacBook Pro for clients that accumulate a minimum of 100 reward points through their trading accounts. Alternatively, traders can also receive free money or gift bonuses by participating in the Grand Master competition. As is the norm with all Forex bonuses, Bacera bonuses also come with various terms and conditions, which may put several restrictions on your trading account. Read through the bonus terms before accepting a bonus.
Bacera Trading Platforms
Bacera offers only the MT4 as the standard trading platform, even though the company promotes the MetaTrader4 as the proprietary Bacera ProTrader. The MT4 is a popular third-party interface that is designed for trading the Forex markets on both desktop and mobile trading platforms. Therefore, Bacera mobile traders can download the Bacera apps on their iOS or Android devices via their respective app stores. The MT4 terminal offers the best performance on the desktop interface for both Mac and Windows operating systems and is predominantly geared for traders that require access to a dedicated trading terminal. Nonetheless, mobile traders also find the MT4 mobile platforms to hugely beneficial for monitoring their accounts on the move and does offer excellent trading platforms on smartphones, as well as tablet devices.
Is Bacera A Recommended Broker?
Bacera is a genuine broker that is regulated by the ASIC, which does offer a significant amount of protection against broker scams or financial irregularities. On the contrary, Bacera also has some of the highest fees and spreads for trading, which is further limited by the higher than standard deposit requirements, which can qualify for a real ECN account at other competing brokers. Therefore, Bacera does not receive full credits for their services, but traders may opt for a Bacera demo account to test the broker’s services before opening a real account.