OnEquity Review 2024

Trust

OnEquity Regulators

• OnEquity Ltd. is regulated by the Seychelles Financial Services Authority (FSA), Securities Dealer License No. SD154. We rate the Seychelles FSA as a Tier-3 regulator.
• OnEquity (Pty) Ltd. is regulated by the South Africa Financial Sector Conduct Authority (FSCA) with FSP No. 53187. We rate the FSCA as a Tier-2 regulator.
• OnEquity LLC is recognized by the Registrar of International Business Companies and the Financial Services Authority in St. Vincent and the Grenadines, Registration No. 286 LLC 2020. We rate this entity as unregulated.

Why is It Important to Know Where Your Broker Subsidiary (Entity) is Regulated?

To serve clients worldwide, brokers must have multiple regional entities. The level of client protection guaranteed by regional regulators varies widely. Here are some of the key features to check on at your broker`s regional entity:

• Segregation of client funds. Segregating client funds from the operating capital of a broker prevents misuse, ensuring that traders’ funds can not be used for operational expenses or speculative investments. OnEquity claims that it segregates client funds.
• Negative balance protection. This is a guarantee that clients cannot lose more than their account balance, even if the market unexpectedly makes a massive move or gaps. OnEquity claims that it provides negative balance protection.
• Compensation scheme. A compensation scheme protects client funds in the unlikely event that the broker becomes insolvent. OnEquity does not offer a compensation scheme at any of its entities.
• Maximum leverage. Limiting leverage controls the level of risk traders can take on. The higher the leverage, the higher the potential profits and losses. The maximum leverage at OnEquity is 1:500.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and financial strength. Here, we evaluate the broker’s longevity in the industry, the company’s size, and its transparency.

OnEquity was founded in 2022, marking it as a relatively new and inexperienced CFD broker.

According to the broker’s LinkedIn page, the company has 51-200 employees, reflecting a mid-size brokerage firm.

In my research, OnEquity showed adequate transparency in its regulatory status, listing its regulators in the footer of the website.

The Spreads and Conditions page was not working at the time I did my review. To access the essential details, traders can find the Client Agreement on the Legal Documentation page.

Is OnEquity Safe to Trade With?

OnEquity operates three entities, with two entities offshore, offering relatively low account security. There is no compensation fund in the event of broker insolvency, but the broker states that it segregates client funds and provides negative balance protection. I rate the account safety at OnEquity as below average.

Fees

OnEquity Trading Fees

OnEquity Spreads

I tested the spreads at OnEquity across various markets during the London open and after the New York open. At these times, the market is typically highly liquid with the tightest spreads.

My tests showed that spreads are competitive in commodities and indices, while forex and shares are closer to average. I recorded the data on 26 February 2024.

OnEquity Swap Fees

In the table below, you can see an example of the swap fees at OnEquity. Swaps represent the fees charged (or credit earned) for holding a position overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

I recorded the data on 26 February 2024. My live tests showed that swap fees at OnEquity are roughly average for the industry.

OnEquity Non-Trading Fees

OnEquity charges a $10 annual fee for accounts that have been dormant for one year. This is less than average for the industry, where inactivity fees are usually charged monthly.

Are OnEquity Fees Competitive?

I rate the fees at OnEquity as average, with a few bright spots.

• Tight spreads in some instruments, while others are closer to the average
• No fees for deposits and withdrawals
• Low inactivity fee

Platforms and Tools

MetaTrader 5 Desktop Platform

I used the MetaTrader 5 (MT5) platform in my live tests. It is available in 52 languages, from Arabic to Vietnamese, and provides popular features such as

• Alerts. This feature updates traders when an instrument reaches a specific price level.
• Watchlists. Traders can create a list of their favorite instruments and follow live quotes in a market watch panel.
• One-Click Trading. This feature allows traders to execute orders with a single click and no secondary confirmation. This feature enables traders to operate faster and is especially useful for short-term traders.
• Trading from the Chart. MT5 also allows users the convenience of trading directly from the chart.

The MarketWatch panel enables traders to stay on top of their favorite instruments at a glance.

The Toolbox panel allows traders to track their open positions, market exposure, trade history, and profit/loss figures in real time.

MT5 Desktop Orders

MetaTrader 5 delivers when it comes to the range of available order types. The platform offers the following:

• Market Order. Traders use market orders to buy or sell an instrument at the best current price.
• Limit Order. Traders use limit orders to buy or sell an instrument at a specified price or better.
• Stop Loss Order. Traders use stop-loss orders to buy or sell an instrument when its price reaches a specified level.
• Stop Limit Order. Traders can manage risk more precisely with stop limit orders, which combine the features of a stop-loss with those of a limit order.
• Trailing Stop Order. Traders use trailing stop-loss orders as a stop-loss order at a defined percentage or dollar amount away from an instrument’s current market price. This order type allows traders to secure profits when they are in a winning trade while not having to exit the position.

MT5 Desktop Charts

Charting features are robust. MetaTrader 5 offers:

• 38 Technical Indicators. These include classic trend indicators, volume indicators, and oscillators.
• 44 Analytical Objects. These include lines, channels, Gann, and Fibonacci tools.
• 21 Time Frames. Traders can choose from nine time frames, from one minute to one month.
• 3 Chart Types. Traders can use Bar Charts, Japanese Candlestick Charts, and Line Charts.

MetaTrader is also popular due to its copy trading and automated trading features.

• Trading Signals. Signals in MetaTrader 5 allow users to copy other traders’ activity in real time.
• Automated Trading. MetaTrader 5 allows users to develop, test, and apply Expert Advisors (EAs). EAs are programs that monitor and trade markets using algorithms.

My Key Takeaways after Testing the MT5 Desktop Platform

The MetaTrader 5 desktop platform is one of the most feature-rich and popular trading platforms. However, it may present a steep learning curve for beginners.

MetaTrader 5 WebTrader

From the client area within the OnEquity website, traders can easily access the MetaTrader 5 WebTrader platform.

The MT5 web platform is very different from the desktop and has a more intuitive and user-friendly interface. It allows you to trade without any additional software; only an internet connection is required. The Web Platform allows users to trade directly from any browser and operating system.

Popular features of the WebTrader platform include

• One-click trading
• Trading from the chart
• Watchlists with real-time quotes
• Trade History
• Advanced charting

Watchlists provide real-time updates for a selected list of instruments.

MT5 WebTrader Charts

Charting via the WebTrader platform is outstanding. Traders can make use of:

• 31 Technical Indicators. These include classic trend indicators, volume indicators, and oscillators.
• 4 Analytical Objects. These include trend lines, regression channels, Gann, and Fibonacci tools.
• 9 Time Frames. Traders can choose from nine time frames, from one minute to one month.
• 3 Chart Types. Traders can use Bar Charts, Japanese Candlestick Charts, and Line Charts.

MT5 WebTrader Orders

The WebTrader platform provides standard order types including market orders, limit orders, and stop loss orders. Time-in-force conditions like Good-Til-Canceled (GTC) or a specified date can be applied to pending orders.

Traders can easily track their open positions, account balance, and profits and losses via the Trade panel, which appears at the bottom of the screen.

MetaTrader 5 Mobile App

OnEquity offers the MetaTrader 5 mobile app for mobile trading, which is available for Android and iOS. The app offers popular features such as alerts, 1-click trading, and trading from the chart.

The MT5 mobile app also provides many order types, including pending and stop orders. However, trailing stop-loss orders are only available from the desktop. To change the language of the MT5 app, you must change the language for your entire phone.

My Key Takeaways after Testing the OnEquity Mobile App

Overall, the MT5 app offers an above-average range of features. I rate it as a well-designed app, but one that caters more to experienced traders.

OnEquity Order Execution Model

OnEquity is a no-dealing desk broker. It works using the principal model of brokerage, acting as the counterparty to client transactions.

When executing orders, OnEquity will obtain the best possible result for clients, taking into account factors like price, costs, speed, likelihood of execution and settlement, size, market impact, or any other consideration relevant to the execution of the order.

Tradable Instruments

Breakdown of Instruments by Asset Class

In terms of the number of available instruments in each asset class, OnEquity posted mixed results – they came out above average in commodities and indices, average in forex and shares, and below average in cryptocurrencies.

What are CFDs?

A Contract for Difference (CFD) is an agreement specifying that the buyer must pay the seller the difference between the current value of an asset and its value at the time the contract was initiated. CFDs allow traders to speculate on price movements like futures and other derivative financial instruments without owning the underlying asset.

OnEquity Available Instruments

In the tables below, you can see a selection highlighting the variety of instruments available at OnEquity:

My Key Takeaways After Exploring OnEquity Tradable Instruments

I rate the available instruments at OnEquity as average. The broker does a good job of offering a broad range of instruments, but the depth could be improved in certain asset classes, especially CFDs on shares and cryptocurrencies.

Customer Support

OnEquity Customer Support Test

Support is a key component of a broker’s offering – whether you are a new trader looking for guidance on how to use the platform or an experienced trader who needs help fast to exit their positions in the event of a technical glitch.

In my tests, I inquired various questions – from basics about fees to more complex themes relating to regulators and account types. The OnEquity team responded to emails the same day, with satisfactory replies. Live chat and phone support were not available.

Deposit and Withdrawal

OnEquity Deposit Methods

The range of funding methods is strong and processing times are fast in relation to other brokers.

OnEquity Withdrawal Methods

Again, this is a good range of available methods, and processing times for withdrawals are faster than average for the industry.

Account Types and Terms

OnEquity Account Types and Their Benefits

Clients can choose between three account types: Plus, Prime, and Elite. The Plus account caters more to beginners, while the Prime and Elite accounts are geared towards experienced traders looking for lower costs and additional benefits.

OnEquity Account Opening Process

To open an account with the Seychelles entity of OnEquity, prospective clients must complete a very short application covering the following parts:

• Contact and Personal Details: Name, email, phone, birth date, country of residence, nationality.
• Identity Verification: ID/passport and proof of address.

What is leverage in CFD Trading?

One of the reasons that traders are attracted to the forex and CFD markets is the high degree of available leverage. Leverage is the use of borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account.

At the Seychelles entity of OnEquity, the maximum leverage for all account types is 1:500. This means that with an account of $1,000, you can control up to $500,000 worth of positions in the market.

Leverage is often described as a ‘double-edged sword’ as it can hurt you as much as it helps you. Traders must remember that it can amplify both their profits and their losses.

Maximum Leverage by Asset Class

OnEquity uses a system called Dynamic Leverage, where the maximum leverage depends on the lot size as well as the asset class.

For example, when trading FX Majors with up to 1 lot, the maximum leverage is 1:1000. For 2-10 lots, the maximum available leverage falls to 1:500. The table below breaks down the maximum leverage for each asset class and the lot sizes required to have access to that level of leverage.

Demo Account

OnEquity offers demo accounts for MetaTrader 4 and MetaTrader 5 platforms.

Demo accounts are especially important for beginners as they allow them to practice their strategies and get comfortable with the trading platform without risking real money.

The demo account features live quotes and simulates live market conditions in assets such as forex and CFDs on commodities, indices, and stocks. Once users are up to speed on a demo account, they can easily switch to a live version.

Islamic Account

OnEquity offers a swap-free Islamic account that adheres to the principles of Sharia law.

OnEquity Supported Countries

OnEquity accepts clients from most countries, but services are not available to residents of the United States, Canada, North Korea, Yemen, Iran, Belgium, and Syria.

Research

The Market News category covers major stories like central bank meetings and top movers, with multiple stories throughout the trading day. The Analysis category is broken down into two categories:

• The Daily Technical provides a useful framework of support/resistance levels and price forecasts.
• The Weekly Outlook helps orient traders by going through the most important market-moving events ahead.

Overall, I rate the OnEquity Hub as a valuable reference and source of trading ideas for traders.

Education

The broker offers a series of educational articles in the hub section of the website. Topics include trading basics like leverage and order types. Cryptocurrencies are a point of focus, and some useful guides are available.

The Bottom Line

As a newcomer to the CFD industry with only two years of experience and limited regulatory oversight, OnEquity has room for improvement in our trust category.

Nevertheless, it boasts several positive qualities, such as low spreads on commodities and indices, flexible account types, easy funding and withdrawals, and the full suite of MetaTrader platforms.

OnEquity may be a good choice for experienced traders looking for low trading costs via raw spreads and the advanced features of the MetaTrader platform. Trading professionals can also take advantage of PAMM services and work as an Introducing Broker to earn money from referring clients.

I hope to see this promising broker enhance its offerings with research and educational materials, as well as provide reliable support via phone and chat.

FAQ