Multi-asset brokers can be a great choice if you like to trade with different instruments. What are the advantages?
More and more traders realize that forex isn't the only market to trade. There are other assets that can potentially bring profit. This fact has intrigue people to experience other markets. Trading with more than one instrument is also beneficial for asset diversifications and hedging as well. This is where a multi-asset broker comes in handy.
In short, multi-asset brokers are brokerage firms that allow investors and traders to access a different variety of assets. For example, a forex broker gives you access to trade in the foreign exchange market, but a multi-asset broker enables you to trade in forex, cryptocurrency, bonds, even commodities within the same platform.
Should You Consider Switching?
Nowadays, more and more traders realize the importance of asset diversification and hedging. By doing this, traders can minimize the risk of losing all their money when the market is unpredictable. It's always great to have different assets in your portfolio by using a multi-asset broker. Let's say you suffer a huge loss in one market, your risk can be minimized if you also trade in a market with a negative correlation to the losing one.
Why must you consider multi-asset brokers? Why don't you trade different assets in different brokers? The answer to this question is because using a multi-asset broker is way simpler, cheaper, and easier to watch over your trading assets. Here are five reasons why trading multi-asset in a broker is great.
1. More Instruments = Good Brokers
The competitions among brokers force traders to be smarter. Nowadays, investors prefer multi-asset brokers that allow them to trade in different markets; they are considered more flexible and adaptable to the ever-changing needs of modern traders. Therefore, a broker's initiative to provide access to multiple markets becomes an important aspect. The more instruments they can provide, the more impressive their flexibility is.
A lot of experienced brokers have answered this demand by expanding their service to other markets. Some of them expand to cryptocurrency, stock, commodity, ETF, and many more.
2. Range of Opportunity
Asset diversification isn't a new thing in the trading community. In fact, it's widely known that some assets are connected to one another, which means their price may affect each other. When one market is falling, another market would rise. Traders who only stick to one asset may lose the opportunity of taking advantage of this correlation.
With a multi-asset broker, traders will have more choices to trade with. For example, you could hold a long-term stock trading, while also day trade in the crypto market or vice versa. That way your trading activity will be more diverse.
In simple terms, hedging is a risk management strategy used by traders to reduce loss in investment. Usually, this strategy is done by taking an opposite position in a related asset. Ideally, the asset should have negative correlations such as USD and gold.
Let's say you hold a long position in USD but you are worried about the upcoming NFP release. To minimize your loss, you decided to take positions in the gold market because the price is negatively correlated with USD. That way if the USD price going down, you still gain profit from gold. Hedging is actually a common strategy among traders. It will be easier to do it with the same broker so you can monitor your positions easily.
4. Risk Diversification
Another reason to use a multi-asset broker is risk diversification. In short, it's a strategy used by investors to manage risk in trading. The main idea is to spread your money across many different assets. That way, if one market is in turbulence, the other will balance it out. Not to be confused with hedging, diversification is a strategy to minimize the risk of trading while maximizing profit at the same time.
Before doing this, traders usually study the correlations of each asset. Then, they will try to open positions in several instruments at the same time. Sometimes they have to try several times to find out which ones work for them. However, doing this can be hard if you don't use a multi-asset broker.
5. Buying Power
Trading in multiple markets within the same broker also affects your buying powers. Normally, multi-asset brokers offer their clients a margin account for leveraged trading of derivatives. Traders with more experience will prefer to trade with leverage because it's an efficient use of their capital. Not only will leverage allow traders to access markets that are unaffordable for them, it also amplifies their potential profits.
List of Multi-Asset Brokers You Can Try
Multi-asset brokers are not hard to find these days. However, choosing the best one might be a different question. Here are some recommendations that you can try:
Pepperstone is a well-regulated broker. This broker offers fast and reliable service with no intervention of dealing desk process. As a multi-asset broker, their service covers forex, cryptocurrencies, shares, indices, commodities, and many more.
For traders who are looking for low spread, Pepperstone allows you to enjoy spread as low as 0.0 pips with no requotes. Furthermore, this broker is also novice-friendly. They offer educational content for new traders who are barely diving into the market.
Trading by telephone
Islamic accounts available
Pepperstone was founded in 2010 by a team of experienced traders with a shared commitment to improve the world of online trading. Based in Melbourne, Australia, they grew to become one of the largest forex brokers in the world. If traders want to find a broker that provides low spreads, fast execution, and award-winning support, then the answer is Pepperstone.
Pepperstone has a strong legality guarantee because it has been licensed by the Australian regulator ASIC and FCA. Traders' funds can be deposited in segregated accounts at top Australian banks, one of which is the National Australia Bank (NAB). Therefore, the safety of funds is not a concern if a trader chooses to open an account in Pepperstone .
They succeeded in collaborating with 23 top banks to bring Bid to investors instantly via optical fiber. This allows all orders to be executed 100 percent automatically with low latency up to 0.05 milliseconds, without dealing desk intervention and requotes, as well as with super low trading costs.
Trusted by over 73,000 traders around the world, Pepperstone processes an average of USD12.55 billion of trading volumes every day. Because of that, they have many awards such as:
- The Best Global Forex ECN Broker 2019 and Best Forex Trading Support-Europe
- Best Australian Broker and Best Trading Platform 2018 by Compareforexbrokers.com
- Best Forex ECN Broker, Best Forex Trading Support, and Best Forex Trading Conditions by UK Forex Awards 2018
With the many rewards gained, Pepperstone hopes to attract more and more traders from all over the world. The rising performance of Pepperstone is not only due to the super-tight spreads and fast execution that it provides, but also because many traders are interested in trading with deposits in currencies other than US Dollars.
For this reason, Pepperstone is one of the most market-responsive brokers because it is willing to accept deposits in 10 currencies, which include AUD, USD, EUR, CAD, GBP, CHF, JPY, NZD, SGD, and HKD.
Trading in Pepperstone would allow traders to choose between 11 trading platforms: MT4 for desktop, MT4 Mac, MT4 iPhone, MT4 Android, MT4 iPad/Tablet, MT5, WebTrader, cTrader WebTrader, cTrader cAlgo, and cTrader Mobile. The choice of trading platforms may seem confusing to novice traders, but actually, it is very useful because it has fast execution.
When trading forex, traders can enjoy raw spreads from 0.0 pips on Razor accounts, over 61 currency pairs, and commission-free account funding on a wide range of deposit options. In addition to currency pairs, Pepperstone provides many types of trading instruments, including CFDs for indices and shares, commodities, and cryptocurrencies.
Instruments in commodity trading are pretty much diversified. Not only metal, gold, and silver, but traders can also trade with soft commodities such as cotton, sugar, coffee, cocoa, and orange juice. Pepperstone also provides trading on energy (oil and gas).
There are two types of accounts provided by Pepperstone, namely Razor accounts, and Standard accounts. If you area beginner, it is recommended to choose a Standard account with an average EUR/USD spread of 1.0-1.3 pips and free commission.
Those with particular trading styles such as scalpers and algorithmic traders may enjoy the lower cost setup traditionally seen in a Razor account, with a commission from AUD7 round turn of 100k traded. The initial deposit starts at USD200 with a minimum lot of 0.01 (micro) and 1:500 leverage.
As a Pepperstone client, a trader can fund and withdraw with alternative methods including Visa, Mastercard, POLi internet banking, bank transfer, BPay, PayPal, Neteller, Skrill, and Union Pay.
If you are new to trading or looking to practice your trading strategies in a risk-free environment, you can create Demo Account in Pepperstone. But if you are an experienced trader or prefer to learn by doing, Pepperstone provides a Live Account that allows you to trade with live executions and pricing.
Traders can also follow and copy strategies from popular traders using third-party services while learning how to improve their trading abilities. Pepperstone has partnered with a range of social trading platforms that traders can choose from, such as Myfxbook, ZuluTrade, Mirror Trader, MetaTrader signals, and Duplitrade.
2. FP Markets
FP Markets is an Australian-based brokerage that has been around since 2005. This broker allows you to trade with different instruments such as forex, metals, and indexes. FP Markets is regulated by ASIC and CySEC, so your safety is guaranteed. They also offer different range of payment method which includes Bitcoin, Credit/Debit Cards, Ethereum, FasaPay, Local bank transfer, Neteller, Ripple, Skrill, Tether (USDT), and Wire Transfer.
Trading by telephone
Islamic accounts available
InstaForex is a seasoned player in the field as it has been around since 2007. It is now considered one of the biggest brokers among retail FX traders. This broker offers a different variety of derivates such as FX, stocks, indices, precious metals, CFDs, and cryptocurrencies. They also have a wide range of payment options. Like any other broker, InstaForex also has its own disadvantage; transactions with this multi-asset broker can be slow and costly.
FSA (St. Vincent & the Grenadines), IBC22945
Interest rate on funds
Islamic accounts available
InstaForex is an international broker that provides trading services to traders globally. Since it was founded in 2007, InstaForex has provided for clients from various countries as many as 7 million traders. Based in Kaliningrad, Russia, InstaForex always attempts to improve the quality of the company in order to captivate the hearts of their clients.
Their hard work can be proven, one of which is by achieving a variety of awards, including Best Forex Cryptocurrency Trading Platform 2018 by UK Forex Awards, Best ECN Broker Asia 2018 by IBM, Forex Broker of the Year for Eastern Europe 2018 according to le Fonti Awards, Development, and Success award at Financial Olympus 2016-2017, etc.
There are 4 types of account offered by InstaForex representing a universal trading tool that help to work on international financial markets, such as Insta.Standard, Insta.Eurica, Cent.Standard, dan Cent.Eurica. Trading account types differ by the methods of accounting spreads and commissions, which are picked by the trader opening an account.
Insta.Standard account is relevant for standard trading terms on the Forex market and allows a trade to be settled with classical spread and with no fees. Traders will be charged a fixed spread every time they make a transaction. Spreads that are provided ranging from 3-7 pips. The main advantage of this type of accounts is its universality, as a trader can change the trading leverage and work with a deposit size convenient for traders.
Different from Insta.Standard accounts, Insta.Eurica accounts do not require payment of any spread on opening a deal. Therefore, this type of InstaForex account is suitable for beginner trader with a minimum transaction of 0.01 lots.
There are also other types of accounts InstaForex, namely Cent.Standard and Cent.Eurica which can be used for beginner traders because they can use the minimum transaction volume, which is 0.0001 lots (the cost per lot is USD0.1 cent). Deposit currencies that can be used by traders are EUR and USD (for all types of accounts).
Trading in InstaForex is quite a given as traders can choose to trade with leverage between 1:1 to 1:1,000. With a minimum initial deposit requirement of only USD1 (for all types of accounts), InstaForex clients have the opportunity to get a 30% to 100% deposit bonus.
Not only that, but beginner traders are also exempt from confusion in determining forex trading strategies. Because Instaforex provides ForexCopy services that allow traders to copy orders from professional traders in just a few minutes.
And then, there are around 300 trading instruments offered by InstaForex for traders . In addition to currency pairs, there are also futures, shares, gold, silver, CFDs, Bitcoin, and others.
Every InstaForex client is free to choose a trading platform that can be tailored to their needs. There are four types of trading platforms available, including InstaBinary, WebIFX, MetaTrader4, and MetaTrader5. Each platform has advantages and disadvantages. InstaForex also provides video tutorials on how to register on each platform. It aims to make it easy for beginner traders who want to join InstaForex.
If a trader still confused after seeing the video tutorials, traders can contact customer service available 24 hours connected to various social media, including email, Skype, Whatsapp, Telegram, Viber, Twitter, and Phone Call. On the InstaForex website, there are around 30 languages provided to facilitate traders from various countries.
The trader can also help themselves with trading calculators provided on the InstaForex website. Traders can accumulate currency pairs, Leverage, volume, and currency used.
The payment system in InstaForex is also diverse. Traders can pay deposits via Visa, Mastercard, Skrill, Neteller, PayCo, as well as Wire Transfer. All in all, InstaForex is a well-rounded broker for many types of traders.
4. CMC Markets
CMC Markets was founded in 1989 and is based in London. This broker is regulated by UK Financial Conduct Authority (FCA). As a multi-asset broker, they offer different kinds of options such as forex, indices, cryptocurrencies, commodities, shares, share baskets, and treasuries. They also have a very well-laid-out support center. However, this isn't a 24-hour service; you can contact them during normal working hours.
There are many ways to funds your account in this multi-asset broker. You can use a credit card, debit card, or bank transfer. The time for processing transactions will be between one and five days in total.
5. Saxo Bank
Saxo Bank is regulated by the FCA and has been an online broker since 1998. Since then, this multi-asset broker continues to evolve and now allows their traders to trade in different markets. The type of assets you can trade with Saxo Banks is forex, stocks, ETFs, bonds, mutual funds, options, and CFDs.
Although they offer a wide variety of investments, they only have one payment option. This can be a disadvantage if you are looking for a broker that has different payment options.
Interest rate on funds
Saxobank was founded in 1992 in Denmark, which began as a brokerage business. At present, they have penetrated the online banking and forex trading business internationally. The company is known as one of the best in the industry.
Their innovative platforms have been used by Microsoft's global institutions, Barclays Stockbrokers Ltd, and TD Waterhouse. The platforms include SaxoTraderGO, an award-winning trading platforms and is offered as Saxobank's flagship. Two other platforms are SaxoTraderPRO and SaxoInvestors. Each platform has advantages and functions.
SaxoTraderPRO is suitable for use by advanced traders and institutional clients, which trade faster via quick-close all features and view exchange order books and execution reports in real-time. On the other hand, Saxo TraderGO is a platform for retail traders. This type of platform offers easy portfolio management from a single account. For example, traders can get live and historic reports of net holdings.
As for Saxo Investors which is a user-friendly case-product platform tailored to retail investors, there are several advantages including browsing curated themes and pre-made screenings. Also, clients can choose between diversified investment portfolios. It is a responsive platform accessible from any device.
The Saxobank website accommodates the needs of international clients, with dozens of languages available on the Saxobank website. Besides English, there are also Japanese, Mandarin, French, Italian, Indonesian, and many more.
When clients choose Saxo, clients are choosing to trade with a fully regulated industry leader, who adheres to strict regulatory requirements in 15 financial centers around the world, including the UK, Singapore, Hong Kong, and Denmark.
Another advantage is traders have so many choices of instruments that can be traded on Saxo, covering 40,000 instruments across 184 forex pairs, 9,000 CFDs, 19,000 shares, 200 Stock options, 2,500 ETFs, Futures, Gold, Silver, and many more.
Since the company also serves as a bank, the speed of execution at Saxo can be guaranteed. However, some traders may feel that Saxobank is not suitable for individual trading, as the minimum capital is too large and the spreads and commissions are considered burdensome for so many clients. The spread which is charged by Saxobank for each pair is quite large, so it is not suitable for scalpers. Meanwhile, the commission that must be paid by traders to this broker starts from USD1.
Furthermore, Saxobank often stops trading for a few seconds before the release of important news and only activates it again after the news is released. This makes news traders do not have the best opportunity to act on Saxobank.
Actually, The deposit value can be adjusted according to the level of account chosen by the clients. There are three levels in Saxo Accounts, including Classic (minimum funding is 500 Pounds), Platinum (minimum funding is 50,000 Pounds), and VIP (minimum funding is 1,000,000 Pounds). Clients can use leverage 1:200 and a minimum lot of 0.05.
Traders are spoiled with various kinds of facilities provided by Saxobank . Each aaccount level has its own facilities offering that can be adjusted to the needs of traders. The higher the level, the more complete the facilities provided.
For example, traders who have VIP accounts will get personal relationship managers, and direct access to trading experts 24 hours. These facilities are not found when traders choose Classic and Platinum accounts.
For Corporate Clients, Saxobank provides 40,000 instruments, with 1: 1 support from expert account managers and the security that comes from their 25+ year experience.
If clients meet professional criteria, they can join Professional Accounts at Saxobank . The criteria in question include having a financial portfolio that exceeds around 500,000 Euros, having placed at least 20 relevant trades in significant sizes over the last four quarters, and having worked in the financial sector for at least one year.
Moreover, Saxobank provides more than 100 institutional specialists operating from offices in key financial centers, including Denmark, London, Singapore, Shanghai, Hong Kong, Switzerland, and Dubai. The client can choose the location closest to their area. With this kind of support, Saxobank is optimistic for delivering the right solution for the business of clients.
From the explanation above, it can be concluded that Saxo is more suitable for deep-pocket forex traders who are interested in forex trading as an investment portfolio. The broker's business focus is also more towards institutional clients rather than retail clients.
This multi-asset broker was founded in 1974 and under the regulations of various top financial watchdogs. There are a lot of financial markets you can access through IG such as forex, shares, indices, commodities, cryptocurrencies, and many more. This broker is mainly focused on CFD trading, they even proclaim themselves to be the number one CFD provider in the world.
US traders are welcome
IG Markets is an online trading provider with decades of experience in the financial market. Founded in 1974, the world-leading company has gathered more than 178,000 clients worldwide with over 16,000 markets reached as of 2019. IG Markets is authorized and regulated by the Australian Securities and Investment Commission (ASIC). It is also important to note that being established in 1974 makes IG Markets one of the forefront online CFD brokers. Their service has expanded to 15 countries across five continents.
Aside from famous for its reliable experience, IG Markets is also known for its truly broad range of trading instruments. In fact, the broker has long been regarded as one of the most accomplished companies in offering the most trading assets to clients. The wide choice of instruments includes forex pairs, 26 indices, over 12,000 shares, hard and soft commodities, cryptocurrencies, as well as other markets such as bonds, rates, and options.
Forex trading in IG Markets is provided in two ways: CFD and DMA (Direct). Here are the conditions for each type of trading:
- Minimum spread: 0.6 pips
- Commission: None
- Platforms: Web, mobile apps, MT4, ProRealTime, L2 Dealer, terminals and APIs
- Trading size: Contracts
- Demo account: Yes
- Minimum spread: No details
- Commission: from $10 per $1 million traded
- Platforms: Web, mobiles apps, L2 Dealer, terminals, and APIs
- Trading size: Lots
- Demo account: No
Both ways of trading are available for all clients. However, DMA does not enable trading in MetaTrader 4. Clients are also not allowed to trade in a demo account for virtual trading. It is essentially a type of trading reserved for experienced traders with high necessity for the best pricing in the market, as DMA offers market depth from a range of exchanges (including full market depth from the LSE).
Trading platforms in IG Markets are accessible via web, mobile app, and desktop. They are offered with 2 main varieties: Core Platforms and Specialist Platforms. The core platform is meant for all types of trading with the add-ons of DMA, ProRealTime access, and Forex Direct. Meanwhile, Specialist Platforms consist of L2 Dealer, ProRealTime, and MetaTrader 4.
The first two platforms charge fees that include minimum $2000 balance and monthly fees for shares data and level 2 prices (for L2 Dealer), as well as platform fees amounting to $40 per month and monthly fee for shares data (for ProRealTime).
IG Markets does not require a minimum balance to open an account . It also provides a swap-free account that frees clients for any interest, rollover, or swap charges on overnight positions. Yet, All costs and charges are built into the spread. This account suits well with long-term traders who need to keep their positions open for days or even weeks.
For beginners, IG Markets builds an IG Academy that gives interactive education and online trading courses. This way, clients can get a grip on the financial markets with the essentials of trading provided in infographics, video explainers, and end-of-course quizzes. Even better, the IG Academy is already integrated into its mobile app so clients can always learn about financial markets in much more efficient ways.
In conclusion, IG Markets is a client-friendly broker with more than 40 years of experience to back up its credibility. Their efforts and commitments to provide the best varieties of trading platforms are proven in the unique Core and Specialist Platforms.
Traders with little experience can apply to Forex CFD account in either Core Platforms or MetaTrader 4, while professionals can achieve the best experience in the financial market with IG Market's DMA trading and L2 Dealer or ProRealTime platforms.
XTB allows their traders to experiences different instruments such as forex, silver, metals, indexes, oil, and even gold. This multi-asset broker has also been licensed by multiple regulatory bodies. They offer different kinds of payment methods such as Neteller, PayPal, Skrill, and Wire transfer.
CNMV (Spain), 40
Islamic accounts available
With more than 15 years of experience, XTB (rebranded from X-Trade since 2009) is one of the largest brokers in the world. They have offices in more than 10 countries, including Belize, UK, Poland, Germany, Spain, and France. XTB Group is regulated by the world's biggest supervision authorities including the IFSC, FCA, KNF, and CySEC.
As a regulated company, XTB holds all retail clients' funds in a fully segregated account, meaning they are not mixed with the broker's operational funds. This enables traders who register in XTB to trade with confidence in their funds' safety.
XTB tries to provide an easy-trading anytime and anywhere. They have a mobile application, xStation to realize that vision. Traders can access financial markets from their fingertips and choose from over 1,500 CFD markets including 48 currency pairs, cryptocurrencies, 20 indices, commodities (gold, oil, silver, etc.), stock, and 60 ETFs from around the world. This application can be downloaded in Google Play and App Store.
Traders also can access their platform by PC. XTB offers a web trade platform with access to more advanced tools for more advanced traders. It's fully compatible with Chrome, Firefox, Safari, and Opera web browser. Traders are provided with fast and reliable trade execution speeds. No wonder this platform has successfully presented XYB with awards such as Best Trading Platform 2016 by Online Personal Wealth Awards. Additionally, MetaTrader 4 is also available when trading in XTB .
XTB charges fees for forex, indices, and commodities trading. The amount of fees differ based on the types of accounts. For example, in Pro Accounts, traders have to pay a commission from $3.5 per lot for forex and a commission from 0.08% per lot for stock CFDs and ETF CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. When trading, clients have to prepare strategies. Based on XTB's data, 75% of retail investor accounts lose money when trading CFDs. Because of that, clients should consider their level of understanding of CFD trading and their affordability to take high risk.
Traders can increase knowledge by joining XTB's Trading Academy program. There is a vast array of content that's geared towards helping traders, including video tutorials, trading courses, articles, and much more. Traders can choose a topic from different levels of education and enhance their skills across the stages of the trading journey.
Furthermore, there are several ways to deposit funds in XTB, including bank transfer, credit cards (Mastercard, Maestro, Visa), as well as e-Wallets (Skrill, Paysafe, Neteller, and many more). But, some of these methods may incur additional charges. For example, when using Neteller methods, traders have to pay 1% of their deposited amount.
Traders can contact XTB's customer support that is available 24/7. They are ready to answer all of the traders' questions and solve the problems, whether by email, phone, or live chat.
Overall, XTB is recommended as an ideal broker with top-tier regulation and trading platforms. Its education feature is also worth joining in as many traders are still in the process of perfecting their consistency and continue to learn the dynamic change in the forex market.
Although multi-asset brokers have a lot of advantages, there are some risks that come with that. By using their service it means you're most likely to trade in multiple markets. While that can be a good thing, it also comes with disadvantages.
Trading in multiple assets is quite tricky since it requires a good intermarket analysis. Most new traders are not equipped with this set of skills. Therefore, before you can jump into multi-market trading, make sure to learn more about how the intermarket correlation works and gain experience with the strategy so that you won't lose too much.
No matter what kind of trading style you do, choosing the right broker is important as it can influence your trading activities and strategies. Make sure your broker is legit. Find out if your broker is a scam by observing the red flags.