OnEquity is one of the numerous forex brokerage firms available on the global market. Learn more about the firm, its features, fees, platforms and more in our detailed review of the firm to answer the most important question – is OnEquity a scam or is it a FX broker you can trust?
OnEquity is a relatively new entrant to the global forex and CFD-s brokerage industry, having been founded in 2022. The firm is registered in Mahe, Seychelles and offers multiple asset classes to its clients, such as: currency pairs, commodities, CFD-s, equities, indices and cryptocurrencies.
Both MetaTrader 4 and MetaTrader 5 are available to OnEquity clients, which are two of the most popular FX trading platforms on the market today.
OnEquity also offers PAMM accounts for financial professionals, such as money managers – allowing them to access tight spreads and low account fees.
How well do OnEquity features stack up against the competition and is the broker able to meet the various requirements its prospective clients may have? – Let’s find out.
Safety and Security of OnEquity
Security is one of the top priorities for traders when it comes to the brokerage firms they interact with and open accounts with. As the firm deals with millions of dollars in client assets, proper security measures and licenses are paramount in order to build trust among existing and prospective clients.
Licensing
One of the main factors experienced traders tend to look for when choosing a FX broker is licensing. Numerous high-trust regulatory bodies offer licenses to financial service providers and brokerage firms that qualify for multiple licenses not only to gain access to larger markets, but also create a sense of security for their clients.
OnEquity holds the following licenses from these regulators:
- Seychelles Financial Services Authority (FSA) – Securities Dealer License No. SD154
- South Africa Financial Sector Conduct Authority (FSCA) – Financial Service Provider No. 53187
- St Vincent and the Grenadines Registrar of International Business Companies and the Financial Services Authority – Registration No. 286
Overall, while OnEquity is not an unregulated financial services provider, none of the regulators that have licensed the firm are considered to be internationally renowned, which means that clients who view the licenses provided by OnEquity are unlikely to feel very assured, as the firm lacks Tier-1 licenses.
On the other hand, basic requirements, such as keeping client assets in segregated accounts, as well as ensuring negative balance protection are met by the firm.
Fees and Spreads
Perhaps one of the most important aspects of forex trading, the spreads and account fees charged by a broker can make or break their relationship with the client.
As OnEquity offers a wide range of instruments, it is important to highlight the spreads on some of the most highly demanded assets, such as major pairs, metals, energies, etc.
The spreads on some of the instruments offered by OnEquity are the following:
- 0.8-1.5 pips on EUR/USD
- 11-17 cents on XAU/USD
- 12 cents on WTI Crude Oil
- 56 cents on Apple shares (AAPL)
- $39.35-$39.55 on Bitcoin (BTC)
It is worth noting that the spreads on major FX instruments are quite competitive, while those on equities and crypto are higher than the industry averages. This gives the firm a definite slant towards FX and CFD-s, which could be a slight issue for some traders.
Alternatively, when it comes to account fees unrelated to trading, the firm only charges a $10 inactivity fee after one year of dormancy, which is a reasonable charge.
Accounts, Deposits and Withdrawals
In many cases, forex brokerage firms will offer different types of accounts to their clients in order to entice them with different terms and spreads.
When it comes to OnEquity, the firm has three distinct types of accounts, which we will discuss in more detail below.
OnEquity Plus
The OnEquity Plus account is an entry-level account with a low, $25 minimum deposit required. Clients can choose between three options as their base currency – USD, EUR and JPY.
The typical spreads on major pairs like EUR/USD start at 1.5 pips and the account gives clients access to a total of over 300 instruments.
As for the lot sizes, the minimum lot size requirement on the Plus account is 0.01 lots, while the commission per lot is 0.
For clients who would like to access leverage, they can do so up to 1:1,000 on FX pairs.
The OnEquity Plus account also comes with a swap-free, or Islamic, account option.
Overall, the Plus account is designed with the broadest appeal in mind, with competitive terms and reasonable prices. However, the spreads on major pairs make it less attractive to traders who typically engage in scalping.
OnEquity Prime
The OnEquity Prime account comes with a much higher entry barrier, with a $1,000 minimum deposit requirement and is generally geared more towards traders with a few years of FX experience under their belt.
The spread on EUR/USD is considerably lower at 0.4 pips. However, this comes with a catch. While the minimum lot size requirement is still 0.01 lots, the account charges a $5 commission per lot, which can complicate things for clients who trade on very tight margins.
As for other features, they are the same as the OnEquity Plus account – swap-free accounts, MT4 and MT5 are all available for OnEquity Prime account holders.
OnEquity Elite
Reserved for clients with more cash to spare, the OnEquity Elite account has a minimum deposit requirement of $5,000, which already makes it inaccessible for a wide range of traders.
The account is designed for traders with an extensive knowledge of the FX market and offers the following terms:
- EUR/USD spreads from 0 pips
- $5 commissions per lot
- 0.01 minimum lot size
- Islamic account included
As we can see, there is very little to differentiate between the Elite and Prime accounts, other than the tight spreads available on the Elite account, which makes it attractive for scalping strategies on major currency pairs.
As for the trading platforms and general trading terms and fees, the Elite and Prime accounts are identical.
Trading Platforms and Features
MetaTrader 4 and MetaTrader 5 are the two primary trading platforms offered by OnEquity. Both come equipped with a wide range of technical indicators and simplistic design.
Both MT4 and MT5 can be used as web trading platforms, which means that a download is not necessary in order to access them.
MetaTrader also has mobile apps for both MT4 and MT5, which are available on all iOS and Android devices. Despite some technical limitations on mobile trading platforms, they nonetheless offer plenty of value when it comes to executing quick trades on the go, which can be very convenient for some traders.
The access to MetaTrader is a major plus for OnEquity, as many competing firms also offer these platforms, as they are widely considered to be an industry standard.
Educational Content at OnEquity
Beginner traders often require additional content and educational resources in order to learn the ropes of trading and learn as they trade.
While OnEquity does have a trading glossary, there is very little in terms of organized educational content, such as webinars, blogs, or even dedicated mentorship programs and trading courses. For this reason, OnEquity can be considered to be somewhat inaccessible to complete beginners, as they will have a hard time learning much in the way of theory when it comes to FX trading.
On the other hand, pip calculators, customizable charts and other technical tools can help already experienced traders make the most of their time on the platform.
The firm also provides market updates and weekly outlooks curated by its in-house team of analysts, which can be helpful for traders to get second opinions regarding their trades.
OnEquity Customer Support
Customer support is an incredibly important aspect of a brokerage firm’s services, as it builds trust and fosters long-term cooperation between the firm and its clients.
Traders who would like to contact OnEquity can do so using the official hotline and email support, while there is no live chat function.
The official OnEquity website is available in English, Portuguese, Japanese, Arabic and Malay, which is an advantage and makes the website more accessible to a global audience of traders.
Should You Consider OnEquity?
While OnEquity is far from a scam and is a legitimate forex brokerage firm, there are several very important factors to consider before you sign up at this brokerage firm. Namely:
- The spreads on the OnEquity Plus account are on average higher than competitors and is not attractive for scalping strategies
- The firm lacks Tier-1 licenses and regulations, which is an important security criterion
- The minimum deposit for the Elite account with a 0 pip spread on EUR/USD is $5,000
- The spreads on equities and cryptocurrencies are generally higher than the industry average
Despite offering MetaTrader 4 and 5 to its clients, as well as a selection of different account types, OnEquity does very little in order to stand out from the crowd in what is a continuously saturated brokerage market.
The high degree of leverage offered to clients could be the only notable aspect that differentiates OnEquity from other competing firms.
Therefore, traders looking to sign up at the firm should be aware of the fact that there are numerous alternatives they can consider and some may offer significantly better terms and spreads, as well as a higher degree of security.
FAQ About OnEquity
Is OnEquity a scam?
What can I trade at OnEquity?
Does OnEquity have MT4?
