Coping with the intricacies of trading in the constantly volatile environment of cryptocurrencies and dealing with the upheavals in the global economy can be daunting. Hence, the need to get equipped with the right trading platform cannot be overemphasized.
With a proper understanding of the demands of the growing crypto world and the need for a regulated environment for Forex and other assets trading, Brighfinance was created to enhance trading experiences across these landscapes.
Focused on creating unique crypto trading solutions pegged with hassle-free and low trading commissions, Brightfinance has underpinned massive leap forwards with a current portfolio of over 250 assets on its platform.
For this review, we explore the basics and essentials of this brokerage:
Brightfinance: The Journey So Far
With about eight years in operation, Brightfinance was launched in 2012 by Munich-based Capital Letter GmBH to provide the online trading community with innovative solutions. Though created to offer brokerage services, it has its prime focus on cryptocurrency trading.
Consequently, this platform has fostered a reputation as one that is customized to offer a wide range of services to those with basic and advanced experience in crypto trading.
Brightfinance sought to bridge the chasm created by the cynical distrust cryptocurrencies have been treated to since inception and through development. As such, the exchange and brokerage spread its reach through the European markets with platforms based in Dominica, London and Cyprus.
As an exchange focused on fostering adoption of cryptocurrencies, it provided a platform to mitigate likely risks that could occur during the process of trade while increasing chances of maximizing profits.
In addition to crypto assets, Brightfinance offers its clients Contracts For Difference (CFDs) on cryptocurrencies as well as commodities and Forex trading.
Till date, Brightfinance seeks to soothe the challenges of high transactional fees on digital trading while enabling access to fast and easy trading options.
With an intuitive approach to the sensitivity of the global markets including the crypto market, sources aimed at helping traders and investors to understand the basics needed for making informed trading decisions.
Brightfinance at a Glance
Minimum Initial Deposit
Cryptocurrencies, CFDs, Forex, Commodities and Indices
Explorer, Basic, Silver, Gold, Platinum
Web-based Trading Platform
Trading Options on Brightfinance
More than a decade after the launch of Bitcoin and the addition of several other cryptocurrencies to the rapidly expanding crypto community, the need for a safe and structured environment for trading and exchange has become increasingly paramount.
Though not it’s only offering, Brightfinance sought to provide a means of easily transacting with cryptocurrencies. Today, it creates a regulated environment for crypto trading by harnessing the power of cutting-edge technologies.
Brightfinance shows its support for cryptocurrencies by listing a variety of digital currencies on its crypto platform. It offers Bitcoin, Ethereum, Ripple, Dash Coin as well as a host of almost 200 digital coins to afford investors and traders an opportunity to widen their portfolio.
This platform doubles up as a broker and has – to its portfolio – a wide range of assets created to allow trade diversification. These assets include major and minor currency pairs, stock options commodities offerings and indices.
Rapid price changes are prominent features of digital trading. As such, traders are exposed to risks in performances and accounts. Brightfinance looks to minimize these risks by providing real-time and historical updates on the market movement for making cognizant decisions.
Contracts for Differences are contracts or agreements between two parties (usually buyer and seller) that stipulate that the differences between the underlying value of a particular asset at an opening time and the value of the same asset at the end of the agreed time.
CFDs generally offer traders opportunities to mitigate risks due to market volatility and price inconsistency. However, they could be risky especially for beginners due to the nature of the assets and the market movements.
Brightfinance offers both written and oral CFDs and FX contracts on commodities, securities, currencies, options, futures and other financial instruments included on the company’s trading platform.
Brightfinance operates under the authorization of the Cyprus Securities and Exchange Commission (CySEC) and all trades are functional under the CySEC rules. These rules govern the provision of investment services, Exercise of investment Activities as well as other regulations on Order and trade execution.
The brokerage inspires trust between it and clients by subjecting the agreement as well as related transactional liaison involved to the laws of Spain. Furthermore, Brightfinance ensures that settlements in case of disputes are attended to by the District court within its headquarters jurisdiction.
To address the security and trust issues associated with digital trading forms, Brightfinance includes documentations which embody layers of execution and trade policies to address conflicts of interests and also build confidence of clients.
Security and Safety
Brightfinance recognises the risks associated with trading digitally especially with the advancing sophistication of cyber crime tools. As such, it features the SSL (Secure Sockets Layer) which introduces encryption to all card payments upon execution of trades.
Its functional security features also works by encrypting all relevant data while protecting against common attacks such as the DDoS attacks. Its trading platform and accounts support a Two-Factor Authentication System (2FA) that ensures additional security to the clients.
Additionally, payments security on this platform is compliant with PCI DSS standards.
Due to the possible viability for money laundering and terrorism funding, the anonymous nature of cryptocurrencies has been one of the prominent issues that that fostered their lack of adoption to the mainstream.
Brightfinance tackled this issue by complying with AML policies and providing its clients with these polices. It issues a quantitative KYC policy in its agreement that ensures that the identity and safety of the clients’ accounts are ensured.
For this trading platform, users are subjected to providing details that identifies them in forms of Registration Data and Personal Details. In accordance to the KYC and AML protocols, clients are mostly required to provide a valid government-issued passport and residential proofs or certificates.
Then, other pieces of information are collected and duly accessed by the platform under the functional regulations at the time of registration to ensure the eligibility of the client. While the platform restricts usage of the platform to users above the legal age, it requires that its users are not linked to suspicious activities or fraudulent acts.
This broker ensures the insurance of funds held online and is liable for payouts upon loss or security breaches. It however ensures additional security of online funds by holding only 10% online with the rest protected by cold storage.
Though traditional in nature, holding digital currencies in cold wallets has been proven to be one of the most secure ways of storage. Nevertheless further responsibility of the security of funds is given to clients in terms of protection of passwords and details linked to the account.
What Functional Trading Platform is Operative at Brightfinance?
Unlike other trading platforms, Brightfinance offers a web-based interface that is engineered for ease and optimized speed in operations. This is such that it is operative upon link with secure connections.
This trading platform offers clients with limited and full experience the chance to experience the power of simplicity in an innovative way. The platform features a fully-functional charting interface that is integrated with indicators for optimal trading functionalities.
As such, traders and investors are exposed to timely information and updates on swift price changes, historical and real-time performances of assets listed, changes in policies and other trading essentials.
Though it presents no apps for mobile users, this web-based platform allows both Android and iOS users unhindered access to trading facilities by adapting its services to run upon connection to the web browsers.
Its trading options are enabled by and easy-to-use interface that is represented by the one-click feature which mitigates time lags in transactions and allows flexibility in trading.
Access to Research and Trading Insights
Research and education on this trading platform is well-detailed and organised to advance investors knowledge and understanding of the market movements. Brightfinance has a fully-equipped trading academy that provides traders of all experience levels with adequate information of trading.
It extends detailed e-books, videos, tutorials as well as webinars specially designed by experienced professionals for adequate education where necessary.
On Withdrawal and Deposits
To rein in purchases or profits, the functional deposits and withdrawal system in place needs to be validated. Brightfinance eases worries of high transactional fees by ensuring that hidden charges are not incurred on transactions.
This platform requires the validation of documentations for identification of clients before activating withdrawal and deposits – thus improving security and trust. This process requires the submission of a functional ID, residential permits or documentation as well as a copy of the credit card used for investing if applicable.
It is important to know that information regarding the credit card is limited to the last four digits on the card and the signature. The other information on the card should be covered to ensure safety of funds.
The platform has no restriction on the amount withdrawn by the client. However, it has a minimum deposit amount of 100 units which is dependent on the currency chosen by the client.
The uniqueness of this withdrawal process is that it could be cancelled when requested and the process is easy. The client is simply required to reach out to the company by email or phone.
What Payments Methods Can be Used?
To ensure transactional ease, Brightfinance enables payments with credit cards and Debit cards with issuers including MasterCard, Visa, MAESTRO and Carte Bleue. This platform also provides support for payments platforms such as PayPal and enables the traditional wire transfer.
The platform requires that the lowest payable amount by credit card be 100 USD while wire transfer is required to be 500 USD with a 25 USD commission. For wire transfer to be made possible, clients with this payment method are required to send a copy of the transfer to the company’s contact email.
Funds processing in these forms are expected to be completed within 5 to 7 business days with the account subjected to examination.
Leverage Trading and Spreads on Brightfinance
Leverage trading, in its simplest form, is a means of maximizing profits and insurance against possible losses due to price movements or trading positions.
Brightfinance offers 1:5 leverage on trading cryptocurrencies which though is considerably small remains a profitable means in the light of the volatility of the crypto market. Its leverage could however go as high as 1:200 depending on the asset class to be traded.
The uniqueness of trading on this platform remains its low withdrawal fee charge on cryptocurrencies and the absence of trade commissions. The company, however, charges 0.87% fee for every approved trading position.
However, spreads on Brightfinance can be quite high – which could affect profits in some cases. These spreads are highlighted by difference in buy and sell of an asset such as digital currencies and are subjected to several terms and policies on the platform.
The company seeks to mitigate the effects of these spreads on profits by offering tight spreads and providing traders with the avenues to improve performances.
Roll Over or Double Up
To further ease profit maximization and traders’ anxiety, Brightfinance offers traders a Roll Over or Double Up option. The roll over feature allows a trader with an almost expired binary option to delay the expiration time for recovery of benefits from the market position within the period.
For this to be possible, the platform requires that the binary option should have more than 3 seconds to expiry and the initial investment on the piton be increased by 30%. The position on this option is required to be “out-of-money” and is offered once per trading position.
On the other hand, traders benefit from the Double Up option by creating new trade upon a near-expired trade. It is a functionality that allows traders create new positions on an asset with the previous terms and conditions albeit based on the current price of the asset and double up profit upon final expiry.
With this, traders have the opportunity to benefit from strong positions and expand investment on open positions. However, with the dynamicity of the market positions, this venture could be risky.
What the Account Types Available?
While this broker ensures the smooth transition of clients into traders and investors through the simplicity of its registration process, it also takes into account the experience and investment level of its clients.
Brightfinance offers different account options with unique features designed to accommodate the clients’ needs while ensuring profitable and relatively effortless trading. These options include:
This is the most basic account option on this platform. It requires that clients fulfil account registration requirements. The minimum initial deposit for this platform is US $250 and the maximum deposit limit is US $2,000.
In this type of account, investors and traders are entitled to 24/7 customer support and a profession chart for making informed decisions.
This is an upgrade of the explorer account with the minimum initial deposit of US $2,000 and a maximum deposit of US $10,000. The benefits of this account include 24/7 customer support.
The uniqueness of this account is highlighted by access to a personal analyst in form of account management and an introductory private session with an experienced analyst to equip the client with the knowledge need to make profitable decisions.
It also features a fixed and tight spreads as well as a trading leverage of up to 1:100 on non-crypto assets that ensure you magnify your profits. These features outline the suitability of this account to beginners in trading as well as experienced traders.
The silver account type has a minimum deposit requirement of US $10,000 with a maximum investment limit of up to $25,000. For this account type, traders and investors are open to monthly-based private sessions with experienced analysts.
A key benefit of this account type is also access to detailed market reviews and financial research. For this level, traders have the opportunity of trading with leverage up to 1:200 depending on the asset of choice.
Traders and investors in this account are open to weekly-based private sessions with experienced analyst for assessment of investments as well as trading decisions. Gold account owners have an opening deposit of $25,000 with investments up to $100,000.
Other benefits of this account embody a smart money management plan that gives the clients the opportunity to magnify profits as well as a personal account manager. Clients here are also entitled to weekly market reviews and detailed financial research reports to keep abreast of market positions and movements.
This is the most advanced account type with an initial deposit limit of $100,000 and investment up to $500,000. Traders here are open to direct consultancy with the account analyst.
They are also entitled to a long-term financial plan backed up and reviewed by a senior account analyst. Other benefits of this account type are weekly and monthly based market reviews with detailed financial researches.
Here, investors have the opportunity of opening up to 5 protected trades with guidance from account analyst.
Special Requirements for Account Registration?
Account registration for Brightfinance leans on the advancements in technology for ease of clients. Though subject to AML and KYC protocols and governed by CySEC rules, the process of registration remains one of the simplest.
In accordance to these policies, the client is required to provide the company with a proof of identity which could be a passport issued by the government or a valid identity card. Also, the client is also required to provide a residential proof.
The procedure is simple. The client is simply required to fill out details on the “Open Trading Account” option on the company’s website home page. A verification link is then sent to the client’s email for verification.
On the choice of account, the clients are required to provide identification and validation proofs to verify the account as well as activate withdrawal and deposits.
The broker’s contact page allows clients access to 24/7 customer support page with link to a contact page for questions and related issues on trading and account options. Its Help Center also links to an FAQ line that incorporates a detailed help database for clients.
The system also provides support to clients through a live chat window for real-time response to issues and assistance in navigating through the platform. This option is, however, open to existing clients.
Clients are also open to contact with a customer service personnel through a phone number posted on the company’s website. However, clients are required to complete a request form available on the “Contact Page” to contact the company’s customer service providers.
What You Need to Know about Brightfinance
Though fundamentally focused on cryptocurrencies, Brightfinance is a good fit to traders with little or no experience but with interest in diversifying their investment options.
With a provisional tender of broad range of assets, this brokerage offers retail and institutional investors ample opportunity to test the waters while benefiting from it.
It is important to note that risks are not exactly eliminated because even the best trading strategies might not be able to withstand the swift changes in the market. However, this platform offers ways of benefitting from these risks by providing several trading options.
On this front, advanced traders are more liable to anticipate these risks and take due action to manoeuvre them to their advantage.
Brightfinance recognises that this could be difficult for less-skilled traders and provides them a thoroughly researched updates as well as support for making informed decisions.
Brightfinance is rated for its easy trading interface, timely customer support as well as being one of the few brokers with security and trust as a backbone. It stands out with its extension of support to legalized cannabis stock as well as a broader range of crypto assets.
However, it does not constrain the decisions of investors seeking more brokerage services on forex and other commodities as it extends its reach to diverse currencies and assets in bid to foster inclusion globally.