SquaredFinancial Broker Review

SquaredFinancial’s Overall Rating

SquaredFinancial provides two primary accounts: the SquaredPro, suitable for beginners with no minimum deposit and spreads starting at 1.20 pips on the EUR/USD, and the Elite account, tailored for experienced traders with a 5000 USD minimum deposit but offering competitive spreads from 0 pips and a low commission of 5 USD. Despite its low trading costs for the Elite account and extensive asset options, the broker’s educational resources and trading tools are limited, potentially a disadvantage for novice traders. SquaredFinancial’s regulatory compliance with CySEC and FSA and a stringent client fund segregation policy underpins its reliable trading environment. However, the high entry barrier for the Elite account may deter less experienced or financially constrained traders. FXScouts gives SqauredFinancial a decent rating of 4.02 out of 5.

Is SquaredFinancial Safe?

Yes, SquaredFinancial is a safe broker for traders to trade with. It has good regulatory oversight, segregates client funds, and provides traders with negative balance protection. 

Founded in 2005, SquaredFinancial is regulated by the Seychelles Financial Services Authority (FSA) and the Cyprus Securities and Exchange Commission (CySEC). Although clients from South Africa will be trading through the Seychelles-based subsidiary, which has less regulatory supervision than SquaredFinancial’s Company based in Cyprus, it segregates its client funds from company funds and provides all traders with negative balance protection. Additionally, should the Company become insolvent, clients are covered by the Lloyd’s of London up to a maximum of 1,000 000 USD per client. On this basis, we consider SquaredFinancial a safe broker for South African clients to trade with. Click here for more details on SquaredFinancial’s regulatory oversight. 

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Trading Fees

SquaredFinancial’s trading fees are slightly above average on its SqauredPro account but significantly below average on the SquaredElite Account.

Like many other brokers, SquaredFinancial offers two market-execution account types with lower trading fees linked to higher minimum deposits. The SquaredPro Account has the trading costs included in the spread, while the SquaredElite Account offers exceptionally tight spreads and a small commission per trade. For more detail on SquaredFinancial’s trading accounts, click here.

SquaredFinancial offers trading on both the MT4 and MT5 trading platforms, and it publishes all the spread and commission costs associated with either account. 

SquaredFinancial accounts were assessed to compare the costs to those of other brokers. The costs were evaluated based on the trading fees on one lot (100 000 USD) on the EUR/USD, including the spread and commission:

Spread x Trade Size + Commission = Total Trading Cost (USD)

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As you can see from the table above, the trading costs on the SquaredPro Account are built into the spread and are higher overall than the costs on the SquaredElite Account, which has a small commission per lot traded. However, although there is no minimum deposit requirement to open a SquaredPro Account, the minimum deposit requirement on the SquaredElite Account is 5,000 USD, putting it out of the reach of beginner traders.  

Overall, SquaredFinancial’s trading costs are slightly higher than average on the SquaredPro Account – most good brokers will have a cost of around 9 USD per lot of EUR/USD – and significantly lower than average on the SquaredElite Account, but it has a minimum deposit requirement of 5000 USD. 

Spreads on Major Forex Pairs

SquaredFinancial also offers trading on other major pairs, including the GBP/USD and USD/JPY. Like with the EUR/USD, the costs in the table below are based on the trading fees of one lot (100 000 USD), including the spread and commission:

Compared to other similar brokers, trading costs on all the above pairs are slightly higher than average, except on the GBP/USD, but its costs are still around the industry average. Most other good market maker brokers have an average trading cost of 9 USD on the EUR/USD, 14 USD on the GBP/USD, 10 USD on the USD/JPY, 11 USD on the AUD/USD, and 14 USD on the USD/CHF.

Swap Fees

The final trading cost to consider at SquaredFinancial is the swap rate charged on positions held overnight. Unlike many brokers, SquaredFinancial does not publish its swap rates, but they are available to view from inside the trading platform. Traders can use the following calculation to work out the swap fees:

If Swaps are given in Points:

Pip Value * Swap Rate * Number of Nights / 10 = Swaps

• 11.5 * -8.3 * 5 / 10 = 47.725$

If swaps are given in Pips

Pip Value * Swap Rate * Number of Nights = Swaps

• 11.5 * -0.83 * 5 = 47.725$

For the most up-to-date Forex swap rates, please refer to the Market Watch panel in the MetaTrader 4/5 platforms. Simply follow the steps outlined below:

1. Locate the product in the ‘Market Watch’ window. Right-click and select ‘Symbols.’

2. Select the product to view from the list. Select ‘Specifications’.

3. Here you can view the Forex swap rates for both long and short positions.

Additionally, SquaredFinancial offers a trading convenient trading calculator to calculate the swap fees.

Overall, SquaredFinancial offers a good pricing environment and caters to traders of all experience levels. However, it does not publish its swap rates on its website.  

Non-trading Fees

SquaredFinancial’s non-trading fees are average compared to other similar brokers. 

Some of the most overlooked trading costs are the non-trading fees charged by brokers. These fees can significantly affect your profitability and so should be carefully scrutinised.

SquaredFinancial does not charge any fees for deposits, and fees for withdrawals only apply in certain circumstances. For example, if a client withdraws their full deposit without having traded, a withdrawal fee of 2% applies (click here for more details on SquaredFinancial’s deposits and withdrawals).

Additionally, SquaredFinancial charges an inactivity fee of 25 USD per month after three months of inactivity, which is relatively expensive.

Overall, these fees are around the average charged by other similar brokers.

Opening an Account at SquaredFinancial

The account opening process is swift compared to other similar brokers

South African traders are eligible to open an account at SquaredFinancial, as long as they meet the following minimum deposit requirements:

• SquaredPro Account: 0 USD

• SquaredElite Account: 5000 USD

SquaredFinancial offers corporate and individual accounts. For the purposes of this review, we will outline the process for opening an individual account:

1. From the SquaredFinancial homepage, you will have to click on the ‘Register’ tab, where you will be directed to register an account with a name, email address, country of residence, and you will have to create a password.  

2. You will then be required to fill in your personal information, including date of birth, nationality, and physical address.

3. Next, traders must fill in their financial details, employment status, trading experience and submit their tax information.

4. Traders will then have to choose their preferred trading platform (MT4 or MT5), account type (click here for more on SquaredFinancial’s account types), level of leverage, and base currency (USD, EUR, GBP, ZAR, CHF, and HKD).

5. Verification usually takes less than 24 hours, and SquaredFinancial will need:

   1. Proof of Identification – SquaredFinancial accepts all government-issued identification documents such as Passport, national ID card, driving license, or other government-issued ID. 

   2. Proof of Address – Proof of residence/address document must be issued in the name of the account holder within the last six months. It must contain a trader’s full name, current residential address, issue date, and issuing authority. 

Overall, SquaredFinancial’s account-opening process is fully digital and hassle-free, and accounts are ready for trading within 24 hours. However, traders can deposit funds before having submitted their verification documents.

SquaredFinancial Trading Accounts

SquaredFinancial offers two account types, which is average when compared to other ECN brokers. One account is suitable for beginners, and the other is suitable for more experienced traders. 

SquaredFinancial has two simple account types – one suited to beginners and the other for more experienced traders. Beginner traders are inexperienced traders who have never traded before or who have been trading for less than a year. Beginner traders often do not want to risk trading large sums of money and generally will not be able to trade full-time during the workweek. 

Accounts with lower minimum deposits that allow trading in micro-lots are generally more suited to beginner traders. Spreads on these accounts are often wider than those with higher minimum deposits. For example, SquaredFinancial’s SquaredPro Account has no minimum deposit requirement but has slightly wider than average spreads. 

In general, experienced traders prefer accounts with higher minimum deposits and tighter spreads. For example, SquaredFinancial’s SquaredElite Account has a minimum deposit of 5000 USD but offers spreads that start at 0 pips (EUR/USD) in exchange for a low commission of 5 USD, making it appealing to experienced traders. 

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An ECN/STP broker, SquaredFinancial offers two market execution accounts, and both accounts are available on MT4 and MT5. Maximum leverage is fixed at 500:1 on both accounts as required by FSA regulation. In addition, hedging, scalping, and algorithmic trading are unlocked on both accounts and SquaredFincancial offers Islamic accounts.

Accounts can be opened in a range of base currencies, including USD, EUR, GBP, CHF, ZAR, and HKD. For more on SquaredFinancial’s base currencies, read here.

Demo Account

SquaredFinancial offers a demo account with a virtual balance that can be topped up. Demo accounts do not expire and are an opportunity to experience SquaredFinancial’s services and platforms.

SquaredPro Account

A commission-free trading account, the Pro account has no minimum deposit requirement. Still, due to the margins required when making leverage trades, a minimum starting balance of 200 USD is recommended. Fees are included in the institutional-grade spreads, which average at 1.20 pips on the EUR/USD. This account is better suited to beginner traders who do not want to spend time calculating commissions costs. 

SquaredElite Account

The SquaredElite Account is SquaredFinancial’s raw spread account. Spreads start at 0 pips on the EUR/USD – some of the lowest average spreads we have found at ANY broker – and a low commission of 5 USD is charged per lot traded. With a minimum deposit of 5000 USD, the Elite Account is designed specifically for experienced traders as there is also the added challenge of integrating commissions when calculating trading costs. 

Swap Free Accounts

SquaredFinancial offers SwapFree trading accounts to clients who cannot earn or pay interest due to their religious beliefs. Forex Islamic accounts, also known as swap-free accounts, imply no swap or rollover interest on overnight positions. Islamic accounts have exactly the same trading conditions and terms as SquaredFinancial’s regular trading account types and is available on both SquaredPro and SquaredElite account types, but only on the MT4 platform. Traders should note that there are some restrictions on these accounts: Swap-free positions are only available on FX majors for up to 14 days, FX exotics for up to10 days, metals for up to 5 days, and indices for up to 3 days. After these periods, the SWAP will be charged as usual.  

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Broker

Trading Conditions

Base Currencies

EURUSD (Standard)

Trading Cost (Standard)

EURUSD (Best)

GBPUSD (Best)

USDJPY (Best)

Commission

SquaredFinancial

4/ 5

EUR, USD, GBP, ZAR, CHF, HKD

1.20 pips

USD 12

1.10 pips

1.40 pips

1.30 pips

USD 0

XM

5/ 5

USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, ZAR

0.60 pips

USD 6

0.60 pips

0.60 pips

0.60 pips

USD 0

AvaTrade

4.5/ 5

USD, GBP, EUR, AUD, ZAR, CHF

0.90 pips

USD 9

0.90 pips

1.60 pips

1.10 pips

USD 0

Deposits and Withdrawals 

SquaredFinancial’s deposit and withdrawal fees are average compared to other brokers, though it lacks transparency when it comes to funding methods and costs.

A well-regulated broker, SquaredFinancial ensures that all Anti-Money Laundering rules and regulations are followed, and as such, all non-profit withdrawals are returned to the deposit source. No matter your deposit method, the withdrawal of all profits must be made by bank transfer to a bank account in your name.

SquaredFinancial offers a range of fee-free deposit and withdrawal options; however, a fee of 2% of the amount is charged if a deposit is made and a trader withdraws the full amount without having traded.   

SquaredFinancial also charges a currency conversion fee for transfers in currencies other than its accepted base currencies. This should not be a problem for traders from South Africa with ZAR bank accounts and ZAR trading accounts, but for those wishing to open an account in a separate currency, it is something to be aware of.

Withdrawals can take between 3 – 5 days to reach client accounts. SquaredFinancial offers the following withdrawal and deposit methods:

• Bank Wire Transfer

• Visa credit/debit card

• Mastercard credit/debit card

• Bank transfer

• Neteller

• Skrill

In other countries, other methods may be available. But these methods are not available to view (nor the fees involved) until you have opened a live account and logged in. This is unusual and not consumer-friendly, as most brokers publish all their deposit and withdrawal fees on their websites.

Base Currencies

Compared to other brokers, SquaredFinancial offers an average range of base currencies.

Accounts can be denominated in the following base currencies: USD, EUR, GBP, ZAR, CHF, and HKD. 

While most traders will want to have their trading accounts denominated in USD, some traders may want to have multiple accounts with different base currencies so as not to pay conversion fees when trading. The range of base currencies available at Squaredfinancial allows for traders to do this and is welcomed. 

SquaredFinancial’s Trading Platforms

SquaredFinancial’s trading platforms are average compared to other brokers.

SquaredFinancial offers full support for Metatrader 4 (MT4) and Metatrader 5 (MT5) available on PC or Mac. 

The advantage of brokers offering third-party platforms such as MT4 and MT5 is that traders can take their own customised versions with them should they decide to migrate to another broker. However, these platforms are not as beginner-friendly as the proprietary platforms on offer at other brokers. See below for more details.  

MetaTrader 4

MetaTrader 4 (MT4) is still undoubtedly the world’s most popular trading platform for forex traders due to its ease of use, feature-rich environment, and automated trading ability. MT4 is available in over 31 languages.

 Features of MT4 include: 

• A built-in library of more than 50 indicators and tools to streamline the analysis process
• An impressive array of 24 analytical tools, available in nine timeframes for each financial instrument.
• Three chart types
• One-click Trading
• Algorithmic trading, which allows any trading strategy to be formalised and implemented as an Expert Advisor. 
• Customisable alerts
• Access to MetaTrader market and MQL4 community. 

While MT4 has great customizability, the platform feels outdated, and some of the features may be hard to find. In addition, only the basic orders are available, including Market, Limit, Stop, and Trailing Stop. MT4 is available on PC and Mac.

MetaTrader 5

The MT5 trading platform is being adopted by more Forex brokers all the time. It has a more modern interface, allows for an unlimited number of charts to be used, shows Depth of Market, and has a built-in Economic Calendar. It also has a larger number of pending order types than MT4 and features an embedded chat system. The MQL5 scripting language is more efficient than its precursor, and MT5 has more advanced charting tools than MT4. 

Features include:

• 38+ preinstalled technical indicators
• 44 analytical charting tools
• 21 timeframes
• Additional pending order types
• Detachable charts

MT5 is also available on PC and Mac.

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Broker

Platform Choice

Copy Trading

Platforms

SquaredFinancial

4.5/ 5

Yes

MT4

MT5

XM

4.5/ 5

Yes

MT4

MT5

AvaTrade

4.5/ 5

Yes

MT4

MT5

Avatrade Social

AvaOptions

Overall, SquaredFinancial’s platform support is about average when compared to other brokers, but it offers its own customised trading tools which integrate seamlessly with MT4 and MT5.

SquaredFinancial’s Mobile Apps

SquaredFinancial’s mobile trading platforms are above average when compared to other similar brokers.

MT4/MT5 Mobile Applications

Both trading platforms are available on both Android and iOS mobile devices and tablets. Beginner traders should be aware that there is some loss in functionality when compared to the desktop trading platforms, including reduced timeframes and fewer charting options. In addition, spotty connections can reduce the overall trading experience. Generally, it is better to be at your desktop to conduct day-to-day trading and use a mobile device to keep an eye on the markets or close open positions.

The SquaredFinancial MT4 and MT5 apps allow traders to work from anywhere, with functionality to close and modify existing orders, calculate profit/loss in real-time, and tick chart trading to further assists traders while on the move.

SquaredFinancial’s Trading Tools

SquaredFinancial’s trading tools are average compared to other similar brokers.

SquaredFinancial’s trading tools include Trading Central, an economic calendar, and various trading calculators. 

• Trading Central: Trading Central is available to clients who register a live account. A third-party tool, Trading Central’s professional analysts use the most advanced technical analysis tools in the industry to curate relevant information. This tool essentially supports traders without the technical know-how in making trading decisions. Trading Central is one of the most popular trading tools available and provides excellent market analysis, and SquaredFinancial does well to offer this service to its clients.
• Economic Calendar: Squaredfinancial offers an economic calendar highlighting various events that will impact market movements. 
• Trading Calculators: SquaredFinancial offers a number of trading calculators, including a Profit/Loss Calculator, a Margin Calculator, a Pip Calculator, a Swap Calculator, an Investment Calculator, and a Currency Converter. 

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Broker

Economic Calendar

Autochartist

Trading Central

Trading View

Free VPS

SquaredFinancial

Yes

No

Yes

No

No

XM

Yes

No

No

No

Yes

AvaTrade

Yes

No

Yes

No

Yes

SquaredFinancial’s Financial Instruments

With over 10,000 financial instruments available for trading, SquaredFinancial has one of the largest offerings in the industry.

Squaredfinancial offers trading on Forex, indices, shares, commodities, cryptocurrencies, bonds, and futures.

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• Forex pairs: SquaredFinancial offers 48 Forex pairs to trade, including majors, minors, and exotics such as USD/ZAR and ZAR/JPY. This is around the average offered by its closest competitors. 

• Commodities: SquaredFinancial offers trading on 5 commodities, including metals such as gold and silver, and energies such as Brent and Crude oil.

• Stock CFDs: SquaredFinancial’s stock CFD offering is extremely broad compared to most of its competitors, with over 9,000 stock CFDs available to trade, including popular US tech companies, those listed on the UK and European exchanges. Traders should note that stock CFD trading is only available on MT5.

• Indices: SquaredFinancial offers cash and futures contracts on 14 international indices, including the NASDAQ, S&P500, FTSE100, and the Dow Jones. This is an average range of indices compared to other brokers.

• Futures: SquaredFinancial offers trading on 19 global futures, including the DXY, VIX, energies, and soft commodities, which is average compared to most other brokers.  

• Cryptocurrencies: SquaredFinancial offers 25 cryptocurrencies for trading, a wide range compared to other similar brokers. These include Bitcoin, Bitcoin Cash, Ethereum, Dash Coin, Ripple & Litecoin.  Spreads on these currencies are variable and are significantly higher than Fiat currencies but in line with other brokers.

Overall, SquaredFinancial provides an enormous range of tradable assets, which should satisfy most traders. 

SquaredFinancial Analysis and Market Research

SquaredFinancial’s market research is average compared to other large international brokers.

SquaredFinancial offers a daily market insights blog that has detailed information but is not updated frequently. It has also partnered with Trading Central to provide excellent market research.

Market commentary can be found on SquaredFinancial’s Youtube channel, but it only has 80 subscribers.

Overall, SquaredFinancial’s research ranks below that of its competitors, but Trading Central is a trusted third-party source. 

SquaredFinancial Education

SquaredFinancial’s education is limited compared to other large international brokers.

Beginner traders have access to various educational articles, but these are all curated by third-party providers. Additionally, they are updated infrequently.

There is also a section of trading guides, which provides excellent learning material, and the Trading Central on-demand videos, which provide a good introduction to online trading. There are 31 videos and 23 quizzes.

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Broker

Beginner Course

Advanced Course

Well Structured Education

Education Quality

Webinars

SquaredFinancial

Yes

Yes

Yes

Medium

Yes

XM

Yes

Yes

Yes

High

Yes

AvaTrade

Yes

Yes

Yes

High

Yes

Customer Support

SquaredFinancial’s customer support is average compared to other similar brokers.

SquaredFinancial offers 24/5 multi-lingual customer support via email, live chat, web form, messenger services, or phone. SquaredFinancial also provides a dedicated Trading FAQs section explaining its services. 

For the purposes of this review, we found the customer service responsive, polite, and knowledgeable.

Safety and Regulation

Yes, SquaredFinancial is a safe broker for South Africans to trade with. It maintains regulation from CySEC of Cyprus and the FSA of Seychelles.  

A global CFD broker with over 20,000 clients worldwide, SquaredFinancial was founded in 2005 and is headquartered in Cyprus. It is authorised and regulated by the Financial Services Authority (FSA) of Seychelles and the Cyprus Securities and Exchange Commission CYSEC. See below for details:

• Squared Financial (Cyprus) Limited is authorised and regulated by CySEC under license No. 329/17
  Squared Financial (Seychelles) Ltd is authorised and regulated by FSA under license No. SD024 .

South Africans will be trading under the SquaredFinancial subsidiary, SquaredFinancial (Seychelles) Ltd, authorised and regulated by the Seychelles Financial Services Authority (FSA).

The level of protection offered by the FSA is low compared to regulators of Europe and Australia, and CFD brokers registered with the FSA are not required to segregate client money from company operational capital or participate in compensation schemes. They are also not required to offer negative balance protection and have no leverage restrictions. 

However, South Africans can be sure that their funds will be deposited in top-tier, well-capitalised banks and financial institutions separate from the Company’s operating funds. SquaredFinancial also provides negative balance protection which means that traders can never lose more than their initial starting deposit.  

Overall, because of its CySEC and FSA regulation, the fact that it segregates client money in top-tier banks, and the provision of negative balance protection, we consider SquaredFinancial a safe broker for South Africans to trade with. 

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Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the SquaredFinancial offering. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker, and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

SquaredFinancial Risk Statement and Disclaimer

Trading Forex is risky, and each broker is required to detail how risky the trading of Forex CFDs is to clients. SquaredFinancial would like you to know that: CFDs are leveraged products. Trading in CFDs carries a high level of risk thus may not be appropriate for all investors. The investment value can be increased or decreased and the investors may lose their invested capital. The Company has no liability to any person or entity for any loss or damage in whole or part caused by, resulting from, or relating to, any transactions related to CFDs.

Overview

An STP broker offering multi-asset trading, SquaredFinancial is a good broker for both beginner and experienced traders alike. It offers a relatively low-cost entry-level and support for both MetaTrader platforms, though many other international brokers also offer their own trading platforms – which are often easier for beginners to use.

The range of assets available to trade is large when compared to other brokers, including over 9000 share CFDs. Overall trading costs are average compared to other brokers, but no fees are charged for deposits or withdrawals in most circumstances. One drawback is that SquaredFinancial provides very little in the way of learning materials are market research, but Trading Central is provided free of charge to those who register an account. 

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She is the Senior Editor for FXScouts.  She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers. She has a passion for Forex trading and over a decade of editorial experience researching Forex and the financial services industry, producing high-quality content. She hosts a weekly podcast, “Let’s Talk Forex,” alongside her colleague, Chris, and has produced over 100 Forex educational videos for the FXScouts YouTube channel. She also writes weekly technical analyses and has tested and reviewed over 100 Forex brokers.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.