Bacera Review South Africa (2023) – ☑️Pros & Cons Revealed

WHO IS BACERA?      

According to research in South Africa,  Bacera is an Australian forex broker company which is based in Sydney.  The broker operates under the trading name of Bacera Co Pty Ltd and has more than eight years of experience in forex and CFD trading.

Bacera is what is known as a ‘market maker’ broker, what this means is that they are eligible to provide both sell and buy quotes through their system to their clients. The broker or company is able to fill all client orders and is indifferent to the trader’s decisions. Even though Bacera is a market maker brokerage they do still offer some really competitive spreads.

SAFE OR SCAM

One of the best benchmarks to measure the safety of a broker like Bacera, is to establish which regulating authorities are watchdogs over its actions. Bacera is regulated by the ASIC (Australian Securities and Investment Commission)

PRO AND CONS

LEVERAGE

Bacera offers a maximum leverage ratio of 400:1

Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.

Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you have to have funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

ACCOUNTS   

Bacera offers its clients two types of account to choose from based on their skill level.  The Standard Account – This is the most popular account type and is aimed at novice traders, there is a minimum deposit requirement of 300 AUD, a fixed spread of 1.8pips and a maximum leverage of up to 400:1. The Pro Account – This account was designed for expert traders who are comfortable with its minimum deposit requirement of 20,000 AUD, it has a floating spread from 1.1pips and a maximum leverage of up to 400:1. This account also comes with reduced commission fees.

Micro lots are available for trade on both of the above account types and, of course, the broker also provides a free Demo account to practice with for one month. PAMM accounts, as well as swap-free services, however, are unfortunately not available with Bacera.

A forex account at Bacera is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.

MARKET INSTRUMENTS

Bacera provides their clients the ability to trade in over 30 currency pairs, CFDs, shares, indices and precious metals. The most popular market instruments available from most brokers for trading include:

Forex

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

FEES

Bacera does not charge commission for all currency pairs, except for USD/CNH. They also do not charge a commission fee for most CFDs. The list of assets that requires additional fees is available on their website and the commission charge is AUD 20.

The Standard account has a fixed spread of 1.8pips and the Pro account has a floating spread from 1.1pips. The broker does allow scalping and hedging, but traders are not able to use scalping strategies too often and trade different lots for different currency pairs. There are also a number of conditions for limit orders and stop-loss orders, which can add an extra burden to your trading strategies.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

DEPOSIT AND WITHDRAWAL

Accounts usually requires a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

Bacera offers the following methods for both deposit and withdrawal; Visa, MasterCard, American Express, Wire Transfer and China Union Pay. The minimum deposit for a Standard Account is 300 AUD and a Pro Account is 20 000 AUD.

TRADING PLATFORMS

The forex trading platform provided by Bacera to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

Bacera offers its clients the MetaTrader4 platform, it is a powerful and widely used application.

MetaTrader4 desktop and mobile – This is one of the most popular and widely used platforms in the trading industry, MetaTrader4 is known for having a user-friendly interface, excellent educational material and intuitive research tools that appeal to both beginners and advanced traders. MetaTrader4 is compatible with several operating systems such as Linux, Mac, Windows, IOS and Android.

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with Bacera for the first time, you will be required to go through a basic “know your customer” process, which will allow Bacera to ascertain that your submitted details and ensure the safety of your funds and account details.

CUSTOMER SUPPORT

Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.

In the case of Bacera customers can reach the support team via telephone, email or the live chat option on their website, the consultants are friendly and knowledgeable.

EDUCATION       

Before starting to trade, potential clients of Bacera should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

Bacera provide their clients with a number of educational materials including articles that explain the basics of forex trading to more in-depth analysis for experienced traders. There are also video tutorials and a full trading terminology index.

RESEARCH         

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

There is no information on their website that Bacera offers any of their own personal research tools, however, MetaTrader4 comes packed with a number of built-in technical indicators, advanced charting package, wide range of Expert Advisers (EAs) and an extensive back-testing environment.

AWARDS

Being an awarded company instils extra confidence by traders.  Although Bacera is acclaimed by customers, there is no indication of awards won on its homepage.

CONCLUSION  

Bacera can be described as a company that is a genuine broker that is regulated by the ASIC, which does offer a substantial amount of protection against broker scams or other financial irregularities. The company also offers some very competitive spreads but unfortunately, there are further commission charges as well. Bacera offers its clients MetaTrader4 which is a very popular trading platform.

DISCLAIMER

Bacera warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.

Before deciding to trade with Bacera, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

Bacera warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable, hence Bacera cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with Bacera?

You can trade several different instruments with Bacera, which include the following:

• . Over 30 currency pairs
• CFDs
• Shares
• Indices
• Precious Metals

Which platforms are supported by Bacera?

Bacera provides the following popular trading platforms:

Does Bacera offer leverage?

Yes, Bacera offers a maximum leverage of 400:1

What spreads can I expect with Bacera?

The Standard account has a fixed spread of 1.8pips and the Pro account has a floating spread from 1.1pips

If details on the website is not comprehensive, more information can be obtained from the customer support service.

Does Bacera charge commission?

Yes, more information on commissions can be obtained from the customer support service.

Is Bacera regulated?

Yes, Bacera is regulated by ASIC (Australian Securities and Investment Commission)

Is Bacera a recommended forex trading broker for experts and beginners?

No, Bacera only offers a fair trading environment for experienced traders.

What is the overall rating out of 10 for Bacera?

8/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does Bacera offer a demo account?

Yes

How long is the demo account valid?

The demo account can be used for 30 days.

Which live trading accounts does Bacera offer?

• Standard Account
• Pro Account

What are the available deposit currencies for a live trading account?

USD, AUD and EUR

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for Bacera?

300 AUD

How do you make a deposit and withdrawal with Bacera?

Bacera offers the following deposit methods:

• Wire Transfer
• Visa
• MasterCard
• American Express
• China Union Pay

Withdrawals can be done via:

• . Wire Transfer
• Visa
• MasterCard
• American Express
• China Union Pay

Does Bacera charge withdrawal fees?

No, but fees from financial institution may apply

How long does it take to make a withdrawal?

Depending on bank services it may take several days for the money to be available.

Featured SA Shares Writer and Forex Analyst.