Fineco Bank is an Italian financial institution that offers a variety of services to both retail and professional clients which has now opened it’s doors to people in the UK.
At the forefront of this is its proprietary trading platform that gives you access to thousands of CFDs, forex pairs, options, commodities, and futures at super-competitive prices. The platform also offers traditional share dealing services.
If you’re thinking about using Fineco Bank for your online trading needs, be sure to read our in-depth review. We cover the ins and outs of fees, commissions, tradable assets, regulation, and safety.
Use code FINECO-FA to get 50 free trades in the first 2 months
Please Note: CFDs are complex instruments and present a significant risk of losing money quickly due to financial leverage. 69.31% of retail investor accounts lose money due to CFD trading with FinecoBank. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. All trading involves risks, losses can exceed deposits.
What is Fineco Bank?
Fineco Bank is a financial institution with its headquarters in Italy. Launched in 1999, the institution is a relatively new entrant to the European banking sector.
On top of its core retail and commercial banking services, Fineco Bank is also looking to capitalize on the ever-growing online trading space. Its proprietary platform specializes in CFD products – which can be traded across heaps of asset classes.
This includes everything from stocks and shares, currencies, hard metals, energies, futures, and options. Much like any other online broker active in the space, all financial instruments available at Fineco Bank can be traded with leverage. If you’re based in Europe and classed as a retail trader, your limits will be capped to 30:1 on major currency pairs, and less on other assets.
In terms of fees, Fineco Bank bills itself as a low-cost trading platform. This includes commission-free trades on share CFDs, and indices that can be bought and sold at spreads at just 0.4 pips. Forex is also reasonably competitive at the platform, with pairs like EUR/USD coming with spreads of just 0.8 pips.
It is important to note that Fineco bank also offers share dealing services. That is to say, you can buy and own stocks in the traditional sense – meaning that you will be entitled to dividends
Finally, as a fully-fledged financial institution, Fineco Bank is heavily regulated. This includes authorization by the Bank of Italy, as well as a license with the Financial Conduct Authority and Prudential Regulation Authority – more on this later.
How Does Trading Work at Fineco Bank?
Fineco Bank works much the same as any other online broker. Crucially, you will be responsible for each and every trade that you place, meaning that you will need to choose your own investments.
The only work-around to this is to invest money into a Fineco Bank managed portfolio. The fund manager will choose which assets to buy and sell, and in return – you will need to pay a management fee.
The broker actually utilizes its own native trading platform that was built in-house. Known as ‘PowerDesk”, the platform can be accessed via your standard web browser, or through a native mobile application.
As is the case with all online trading sites, each and every user that joins Fineco Bank is required to open an account and verify their identity. After that, you will need to deposit some funds.
What can you Trade at Fineco Bank?
Fineco Bank offers a highly extensive trading arena that contains thousands of financial instruments. This can be split into two key segments – traditional ownership and CFD trading.
Traditional Asset Ownership
If you are looking to buy and hold assets in the traditional sense, then Fineco Bank is well worth considering. This includes thousands of blue-chip companies across several stock exchanges.
For example, the vast bulk of the London Stock Exchange, New York Stock Exchange, and NASDAQ are covered – as is the Toronto Stock Exchange. Fineco Bank is also strong in the European equity department. This includes major exchanges in Germany, Spain, Switzerland, and Finland.
Fineco Bank also allows you to buy and own ETFs (exchange-traded funds). Leading providers such as Vanguard and iShares dominate the ETF department, although other options also exist.
If you want to take a hands-off approach to investing, Fineco Bank offers managed portfolios. There are several portfolios to choose from, with each option weighted depending on your appetite for risk.
CFD Trading
If you are looking to trade financial instruments on a short-term basis, Fineco Bank covers virtually every asset class imaginable.
This includes:
- Forex: More than 50+ currency pairs are hosted at the platform. The vast bulk is made up of majors and minors, with a select number of exotic pairs too.
- Stocks: You can also trade stocks in the form of CFDs. This is useful if you are looking to short-sell a company or apply leverage.
- Indices: You can trade heaps of stock market indices at Fineco Bank. Popular instruments include the S&P 500, Dow Jones, FTSE 100, and NASDAQ 100.
- Commodities: The broker gives you access to dozens of commodities. This includes hard metals such as gold and silver, energies like oil and gas, and even agricultural products.
- Options and Futures: If you are looking to target more sophisticated markets, Fineco Bank gives you access to options and futures. This allows you to gain exposure to financial products without needing to purchase the asset upfront.
- Bonds: Fineco Bank lists more than 5,000 bonds that can be traded at the click of a button. This includes a mixture of government and corporate bonds.
All in all, if a financial marketplace exists – you will likely find it at Fineco Bank.
Fineco Bank Fees and Commissions
In a nutshell, Fineco Bank is extremely competitive in the fee department. However, the specific fees and commissions that you pay will ultimately depend on the asset that you are looking to trade.
While listing each and every trading fee is beyond the remit of this review, below we outline the main charges that you need to be made aware of.
Spreads
First and foremost, spreads are very reasonable at Fineco Bank. If you are looking to trade currencies, major pairs like EUR/USD start at just 0.8 pips.
Although there are certainly tighter spreads out there in the forex arena, it is important to note that you will not need to pay any trading commissions. Instead, it’s only the spread that is charged.
In other asset classes, Fineco bank does not add a mark-up to its stock CFD spreads. Instead, you will get the same market price that Fineco has access to. Indices CFDs are particularly competitive, with Fineco Bank offering 0.4 pips on the S&P 500, and 0.6 pips on the FTSE 100 and NASDAQ.
You are best advised to check the spread on your chosen asset class prior to making an investment. Furthermore, the lowest spreads are offered during standard market hours.
Trading Commissions
If you are looking to trade sophisticated financial products like CFDs, futures, and options – the fees will vary quite considerably. Once again, it all boils down to what asset you are trading.
For example, futures on the CME Micro exchange cost just $0.70 per contract. Options are charged at just $2.50 per lot when trading the S&P 500, NASDAQ, or Russel 2000.
As noted above, there are no trading commissions on forex or stocks. This is also the case with commodities.
Share and ETF Dealing Charges
Things are priced differently when it comes to traditional ownership. Firstly, shares and ETFs listed on the London Stock Exchange can be purchased and sold at just £2.95 per trade.
This actually makes Fineco Bank one of the cheapest share dealing brokers in the UK space. For example, the likes of Hargreaves Lansdown charge upto £11.95 per trade. Although new-age brokers like eToro offer commission-free UK stocks and shares, you’ll find the spread somewhat high.
Outside of the UK equity space, US and European stocks can be purchased at $/€3.95 per trade. Again, this is very competitive. In particular, this would suit those of you that seek to trade large volumes, as you won’t get hammered by a variable percentage fee.
Funds
If you’re planning to use Fineco Bank to access investment funds, the broker charges an annual platform fee. This amounts to 0.25% for all portfolios of less than £250,000.
This goes down to 0.15% if you surpass this figure, and 0% on portfolios of over £2 million. There is no dealing charge or exit fee when investing in a fund at Fineco Bank.
Payments at Fineco Bank
Firstly, it is important to note that Fineco Bank is one of the few online trading platforms that does not impose a minimum account balance. Instead, you can start trading with as little as you wish – which is perfect for newbie investors.
In terms of funding your investment account, Fineco Bank doesn’t publicly specify what payment methods it supports. It is more than likely that accounts need to be funded through an external bank transfer – although do check this before proceeding.
Trading Platforms
Fineco Bank brokerage accounts do not support defacto platform MetaTrader 4/5. Instead, the institution has built its own proprietary platform – PowerDesk, from the ground up. PowerDesk can be accessed through your web browser or downloaded via a mobile application.
We should note that the platform is suited for both newbie investors and seasoned traders, as you have the option of customizing the trading screen however you see fit. For example, when you first load up the platform, you will be presented with the basics.
This includes a single interactive chart that comes with fixed candlesticks. You can, however, add several charts to a single screen – which is perfect for those of you that wish to analyze multiple markets simultaneously.
If you have a specific financial instrument in mind, you can simply search for it to be taken straight to the respective trading arena. Alternatively, you can also browse instruments by the specific asset class or exchange.
In terms of the mobile trading suite, this offers all of the same features and tools as available on the main desktop site. This includes the ability to check live market prices, place buy and sell orders, and check your portfolio balance.
The mobile app is only available on iOS and Android devices. If you have an alternative model, you will need to access Fineco Bank through your standard mobile web browser.
Research and Technical Indicators
Fineco Bank is strong in the research department. If you have the capacity to perform technical analysis, the PowerDesk trading platform is jam-packed with more than 90 indicators. You can also export data from Fineco Bank, which is useful if you are looking to keep external records of your trading endeavours.
In terms of the fundamentals, Fineco Bank offers a detailed snapshot of each and every security that it hosts. This is more elaborate in the share dealing department, with data sheets and company reports. You will also find analyst recommendations on several asset classes.
Education
On the one hand, the Fineco Bank platform can seem somewhat intimidating at first glance – not least because the broker offers so much. With that said, it is notable that the platform has a dedicated learning department.
This includes heaps of in-depth video guides that seek to explain financial terminology. For example, there are videos on trailing stop losses, conditional orders, and trading books. You will also find videos that discuss current macro trends in an easy-to-understand manner.
Fineco Bank also offers regular webinars. By signing up, you will get to listen to an in-house analyst that will discuss key market developments. You can ask questions towards the end of the webinar, which is super-useful if you are just starting out in the world of online investments. Finally, Fineco Bank also offers the occasional live event.
Leverage and Margin Trading
If you have a slightly higher appetite for risk and you wish to obtain leverage, Fineco Bank offers this on most of its financial instruments. However, unless you are classed as a professional trader, you will be limited in how much leverage you can apply.
This is based on the caps imposed by ESMA – which we have listed below.
- 2:1 – Cryptocurrencies
- 5:1 – Equities
- 10:1 – Commodities (excluding gold) and non-major stock market indexes
- 20:1 – Gold, major indices, and non-major currency pairs
- 30:1 – Major currency pairs
If you feel that you need higher leverage limits than ESMA permits, you will need to apply for a professional account. Fineco Bank will ask you to submit a range of documents that support your application – such as a proof of net worth.
Multi-Currency Bank Account
Fineco Bank also offers a cutting-edge multi-currency bank account that is available on a mobile-only basis.
The account allows you to perform a range of everyday banking services – such as:
- Send and Receive Money: The account allows you to send and receive money to and from people in the UK and Europe. If opting for the former, this will go through the faster payments network. If sending money to the Eurozone, this will go through SEPA.
- Debit Card: Fineco Bank offers a fully-fledged debit card. Issued by Visa, you can get the card in GBP, EUR, or both. The card can be used to purchase goods and services online or in-store. It supports contactless payments up to £30.
- Free ATM Withdrawals: You will get free ATM withdrawals when you use the card in its respective region. For example, you won’t pay a fee when you withdraw GBP in the UK, and EUR in Europe.
- International Payments: If you have a need to send money overseas, Fineco Bank supports more than 250 countries across 20 different currencies.
- In-App Security Controls: In a similar nature to the likes of Revolut and Monzo, Fineco Bank allows you to set up security controls from within the app. This includes the ability to block and unblock your debit card at the click of a button.
Regulation: Is Fineco Bank Safe?
When it comes to the safety of your investments, Fineco Bank has a number of safeguards in place. At the forefront of this is licensing with the Financial Conduct Authority and Prudential Regulation Authority. This ensures that you are able to trade in a safe and secure environment. It also ensures that Fineco Bank must keep client funds in separate bank accounts from its own.
The bank is also authorized by the Bank of Italy – which in itself adds an extra set of regulatory eyes. Fineco Bank also claims to have 13 million clients under its belt in Italy, which includes more than €70 billion worth of assets under management. In terms of throughput, the platform processes more than 30 million individual orders each and every year.
Additionally, Fineco Bank is actually a publicly-listed company, and it forms part of the wider Euro Stoxx 600 index of companies.
Awards
Fineco Bank has won a number of awards for its online brokerage services. Most recently, this includes an award for the best trading tools, trading platform, and all-round provider of the year. These awards were obtained at the London Forex Show 2020.
Customer Support
If you need to speak with a member of the Fineco Bank customer support team, you have the option of live chat, email, or telephone. If you are based in the UK, telephone enquiries should be directed to 0800 640 6465.
The customer service teams work Monday to Friday, between the hours of 8 am and 9 pm. Any support required over the weekend will need to wait until Monday morning.
How to get Started With Fineco Bank Today
If you like the sound of what Fineco Bank has to offer – and you think the platform meets your long-term investment needs, we are now going to show you what you need to do.
Step 1: Open an Account
As is the case with all online trading platforms, you will need to open an account with Fineco Bank. This will initially require some personal information from you – such as your full name, home address, date of birth, and contact details. If you’re from the UK, you will need to enter your national insurance number.
Step 2: Submit Verification Documents
You will now need to bypass a KYC (Know Your Customer) process with Fineco Bank. This is standard practice with all online trading platforms – and typically requires two separate documents.
Firstly, you will need to provide a clear copy of your government-issued ID. UK citizens can upload a copy of their passport or driver’s license. Secondly, you will also need to provide a proof of residency. This can be a recently issued bank account statement or utility bill.
Step 3: Deposit Funds
Once you have had your documents validated, you can then proceed to deposit some funds.
As noted earlier, there is no minimum deposit amount that you need to meet. The only exception to this rule is if you are looking to invest in a managed fund. If you are, this comes at a reasonable minimum of £100
Step 4: Place a Trade
As soon as your Fineco Bank account has been funded, you can place a trade. There is no requirement to download any software unless you are looking to trade on the mobile app. If you have a specific investment in mind, you are best advised to search for it within the PowerDesk platform.
Fineco Bank Review: The Verdict
In summary, Fineco Bank is still relatively unheard of in the UK brokerage space. Although it has been offering online investment solutions for over two decades, its entrance into the UK arena is still in its infancy.
Nevertheless, the platform offers tens of thousands of financial instruments that can be traded at the click of a button. Whether you are looking to buy traditional stocks and shares, or you want to trade CFDs on a short-term basis – Fineco Bank has you covered.
The broker also stands out for its zero account minimums – meaning that you can start off with really small amounts. Fees are very competitive, with traditional share dealing services starting at just £2.95 per trade. Other asset classes – such as forex and commodities – can be traded on a commission-free basis.
All in all, Fineco Bank ticks most boxes in the online brokerage space. Most importantly, it is regulated by the UK’s FCA, so you should have no concerns over the safety of your funds.
Use code FINECO-FA to get 50 free trades in the first 2 months
Fineco Bank
Pros
- Well Regulated
- Good Trading Platform
- Low Fees
- Large Range of Assets
- Zero Account Minimums
Cons
- New to the UK scene
