TeraFX is a UK-based forex and CFD broker offering trading in currencies, commodities, indices, and precious metals. It operates under Tera Europe Limited and is authorised and regulated by the UK’s Financial Conduct Authority (FCA), making it one of the more strictly supervised brokers in the European market. This TeraFX review evaluates its regulatory compliance, trading platforms, execution model, instruments, account types, and risk protections.

Regulation and Safety

TeraFX is fully authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom under firm reference number 564741. This regulatory status mandates high standards of operational transparency, capital adequacy, client fund segregation, and fair dealing. Clients are protected under the Financial Services Compensation Scheme (FSCS)</strong), which covers up to £85,000 per client in case of broker insolvency.

Client funds are held in segregated bank accounts at top-tier institutions, and TeraFX complies with MiFID II and UK financial conduct rules. Negative balance protection is provided for retail clients under FCA requirements.

Execution Model and Trading Platforms

TeraFX uses a hybrid STP (Straight Through Processing) and No Dealing Desk (NDD) model. This means that orders are transmitted directly to liquidity providers without internalisation, aiming for improved execution speeds and reduced conflict of interest.

The broker supports the MetaTrader 4 (MT4) platform only. MT4 remains a leading choice for retail traders, supporting Expert Advisors (EAs), custom indicators, advanced charting, and multiple order types. MT4 is available for Windows desktop, mobile (iOS and Android), and WebTrader for browser-based trading.

Markets and Instruments

TeraFX offers CFD trading across four asset categories:

• Forex – 50+ currency pairs including majors and minors
• Commodities – Gold, silver, oil
• Indices – Global indices including US30, GER40, FTSE100
• Metals – Spot precious metals against USD and EUR

Currently, the broker does not provide access to individual stocks, ETFs, bonds, or cryptocurrencies, limiting asset diversification for advanced portfolio strategies.

Accounts, Spreads and Leverage

TeraFX offers a single live trading account with access to all supported instruments. The broker does not operate a multi-tier account model but instead provides uniform conditions for all retail clients:

• Minimum deposit: £100 or currency equivalent
• Spreads: Floating from 1.2 pips on EUR/USD
• Leverage: Up to 1:30 for retail clients, up to 1:200 for professional clients (upon qualification)
• Commissions: No commission; trading costs built into the spread
• Order types: Market, limit, stop, trailing stop

Professional clients can request higher leverage but must forfeit FSCS protection and negative balance guarantees. Retail traders benefit from full regulatory safeguards and restricted leverage in line with FCA rules.

Funding and Base Currencies

Deposits and withdrawals are supported via:

• Bank transfers (UK and international)
• Credit/debit cards (Visa, Mastercard)

Account base currencies include GBP, EUR, and USD. TeraFX does not support e-wallets or cryptocurrencies. All deposits are processed into segregated accounts, with most transactions cleared within 1–3 business days. There are no internal deposit fees, though bank charges may apply externally.

Client Protections and Features

As an FCA-regulated firm, TeraFX provides a robust client protection framework:

• Segregated client funds in FCA-approved banks
• Negative balance protection for retail clients
• Compensation under FSCS up to £85,000
• MiFID II reporting, transparency, and conduct rules

The broker also offers platform-level risk controls, customisable stop orders, and a free demo account for platform testing. However, there is no two-factor authentication (2FA) or biometric login support on the client portal.

Institutional and Retail Offering

TeraFX focuses exclusively on retail and professional traders. There are no institutional features such as FIX API, prime brokerage, or white label solutions. Professional clients can apply for enhanced leverage and execution privileges if they meet the FCA’s professional eligibility criteria.

Retail clients benefit from educational materials, technical analysis reports, and customer service via phone, email, and live chat during market hours. However, there is no proprietary research, trading signals, or third-party tool integration.

Pros and Cons

Pros:

• FCA-authorised with FSCS protection
• Negative balance protection for retail clients
• MT4 support with full EA compatibility
• Transparent STP execution model
• Simple pricing structure with no commission

Cons:

• Limited product range (no stocks, ETFs, crypto)
• Only one platform (MT4), no MT5 or proprietary option
• No e-wallet or crypto funding options
• Lack of institutional-grade features
• No multi-account structure or VIP conditions

Frequently Asked Questions

Is TeraFX regulated?

Yes, TeraFX is authorised and regulated by the UK Financial Conduct Authority (FCA), reference number 564741.

What platform does TeraFX offer?

TeraFX offers MetaTrader 4 (MT4) for desktop, mobile, and web trading. MT5 is not supported.

What is the minimum deposit at TeraFX?

The minimum deposit is £100 or equivalent in other base currencies.

Does TeraFX offer negative balance protection?

Yes, all retail clients receive negative balance protection as required by the FCA.

Can I get higher leverage at TeraFX?

Yes, qualified professional clients can apply for leverage up to 1:200, subject to FCA eligibility rules.