Blackstone Futures Review

The rise in the number of South African broker platforms is something to note, as Blackstone Futures is another of these that are increasing in popularity among forex traders.

Who is behind the platform?

The founder is Nick Sproule, who also happens to be the current CEO. The company dates back to 2009, making it among the oldest online forex platforms in South Africa. The platform initial name was World Spreads, but it changed in 2013 to Blackstone Futures.

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

The FSB (Financial Service Board) regulates the platform, similar to all forex trader platforms in the country. The funds from the clients are in segregated accounts with ABSA as per the law, and withdrawals take a day to reach the client.

Trading instruments

The site offers trade in global equities, forex trade, stock indices and commodities. This is on two platforms, the MT4 and CloudTrade platform.

Keep in mind that regulation of forex brokers in the country is not as strict as with other places such as the UK, though it remains reliable largely.

There is also spread trading, which gives you chances to benefit from decreases or increases in the prices of finance instruments. There is no requirement to have much exposure to currency markets, since you trade mainly in Rand per point movement.

The company does not allow activities such as scalping and arbitage.

What is scalping?

Is a trade strategy that some traders use to make profits off small changes in prices, resulting in quick opening and closing of trades. The profits from each trade is small, resulting in carrying out many transactions to make significant amounts of money. Many forex brokers do not allow this practice, as they view it as an illegal way to make profits.

What is latency arbitage?

This trade strategy allows the trader to exploit price differences between two brokers, resulting in profits. Similar to scalping, you need to react very, very quickly to changes, and you require inefficiencies in quotes between two brokers.

Trading platforms supported on the site

The Blackstone Futures forex broker supports MT4 (MetaTrader 4), which is popular among many traders for its ease of use and overall features. Aside from this, the company also has its own platform, CloudTrade.

CloudTrade

The CloudTrade platform works in a similar way to its name – it is a cloud-based trade platform. That means it becomes easy for users to synchronize their accounts and trade data, making it easy to use. In addition, it gives very accurate and reliable performance, and permits the user to execute market orders as well as several pending orders. You can also get CloudTrade applications for your mobile device on both iOS and Android.

MT4

As the industry standard platform, MT4 lends itself to various traders as an easier alternative, thanks to the richness of its features. It places itself among the leading platforms in online trading due to its foreign exchange agency model implementation, unconventional organization of trading, as well as competitive assessments.

You can use algorithmic traders as well as Expert Advisors (EAs), which automate your exchange and make the process easier for you. MT4 allows you to see the marketplace you are dealing with, all within real time, highly accurate and impeccably judge all your exits and entrances.

Advantages of MT4

As the industry standard platform, MT4 lends itself to various traders as an easier alternative, thanks to the richness of its features. It places itself among the leading platforms in online trading due to its foreign exchange agency model implementation, unconventional organization of trading, as well as competitive assessments.

You can use algorithmic traders as well as Expert Advisors (EAs), which automate your exchange and make the process easier for you. MT4 allows you to see the marketplace you are dealing with, all within real time, highly accurate and impeccably judge all your exits and entrances.

You can use it in both Mac OS and desktop options, with its features including:

  • Full access to Market watch

  • User friendliness

  • You have options to choose on expert Advisors

  • Multiple access – as long as you sync your account, you can access it from any Apple device

You can download the software from the main website quickly

One aspect that we note is the limitations of the CloudTrade platform, mainly due to the lack of advanced functions that Meta Quotes platform gives like EAs. Therefore, it is a good thing that the broker allows MT4, since it will provide features and benefits to traders that the CloudTrade platform lacks.

Accounts available

The information on the main website is scarce, so there are no indicators of management services for accounts, signals trading or VS hosting activities.

Similar to other forex-trading brokers, a demo account is available, which you practice with for thirty days and with R20000 in virtual money. You do not require fulfilling any obligations as long as you have this account.

Withdrawal and deposit options

Compared to other forex brokers in the industry, the options that you have for deposits and withdrawals is scarce. The sole option that you get is bank wire transfers, and the broker company apparently does not charge you extra fees for these options.

The minimum balance that you require is R5000 to open an account with them, which is about $357. When you compare this amount to other brokers, you will see the amount is average, as there are others requiring more money to sign up.

The platform uses secure and safe ways to send you your money, while all transactions undergo rigorous processing to ensure your money stays safe.

The option is through local bank transfer, as the site does not allow e-wallets or any other mediums of withdrawal. As with any other withdrawal process, you need to have proof of documentation before you submit your withdrawal request. This includes scanned copies of your ID, bank statements and proof of address, all confirming your details as per regulations from the FSB.

Commissions, spreads and bonuses

Spreads

The platform only provides fixed spreads. However, the spreads within MT4 platforms are good, as they amount to one pips on USD/EUR. The CloudTrade platform averages this as two pips for the pair.

Commission

Because the company platform gives fixed spreads only, there are no commission charges on trades, since remuneration for the company will happen during the spread.

Leverage

The company offers users a maximum leverage of 1:100. You may consider this as a mediocre ratio because many brokers offer higher leverages. However, keep in mind that the higher the leverage, the greater the risk of losses and profits because of the increase in risk level.

Customer support

You can get in touch with the company through their social media profiles, telephone, email and mail. Here are the details:

Physical location – The Business Exchange, Rivonia Road Sandton 2196, South Africa

Call the office reception – +27 0860 111 563

Call the trading desk – +27 0860 77 77 66

Email – enquiries@blackstonefutures.co.za

Office hours – Monday to Friday, 0800-1800 hrs.

Pros

  • The FSA regulates its activities

  • The trading is free of extra commissions

  • There is a choice of trading platforms

  • MT4 is available

  • MT4 has low fixed spreads

Cons

  • The site lacks variable spreads

  • There is no ECN environment

  • There is no choice for payment methods

Final thoughts

Blackstone Futures gives traders the opportunity to trade in a number of financial instruments on the site, thanks to MT4 and the CloudTrade platforms. However, we do not like the fact that it lacks an ECN environment and variable spreads, raising the suspicion that it may be a MM.

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