Hello, fellow investor! We will review NAGA to help you find out whether it is the right investment platform for you.
We recommend NAGA if you are particularly interested in Social Trading. On the downside, their real stock offering is not crystal clear (real stocks are mixed with CFDs) and it has stopped offering commission-free real stock trading (see “Fees” section).
Founded in 2015, NAGA is a German fintech created to give you easy access to the investment world. Their moat is simple: “financial inclusion for everyone”. It has been adopted by over 1.000.000 investors and allows you to trade 750+ Assets and Instruments worldwide, including real stocks, ETFs, Cryptocurrencies, Futures, Forex, and CFDs of Indices and stocks. It offers social trading, a multi-currency account, a demo account, and several ways to deposit and withdraw your money.
In terms of safety, the NAGA platform is mainly operated by NAGA Markets Europe Ltd, authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). However, if you sign up through NAGA Global Ltd, registered in Saint Vincent and the Grenadines, you will not benefit from investment protection (details explained below).
Moreover, as it is owned by The NAGA Group AG, a listed company in the Frankfurt Stock Exchange, it must publish its financial statements. This transparency gives us additional comfort.
That’s NAGA in a nutshell. Keep reading if you want to find out what our research team has to say after carefully analyzing NAGA. Let’s get into it:
1. NAGA Overview
NAGA is a German fintech company, a subsidiary of NAGA Group AG (listed in the Frankfurt Stock Exchange). It gives you investment access through two subsidiaries: “NAGA Markets Europe Ltd” and “NAGA Global Ltd” (more info below). From now on, we will mention it as “NAGA Europe” and “NAGA Global”, respectively.
It enables you to trade for yourself, automatically follow other people’s trades (auto copy), and even earn up to 0.30$ by having other people follow your trades! The idea is to revolutionize the investment industry by providing access to the best market tools for everyone.
Through their various platforms (MT4, MT5, web version, and mobiles apps), you have access to real stocks (only in NAGA Europe), ETFs, indices, Forex, CFDs on stocks, cryptocurrencies, commodities, and futures. Besides, its academy produces useful insights on the NAGA platform and trading in general. From time to time, you may also watch webinars mainly on technical analysis.
Naga Review – NAGA Dashboard
In what concerns real stocks, we find it hard to find those stocks. The tab “markets” displays a list of financial instruments, but not a single one focused on real stocks. To find it, you need to dig deeper, which we think should be unnecessary. Let’s use an example: If you go to “Stocks USA (CFD)”, you will find the stock “Square” mixed with CFD instruments (you have no “CFD” blue box under the name, so it is a real stock), as shown in the image below.
Naga Review – Square Stock
NAGA, alongside eToro, is one of the few online platforms that allows searching and replicating other investors approaches/strategies. This feature is formerly known as Social Trading. It presents a feed where you will keep up to date on what other traders are doing and general market news while engaging in the community and having the option to chat on NAGA messenger directly. It may be a great way to take advantage of other traders’ knowledge and automatically copy their trades, but it comes at a cost (See the “fees” section).
On the other hand, NAGA empowers everyone on the platform to share their trading strategy for a fee or commission (up to 0.30$).
Naga Review – NAGA Dashboard | Top Traders
To open an account, you are advised to make a minimum deposit of 250 EUR/USD/GBP with no deposit charges. The process is smooth and fully digital.
But be aware! After clicking “register” on the NAGA website, you will come up with the following image. By default, it should appear NAGA Europe but double-check because you want to avoid signing up in the NAGA Global since you are not under any investment protection.
|🗺️ Supported Countries||Worldwide|
|💰 Stocks fees||€0.99|
|💰 Cryptos and CFDs fees||Medium|
|💰 Currency Conversion fee||0%|
|💰 Inactivity fee||€/$/£0|
|💰 Withdrawal fee||€/$/£0|
|💵 Minimum Deposit||$250|
|📍 Products offered||Stocks, ETFs, CFDs, Crypto, Forex, Commodities and Futures|
|🎮 Demo Account||No|
|📜 Regulatory entities||CySEC|
Naga Review – Legal Entity and Investment Protection
Being under NAGA Global gives you a sense of more freedom because you can manage your money with fewer restrictions: “NAGA Global Clients Leverage cannot exceed 1:1000” while “NAGA Markets clients leverage cannot exceed 1:30”.
Nonetheless, it dramatically increases the likelihood of losing money. A 1000x leverage means that a 0.10% price movement in any security will completely wipe you out (!), but you will not lose more than your invested capital since you still benefit from the “Negative Balance Protection”. In comparison, a 30x leverage translates to a total loss of money if the security moves against you by 3.33%.
We still have our doubts whether NAGA is trying to push clients to NAGA Global since the trading revenues are predominantly from NAGA Markets:
NAGA offers you something pretty unique in the brokers’ industry: a multi-currency account (EUR, USD, GBP, PLN, UST, and NGC – NAGA coin). In most brokers, you can only choose one base account. Usually, people choose their home currency, but you will not escape the currency conversion fee when you invest in assets in other currencies. You are not charged a currency conversion fee (see the screenshot in the “Fees” section).
However, if it did charge, you could avoid that. Actually, as an alternative, you could even use a low-cost currency conversion service to transfer money to NAGA, such as Wise (formerly known as TransferWise) or Revolut.
NAGA also offers a multi-currency NAGA MasterCard. Like any other credit/debit card, it allows you to manage your funds and even pay directly with your trading profits for goods and services.
From our experience, customer support has been quite good. Every time we messaged an assistant through the internal chat, we got a reply within 2/3h even through a phone call. Nonetheless, we know that customer service experience may differ widely, so be prepared to expect positive reviews and negative ones. The only way to certify its quality is by testing yourself.
NAGA has a 4-star classification in Trust Pilot, which puts you, as a potential investor, in a relatively pleasant position. However, from the negative reviews, we observe some constraints in what comes to withdrawals. Therefore, we would highly suggest you know the withdrawal process (documents needed) to avoid a stressful situation in the future.
Are you not comfortable yet with NAGA? Not a problem at all! You are allowed to open a Demo Account with 10.000$ in virtual currency. So, please do whatever you want to get a taste of what you might expect from their trading platform.
2. NAGA Pros and Cons
- Social trading feature (Automatically copy or follow other people’s trade)
- Wide range of financial products
- Multi-currency accounts: USD, EUR, GBP, PLN, UST, and NGC (NAGA coin)
- No currency conversion fee
- Modern and user-friendly Web and Mobile interfaces
- NAGA Mastercard
- Publicly listed company (ISIN: DE000A161NR7)
- Registered in the Financial Conduct Authority (FCA)
- Demo account
- No commission-free stock trading
- Stocks are not clearly displayed (mixed with CFDs)
- Offers primarily CFDs, which are high-risk instruments and with no asset ownership
- Withdraw fees may apply
- Poor distinction between “NAGA Markets Europe Ltd” And “NAGA Global Ltd”
3. Fees snapshot
NAGA offers a quite expensive fee structure. Their revenues come mainly from spreads, commissions, copy fees, interest on margin lending (when you leverage a position), and other fees.
First of all, NAGA Europe offers trading on real stocks, that is, non-leveraged positions (not applicable to NAGA Global clients), but for a minimum of 8€ and 6$ per trade for EUR and USD stocks, respectively. We find these commissions very high when compared to its closest competitors.
Naga Review – Real Stock fees
Secondly, you will be charged a spread cost which is the difference between the bid and ask prices. You will mainly notice this expense on Forex, Futures, Cryptocurrencies, CFDs on Indices, Stocks, and Commodities. The spreads are subject to changes depending on market conditions, so make sure to take a closer look at the bid-ask spread when placing an order:
Naga Review – Spreads
Thirdly, you will encounter commissions in CFDs on stocks and ETFs of 0.20% and 0.10%, respectively. This expense is charged when buying and selling, so double those figures to have a closer value to what you will get.
Naga Review – ETF fees
Also, the feature Social Trading comes at a cost. Every time a copied trade is closed, you will be charged a fixed fee of 0.50€ whatever the outcome of your trade (with profit or loss). If the trade goes well, you will also be charged an additional 5% on the profit above 5€. Look at the example provided by NAGA:
Naga Review – Copy Fees
NAGA does not offer a document will all the costs involved, so it may be hard to find some charges. We took some time to figure out what was the currency conversion fee of NAGA without success. Given that, we decided to contact the support team directly, and, as you can see from the image, NAGA does not charge a currency conversion fee. It just applies the European Central Rate (ECB) exchange rate (no fee on top).
Naga Review – Contact form
Last but not least, you need to consider other fees not directly related to the trading activity. For example, NAGA may charge you a withdrawal fee depending on how you decide to take your money. For example, if you choose to withdraw through Bank transfer, you will be imposed a $5 fee. On the other hand, if you use VISA, MasterCard, Skrill, Paypal,… you will be charged a minimum of 10$. Besides, crypto withdrawals for NAGA Global clients are subject to an additional withdrawal fee of up to 12% of the amount, upon Payments/Compliance discretion.
Naga Review – Withdrawal fees
In essence, the only way to avoid significant charges from NAGA is through a bank transfer. The part “from NAGA” is crucial to understand since additional fees may apply from intermediary and/or sender banks (not in control of NAGA).
4. Safety and Regulation
NAGA Europe is fully supervised and regulated by the Cyprus Securities and Exchange Commission (CySEC). In addition, it is registered in several other financial authorities such as Financial Conduct Authority (FCA), BaFin, Consob, and CNMV, among other regulators in several countries where they operate.
NAGA Global is registered in St. Vincent and the Grenadines, which still gives you negative investment protection and segregated client funds but no investor compensation fund.
Through its owner NAGA Group AG, NAGA is a publicly listed fintech company backed by a Chinese multi-billion fund FOSUN. Moreover, since their financial statements are displayed to everyone, it brings an additional layer of trust because we can follow their financial situation transparently, and that’s exactly what we have been doing.
Looking at the latest semi-annual report (June 2020) and as of the date of this article, we may observe an incredible balance sheet with almost no debt*:
Naga Review – Consolidated Half-Year Report as of 30 June 2020 (NAGA)
* In the table, “Liabilities” is referring to the sum of “Non-current liabilities”, “Current liabilities” and “Equity”. So, the “Debt” is just the “Non-current liabilities” and “Current liabilities” which combined are just 13 818 thousand (11.35% of the assets).
Finally, per the August 2018 restrictions in CFD trading by the European Securities and Markets Authority (ESMA), NAGA Europe (and Global) provides negative balance protection for Forex and CFD trading on a per-account basis, but only to retail clients from the European Union. What does that mean?
Imagine that you deposit 1000€ in your account and open a position with a 5:1 leverage. This increases your exposure to 5000€. If the market dropped 25%, you would lose 1250€ (25%*5000€). As you can see, it is above your initial deposit of 1000€, meaning that you would owe 250€ to your broker. With ESMA regulation, your account balance is automatically readjusted to 0€, so you only lose your deposit (more info in ESMA and on page 3 of Risk Disclosure and Warnings Notice of NAGA).
Do you want to read a deeper analysis? Check out our dedicated article on investment protection (for EU investors)!
5. Countries Accepted
NAGA has an extensive list of countries accepted, including the Netherlands, France, Spain, Portugal, Italy, Ireland, Germany, Poland, Austria, Switzerland, Hungary, Czech Republic, Greece, Sweden, Norway, Denmark, Finland,… Take a look at the full list of Naga’s accepted countries.
Please note that NAGA does not provide services to the USA, Japan, Canada, Belgium, Cuba, Iran, Iraq, Syria, North Korea and others.
Not available in your country? Please take a look at our list of online brokers available by country!
Did we answer all your doubts through our NAGA Review? Did it help you make your decision regarding opening an account in NAGA? Let us know your feedback!
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.39% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.