Skip to main content

NAGA Review for 2023

Franklin Carneiro da Silva| Updated January 24th, 2023
NAGA Review for 2023 3
Visit NAGA
87.36% of retail CFD accounts lose money.

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 ETF offering is not crystal clear (real ETFs are mixed with CFDs on ETFs) 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 1,000+ Assets and Instruments worldwide, including Real Stocks, ETFs, Cryptocurrencies, Futures, Forex, and CFDs on 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 on 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 $1.20 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 Europe Dashboard

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).

Please keep in mind that past returns of “top traders” are no guarantee of future performance and that there is the risk you are following/copying the trading decisions of possibly inexperienced traders that might just have been lucky for a while or traders whose financial situation may significantly differ from yours.

If you plan to be a trader with your own following, NAGA empowers everyone on the platform to share their trading strategy for a fee or commission (up to 1.20$).

NAGA Review – NAGA Dashboard | Top Traders

Concerning ETF trading, we find it hard to know if we are trading CFDs on ETFs or actual ETFs (real ownership). As you can see below, besides “ETFs” there is no “CFD”, so you intuitively believe that it is a real asset. This is strange because NAGA differentiates between stocks (example: “Real-Stocks USA”) and CFDs on stocks (example: “Stocks USA (CFD)”). So, why does it not follow the same approach in ETFs?

NAGA Review – NAGA ETF Trading

After selecting a random ETF, let’s say the “iShares MSCI EAFE”, you will notice the following small note: “You’ll trade 10 lots using 1.30% of your money”, implying that you will trade leveraged, so you are most likely to be investing through a CFD. Again, this is not crystal clear.

NAGA Review – NAGA ETF Trading Window

To open an account, you are advised to make a minimum deposit of €/$/£250 with no deposit charges. The process is smooth and fully digital.

After clicking “register” on the NAGA website, you will come up with the following pop-up. Any person registering from the European Economic Area (excluding Belgium) and Switzerland will be automatically redirected to NAGA Europe. Example of trying to open an account from Portugal:

NAGA Review – Registration Process

NAGA Highlights

🗺️ Supported Countries Worldwide
💰 Stocks fees From €/$0.99
💰 Cryptos and CFDs fees Medium
💰 Currency Conversion fee 0%
💰 Inactivity fee €/$0
💰 Withdrawal fee €/$0-5 based on your VIP Level
💵 Minimum Deposit $250
📍 Products offered Stocks (only in NAGA Europe), ETFs, CFDs, Crypto, Forex, Commodities, and Futures
🎮 Demo Account Yes
📜 Regulatory entities NAGA Europe: CySEC; NAGA Global: None

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 Europe/Markets:

NAGA Review – Consolidated Half-Year Report, as of June 30, 2022

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 4.5-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 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

Pros

  • 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
  • NAGA Group AG is publicly listed company (ISIN: DE000A161NR7)
  • Authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC)
  • Demo account

Cons

  • No commission-free stock trading
  • The “top-performing traders” may be disguised as “temporarily lucky”
  • Offers primarily CFDs, which are high-risk instruments with no asset ownership
  • Up to $5 in withdrawal fees
  • No clear distinction between real ETFs and CFD ETFs
  • 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 €/$0.99 per trade. We find these commissions low-to-mid levels 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 of €2.50. 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 of Social Trading comes at a cost. Every time a copied trade is closed, you will be charged a fixed fee of €0.99 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 €10. Look at the example provided by NAGA:

NAGA Review – Copy Fees

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 2022) and as of the date of this article, we may observe a good financial position:

NAGA Review – Consolidated Half-Year Report as of 30 June 2022 (NAGA Group AG)

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)!

Franklin Carneiro da Silva
Co-Founder & Fintech Analyst

Franklin is a CFA Level III Candidate with 3 years of experience in Wealth Management as a Fund Research Analyst and the Host of the "Edge Over Hedge" YouTube Channel.

linkedin
youtube