Blue Dragon

The introduction and overview of a company can be helpful to new traders or those who have been trading for several years. BLUE DRAGON is an emerging player in the Forex market and CFDS, and is an online broker looking to provide you with access to the financial markets around the world. Their goal is to deliver a simple trading experience for all clients by delivering reliable trading software and competitive pricing.

Though BLUE DRAGON is in its infancy, the company has received strong recognition in the industry for trading Forex and CDF's while offering traders high-quality trading experiences and support using the MetaTrader 5 platform. In this article, we will discuss an overview of the company BLUE DRAGON, the history of the company, products the company offers through brokerage services, broker licensing or regulation if applicable, how the trading accounts work and costs of using the accounts, and what kind of reputation BLUE DRAGON has among other brokers.

BLUE DRAGON is operated by the legal entity Blue Dragon LLC (International Business Corporation, or IBC), located in the Caribbean country of Saint Vincent and the Grenadines ("SVG"). The company was officially incorporated as an IBC in SVG on December 21, 2021. The company has registration number 1438 LLC 2021 and is registered at Suite 305 Griffith Corporate Centre, Beachmont, Kingstown, SVG.

There are very few corporate history or founder details that are publicly available, so the only way to find out anything about the company is to do an external search for additional information. One of the sources of this external information indicates that the company has an office in Vietnam located at the 22nd Floor, Ngoc Khanh Plaza Building, 1 Pham Huy Thong Street, Ngoc Khanh Ward, Ba Dinh District, Hanoi City.This indicates the company has a strategic focus within the Asia Pacific region which complements its overall global growth strategy.

Overall the information available regarding the BLUE DRAGON brand’s historical development and leadership is limited which highlights a preference towards operational transparency rather than storytelling about the business.

Key Features about the BLUE DRAGON brand's products and services include:

Trading Plus

The primary assets available for trading through BLUE DRAGON are Forex and Contracts for Differences (CFDs). The range of assets traded on the platform does not include bonds, options and ETFs with its primary focus of trades on these 2 different financial market types to give users a more specialized trading environment where they can focus on either currencies or CFDs without having to deal with more advanced trading techniques.

Trading Platform

The BLUE DRAGON trading platform is MetaTrader 5 (MT5). The MT5 trading platform is known as one of the best platforms in the world for being a stable, reliable and versatile software tool. Some of the advantages that MT5 provides include advanced chart tools, automation with trading robots and support to trade multiple asset groups. By providing users with a sole service that utilizes the MT5 platform, BLUE DRAGON guarantees users access to a professional quality trading platform where users can execute either manual or automated trading strategies.

Account Types and Risk Management

Account types as defined by the BLUE DRAGON company have limited availability as it only provides information via its website and does not elaborate on accounts that are listed using a traditional segregation method such as standard accounts, ECN accounts or VIP accounts. As a result of this lack of disclosure, the majority of potential users would have to directly contact the company to get full information on the type of accounts available through them.

In the area of risk management BLUE DRAGON does provide users with protection from negative account balances so that all of its clients have the peace of mind that they cannot lose more than the amount of funds they deposited into their accounts.When an account goes negative, the balance will return to zero, thereby protecting the trading account from causing excessive loss. The broker has also indicated that clients’ funds are segregated from the operating funds of the brokerage which is good practice for protecting a client’s assets.

Additional Benefits

The brokerage, BLUE DRAGON, also has a partner or introducing broker (IB) program wherein an affiliate can create groups with customized trading conditions. Although there is no strong emphasis on educational resources on the English site, independent reviews mention the existence of a basic economic calendar tool that provides assistance to traders who are analysing the market.

Regulatory Compliance and Licensing of BLUE DRAGON

Regulatory oversight is a significant factor for traders in selecting a broker. BLUE DRAGON is registered as an International Business Corporation in Saint Vincent and the Grenadines; however, they do not hold licensing from major financial regulators (e.g., FCA, ASIC; CySEC, etc.). As a result, many industry observers consider BLUE DRAGON to be an unregulated broker.

The broker’s documentation indicates that they do not intend to provide services to clients who live in countries where the trading forex and CFDs has been restricted or prohibitive. The broker also complies with CFTC regulations by not accepting U.S. persons or residents and will terminate or suspend an account if they become aware of a U.S. citizen residing in that account.

FCA Registration

License #

Status

Saint Vincent and Grenadines (IBC Registration)

1438 LLC 2021

Registered (unregulated) for financial services

FCA, ASIC, CFTC, etc., etc.There is No License for this Broker

Trading Conditions and the Technology Used by the Broker

BLUE DRAGON provides access to its clients for trading via its MT5, which provides a stable, reliable trading platform for Forex and CFD trading. BLUE DRAGON states that it connects to many liquidity providers to ensure their clients receive the most competitive pricing and best execution quality.

Unfortunately, no information regarding trading conditions (spreads, commission, swap rates, etc.) is available on their website. Therefore, I would recommend checking external resources for information regarding the spreads offered at BLUE DRAGON. Based on external resources, BLUE DRAGON is advertising that it has “low” spreads; however, exact numbers or any range of numbers is not available to the public through the broker’s website. Based on these same external web sites, BLUE DRAGON offers leverage of 1:200 maximum and minimum deposit requirements of approximately USD 100; however, these data do not come directly from BLUE DRAGON but rather through third party reviews.

Trading Conditions

Trading Platform: MetaTrader 5 (MT5)

Instruments Available: Forex, CFDs

Spreads: Blue Dragon Claim to Have Low Spreads, but do not give exact numbers.

Leverage: Up to 1:200 (Third Party Source)

Minimum Deposit: $100 (Third Party Source)

Trading Hours: Sunday 21:00 - Friday 21:00 GMT

Order execution speed will be made faster because the Broker uses multiple liquidity providers in its order execution process.

Commission and Fee Structure

There is not much of any information regarding commission or fee structure available through public sources from BLUE DRAGON. There is not one consolidated table available containing the costs/fees associated with deposit/withdrawal transactions, commissions or inactivity fees. The broker has also highlighted that they process “Quick and Smooth” deposits and withdrawals, but has not provided additional details regarding how much or what percentage of costs may exist with any of their payment methods.Furthermore, any and all information regarding the associated costs of trading (commissions per trade, swap rates, internal transfer fees) is not available to the public. An external review indicated that the lack of transparency is a significant gap; therefore, before engaging in trading with BLUE DRAGON, it is recommended that traders contact them for additional clarification.

Fee Type

Description

Deposit

N/A; stated to be a fluid process to deposit funds

Withdrawal

N/A; no public schedule of fees

Commission per Trade

Not clearly defined; hard to determine whether it is commission only or commission and spread

Inactivity Fee

No clear information available

Swap/Overnight Fees

Not publicly stated

User Experience and Market Image

The user experience for BLUE DRAGON is centred mainly around the MT5 platform, which is very well received as it provides a user-friendly interface and a broad range of applicable tools available for trading. Additionally, both protecting all customer funds from being lost due to their own negligence plus providing negative balance protection creates an added level of protection for those who choose to utilise their services.

The lack of transparency related to exactly what types of accounts are available, how to trade or what fees will be incurred for trading, creates challenges for prospective clients trying to find sufficient information in advance. Also, the general perception in the market regarding non-regulated brokers (i.e., BLUE DRAGON does not have a regulatory license with a primary financial authority) would be that many traders may prefer to only deal with brokers who are regulated and, therefore, feel they will be better protected from risk.

Even with all of that considered, having BLUE DRAGON's offices located in growing cities like HCM City (Vietnam) provides the broker with a firm commitment to grow their client base and continue to expand their services. The broker's cooperative partner programme furthers this growth by rewarding affiliates for referring customers.

Summary

BLUE DRAGON is a relatively new broker in the forex and CFD markets that offers a comprehensive trading experience through the use of the MT5 platform. It is registered as an International Business Corporation in Saint Vincent and the Grenadines, allowing BLUE DRAGON to provide traders with access to all of the forex and CFD markets with established standards of competitive leverage and minimum deposit requirements.

Despite the existence of basic risk management features (i.e. negative balance protection & client funds segregated), the absence of regulatory oversight from any major governing authority may deter trading arrangements with BLUE DRAGON for any traders who may have risk-sensitive characteristics. Furthermore, the absence of sufficient publicly available information pertaining to the overall trading environment and costs indicates that potential clients of BLUE DRAGON should independently research their options and obtain direct clarification of any remaining questions they have before beginning to trade.

In conclusion, BLUE DRAGON should be considered a viable option for any trader with some level of comfort operating with an unregulated broker and looking for a streamlined MT5 trading process, particularly in regions where the broker has established an office.