GENERAL INFORMATION AND REGULATION
Online forex and CFD broker TradeFX offers financial services despite having no registration with any relevant financial regulator. Their parent company, Trade FX Pte Ltd, operates out of Singapore. They have a business registration there, but this is distinct from registering with the Monetary Authority of Singapore. Brokers need to register with the MAS to offer their services legitimately, but this broker hasnt.
MARKET INSTRUMENT
Our TradeFX review found an unremarkable selection of trading products. Their currency pair variety is standard, and they have similar CFDs to comparable brokers. The actual spreads offered by this broker are much worse than what they advertise on their website. A Standard account has a EUR/USD spread of 2.8 pips, significantly higher than their advertised spread of 1 pip. This is several times what traders would expect from a competitive forex broker.
ACCOUNT AND LEVERAGE
The broker has four different account types for their clients. The first is their Standard account. The minimum deposit to set up this account is $250. The broker advertises spreads starting from 1 pip with this account, although their spreads are much higher in practice. Their next account, Premium, doesnt have any notable advantages over the standard. They have an ECN Pro account that offers spreads as low as pips and adds a $6 commission for each lot.
Traders can access leverage up to 1:200 with this broker. This broker is unregistered – they don‘t face any immediate consequences for exceeding the ESMA’s regulatory limit of 1:30 leverage. With this kind of leverage, inexperienced traders could lose their whole deposit before they know what hit them.
TRADING PLATFORM AVAILABLE
TradeFX gives clients access to MetaTrader 4. The popular trading platform has a very professional trading feature that investors could ever want. The broker places a strong focus on allowing automated expert advisors to trade for their clients. They offer virtual private server access to enable traders to run automated trading even when their computer isnt running. There is a charge for this service, but any clients who deposit $20,000 or more do not have to pay.
