BedaFX Review by professional crypto currency trading experts the “ForexSQ” FX trading team, Everything you need to know about the broker is in this BedaFX Review.
BedaFX does not seem to offer a variety of trading accounts, and actually does not specify very clearly its trading conditions. That is why we assumed that it provides a single account.
With this broker, one can trade in more than 20 currency pairs, as well as CFDs on precious metals and energy products on the good old MetaTrader 4 platform (MT4).
– MT4 available
MT4 has proved to be a reliable trading terminal over the years. More than 10 years after its launcgh, it is still preferred by most traders due to its intuitive interface and professional tools and features. The MT4 is highly praised for its top-notch charting, automated strategies (Expert Advisors), technical analysis indicators, customization possibilities, etc.
– Seemingly competitive spreads
According to the information on BedaFX website, its spread on the most popular trading pair, EUR/USD, start from 0 pips, which sounds great. However, when we tried out the broker’s MT4 in demo mode, it turned out that the situation is different. You can find more details below, in the Disadvantages section.
– High leverage levels
Leverage levels reaching 1:400, like those offered by BedaFX are common among forex brokers, but nonetheless considered high. This is due to the fact that leverage is a double-edged sword. It can both help traders score big profits on small deposits, and lead to heavy losses That is why we advise traders, and especially beginners, not tuse the maximum leverage a broker offers.
Micro lots available
This broker supports trading in micro lots (1000 units of the base currency), which is a nice option. It is mostly used by novice traders, as smaller trade sizes allow for better risk management strategy.
– Offshore broker
BedaFX proudly presents itself as a broker licensed in Vanuatu. The truth, however, is that offshore zones like Vanuatu do not provide proper regulation for forex and binary options brokers. Instead, companies undergo simple registration procedures, and in some destinations, like Belize, there are also some capital adequacy requirements.
So, do not be fooled by assertions like “The Vanuatu Financial Services Commission (VFSC) is one of the world’s most recognized financial regulators.”
– High spreads on demo accounts
When we tested BedaFX’s MT4 platform in demo mode, we found the spreads on EUR/USD floating around 3.3 pips, which is very high.
Most forex brokers offers spread of 1.0 – 1.5 pips for this pair. For example, FP Markets offers a spread averaged 0.45 pips on EUR USD and charges no commission fees.
– High initial deposit required
BedaFX requires $500 from its clients as a start. Such initial deposit is pretty high, given that tightly regulated and reliable brokers require an initial investment of $100 – $250. For example, you can open an account with ASIC-regulated FP Markets by depositing $200.
– No CFDs on indices, stocks, Bitcoin
The product portfolio of this broker is not very diversified. Its clients are only able to trade in less than 30 currency pairs, silver, gold, and several energy CFDs. Nowadays, most brokers also offer popular financial instruments such as CFDs on indices, stocks, and cryptocurrencies.
BedaFX seems to be based in Hong Kong, and apparently targets Chinese investors (as the English version of its website is not very well written). Yet, it is not regulated by the Hong Kong Securities and Futures Commission (SFC). Instead, it is registered offshore, in Vanuatu. Offshore forex brokers are not monitored, do not have to report transactions to the regulator, nor to arrange compensation schemes in the event that something goes wrong. That is why they are not recommended.
You’d better select among brokers regulated in the UK, or Australia for example, where the respective governmental agencies apply strict rules regarding minimum capital adequacy, account segregation, etc.
BedaFX Review Conclusion
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