BRFX Trade Review
BRFX Trade Review
There are several different account types at BRFX Trade, based on the initial investment made. All of them offer trading with fixed spreads on the MetaTrader 5 platform with high leverage levels. Keep in mind that micro tradeable lots are not available for trade.
BRFX Trade Advanatges:
– MT5 available
Unlike most brokers, this one supports MetaTrader 5 instead of its predecessor, the MetaTrader 4 platform. BRFX Trade offers the MT5 as a desktop download, web-based version and mobile apps.
Developed like a multi-asset trading platform, MT5 has many of the highly praised features of MT4, such as the advanced charting package. However, custom technical indicators and Expert Advisors, created for MT4 do not work on the newer version.
– High leverage
BRFX Trade offers leverage up to 1:500, which is a very high ratio. We would not advice you to use leverage levels that high, unless you fully understand how margin trading works and the risks involved in it.
– Bonuses available
By the time of writing of the present review, BRFX Trade offers on-deposit welcome bonus from 30% to 100% to all clients who deposit more than $500. However, in order to withdraw potential profits from bonus funds, clients have to trade 20 Lots per $100 of the bonus, which creates additional risks of losses.
BRFX Trade disdvantages:
– Registered offshore
The company owning and operating this brokerage, BR Consulting Group Ltd., is registered offshore, in Saint Vincent and the Grenadines. Forex brokers operating from offshore destinations are not overseen by any regulatory agency, and therefore are not recommended.
– High fixed spreads
BRFX Trade offers only fixed spreads, which are very high on almost all account types, fixed at 3 or 2.5 pips on EUR/USD. By comparison, most fixed-spread brokers provide 2 pips spread for this pair, and some even less. For example, easyMarkets offers trading with a 1 pips spread on EUR/USD, if you deposit more than $250.
– Market Maker model
In its Terms and Conditions the broker admits it might act as a counter party to clients’trades. This creates great potential of conflict of interest and that is why most traders prefer to use brokers that utilize ECN execution.
-No demo accounts
Unlike most brokers, BRFX Trade does not allow users to test their services via a free demo account, which makes it even more shadier.
– Relatively high initial deposit required
Usually brokerages require something in the range of $100 – $200 as a start. Companies that demand higher initial deposits are usually regulated and target professional players. That is why we consider the $250 required by BRFX Trade for opening an account a relatively high investment. By comparison, one can open an account with top-tier global brokerage FxPro by depositing just $100.
BRFX Trade offers online trading in forex, as well as CFDs on commodities, indices and stocks on the robust MT5 platform. The company behind the brand, BR Consulting Group Ltd., is registered offshore and is not regulated. According to us, this is its main disadvantage, as trading with a unregulated brokers is very risky.
Judging by the languages supported by BRFX Trade’s website (English, Italian and Norwegian), it targets mainly European investors. As you probably know, all EU countries have well-developed legislative frameworks regarding financial service providers. So, for residents of the EU it is best to select among brokers regulated by Cyprus’ CySEC, UK’s FCA, or another reliable government agency, instead of risking your funds with offshore brokers. In both Cyprus and UK apply certain requirements for forex brokers regarding their capital adequacy, transaction reporting, client account segregation, etc. Besides, compensation schemes apply in the event of broker insolvency.
Another thing we don’t like about BRFX Trade is the fact that it offers only fixed spreads, which are very wide. In fact, you have to invest 15 thousand bucks to get decent spreads with this broker, and we would not advise you to do that, as there is no guarantee you will ever see your money again.
The fact that BRFX Trade does not offer demo accounts makes this broker seem even more suspicious to us.
BRFX Trade Review Conclusion
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