EG FX Review
EG FX Review
EG-FX is allegedly a forex broker which mostly focuses on Chinese clients. We used the word “allegedly” very deliberately, as their website is probably one of the worst attempts at presenting such a firm which we have seen (and we have reviewed a lot of brokers).
The Company. Security of Funds
The company behind this project is Essence International Financial Group Ltd, which is registered in Belize. While being regulated with the local authorities, the IFSC, this is still a zone which we would recommend avoiding, as the legal environment is often loose.
Other jurisdictions have much tighter control on the providers of financial services. We often like to give the United Kingdom as an example. There, the Financial Conduct Authority (FCA) oversees forex brokers (among other companies). It has set a lot of complicated rules and procedures, which companies must follow.
While the details are not worth learning, the are two major things, you must be aware of. The first one is that client funds are kept in segregated accounts. This means brokers can’t access your money (and steal it) at will.
The second key rule is the Financial Services Compensation Scheme (FSCS). This is an insurance-like mechanism, which protects clients in case their broker declares bankruptcy. If your FCA-regulared trading partners happen to go under, you will be able to claim up to £50,000 from the FSCS.
Before we get to the trading conditions at EG-FX, we must mention the fact the company does not (currently) support demo accounts. When we combine this with the lack of information on their website, we have no way of knowing what their actual offering is. Feel free to scroll to the bottom of the review and post your experience with EG-FX in the comments section.
Minimum Initial Deposit
There is no information about a minimum deposit level at EG-FX. As we hinted in the beginning, this broker does a very poor job at presenting its offer and this is just one of the many things which they haven’t mentioned.
Nowadays a lot of other forex brokers, like HYCM, require a minimum of $100, form new traders. If this seems to much for you, there are some companies, who have no such levels – you can start with as low of an investment, as you want. The FCA-regulated industry leaders from IG come to mind.
Average spreads & Commissions
EG-FX provides no information on the costs of trading and since demo accounts are not available, we couldn’t test their service.
Currently, most brokers provide spreads under 2 pips on EUR/USD, with much lower options being present. That being said, a lower spread shouldn’t lure you into trading with a poorly regulated company, in our opinion. The security of your entire account is much more important than saving a few bucks here and there.
You will most likely not be surprised by the lack of information about the leverage ratio at EG-FX.
We would advice caution when choosing your leverage and more importantly the way you use it. Some companies have gone out of their way to present higher leverage ratios, like XM, who offer 1:888. This may sound cool, but actually trading with such “gearing” is very dangerous, especially to inexperienced traders.
EG-FX the Sirix platform. While running the risk of repeating ourselves, we will reiterate the fact this broker does currently not offer demo accounts. This may be a temporary issue, but still makes using their platform unavailable to those who don’t wish to invest.
Speaking in general, Sirix is not that bad of a platform. It is very visually appealing, with a huge emphasis being placed on the social trading network.
With that in mind, we prefer MetaTrad4 (MT4). This is the current industry leader, which provides top-tier charting, custom technical indicators and automated trading systems and also has a social trading feature. With the last factor in mind, we must mention there are multiple ways of following the investment decisions of other traders – from signals to PAMM accounts, as well ass third party services.
Methods of Payment
The methods of payment listed on EG-FX’s website include Bank Transfer, Credit Card, Skrill, Neteller, China UnionPay, WebMoney and Fasa Pay. This is an almost perfect line-up. Only the cryptocurrency “puritans” are left out. That being said, we are a bit uncertain about the validity of this list.
EG-FX is an offshore forex broker, which doesn’t reveal anything about the trading conditions. That being the case, it’s hard to compare them to others. Not offering demo accounts in the current day and age is a huge flaw.
EG FX Review Conclusion
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