EuropeFX is a STP forex and CFD broker. The company states it is also planning to implement crypto-curency tradign soon.
The Company. Security of Funds
Company Country Regulation
Maxiflex Global Investments Corp Ltd Cyprus CySEC
EuropeFX is a brand owned by Maxiflex Global Investments Corp Ltd. The company is based in Cyprus and falls under the regulatory oversight of the Cyprus Securities and Exchange Commissuion (CySEC). This gives them a lot of credibility. The company is also associated with a few other brands. Some of them are not operational, with the only available one at the time of writing of this review being Octalios.
For those of you who may not be familiar with the forex industry, financial regulation is very important. Different countries have different agencies specialized in overseeing the financial services sector.
While financial markets may not be your first thought when you hear about Cyprus, the country is home to a lot of forex brokers and binary options providers. This is due to its EU membership, among other things. The aforementioned CySEC oversees a lot of companies and enforces its rulings upon them. From a trader’s point of view two regulations are key:
First and foremost, client’s funds have to be kept in the so called segregated accounts. This policy implies a broker can not simply take your money – there are special procedures, when they interact with your account balance. The second major rule is the presence of a compensation scheme. This is a system which functions pretty similarly to an insurance company – all the participating brokers have to deposit a small portion of their earning in a collective fund (much like the premium payments in insurance). The money then serves as collateral, in case one of these companies goes bankrupt. If you trade with a CySEC regulated broker, your account will be safe, against them going insolvent , up to € 20,000.
Minimum Initial Deposit
EuropeFX has set the minimum deposit at €200. While this may not seem like a lot to some, there are brokers who are willing to accept even smaller clients. As an example, the FCA-regulated industry leaders at IG do not have a minimum deposit requirement – one can open an account with them for as low as one wishes.
That being the case, you must not view the minimum deposit level as a major factor, when comparing forex brokers. Their regulatory status is by far the most important factor.
Average spreads & Commissions
The exact spreads at EuropeFX are a bit of a mystery. While the company’s website claims an average of 1.2 – 1.4 pips our testing revealed a very different reality. Spreads were even lower, ranging from 0.1 to 0.4 pips on EUR/USD, but there was a $20 commission, per lot on top of that. The commission alone is worth an effective 2 pips.
While the spreads announced by the company are fairly competitive with the current state of the industry, the conditions available at the platform aren’t. We do not know what spreads clients will receive in reality, but the mere fact there is such a difference between the two looks untrustworthy. If you want to keep up with the latest offers by some of the world’s leading brokers, feel free to check our real-time spread comparison page.
EuropeFX provides a maximum leverage ratio of 1:200. This is a high level, capable of serving trading strategies, which involve some sort of risk management. You may feel this is not the case if you have seen the offers by other brokers, who provide 1:500 or even more.
Remember, higher leverage does not equal better trading conditions. It only allows you to take more risks, with the same amount of capital. While this may seem attractive to the risk-seekers, do beware, over-leveraging is one of the key reasons why traders loose money in the forex market.
EuropeFX provides its services via MetaTrader4 (MT4). This is the current industry staple, which most brokers choose to implement. It is most-likely cheaper and certainly safer than developing a brand new solution.
One of the key benefits of trading with MT4 is the great charting environment. It is further reiterated by the plethora of custom technical indicators available via the MQL marketplace – a broker independent online store where people can test, buy, sell or lease newly developed tools. Other than new technical indicators, automated trading systems are also available. They are better known as Expert Advisors and you can read some of our reviews on the commercially sold ones here.
Methods of Payment
The payment methods at EuropeFX include Bank Transfer, Credit/Debit Card and a few e-wallets, namely WebMoney, Yandex and iDeal. While the list includes several on-line solutions, they are clearly focused primarily on the Russian market.
EuropeFX is a CySEC regulated forex broker. The most unique feature they have is the confusion in regards to the trading conditions and more specifically the spread. This may be a temporary oversight, though it is a pretty major one. This leaves a negative impression on an otherwise well regulated company.
EuropeFX Review Conclusion
For more information about currency trading brokers visit TopForexBrokers.com forex brokers comparison website, Tip ForexSQ.com foreign exchange trading experts please by share this article about EuropeFX Review.