Forex Point Review
Forex Point Review
Forex-point offers multiple account types, as described above. As you can see the deposit requirements (and gaps between different account types) are quite high for the current environment. Islamic (swap-free) accounts are also offered.
The Company. Security of Funds
Company Country Regulation
YUKON GLOBAL LTD Seychelles N/A
Despite sounding very similarly to the company behind XM (Trading Point), Forex-point is owned and operated by YUKON GLOBAL LTD. They are based in the Seychelles and do not claim affiliation with any financial regulator. An off-shore, unregulated company is troubling to say the least.
As you may know, most countries have a specific agency dedicated to regulating the financial services industry. This is done in order to ensure client protection and a fair and competitive environment. One such government body is the Australian Securities and Investments Commission (ASIC). They monitor brokerages (as well as other companies), registered in the land down under. In order to get their licensing a company must have at least AUD 1 million in capital holdings. This is a high bar for most scammers. Another ruling, which deters such companies from registering is the account segregation principle. It is a mechanism, which assures a broker can not freely access the investments made by its clients. In essence it prevents the most brutal form of scam – a company taking your money and not allowing you to withdraw.
You will not receive any of these benefits, if you decide to trade with an unregulated company.
Minimum Initial Deposit
The minimum initial deposit level at Forex-point is a bit hard to determine. One section of the website claims it is $250, while the account types start from $3,000. So what will happen if you deposit anything under $3,000? This feels like an insignificant error in the website development.
Although the minimum deposit isn’t that important for experienced traders, it definitely is crucial for beginners. This is why companies like IG have even removed the entry level entirely.
Average spreads & Commissions
Forex-point provides floating spreads. For most account types they are above the current industry standard. The VIP account, which requires a $50,000 deposit is the only one, which is close to reasonable. You can find the real-time spreads offered by some of the world’s leading brokers here.
Leverage at Forex-point is capped at 1:200. Although this is a solid level, you may not believe that, if you follow the current state of the industry, with many companies providing 1:500 or even more.
We must note, leverage is a double-edged sword – it can increase the size of your losses, the same way it does your wining trades. Be sure to understand the risks associated with margin trading before participating in it.
MT4 is a platform, which has stood the test of time. It offers great charting potential and most uniquely a popular programming environment. The MQL marketplace has thousands of technical indicators and automated trading systems being developed constantly. The platform also has a mobile app and a web-based version.
On the other hand Sirix allows traders to focus more on social trading. By default there is a social trading panel on the right side of the platform. It does appear interesting and users who are familiar with Twitter will feel at home, right away. That being said the platform does offer slightly worse charts in our opinion.
Methods of Payment
The payment options at Forex-point include Bank Transfer, Credit Card and Skrill. Althoug a single e-wallet is being offered, it is a very popular one, especially when it comes to trading.
Forex Point Review Conclusion
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