FX Ants Review
FX Ants Review
FXAnts is a forex broker, which puts a strong emphasis on the Chinese market. The Mandarin version of the website features slightly more information than the English one.
The Company. Security of Funds
Company Country Regulation
Fxants Vanuatu VFSC
FXAnts is a company registered in Vanuatu. It is regulated by the Vanuatu Securities and Exchange Commission (VFSC), which has a rather dubious reputation.
Vanuatu is one of the newest hot-spots for shady forex brokers. This is due to the very low capital requirements, which the nation’s aforementioned watchdog has – only $2,000. As a comparison, the UK’s Financial Conduct Authority or FCA demands at least €730,000 in order to guarantee a company’s log-term intentions (and to prevent scammers from attempting to register). Furthermore the FCA enforces several key rulings upon brokers who are under its supervision.
On of them is the segregation of client funds from the company’s. In essence this means a broker can not take your money, after you deposit it and spend for its own purposes. Another important regulation is the mandatory participation in the Financial Services Compensation Scheme (FSCS). This is a collective pool, created by small payments from broker companies, which acts as a guarantee against one of them becoming insolvent. If you trade with an FCA-regulated broker and they happen to go under, your account will be covered up to £50,000.
Minimum Initial Deposit
There is no minimum deposit requirement at FXAnts. Although opening an account is associated with some costs, the company has chosen to not set an entry barrier, in order to attract as many clients as possible. FXAnts is not alone in this practice by any means, with brokers, such as the industry-leaders at IG, also not having a minimum deposit.
Keep in mind this does not increase (nor decrease) a broker’s credibility. This only means the company is willing to accept lots of new clients.
Average spreads & Commissions
The EUR/USD spreads provided by FXAnts vary around the 1.9 to 2 pips mark. This level is higher than what one should expect given the current state of the financial services industry. Most brokers offer something in the 1.0-1.5 pips range for this pair. You can check the spreads, provided by dozens of the world’s leading brokers, as they change, in real time here.
The maximum leverage at FXAnts is 1:100. This is a bit conservative for the contemporary industry standards, but it is still more than enough for a trader, who is willing to implement a somewhat reasonable strategy.
Do keep in mind, margin trading can lead to substantial losses, even exceeding your entire account balance. Familiarize yourself with the risks involved before deciding whether forex trading is something for you.
FXAnts allows its clients to trade via MetaTrader5 (MT5), the latest version of the world’s leading forex trading platform. While MT4 is still more popular than the fifth edition, it is only a question of time, before MetaQuotes stops supporting it and everybody will have to move on to their newer offering.
Honestly, both versions are pretty similar. The charting package appears to be exactly the same and this should be considered a plus, as it is probably one of the best solutions available altogether. One of the key improvements is that in MT5 you can close positions partially – something which is only available with certain MT4 brokers. Furthermore the platform was initially designed to include the FIFO rule (“First in, first out”, meaning that you couldn’t keep a long and short position open at the same time). Now you can ask your MT5 broker to allow “hedging” and trade this way, if you are interested.
Sadly, we couldn’t start FXAnts’ implementation of MT5 running for the purposes of this review
Methods of Payment
The payment options, provided by FXAnts are: Bank Transfer, Credit/Debit Card and China Unionpay. This may be suitable for the company’s primary target market, but the lack of popular e-wallets, such as Skrill, may stop some international clients from joining.
FX Ants Review Conclusion
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