FX Arena Review
FX Arena Review
FX Arena is a website which provides a platform for matching willing traders in contests. That being the case, the website doesn’t appear to be active at this point in time.
The Company. Security of Funds
There is no information on the company behind FX Arena. This is very troubling, as it provides absolutely no security for your funds.
If you were to deposit funds with this company, you may not get your money back. This is why financial regulation is so important. It isn’t enough to know where your broker is registered. They should be overseen with a reputable agency, like the UK’s Financial Conduct Authority (FCA).
All brokers overseen by them must submit regular reports on their client’s activities. Furthermore there are several key rules, which prevents them from stealing your money. First of all, all client funds must be kept in the so called segregated accounts. These are special bank accounts, which can’t be freely manipulated. On top of that all brokers must participate in the Financial Services Compensation Scheme (FSCS). This is a mechanism, which acts like an insurance company. All companies have to deposit a small portion of their profits to a collective pool, which then guarantees the client’s trading accounts against the broker going bankrupt. In the case of the FCA the coverage is up to GBP 50,000, per account.
Coming back to FX Arena, the entire design of the website seems familiar to the one provide at a previous promotion at XM, where traders competed for an entire year to share a portion of a $500,000 prize pool. We are not certain if this is a clone of the leading broker’s project or even if the website is functioning at this point in time.
The interesting thing about FX Arena is that regular trading is not provided. Instead, this is a platform where traders match against one another in different contest formats.
At the time of writing of this review only one on one events were available at FX Arena. They were also not scheduled, but starting whenever two participants agree to enter. If you are familiar with online poker, this is the equivalent of a “sit and go” tournament.
Additionally two tournaments are currently being advertised on the company’s main page. One of them requires $6 as an entry fee, while the other one is free.
It is worth pointing out, that the entry fees and prices are quoted in $CD. We are not sure what that means, but it may likely be an internal currency, which is not equivalent to one US dollar.
FX Arena makes its profits from a portion of the entry fees paid by the tournament participants, the same way poker rooms do.
Minimum Initial Deposit
There is no information on the minimum deposit at FX Arena. This is a bit unusual, as most brokers state this information freely. As an example, FXTM requires only $5, which allows anybody to start real money trading.
Average spreads & Commissions
The costs of trading at FX Arena aren’t that important as they are the same for all contestants. That being said, the ones we experienced in the demo platform were competitive. The EUR/USD spread gravitated in the 0.9-1.0 pip range. Sadly traditional trading is not available at FX Arena. If you want to check the latest offers provide by other brokers, be sure to go to our special page.
Our testing with the FX Arena demo platform revealed a 1:100 level, which is rather conservative for the current market environment, with a lot of companies offering 1:500.
The information pages on the two tournaments, which we saw stated the maximum for them is 1:30. Such a relatively low ratio makes a lot of sense.
While leverage is usually important for the amount of risk you can take, it is even more important in the context of trading competitions. The ones which provide a higher ratio, allow for late comebacks, as traders will risk everything in the last hours of the event if they are bound to lose otherwise.
FX Arena facilitates its contest via the MetaTrader5 (MT5) platform. This is the follow-up to the industry-leading MT4. The best features are basically kept intact – the charting is still superb, the platform is still light on the hardware, and custom technical indicators and automated systems can be used. It is worth pointing out that the Expert Advisors for MT4 will not work with MT5.
Methods of Payment
The payment options at FX Arena include Credit/Debit Card, Neteller and Skrill. This is a solid lineup, with the notable exception of bank transfers.
FX Arena is a provider of trading contests. There is no information about the company behind this project, while XM had a very similar offering several years ago. We are not certain if this is a clone. The lack of information leads us to believe this may simply be the famous broker’s platform, which was eventually shut down, due to low interest. The total lack of clarity and apparently low popularity of this platform (we didn’t see anybody registering to a one on one tournament for hours) makes us not recommend opening an account there. We will update this review, if the situation changes.
FX Arena Review Conclusion
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