FXOpen Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this FXOpen Review.
FxOpen offers 4 basic account types, all of which offer micro lots for trade. Clients of this broker are able to choose between market and instant execution, and commission-free trading or ECN execution with raw spreads with commission.
Personal multi account manager accounts, as well as swap-free (Islamic) and micro ones are also available with this broker. In fact, FxOpen claims to be the first forex broker to offer Micro accounts and swap-free Sharia compliant accounts. Now, FxOpen also offers Crypto accounts, where is available trading with Bitcoin, Litecoin, Namecoin and Peercoin.
FXOpen is a global forex broker, regulated in United Kingdom and Australia. Unlike most brokers, it started as an educational center back in 2003, and ever since it launched brokerage services two years later, FxOpen focused on traders’ interests.
FxOpen is an international online trading broker, providing services for trading in financial markets to both retail and institutional investors.
FxOpen is a registered business name of FXOpen Ltd., a company authorised and regulated by the Financial Conduct Authority (FCA). It also has a sister company in Australlia – FXOpen AU Pty Ltd., which is duly licensed by the Australian Securities and Investments Commission (ASIC) The broker also had a New Zealand unit, but it was deregistered in 2015.
In addition, FXOpen also operates an offshore unit, FXOpen Markets Limited, which is registered in Nevis.
Security of Funds
The UK’s FCA and Australia’s ASIC are one of the most reputable financial watchdogs worldwide. Both UK and Australian regulated brokers must keep client funds in segregated accounts, separated from the companies operating funds. UK-based brokerages must maintain net tangible assets amounting to at least €730 000 as a proof of their financial stability, while Aussie forex brokers must hold a minimum of $ 1 million.
What is more, clients of UK brokers are covered the Financial Services Compensation Scheme (FSCS). In the event of a company insolvency, FSCS is able pay compensation up to a maximum of £50,000 per person per regulated entity. Unlike UK-based brokerages, Australian ones are not covered by any compensation scheme.
Minimum Initial Deposit
You may start trading with FxOpen with just $1, which is an attractive offer, especially when it comes from a reputable and well-regulated broker. Nonetheless, we would advise you to invest $100 and take advantage of its ECN execution.
Average spreads & Commissions
FxOpen offers floating spreads, which vary by account category. The typical ones on the commission-free STP account are around 1.6 pips on EUR/USD, which is above average. Spreads on ECN account start from 0.2 pips on EUR/USD, the typical ones being around 0.5 pips, and a commission of $5 per lot (per side) applies. So, as it turns out average cost of trading per lot for the EUR/USD pair on these accounts is approximately 1.5 pips, which is on the upper end of average. Besides, commission discounts are available to high volume-traders and such with equity above $1000.
In comparison, FxPro offers average spreads as low as 0.4 pips on the EUR/USD for its cTrader (ECN) accounts and charges $4.5 per lot. For further information, you may look up and compare real-time spreads of 15 leading brokers.
The maximum leverage rates at FxOpen are up to 1:500. Such leverage is considered comparatively high, although many other FCA-regulated brokers offer similar leverage rates. For instance, leading EU brokerage FxPro provides leverage up to 1:500. You may check out a list of forex brokers offering leverage equal to or exceeding 1:500 here.
Please, be advised that investing in over-the-counter derivatives with high leverage involves significant risks.
FxOpen supports both MetaQuotes’ platforms: MetaTrader4 (MT4) and MetaTrader 5 (MT5).
Since 2005 MetaTrader 4 has been holding the title of the most popular Forex trading terminal and continues to be preferred by most investors and brokerages. The MT4 has a user-friendly interface, and offers all a trader needs: advanced charting package, a number of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). With this broker it comes as desktop, web and mobile versions.
FXOpen’s web MT4. Click to enlarge.
FXOpen claims to be the first broker to offer its clients direct access to Interbank liquidity and ECN trading via the MetaTrader 4 in 2009. Standard Forex MT4 capacities have been extended and supplemented by the broker’s–Liquidity Aggregator solution. Now FXOpen ECN ensures instantaneous and error-free order execution at the best prices from more than 10 banks and other liquidity providers on two trading platforms – MT4 and MT5.
FxOpen is one of the many brokers that have recently added MT5 to its platform offering. After standing in the shadow of its predecessor for more than 5 years, MT5 gains popularity lately, as its developer MetaQuotes made a number of enhancements to it, including the adding of the hedging feature. MetaTrader 5 is a multi-asset trading platform that provides most of MT4’s valued features and tools, as well as some additional services. For example, the economic calendar is integrated straight within the charts, which are very similar to the ones of the previous version. At present FXOpen supports only ECN accounts on MT5 and they have the same trading conditions as MT4 ECN accounts.
What is more, FxOpen has partnered with ZuluTrade and MyFXBook to offer its clients advanced automatic trading options.
VPS service is also available with this broker, so that traders can install their favorite EA applications and have them running 24/5 without requiring their PC to be on. MT4 VPS hosting with this broker is free of charge to new and existing clients that deposit a minimum amount of $5000 or or trade volumes of USD 10,000,000 (per calendar month).
Methods of Payment
Clients of FxOpen are able to choose from a wide range of payment methods: via credit/debit cards, (Visa, MasterCard, Maestro), bank wire, Skrill, Neteller, Payza, WebMoney, SorexPay, Yandex Money, FasaPay, IntellectMoney, OKPAY, ePayments, RBK Money, China Union Pay and Bitcoin and ETH.
Also, a number of Local Transfers are available, as well as FXOpen Prepaid Cards.
Deposit and withdrawal fees apply – for further information, you may refer to the broker’s website.
FxOpen is a reputable forex and CFD broker with strong regulation, more than 10 years of experience on the forex market, diversified product portfolio and attractive conditions. We especially like its ECN offerings available on two platforms.
Instead of the forex broker you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
FXOpen Review Conclusion
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