Fx Unit is a relatively new competitor in the forex and CFD space. The company’s website appears to be incomplete. Mobile apps for Android and iOS are currently in development. That being said, we will update this review, when the situation changes.
The Company. Security of Funds
Company Country Regulation
Fxunit UK N/A
Fx Unit is owned by the London-based and aptly named company – Fxunit. Despite being incorporated in the UK, this broker does not claim affiliation with the Financial Conduct Authority (FCA) or any agency for that matter. While they may be applying for a license, we have to treat them as an unregulated company at this point in time.
You may already be familiar with the concept, but in case some of you aren’t we will reiterate the importance of financial regulation. Forex brokers (as well as other types of companies in the financial services sector) can scam their customers of their hard earned money. In order to protect the latter, most countries have some sort of regulatory agency.
The aforementioned FCA is one of the most reputable ones. It requires brokers, which are registered to frequently submit reports on their activities, as well as follow many rules. When it comes to the security of client funds, two rules are the most important. On one hand, the money must be kept in the so called “segregated accounts”. This is a mechanism, which prevents brokers from freely accessing the invested amounts and “borrowing” from them.
Additionally, the FCA forces companies to participate in the Financial Services Compensation Scheme (FSCS). The Scheme basically functions like an insurance company – all brokers provide small payments to a collective pool, which later serves as a guarantee against one of them going bankrupt. If you trade with such an intermediary, and they happen to become insolvent, your account will be protected up to GBP 50,000.
Minimum Initial Deposit
Fx Unit does not provide information on the minimum initial deposit. This is not the usual practice, as most brokers state this information clearly on their website. As an example, you can start trading with FXCM after depositing only $50.
While this factor doesn’t affect a company’s credibility in any way, new traders who are willing to experience the markets for the first time should do it with a smaller investment,
Average spreads & Commissions
Spreads at FX Unit are floating, with the average on EUR/USD moving around 1.9-2.0 pips during our testing. This is slightly more than what most brokers offer nowadays. For a real-time comparison of the spreads provided by some of the top-rated brokers, view our comparison page.
FX Unit offers 1:100 in leverage. You may consider this to be a low ratio, if you follow the current state of the industry. Many companies currently offer 1:500 or even more. Some, like XM, even use their leverage ratio as a marketing tool – once you learn they offer 1:888, this will stick in your head.
Fx Unit provides its own web-based trading platform, with mobile apps in development at the moment. The platform covers the basic functionality – it has an instrument list on the left, a chart and position tracking panel in the middle and even a news section on the right.
As you may have noted, charting is provided via TradingView. This is one of the best services available, as the company provides a lot of technical indicators and even some exotic charting methods, like Renko and Hiken Ashi charts, which even MetaTrader4 (MT4) does not support by default.
Overall, the trading platform developed by Fx Unit is nice, but nothing special. It still is bound to a single browser window (which limits multiple screen capabilities) and there doesn’t appear to be any support for automated trading or social trading networks, like eToro, where you can essentially create a portfolio of traders, to manage your funds.
Methods of Payment
The methods of payment which Fx Unit accepts are rather few: Bank Transfer, Credit/Debit Card and Neteller. While the e-wallet is only one, at least it is among the most popular ones, when it comes to trading.
Fx Unit is a relatively new project. The company does not claim being regulated by any appropriate agency. Hopefully this will change in the future. Trading conditions are nothing special, with wider than expected spreads. The company offers a proprietary trading platform, with mobile apps “coming soon”. Some key information on the trading conditions is missing from the website. We will update this review, when the situation with this broker changes.
FxUnit Review Conclusion
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