High Trade FX Review
High Trade FX Review
High Trade FX appears to offer a single account type with very high leverage levels and variable spreads. It claim to offer micro lots and that it charges no transaction fees, but things proved to be different on its demo MT4 platform, which is provided by another company.
The Company. Security of Funds
Pacific Investments Private Limited
According to the information on its website, High Trade FX was established in 2015 and is owned by Pacific Investments Private Limited, a company located in the Maldives. It offers online trading in forex, CFDs on commodities, indices, as well as money management services.
With High Trade FX there is no restriction on the use of automated strategies or scalping, which is more or less a common practice. However, the broker admits to act as a counterparty to all of its clients’ trades, which creates great potential for conflict of ionterest.
Obviously, High Trade FX targets Japanese investors – as the only deposit currency is Japanese Yen and the website is available only in Japanese and English. Besides, in In May 2016 the Kanto finance bureau of Japan’s Ministry of Finance (MoF) issued a warning against this broker for illegally soliciting local traders.
The Maldives are an offshore centre, which is a pipular place for vacations rather than forex brokers. As most offshore destinations, it has no special requirements to brokerages (such as segregation of client accounts, transactions reporting, etc.) and actually no authority is overseeing their activity.
>> The risks of trading with an offshore forex broker <<
Because of all the risks that investing with offshore brokers involve, we advise traders to select among brokerages licensed in Cyprus, UK or Australia, where the respective financial watchdogs are on the alert and where investors are protected in much better ways. There are many scams among offshore and unregulated brokers and this one might as well be one of them. That being said, the platform High Trade FX offers is actually provided by CFH Clearing, which the broker indicates as its “Cover Point”, whatever this means.
CFH Clearing is an instituitional forex broker and liquidity provider, autrhorized by UK’S FCA that also operates educational site Tradimo, but we doubt that it has something to do with High Trade FX.
Minimum Initial Deposit
According to the information on its website, High Trade FX requires an initial deposit of 1 000 yen, which is currently less $9.
Average spreads & Commissions
The costs of trading at High Trade FX are not revealed on its website. This is often the case with brokers involved in fraudulent practices. All brokers with decent regulation apply transaparent pricing policies and disclose this information clearly on their websites.
So, we had to download the available MetaTrader 4 platform in demo mode to figure out High Trade FX’s spreads and commission fees. Transactions costs with this broker appear very low, average ones amounting to around 0.6 pips on EUR/USD per standard lot (0.4 pips spread + commission of $2 per lot). As we have already outlined above, you should keep in mind that these are the costs of trading on CFH Clearing’s MT4 demo platform. We strongly doubt that a small offshore broker can provide such low spreads (which also means deep liquidity) in live trading environment.
Similar transaction costs are offered by major brokerage IG : it provides commission-free accounts with no minimum initial investment required and average spread of 0.6 pips. The best part about IG, however, is the security of trading with a strongly regulated international group with more than 40 years of experience in the industry.
The maximum leverage offered by High Trade FX is 1:1000, which is a very high ratio. You’d better make sure you know exactly how much you are risking per pip, before you place a trade.
Trading with high leverage involves substantial risk of losses and that is why a number of financial regulators across the globe have set up limitations on average – 1:50 in the US, 1:100 in Poland, 1:25 in Japan.
High Trade FX offers trading via MetaTrader4 (MT4), available as desktop download and mobile applications. This is the most popular forex trading platform, which is provided by the majority of brokers. Some of its major advantages include the great charting, wide range of technical analysis indicators and the automated trading environment, which allows trading with the so called Expert Advisors.
Other than that, MT4 is able run a lot of instruments without troubling the hardware substantially.
Methods of Payment
The payment methods available at High Trade FX are only bank wire transfer and credit/debit cards like VISA, Master, JCB . Popular e-wallets like Neteller and Skrill are not offerd, nor cryptocurrencies as Bitcoin are accepted.
High Trade FX is an offshore forex and Market Maker that seems to target mainly Japanese investors. It is not recommended, because of the lack of regulation and the fact that the demo MT4 it offers is provided by FCA-regulated company that most likely has nothing to do with High Trade FX. Besides, the leverage levels offered by this broker are dangerously high.
High Trade FX Review Conclusion
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