IFX4U is a forex broker, which supposedly offers both fixed and floating spread accounts. A lot of the information on their website is vague or outright self-contradicting.
The Company. Security of Funds
Company Country Regulation
IFX4U UK N/A
IFX4U does not claim affiliation with any regulatory agency. The company is allegedly based in London, but is not under the supervision of the Financial Conduct Authority (FCA). This is a big red flag for us.
As we mention in all reviews, financial regulation is very important. An off-sore based company can do some things differently from a tightly monitored one. We often mention the FCA as an example of a reputable regulator, but there are other watchdogs which impose strict rules on companies, registered with them. For instance, Cyprus is a preferred destination for many forex brokers and the Cyprus Securities and Exchange Commission (CySEC) is another highly credible institution. Companies, who are under its veil, must implement the segregated accounts principle. By this rule, clients’ money must be held in accounts, different from the company ones. Hence the firm can not use a trader’s balance on marketing campaigns, salaries or corporate bonuses. Other than that, a CySEC regulated forex broker must participate in the local compensation scheme. This is a collective pool, in which all brokers have to pay a portion of their profits, periodically. The fund then serves to cover client trading accounts, in case one of the brokers becomes insolvent. The level of protection, offered by CySEC is €20,000 per account.
Several complaints against IFX4U are present in reputable online forums. One of the stories explains how the company refused to allow a client to withdraw funds from his account and furthermore started taking positions on his behalf (without his authorization). In the end the account balance was almost depleted. We can neither confirm nor deny the story, but the fact the company has done nothing to contact the popular forum is quite troubling.
Minimum Initial Deposit
There is no information on the minimum deposit requirement at IFX4U. This is a rather unusual thing, as most brokers advertise heavily with this portion of their offering. Some, like IG, have even dropped the minimum requirement altogether.
It is worth mentioning, the minimum deposit is something only newer, less capitalized (or willing to risk less money) traders should look at. Experienced traders should know, serious trading is very demanding in terms of knowledge, discipline, time and even risk capital.
Average spreads & Commissions
Spreads at IFX4U are not clearly mentioned on the company’s website. That being the case, we know one of the account types has fixed spreads, while the other one has floating spreads with some form of commission. Given what we have already mentioned about the company, trading conditions shouldn’t be of interest to any body, but it is still rather bizarre, that nothing is mentioned. We couldn’t get the platform running for a test of the spreads. On the other hand, you can check the current offers by some of the leading forex brokers here.
IFX4U offers a maximum leverage ration of 1:500. This is not that uncommon nowadays, although it is still a pretty high level. That being said some brokers go even beyond this, like XM who offer the very catchy 1:888 leverage level.
High leverage can be your worst enemy in trading. The ability to take a bigger risk, just to negate your last loosing trade, can lead on a downward spiral of errors and loses. This lack of discipline often results in the eventual blow-up of an entire trading account. Be sure to fully understand the risk involved with forex and CFD trading, before you participate in it.
MetaTrader4(MT4) is IFX4U’s platform of choice. This option has been preferred by many brokers in recent years, as opposed to the in-house development of a new platform. MT4 is well known to currency traders around the world and is generally accepted positively. One of the key factors for this is the charting package, followed closely by the ease of use and availability of custom add-ons.The MQL market place is the ideal place for developers to preview and sale their newly created technical indicators and trading systems (known as Expert Advisors).
MT4 also has mobile versions for Android and iOS. They are slightly simplified iterations of the altogether appreciated desktop platform. We have found them to do their job more than well enough.
Methods of Payment
When it comes to payment methods, IFX4U provides the traditional solutions – Bank Transfer and Credit/Debit Card. E-wallets, such as Skrill are not supported.
IFX4U Review Conclusion
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