Nexcell FX Review
Nexcell FX Review
Nexcell FX is an STP broker, which offers spot metals and index CFDs, alongside forex trading. The account types, appear to be strangely distributed. We suspect the $1000 requirement for the best accounts, may be a typo (from $10,000).
The Company. Security of Funds
NEXCEL HOLDINGS LIMITED
Nexcell FX is operated by NEXCEL HOLDINGS LIMITED, a Vanuatu based company. They are regulated by the Vanuatu Financial Services Commission. As we have mentioned in other reviews, trading with an off-shore broker carries significant risk.
The risk stems, form the fact these companies are often not tightly regulated. That being said Vanuatu is one of the preferred destinations for shady brokers. The VFSC has an initial capital requirement of $2,000, which means basically anybody can open a brokerage there. Reputable agencies have much higher capital demands, in order to insure the financial stability of the company. For instance, the UK’s Financial Services Authority (FCA) demands € 730,000.
Furthermore, the FCA regularly monitors the activity of companies, under its oversight and enforces many rules. That being said, two regulations in particular are the most important, from a retail trader’s perspective. Fist and foremost, client funds are placed in the so called segregated accounts. This means, a broker can not freely access (and spend) them. Additionally, there is a compensation scheme in place. All FCA-regulated brokers participate in the Financial Services Compensation Scheme (FSCS), which guarantees client accounts up to £ 50,000 against their broker going bankrupt.
Minimum Initial Deposit
Nexcell FX has set the initial minimum deposit at $100. This is pretty much the industry norm at this point, which many companies, like HYCM apply.
On the other hand, this is not that important of a factor for experienced traders, as it does not tell you anything about the broker’s credibility. If you are a newbie, feel free to first experiment with demo accounts and then deposit a small amount, while you are learning.
Average spreads & Commissions
The costs of trading at Nexcell FX vary a lot by account types. The better account types offer competitive conditions, provided they can be obtained. Our testing of the broker’s platform revealed some issues (which we’ll get to later). On the other hand you can always compare the spreads provided by some of the world’s top-rated forex brokers in real-time, via our comparison platform.
Nexcell FX offers varying degrees of leverage for the different account types. They go from 1:400 to 1:200. Both of these ratios are perfectly fine, if you plan on following a reasonable trading plan. That being said, nowadays brokers offer even higher levels, like XM, who allow trading at 1:888.
Do not forget, trading with higher leverage carries the potential for a bigger loss. This is the reason, why US regulators have limited the leverage ratio, which can be provided to retail traders to 1:50.
Nexcell FX provides its services via MetaTrader 5 (MT5). While the previous iteration of the platform is still more popular, brokers are switching to MT5. It basically has all the great features of MT4, with a couple of additions, like the fact some of the elements are now detachable.
On the other hand, the platform provided by Nexcell FX has some issues.
First of all, the charts start from February 2017. This makes long-term analysis with this platform impossible.
Additionally there is a big gap in EUR/USD, at a time it did not occur at other brokerages. This may be an issue with the liquidity providers.
These issues may be repaired, but until this happens the Nexcell FX MT5 is basically useless.
Methods of Payment
Nexcell provides quite a few payment methods. They include: Bank Transfer, Credit/Debit Card, Skrill, Neteller, Paysafe Card, CashU and Neosurf. Most users should be satisfied.
Nexcell FX is a Vanuatu-based forex broker. They are regulated by the VFSC, which isn’t worth much. The account types offered by the company appear to be mixed in a strange way. Trading conditions are good, for the bigger account types, but we are not certain they are obtainable. Furthermore the platform is basically unusable, due to technical issues.
Nexcell FX Review Conclusion
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