BogoFinance Review South Africa – Unbiased Pros & Cons Revealed

WHO IS BOGOFINANCE?

According to research in South Africa, Bogofinance is a global Forex and CFD broker which is based in Lebanon and was founded in 2006.

The company that is behind the brand is a Lebanese institution which is regulated by the Central Bank of Lebanon and is called Bogofinance S.A.L.

Bogofinance holds a licence as a first category financial institution which means it conducts financial brokerage business for the sale and purchase of currencies along with other money market instruments.

Bogofinance also provides investment management services along with asset management services and offers discretionary portfolio management services.

Bogofinance has claimed that their financial stability is what has allowed the company to invest largely in advanced technology. In addition, Bogofinance offers high-level client support to ensure their customers a safer and more stable investment route.

SAFE OR SCAM

One of the best benchmarks to measure the safety of a broker like Bogofinance is to establish which regulating authorities are watchdogs over its actions.

Bogofinance is regulated by the Central Bank of Lebanon (“Banque Du Liban BDL”) and the Cyprus Securities and Exchange Commission (CySEC).

PRO AND CONS

LEVERAGE

Leverage is a facility that enables you to get much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading magnify your potential profit but also increase your potential loss.

Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you must have funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

Bogofinance offers a maximum leverage ratio of 1:100.

ACCOUNTS

A forex account at Bogofinance is a trading account that you will hold and that will work similarly to your bank account. The difference is that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith. Bogofinance offers the option to convert a live trading account into that of an Islamic account.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates. It is also determined by the regulation authorities under whose jurisdiction the broker is regulated.

Bogofinance offers the following types of accounts:

• The Micro Account – This account is for beginners and has a minimum deposit requirement of 100 USD, a maximum leverage ratio of 1:100, and a spread that begins at 1.4 pips.
• The Classic Account – This account is for traders with a little more experience and has a minimum deposit requirement of 2000 USD, a maximum leverage ratio of 1:100, and spreads that begin at 1.2 pips.
• The Executive Account – This account is for more professional traders and has a minimum deposit requirement of 10,000 USD, a maximum leverage ratio of 1:50, and spreads that begin at 1 pip.
• The Premium Account – This account is for expert traders and has a minimum deposit requirement of 50,000 USD, a maximum leverage ratio of 1:50, and spreads that begin at 0.8 pips.

MARKET INSTRUMENTS

The most popular market instruments available from most brokers for trading include:

Forex:

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities:

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management.

Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices:

Equity, or stock indices, is actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals:

The trading of gold and other precious metals, along with crude oil, copper, or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy:

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

Bogofinance offers the following from the above:

• FX currency pairs
• CFDs
• Stocks
• Options
• Precious Metals

FEES

Cost depends on different factors, like spread and margins, and Bogofinance clients may also experience different fee structures according to their country or place of residence.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

Bogofinance does not charge commission on trades, instead their spreads are as follows:

• Micro Account – from 1.4 pips
• Classic Account – from 1.2 pips
• Executive Account – from 1 pip, and
• Premium Account – from 0.8 pips.

DEPOSIT AND WITHDRAWAL

Accounts usually require a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done through the same payment methods as deposits, but this differs from one broker to the next.

Bogofinance requires a minimum deposit of 100 USD, and supports the following payment methods:

• Wire Transfer
• Visa
• MasterCard
• BOB Finance Cash

TRADING PLATFORMS

The forex trading platform provided by Bogofinance to its clients is the software to carry out their trades. Some brokers provide only one trading platform while others support several.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

Bogofinance offers its clients the popular MetaTrader 5 platform through which trades can be executed.

HOW TO OPEN AN ACCOUNT

To register a forex trading account with Bogofinance for the first time, you will be required to go through a basic “know your customer” process.

This will allow Bogofinance to ascertain that your submitted details and ensure the safety of your funds and account details.

With Bogofinance the process entails logging onto their website and filling in some basic information. You will be asked to provide proof of your bank account, residence, and a copy of your legal ID.

You may also be required to answer a few questions regarding your level of trading experience. Once this is completed you must wait for account approval and when it is approved, make your minimum deposit required after which trading can commence.

CUSTOMER SUPPORT

Potential traders need to make sure the broker company they choose will offer adequate support whenever they need it.

Bogofinance customers can reach the support team via telephone, email, or live chat option on their web page. The consultants are available 24-hours a day, from Mondays to Fridays.

EDUCATION

Before starting to trade, potential clients of Bogofinance should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

Bogofinance does not offer any educational material on their website.

RESEARCH

To be able to trade with confidence, traders should conduct adequate research on speculative trading before registering an account. They should investigate each deal to ensure that they do not lose money unnecessarily and to ensure that trading is profitable.

With Bogofinance, they have access to MetaTrader 5 which provides powerful research tools like built-in technical indicators, an advanced charting package, wide range of Expert Advisers (EAs), and an extensive back-testing environment.

AWARDS

Although Bogofinance is praised by customers, there is no indication of awards won on its homepage.

CONCLUSION

Bogofinance can be described as a legitimate broker with over 10 years of experience within the industry. The company offers tight spreads with its more premium account types which have a much higher minimum deposit requirement.

There are no commission charges on trades which is a benefit, and they offer a good variety of trading instruments.

The company would benefit from adding some educational material to their website to help beginner traders along with a few more research tools such as an economic calendar or a live news feed.

DISCLAIMER

Bogofinance warns potential customers that Forex and CFDs trading carries a high risk and that it may not be suitable for all investors.

Before deciding to trade with Bogofinance, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

Bogofinance warns that margin trading involves the potential for profit as well as the risk of loss.

Due to movements in the price of foreign exchange and commodities which are very unpredictable, Bogofinance cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with Bogofinance?

You can trade several different instruments with Bogofinance, which includes the following:

• Forex
• CFDs
• Stocks
• Options
• Precious Metals

Which platforms are supported by Bogofinance?

Bogofinance provides the following popular trading platforms:

• MetaTrader5

Does Bogofinance offer leverage?

Yes, Bogofinance offers a maximum leverage of 1:100.

What spreads can I expect with Bogofinance?

Bogofinance offers fixed and floating spreads that begin from 1.4 pips for the Micro Account, 1.2 pips on the Classic Account, 1 pip for the Executive Account, and 0.8 pips on the Premium Account.

If details on the website are not comprehensive, more information can be obtained from the customer support service.

Does Bogofinance charge commission?

No.

Is Bogofinance regulated?

Yes, Bogofinance is regulated by the Central Bank of Lebanon (“Banque Du Liban BDL”) and the Cyprus Securities and Exchange Commission (CySEC).

Is Bogofinance a recommended forex trading broker for experts and beginners?

Bogofinance offers a trading environment suitable for both beginners and experienced traders.

What is the overall rating out of 10 for Bogofinance?

7.2/10.

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money. This enables a prospective customer to experiment with the broker’s trading platforms and its features, before setting up a real account funded with the trader’s own capital.

Does Bogofinance offer a demo account?

Yes.

How long is the demo account valid?

The demo account can be used for 30 days.

Which live trading accounts does Bogofinance offer?

• Micro Account
• Classic Account
• Executive Account, and
• Premium Account.

What are the available deposit currencies for a live trading account?

USD and EUR

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for Bogofinance?

100 USD.

How do you make a deposit and withdrawal with Bogofinance?

Bogofinance offers the following deposit and withdrawal methods:

• Wire Transfer
• Visa
• MasterCard
• BOB Finance Cash

Does Bogofinance charge withdrawal fees?

No, but fees from financial institution may apply.

How long does it take to make a withdrawal?

Depending on bank services it may take several days for the money to be available.