BokaFX Review – Unbiased Pros & Cons Revealed

WHO IS BOKAFX?      

According to research in South Africa Boca Global Financial Group Pty Ltd., or BOKAFX was founded in 2012 and is headquartered in Sydney, Australia. It also maintains regional headquarter offices in Shanghai, China.

BOKAFX offers traders a variety of asset classes including Forex, Contracts for Difference (CFDs), Spot Metals and Binary Options.

It claims that it is regulated by ASIC and is a member of the Financial Ombudsman Service (FOS).

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SAFE OR SCAM

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

BOKAFX claims that it is regulated by Australian Securities and Investments Commission (ASIC) and is a member of the Financial Ombudsman Service (FOS).

ASIC however declared at some stage that Boca Global Financial Group (BOKAFX), has improperly been stating on its website that it was regulated or authorised by ASIC to provide financial services in the country.

It is not sure whether this situation was cleared yet.

PRO AND CONS

LEVERAGE

Leverage is a facility that enables you to get a 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 have to 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.

BOKAFX offers a maximum leverage ratio of 1:400.

ACCOUNTS   

A forex account at BOKAFX is a trading account that you will hold and that will work similarly to your bank account, but with the difference 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.

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 and the regulation authorities under whose jurisdiction it falls.

BOKAFX offers two accounts to choose from —an ECN account and STP account. Initial minimum deposits for both of these accounts are $500. Scalping and hedging are allowed, and traders can use Expert Advisors (EAs).

There is also an option to open a demo account for practice purposes.

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, are 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.

BOKAFX offers all the major pairs that represent the most liquid and most widely traded currency pairs in the market, like EUR/USD, USD/JPY, and GBP/USD. In total, there are 63 Forex pairs available that include majors, minors and exotics.

Besides lots of currency pairs, BOKAFX also offers instruments like CFDs, metals, stocks, oil, gold, and indices.

FEES

Cost depends on different factors, like spread and margins, and BOKAFX 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 in order 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.

BOKAFX offers BOKAFX offers the tightest spreads in the market, starting from 0.1 pips.

DEPOSIT AND WITHDRAWAL

Accounts usually requires a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

In the case of BOKAFX the following methods and minimum deposits are required:

Electronic bank transfer, China UnionPay, Credit / Debit Card and eWallet.

A BOKAFX trading account is available in USD or AUD as the base currency and an account can be opened with a minimum of USD 500 or AUD 500. Withdrawals are made using the same methods.

TRADING PLATFORMS

The forex trading platform provided by BOKAFX to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

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.

BOKAFX provides:

MetaTrader 4

MT4 provides vital trading tools to traders in a user-friendly environment. BOKAFX’s MetaTrader 4 is configurable to work for a whole host of Forex trading models and offers the ability to automate trading strategies. Standard platform features include individual risk and order management tools, strategy testing, unlimited technical analysis and charting.

Mobile Trader

BOKAFX Mobile Trader offers traders live online access to their MetaTrader (MT) account via iPhone. The application is customisable and synchronised with the BOKAFX Web Trader and MetaTrader.

With the Mobile Trader, both registered traders and guests may watch live market data, including Forex, Commodities, CFD’s, Stocks and Indices, browse interactive real-time and historical chart and can display their account balance and details.

Multi Account Manager

Multi Account Manager (MAM) is designed for money managers to quickly execute block orders with one click under a master account arrangement and automate trade allocations to customer accounts.

All managed accounts can be traded from a single MT4 client terminal application.

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with BOKAFX for the first time, you will be required to go through a basic “know your customer” process, which will allow BOKAFX to ascertain that your submitted details and ensure the safety of your funds and account details.

CUSTOMER SUPPORT

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

In the case of BOKAFX customers can reach the support team via by sending a notification to BOKAFX by email or live chat. Their Customer Support is online for 24/5.

Messages can also be sent when the site is offline.

EDUCATION       

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

BOKAFX offers interesting instructional tools on topics including The Basics of Forex, Pip Value, Currency Carry Trades and more.

Fundamental analysis is provided in the form of textual explanations and accompanying graphs and lessons on subjects such as U.S. economic indicators, major fundamental drivers and Forex trading tips are available.

RESEARCH         

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

With BOKAFX they have access to technical analysis with charts and indicators that help to enhance textual explanations.

A financial glossary contains detailed descriptions of hundreds of different terms while an economic calendar of global events and a listing of interest rates used by central banks from all over the world are provided too.

BOKAFX offers daily news updates and a unique explanation on how to select the right news event before trading.

AWARDS

Being an awarded company instils extra confidence by traders.  Although BOKAFX is acclaimed by customers, there is no indication of awards won on its homepage.

CONCLUSION  

BOKAFX seems to target the Australian and Asian markets. There are no special bonuses or promotions and the trading accounts are simple to use. There is enough educational material to read and enjoy and anyone interested can log onto these articles.

BOKAFX offers MetaTrader 4 platform that is attractive to both new and experienced traders.

DISCLAIMER

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

Before deciding to trade with BOKAFX, 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.

BOKAFX warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable, hence BOKAFX cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

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FAQs

TRADING ENVIRONMENT

1. How many instruments can I trade with BOKAFX?

You can trade number/several different instruments with BOKAFX, which include the following:

• Forex
• CFDs
• Metals
• Stocks
• Oil
• Gold

2. Which platforms are supported by BOKAFX?

BOKAFX provides the following popular trading platforms:

• Mobile trader

3. Does BOKAFX offer leverage?

Yes, BOKAFX offers a maximum leverage of 1:400.

4. What spreads can I expect with BOKAFX?

BOKAFX offers spreads starting from 0.1 pips. More information can be obtained from the customer support service.

5. Does BOKAFX charge commission?

More information on commissions can be obtained from the customer support service.

6. Is BOKAFX regulated?

BOKAFX claims to be regulated by ASIC.

7. Is BOKAFX a recommended forex trading broker for experts and beginners?

BOKAFX offers a fair-trading environment for all types of traders.

8. What is the overall rating out of 10 for BOKAFX?

5/10

ACCOUNTS

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

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

Does BOKAFX offer a demo account?

Yes

2. How long is the demo account valid?

The website does not give a clear indication.

3. Which live trading accounts does BOKAFX offer?

• ECN account
• STP account.

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

USD, AUD

DEPOSITS AND WITHDRAWALS

1. What is the minimum deposit for BOKAFX?

$ 500

2. How do you make a deposit and withdrawal with BOKAFX?

BOKAFX offers the following deposit and withdrawal methods:

• Electronic bank transfer,
• China UnionPay,
• Credit / Debit Card
• eWallet.

Withdrawals can be done via:

• Electronic bank transfer,
• China UnionPay,
• Credit / Debit Card
• eWallet.

3. Does BOKAFX charge withdrawal fees?

No, but fees from financial institution may apply.

4. How long does it take to make a withdrawal?

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