FinmaxFX Review

WHO IS FINMAXFX?

According to research in South Africa, FinmaxFX is a Forex and CFD broker which is headquartered in the Seychelles and also has offices based in London, England.

The broker was established back in 2015 and have more than 500 assets and instruments available for trade. According to the website, FinmaxFX is owned and operated by Max Capital Ltd which is based in Malta.

The broker claims to have developed and implemented a special three-level system for delivering information to their clients, provide customers with modern training methods, and to update their available information regarding the main events taking place in the financial markets.

SAFE OR SCAM

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

FinmaxFX is regulated by the International Financial Market Relations Regulation Centre (iFMRRC).

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 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.

FinmaxFX offers a maximum leverage ratio of 1:200.

ACCOUNTS

A forex account at FinmaxFX 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 differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.

FinmaxFX offers the following types of accounts:

• Micro Account – This account type is aimed at beginner traders and offers a maximum leverage up to 1:200, variable spreads from 3 pips, and a minimum deposit requirement of 250 USD. This account waives a withdrawal fee.
• Mini Account – This account is aimed at novice traders and offers a maximum leverage up to 1:200, variable spreads from 3 pips, and a minimum deposit requirement of 1000 USD. This account waives a withdrawal fee
• Standard Account – This account is aimed at traders with a bit more experience and offers a maximum leverage up to 1:200, variable spread from 3 pips, and a minimum deposit requirement of 5000 USD. This account waives a withdrawal fee once a month.
• Premium Account – This account is aimed at professional traders and offers a maximum leverage of up to 1:200, variable spreads from 3 pips, and a minimum deposit requirement of 25,000 USD. This account has no withdrawal fees.
• VIP Account – This account is aimed at expert traders and offers a maximum leverage of 1:200, variable spreads from 1 pip, and a minimum deposit requirement of 100,000 USD. There are no withdrawal fees and a full-time manager/market analyst is provided.

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.

FinmaxFX offers the following from the above:

• Over 50 currency pairs
• Stocks
• Indices
• Metals
• Energies, and
• Cryptocurrencies

FEES

Cost depends on different factors, like spread and margins, and FinmaxFX 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.

FinmaxFX offers variable spreads that begin from 3 pips on all accounts except for their VIP account where the spread begins from 1 pip.

There are no commissions charged on trades, but withdrawal fees are charged on most accounts.

DEPOSIT AND WITHDRAWAL

Accounts usually require a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be made through the same avenues as deposits, but this may differ from one broker to the next.

FinmaxFX requires a minimum deposit 250 USD and offers the following payment methods for deposits and withdrawals:

• Visa and Mastercard
• Yandex Money
• Bank Transfer
• Qiwi Wallet
• ePayments
• WebMoney
• Skrill
• Neteller
• Vload, and
• Bitcoin

TRADING PLATFORMS

The forex trading platform provided by FinmaxFX is the software to carry out trades. Some brokers provide only one trading platform where others offer 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.

FinmaxFX provides the FinmaxFX MT5 platform through which trades can be executed.

HOW TO OPEN AN ACCOUNT

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

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

With FinmaxFX, 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 wait for your account approval, make your minimum deposit requirement, and start trading.

CUSTOMER SUPPORT

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

FinmaxFX customers can reach the support team via email, telephone, or live chat.

EDUCATION

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

FinmaxFX offers webinars, eBooks, video lessons, and a full glossary.

RESEARCH

To be able to trade with confidence, traders should conduct thorough research on speculative trading before trading can commence. Traders should explore every deal to ensure that they do not lose money unnecessarily and trade as profitable as possible.

FinmaxFX provides access to technical analysis, financial news, market reviews, trader’s advice, and forex strategies.

AWARDS

Although FinmaxFX is praised by customers, there is no indication of awards won on the homepage.

CONCLUSION

FinmaxFX can be described as a broker which has a lot of favourable qualities. They offer a powerful trading platform, an impressive choice of tradable assets, and a helpful amount of research and educational tools.

The only draw-back is the withdrawal fees which are charged along with wide spreads and high minimum deposit requirements.

DISCLAIMER

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

Before deciding to trade with FinmaxFX, 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.

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

Movements in the price of foreign exchange and commodities are very unpredictable, hence FinmaxFX 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 FinmaxFX?

You can trade a number of different instruments with FinmaxFX, which includes the following:

• Over 50 currency pairs
• Stocks
• Indices
• Metals
• Energies, and
• Cryptocurrencies

Which platforms are supported by FinmaxFX?

FinmaxFX provides the following popular trading platforms:

• FinmaxFX MT5

Does FinmaxFX offer leverage?

Yes. FinmaxFX offers a maximum leverage of 1:200.

What spreads can I expect with FinmaxFX?

FinmaxFX offers varied spreads that begin from 3 pips on all accounts except the VIP Account which is 1 pip.

Does FinmaxFX charge commission?

No.

Is FinmaxFX regulated?

Yes, FinmaxFX is regulated by Financial Market Relations Regulation Centre (iFMRRC).

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

FinmaxFX offers a suitable trading environment for both beginners and experts.

What is the overall rating out of 10 for FinmaxFX?

7/10.

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. It enables a prospective customer to experiment with the broker’s trading platforms and its features, before setting up a real account funded with actual capital.

Does FinmaxFX offer a demo account?

No.

How long is the demo account valid?

FinmaxFX does not offer a demo account.

Which live trading accounts does FinmaxFX offer?

• Micro Account
• Mini Account
• Standard Account
• Premium Account, and
• VIP Account

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

USD, EUR, and RUB.

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for FinmaxFX?

250 USD.

How do you make a deposit and withdrawal with FinmaxFX?

FinmaxFX offers the following deposit and withdrawal methods:

• Visa, Mastercard
• Yandex Money
• Bank Transfer
• Qiwi Wallet
• ePayments
• WebMoney
• Skrill
• Neteller, and
• Vload

Does FinmaxFX charge withdrawal fees?

Yes, the different amounts can be found on the broker’s homepage.

How long does it take to make a withdrawal?

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