Formax Prime Review – Unbiased Pros & Cons Revealed

WHO IS FORMAX PRIME?      

According to research in South Africa Formax Prime is a British company founded in 2014 with headquarters in London, UK.

Formax Prime is a pure STP broker offering trading in currency pairs and CFDs on indices and commodities on the MT4 platform.

The company is owned by the Formax Group Limited, an international financial company with subsidiaries around the world that include the UK, Australia, New Zealand, Hong Kong, China, India, and Thailand.

Formax is also proud to be associated with two sports that the company believes reflect the competitive spirit and skills required of successful forex trading, namely jet ski and motor racing. Formax sponsorships include Jet Ski, Ferrari Motor Racing, and Porsche Motor Racing.

SAFE OR SCAM

Formax Prime is authorized and regulated by UK’s Financial Conduct Authority (FCA). The company fully cooperates and assist with any investigating authority towards the client protection in accordance with all requirements.

Clients` funds are kept in segregated bank accounts and hold a minimum of €730 000 in order to conduct their business activities.

Regulation by FCA also involves additional guarantee to clients’ funds since they fall under the Financial Services Compensation Scheme (FSCS). FSCS’s maximum compensation cover is £50 000 per person if a broker becomes insolvent or ceases trading.

PROS AND CONS

LEVERAGE

Leverage enables a trader to get a much larger exposure to the market the person is trading than the amount deposited to open the trade. Leveraged products, such as forex trading, magnify a trader’s potential profit – but also increase the potential loss.

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

Formax Prime offers maximum leverage of up to 1:200 for all account types.

ACCOUNTS   

Formax Prime offers the following types of accounts:

• ECN Commission Free Account
• ECN Raw Account

Both accounts provide tight variable spreads and leverage up to 1:200, as well as micro tradable lots on the industry’s favourite MetaTrader4 platform.

The only difference between them is that the ECN Raw account involves a commission, based on the trading volume, but spreads are as low as 0.2 pips on EUR/USD.

Account management services are also available with this broker and brokers is only allowed to open one trading account.

A Demo account can also be opened, and it does not expire.

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.

Formax Prime offers the following of the above:

• 60 Forex currency pairs
• Gold and Silver
• CFDs
• Indices
• Commodities

FEES

Cost and fees depend on different factors, like spread and margins, and Formax Prime 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.

The ECN Commission Free account delivers an easy feature with all costs included into spread from 0.6 pips.

ECN Raw account is designed with a dedicated personal manager and extra services alike priority withdrawals. It includes spreads from 0.2 pips, and charges commission of is £3 per Lot.

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 Formax Prime, the following methods and minimum deposits are required:

• ECN commission-free – minimum deposit £1 000
• ECN Raw – minimum deposit £5 000

The following methods can be used to fund accounts and to execute withdrawals:

• Credit/debit cards
• Skrill
• Neteller
• UnionPay
• Wire Transfer

Deposit via bank transfer has no fee charges, credit/debit cards charge a 3% transaction fee, or to deposit using Skrill, Neteller or UnionPay, that implies a 2.9%, 4%, and 1.5% respectively.

Withdrawal is available through the same payment methods. Formax Prime charge withdrawal fees that varies from one method to another. Bank Transfer will cost $25, Credit Card is free from charges and Skrill applies 1% + $2.50 per transaction.

Accepted currencies are USD, EUR and GBP and they take one to five business days to process. Bank transfer withdrawals take 24 hours to complete.

TRADING PLATFORMS

The forex trading platform provided by Formax Prime to its clients is 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.

Formax Prime offers trade through the MetaTrader4 platform which can be done on desktop, mobile or tablet. Traders can also use ZuluTrade that delivers an environment to copy orders easily.

MT4 is the most widely used forex trading platform, because it is easy to use, and traders can automate their operations by choosing from a wide range of Expert Advisors and let the program do all the work.

It is also equipped with a professional charting package, a variety of technical indicators, and extensive back-testing environment.

ZuluTrade lets the trader follow the expert and trade like them, while the trader is able to open the same account as a standard offering, simply connect to the trader of the choice with Zulu Rank and to stay in control of risk within the account.

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with Formax Prime for the first time, you will be required to go through a basic “know your customer” process, which will allow Promax Prime 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 enough support whenever they need it.

In the case of Formax Prime customers can reach the support team in real time 24/5 by phone, live chat, e-mail and return call.

Professional staff provide support in English, Estonian, Chinese, French, Japanese and Korean.

It offers regional customer support telephone numbers in the UK, Indonesia, Malaysia and Thailand.

EDUCATION       

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

It is not clear on the internet whether Formax Prime offers any educational tools as the website was down when writing this review.

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 do not lose money unnecessarily and trade as profitable as possible.

It is not clear on the internet whether Formax Prime offers any research tools as the website was down when writing this review.
AWARDS

There is no indication whether Formax Prime has received any awards since its inception.

CONCLUSION  

Formax Prime is a secured company that provide technology to perform advanced trading. Through the ECN environment, the trader gains a clear picture of how the capital is deployed, also with the flexibility and competitive pricing tailor to every client.

The ability to trade popular FX, indices and commodities quickly, securely and on the move, with Formax Prime is an added benefit to clients.

Being regulated by the strict FCA authority ensures that clients can feel safe and secure in dealing with Formax Prime.

DISCLAIMER

Trading foreign exchange carries a high degree of risk and is not appropriate for all investors. Using leverage to trade foreign exchange may result in being liable for losses that exceed the initial investment.

Any potential investors of foreign exchange products should carefully consider their own circumstances to determine whether foreign exchange is a suitable investment for them. In case of any uncertainty, an appropriate financial advisor should be consulted.

Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors as trading on margin/leverage increases the financial risks, according to research in South Africa.

Frequently Asked Questions

How many instruments can I trade with Formax Prime?

You can trade several different instruments with Formax Prime, which include the following:

• 60 Forex currency pairs
• Gold and Silver
• CFDs
• Indices
• Commodities

Which platforms are supported by Formax Prime?

Formax Prime provides the following popular trading platforms:

• MetaTrader4
• ZuluTrade

Does Formax Prime offer leverage?

Yes, Formax Prime offers a maximum leverage of 1:500

Is Formax Prime a fake or scam?

Formax Prime is not considered a fake/scam. It adheres to the strict regulation by FCA in the UK.