FX88 Review

WHO IS FX88?      

According to research in South Africa, FX88 is an English company founded in 2016 with headquarters in Limassol, Cyprus.

FX88 is viewed as a hybrid broker that offers trading in instruments like forex currencies, CFDs and commodities. It is a fairly young online broker that provides trading through the MetaTrader4 trading platform.

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SAFE OR SCAM

FX88 is authorized and regulated by the Cyprus Securities Exchange Commission (CySEC) with Licence No 322/17. The broker is owned and operated by Galactus Ltd.

Galactus Ltd is a Cyprus investment firm registered in the Cyprus companies’ registry of the Department of Registrar of Companies and Official Receiver.

FX88 keep client funds in separate account in compliance to the rules and regulations of CySEC. It is also a member of the Investor Compensation Fund, which is able to pay compensation up to €20 000 if the company is in default.

FX88 is MiFID compliant and therefore entitled to offer cross-border services within the EU. The broker does not provide investment and ancillary services to clients residing outside of the European Union.

PRO 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 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.

At FX88 the leverage ratio is 1:500.

ACCOUNTS   

FX88 offers two live accounts, an ECN account and a Premium account. It also offers the option to open a demo account. The demo account come with $100 000 virtual funds and is available for a period of 30 days.

With the demo account traders can experience real-time market rates across forex, metals and CFDs and enjoy the thrill of trading without the risk.

FX88 does not offer Islamic Swap-free accounts for clients of the Muslim faith.

Trading conditions on the two live accounts vary slightly. The ECN account offers higher spreads and the minimum deposit for each account type differs. The Premium account also includes the services of a personal account manager.

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.

FX88 offers the following of the above:

• Forex
• Metals
• CFDs

FEES

Cost and fees depend on different factors, like spread and margins, and FX88 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.

On both account types, FX88 offers variable spreads, and the option to trade in micro lots for better risk management.

Spreads on the ECN account starts at 1.3 pips and from 0.1 pips on the Premium account for EUR/USD.

The ECN account is commission free, but the Premium account involves a commission of $7 per standard 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 FX88, the following minimum deposits are required:

• ECN Account – $100
• Premium Account – $20 000

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

• Credit cards
• Debit cards
• Skrill
• Neteller
• Dotpay
• Bank Wire Transfer

It is not clear whether FX88 charge any deposit or withdrawal fees and how long it takes for funds to reflect into the trader’s account. Deposits can be made through the PLN, USD and EUR currencies.

TRADING PLATFORMS

The forex trading platform provided by FX88 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.

FX88 only provides trading through the MetaTrader4 platform and it appears to only be available in English.

The MT4 platform is preferred by most trader because it is user-friendly, intuitive and customisable, with charting tools and news, analysis reports and financial calendars

With a data-rich environment that is customisable, clients of all experience levels can effectively trade on MT4. It boasts over 50 technical indicators and 30 chart analysis tools, alongside detailed trading and asset histories.

The system is also compatible with automated trading algorithms. More experienced clients, in particular, will prefer to trade with MT4. It is available for desktop, web, android, iPhone and iPad.

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with FX88 for the first time, you will be required to go through a basic “know your customer” process, which will allow FX88 to verify your submitted details and ensure the safety of your funds and account details.

The only link found on the broker’s website is one to open a demo account. Whether the demo account can be converted into a live account is not certain.

CUSTOMER SUPPORT

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

Besides this contact information the broker does not offer live chat or any other way of communicating with it. It is not clear how it supports in clients.

EDUCATION       

Before starting to trade, potential clients of FX88 should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

In the case of FX88 there is no educational material on offer.

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.

As with the lack of educational material, FX88 also has no research tools to assist traders with forex trading.

AWARDS

Being an awarded company instils extra confidence by traders.  FX88 give no indication that it has received any awards since its inception.

CONCLUSION  

The information on this broker’s website is very sketchy and it appears to only focus on the opening of a demo account with little or no information on any other features on offer.

The only positive aspect of FX88 is that it is registered as an online forex brokerage holding a CySEC license. It offers trading on the popular MT4 platform in a number of trading instruments through two account types.

DISCLAIMER

If you do not fully understand the risks involved in forex trading and before deciding to trade, you should carefully consider your investment objectives, level of experience and risk tolerance, you should become aware of all the related risks.

Trading leveraged products such as forex and CFDs carries a high level of risk and may not be suitable for all investors. There is a possibility to lose all your initial capital. Before trading you should fully understand the true extent of your exposure to the risk of loss and your level of experience.

Please note that past performance does not constitute a reliable indicator of future results. Future forecasts do not constitute a reliable indicator of future performance.

Potential traders should first acquaint themselves with all these associated risks and seek advice from an independent financial advisor, according to research in South Africa.

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FAQs

TRADING ENVIRONMENT

How many instruments can I trade with FX88?

FX88 offers trading in forex, metals and CDFs

Which platforms are supported by FX88?

MetaTrader4

Does FX88 offer leverage?

Yes, FX88 offers a maximum leverage of 1:500

What spreads can I expect with FX88?

FX88’s spread on the ECN account start from 1.3 pips and on the Premium account at 0.1 pips for EUR/USD.

Does FX88 charge commission?

Yes, on the Premium account it charges a commission on $7 per standard lot

Is FX88 regulated?

Yes, FX88 is regulated by the CySEC

Is FX88 a recommended forex trading broker for experts and beginners?

It is not very clear if this broker offers a decent trading condition for either beginner or advanced traders.

What is the overall rating out of 10 for FX88?

3/10

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 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 FX88 offer a demo account?

Yes

How long is the demo account valid?

The demo account can be used at real time prices and trading conditions for a period of 30 days

Which live trading accounts does FX88 offer?

ECN Account and Premium Account

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

PLN, USD and EUR.

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for FX88?

$100

How do you make a deposit and withdrawal with FX88?

FX88 offers the following deposit methods:

• Credit cards
• Debit cards
• Skrill
• Neteller
• Dotpay
• Bank Wire Transfer

Does FX88 charge withdrawal fees?

It does not indicate whether it charge withdrawal fees, but fees from financial institution usually apply

How long does it take to make a withdrawal?

It is not indicated how long it takes for withdrawals to reflect into the trader’s account. Traders should note however that depending on a specific bank service it may take several days for the money to be available in a client’s account