FXBrew Review

WHO IS FXBREW?      

According to research in South Africa, FXBrew is an Irish company founded in 2016 with headquarters in Dublin, Ireland and Victoria, Seychelles.

FXBrew is an online Forex CFD broker that offers trading through the MetaTrader4 and MetaTrader5 platforms.

The broker believes in simplicity of design, transparency of operations, and versatility of trading options whilst providing traders access to trade forex, indices, commodities and crypto currencies.

The broker offers MAM/PAMM services and a choice of three live trading accounts.

You might also like: FX88 Review

SAFE OR SCAM

FXBrew is an offshore company registered in the Seychelles. It does however, state on its website that it is registered with the Financial Services Authority (FSA) of St Vincent and the Grenadines, but this could not be confirmed. It is always risky to use an offshore company for forex trading.

The broker does keep client funds in separated accounts in top global banks which does prove its dedication to provide security for funds.

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 FXBrew the leverage ratio is 1:500.

ACCOUNTS   

FXBrew offers the option to choose between three live account types, namely a Micro, ECN, or VIP account.

The broker also offer the option to open a demo account with a balance of $100 000 virtual money that sport real time prices and trading conditions. It is available for a period of 30 days.

The Micro account is ideal for the novice traders who would like to start trading with a small deposit and smaller volumes of trading options.

The ECN account comes with low spreads with a small commission rate. It allows trading on institutional-grade liquidity from the world’s leading banks, market makers, and dark pool venues.

The VIP account also offers low spread and place traders amongst the top-tier of global investors and traders. It provides a personal account manager and gives access to a range of premium features, trading options, and invitations to exclusive events and social gatherings.

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.

FXBrew offers the following of the above:

• Forex
• Commodities
• Indices
• Cryptocurrencies

FEES

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

Spreads on the Micro account starts from 0.02 pips and on the ECN and VIP accounts it starts from 0 pips. Commission on all three accounts are charged at $2/100K.

The broker does not charge any fees for the deposit or withdrawal of funds.

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 FXBrew, the following minimum deposits are required:

• ECN Account – $100
• VIP Account – $5 000
• Micro Account – $5

The only payment methods on offer is through Bank Wire Transfer or Bitcoin. Funds are transferred within 1 to 2 business days and can only be done through the same withdrawal method as the one used to make the deposit with.

Deposits into a trading account can be made in the USD, EUR, GBP, BTC currencies.

TRADING PLATFORMS

The forex trading platform provided by FXBrew 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.

FXBrew provides the MetaTrader4 and MetaTrader5 platforms for trading on the forex markets and it is only available in English.

MT4 is the globally known and preferred platform due to its simple interface, security, customization ability, reliability and feature rich environment, helping the trader to improve trading performance. It can be used by novice and professional traders.

MT5 is the revised version of MT4 and allows the convenience to access multiple features all in one platform. Access to multiple time frames, built-in technical indicators, and customized EA’s are all within your reach.

Traders can customize the EA’s to suit your trading style and manage your exposure with ease and trade automatically using trading robots and trading signals. Both these platforms are available for windows, web, desktop Android, and iOS devices.

Additionally, FXBrew also offers MAM/PAMM servers, that allow traders to set up their fund and expand fund assets by handling the back office and other processes seamlessly with the broker’s advance platform.

Through MAM/PAMM accounts, money managers can easily execute trades from a master account to a sub account from an integrated portal with full flexibility in manual lot size and percentile methods.

FXBrew also allows traders to trade 24/5 through a Virtual Private Server (VPS) as this allows traders to trade uninterrupted. This service is free for clients who made a minimum deposit of $5 000 or equivalent amount in his trading account.

HOW TO OPEN AN ACCOUNT

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

The process is easy and straight forward and starts on links on the homepage of FXBrew. Complete the registration form, create a password and submit.

You will receive a confirmation email after which you can open your account of choice, deposit funds and start trading.

CUSTOMER SUPPORT

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

Customers can reach the support team in real time by email of through completing a return call form on the website. It does not offer the option of live chat.

The broker states that it provides customer support in multiple languages but does not indicate which.

EDUCATION       

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

FXBrew does not offer any educational material to assist the beginner trader besides a demo account.

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 FXBrew customers have access to some research tools in the form of an economic calendar and a forex calculator.

The Economic Calendar covers economic events and indicators from all over the world, and automatically updates when new data is released.

The Forex Calculator can be used to make important calculations to facilitate and enhance your trading experience. It can carry out calculations in a wide range of currency pairs and can also be used to calculate margins and profits.

AWARDS

Being an awarded company instils extra confidence by traders.  However, FXBrew has not received any awards since its inception.

CONCLUSION  

FXBrew is an offshore broker regulated through FCA and keeps client funds in separate accounts.

It offers trading through three live account types through the Mt4 and MT5 platforms on a maximum leverage of 1: 500.

It offers fairly attractive trading conditions with raw spreads and commissions on the ECN and VIP account holders is just $2 per standard lot.

The lack of educational and research tools is a pity.

DISCLAIMER

While FXBrew promises to make all efforts to fill a trade at the requested price, trading on-line does not necessarily reduce risks associated with currency trading, therefore quotes and trades are usually subject to the terms and conditions of a Client Agreement, which is accessible through the broker’s website.

FXBrew website are not intended to provide legal, tax or investment advice. You are solely responsible for determining whether any investment, investment strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance.

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.

You might also like: Fusion Markets Review

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with FXBrew?

FXBrew offer trading in forex, commodities, indices, and crypto currencies

Which platforms are supported by FXBrew?

MetaTrader4 and MetaTradaer5

Does FXBrew offer leverage?

Yes, FXBrew offers a maximum leverage of 1:500

What spreads can I expect with FXBrew?

FXBrew offer raw spread starting at 0 pips on the ECN and VIP accounts

Does FXBrew charge commission?

Yes, it charges commission of $2 per standard lot

Is FXBrew regulated?

Yes, FXBrew is regulated by the FCA

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

Yes, FXBrew offers a trading environment for beginner and advanced traders

What is the overall rating out of 10 for FXBrew?

5/10

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 FXBrew offer a demo account?

Yes

How long is the demo account valid?

The demo account can be used for a period of 30 days.

Which live trading accounts does FXBrew offer?

A Micro, ECN, or VIP Account

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

USD, EUR, GBP, and BTC.

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for FXBrew?

$5

How do you make a deposit and withdrawal with FXBrew?

FXBrew offers the following deposit methods:

Bank wire transfer and Bitcoin

Does FXBrew charge withdrawal fees?

No, but fees from financial institution may apply

How long does it take to make a withdrawal?

Funds are transferred within one to two days into the trader 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 account