Min Deposit USD 100 Regulators ASIC, VFSC Trading Platform MT4, MT5, Iress Crypto Yes Total Pairs 0 Islamic Account Yes Trading Fees Low Account Activation 24 Hours
WHAT IS FXTRADING?
According to research in South Africa, FXTrading is an Australian broker registered under the name Gleneagle Markets Pty Ltd and has been in operation since 2014.
The financial consultant company and foreign exchange provider offers advice and expertise, as well as account support for Forex trading. It had first been operating under the name of RubixFx.
FXTrading allows registration of demo and live accounts for Forex trading on the Metatrader4 platform.
FXTrading offers education on Forex trading for newcomers to foreign exchange trading and provides data on current market conditions to help clients make good trading decisions.
FXTrading/Rubix FX is ASIC regulated and provides traders with leading technology to trade in the world’s most liquid market.
FXTrading’s servers are based in Equinix NY4 and are cross connected to multiple liquidity providers to deliver ultra-low latency, reliable execution and competitive pricing to clients.
SAFE OR SCAM?
One of the best means of determining the safety of a broker like FXTrading, is to establish which regulating authorities are watchdogs over its actions.
FXTrading is a trading name of Gleneagle Securities Pty Ltd, Vanuatu Financial Services Commission Company No 40256).
FXTrading, through the company under which it is registered, is regulated by the Australian Securities & Investments Commission (ASIC).
This regulatory body, along with the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC) is among the most respected and reliable financial authorities in the industry.
Though regulation at FXTrading exists, it may be a bit stretched over. FXTrading is registered under the name Gleneagle Markets Pty Ltd., which is regulated by ASIC.
It is always preferred that brokers themselves have regulations under their name, since that provides tighter control.
ASIC prescribes that clients’ funds are to be segregated from those of the company and that Australian forex brokers have to hold at least $1 million to operate.
FXTrading meets these and other criteria but there is no compensation scheme provided by the regulator.
FXTRADING REVIEW OF PRO AND CONS
| PROS | CONS |
| 1. Regulated by ASIC in Australia | 1. Website not very informative. |
| 2. Very tight spreads | 2. No stocks and crypto CFDs |
| 3. Fast execution | 3. MT4 provided by a third party |
| 4. Reputable and honest | 4. Trading conditions not announced on website |
| 5. VIP Support | |
LEVERAGE
Before starting to trade, it is important for potential clients to understand what leverage is and what the benefits or drawbacks of high leverage are.
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 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, 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.
The maximum leverage of 1:500 as offered by FXTrading is quite high, but the standard is set to 1:100.
You have the option to choose the leverage of your choice, depending on how much of your assets you are willing to risk. The higher the leverage, the higher the profits but also the risk.
As for margin trading, FXTrading offers its clients a leverage of 500:1. The European Securities and Markets Authority (ESMA) recently capped the maximum leverage allowed with forex transactions on the European market at 1:30.
Similar restrictions are in place on markets in the US and Japan, while Australia remains the only regulatory hub that still allows this higher leverage.
ACCOUNTS
A forex account at FXTrading 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.
In the case of FXTrading two trading account types are available, standard and ECN. Neither is suitable for beginners since they have high minimum deposits, spreads and leverage.
The Standard Account requires a minimum deposit of $200, has a minimum trade size of 0.01 lots, maximum leverage of 1:400 and no commission.
The ECN Account requires a minimum deposit of $100, minimum trade size of 0.01 lots at maximum leverage of 1:400. Commission is $5 per lot.
The offered accounts are very basic and not suitable for beginners. Additionally, FXTrading offers a 30-day demo account. Demo accounts are free and require a valid email account and installation of the Metatrader4 software.
To protect the security of its clients, FXTrading provides negative balance control so that clients will not acquire a negative balance during trading.
Min Deposit USD 100 Regulators ASIC, VFSC Trading Platform MT4, MT5, Iress Crypto Yes Total Pairs 0 Islamic Account Yes Trading Fees Low Account Activation 24 Hours
MARKET INSTRUMENTS
At FXTrading, you have an option to trade Forex, CFD indices, and commodities. They provide detailed information regarding all of the financial elements on their website.
The most popular market instruments available from most brokers for trading include:
Forex
Forex trading, currency trading, or FXTrading 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
Along with currency exchange markets, commodity markets offer many investment opportunities for traders.
Soft commodities have been traded for centuries and investors’ preference for these financial derivatives is credited to their major role in portfolio diversification and risk management.
Investing in contract-based tradable goods is a reliable way to mitigate risk during times of inflation or economic uncertainty.
Indices
Equity indices, 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 they can represent 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.
Apart from forex trading, long-term investing in gold and other precious metals is worldwide a popular way of portfolio risk management during times of inflation or economic or political uncertainty.
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.
Such conditions can decrease or increase demand for consumer services related to these energies.
Since oil trading is a globalised, 24-hour market and its prices in constant motion, it is an ideal instrument for day traders who look for fast movements.
FXTrading offers just 28 forex pairs, with the Chinese Yuan the only exotic currency in the list and no CFDs on stocks, no commodities or crypto coins.
FEES
Due to its global presence FXTrading may offer various account types that may differ according to the regulating entity to which it complies, therefore clients may experience different fee structures too, according to their country or place of residence.
Cost depends on different factors, like spread and margins.
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. One pip is 0.01 for currency pairs with JPY as the term currency and 0.0001 for all other pairs.
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 Standard Account has no commission while the ECN Account has commission of $5 per lot.
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DEPOSIT AND WITHDRAWAL
The payment options offered by FXTrading are quite narrow and the currencies vary with the method of payment.
Credit or debit cards can be used to fund accounts in AUD, USD, EUR or SGD and Bank wire can be used for AUD, USD, EUR, CAD, GBP and SGD. Other options for deposits include Neteller and China UnionPay for USD
Minimum initial deposits are $200 for the Standard Account and $100 for the ECN Account.
Though FXTrading does not charge extra fees for deposit and withdrawals with bank wires, they do with cards and international payments come with charges as well.
FXTrading only offers one e-Wallet, with popular currencies offered, but they differ between transaction methods.
TRADING PLATFORMS
A forex trading platform is in essence the software provided by FXTrading to its clients to carry out their trades.
A multi-asset trading platform is one that allows clients to trade forex but other asset classes, including CFDs on stocks, stock indices, precious metals, and cryptocurrencies as well.
The decision about which platform to choose will always depend on what a client would like to trade.
FXTrading offers the MT4 platform that provides all of the needed tools and features, such as advanced charting packages, expert advisors, technical indicators, extensive back testing, and more.
MetaTrader4 offers a demo account, mobile trading and web based trading. FXTrading also provides virtual private server (VPS) which allows you to use expert advisors 24 hours a day.
HOW TO OPEN AN ACCOUNT
The FXTrading review process of opening a new account is fully digital, hassle-free and fast.
Similarly to a bank, if you want to register a forex trading account with FXTrading for the first time, you will be required to go through a basic “know your customer” process.
This will allow FXTrading to make sure that your submitted personal details are correct and the safety of your funds and your account details are ensured.
After the initial registration you will normally be emailed your login details that will correspond to a login on a trading platform matching your type of account.
Min Deposit USD 100 Regulators ASIC, VFSC Trading Platform MT4, MT5, Iress Crypto Yes Total Pairs 0 Islamic Account Yes Trading Fees Low Account Activation 24 Hours
CUSTOMER SUPPORT
Potential traders need to make sure the broker they choose will offer support whenever they may need it, in order to help customers easily find the exact answers to their questions and offer them the best user experience.
The customer service at FXTrading is available via chat, phone, or fax. The live-chat is not easily found on the website though.
The website provides an email address and there is a contact us page. Support is given in English, Chinese and is available Monday to Friday, from 09:00 to 18:00.
EDUCATION
Before starting to trade, potential clients of FXTrading should avail themselves of all possible information and trading skills needed to be successful in the world of Forex and commodity trading.
If FXTrading’s website itself does not provide enough means, a trader should explore other informative websites and means to obtain that knowledge.
The education portion of FXTrading covers the basics a new user needs. The site offers information about what Forex is and how it is traded, a breakdown of market hours and the currency symbols used in Forex trading.
It also explains the differences between trading Forex and trading equity, to help a new user understand exactly how the Forex trading market works in relation to the stock market.
The site offers a guide to Learn to Trade Forex in Seven Steps, a quick explanation of how Forex trading works online.
RESEARCH
To be able to trade with confidence and success, potential traders should do as much possible research about this kind of speculative trading before commencing, but also preceding every daring deal.
This will ensure that they don’t lose money unnecessarily and on the other hand to trade as profitable as possible.
FXTrading’s website does not clearly offer any indication of research options for its clients, except for making use of the channels provided by the trade platforms itself.
AWARDS
Although being an awarded company instills extra confidence in traders, FXTrading does not publish any information about awards accumulated during its years in business on its website.
CONCLUSION
Either FXTrading does not offer vast trading elements, or it is not fully disclosed on the company website.
Trading conditions are average, and regulation does exist, but under the name of the corporation and not the broker. The website offers little educational content and research options, making it not very suitable for novices.
The payment options are quite limited, and only two languages are available: Chinese and English, with the Asian version of the website different from the English and harder to navigate.
Since FXTrading has been fairly recently launched, relevant information and services may in future become more readily available.
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DISCLAIMER
FXTrading warns all potential customers that Forex and CFDs trading always carries a high level of risk and may not be suitable for all investors.
Before deciding to trade the products offered by FXTrading, 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.
FXTrading 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.
Therefore FXTrading cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.
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