IamFX Review

WHO IS IAMFX?

According to research in South Africa, IamFX is a Foreign Exchange liquidity provider that offers a wide range of trading technologies and services.

The broker’s position as a liquidity provider allows the client to take advantage of transparent real-time pricing.

This has enabled IamFX to create a unique Forex Trading environment that offers individual traders the same STP (Straight Through Processing) liquidity, execution and trading functionality demanded by interbank traders.

The broker’s position as a “STP” provider allows the client to take advantage of the many benefits to trading with a Non-dealing desk model.

An “STP” firm such as IamFX offers complete transparency, superior execution, and anonymity.

This is made possible as a result of Direct and Competitive market “Bids and Offers” allowing client orders to be executed automatically and immediately through a Market network.

This allows for a trading environment with no re-quotes and no bias against any trader or trading system including automated systems which includes scalping.

SAFE OR SCAM?

The forex market is extremely volatile, linked as it is to fluctuations in global currencies which in turn are determined by various market movements and global events.

While this very volatility contributes to more enhanced and lucrative trades, particularly for regular traders, it also means that a certain level of security is required within the forex trading environment in order to ensure full profitability.

Most forex brokers aim to provide a certain level of security through some form of authorization under relevant regulatory bodies. The most recognized of these bodies include such organisations as the FCA, CySEC and ASIC.

However, such regulation can also present certain restrictions, such as on the level of leverage which regulated brokers may offer.

While these restrictive measures are put in place in order to protect traders, some investors may seek out brokers with less regulatory restriction to benefit from concurrently enhanced trades – a risk which is ultimately taken at the trader’s own discretion.

IamFX is headquartered in Panama City, Republic of Panama, and as such is regulated by the Financial Services Commission, FSC in Panama.

Though not as reputable as the FCA or ASIC, the FSC undertakes strong regulatory measures under the auspices of the Panamanian government, which is working towards establishing a sound financial environment within its jurisdiction.

PROS AND CONS

LEVERAGE

Most brokers on the forex market today offer some form of leverage, which is essentially a small loan granted on behalf of the broker to their clients in order for them to make larger trades and increase their potential profits.

The entire forex and CFD industry to some extent relies upon the use of margin and leverage.

Leverage is the opportunity provided by a forex broker to open a speculative position worth a much larger amount of money than you have at their disposal. Leverage is expressed in ratios like: 200:1, 100:1, 50:1, etc.

For example, if your online trading company blocks €1,000 from your trading account to open a 100,000 EUR/USD position, it means you are using a 100:1 leverage. Put in different words, you control €100,000 with only €1,000.

As such, leverage is a great way for smaller traders to potentially make larger returns than they would have been able to with the investments already at their disposal.

However, making larger speculations with borrowed money also carries a higher risk of significant losses, particularly for those intending on investing large sums of money.

It is for this reason that many regulators made the decision to cap the maximum leverage which brokers operating under their authority could offer, so that most regulated brokers can now offer a maximum leverage of 1:30.

With IamFX, the leverage offered depends on which account type you will use, but the maximum leverage is 1:400 with a Micro account.

With all of the plans you will receive free VPS hosting service, 100% stop out level and over 48 currency pairs for trading.

ACCOUNTS

The forex industry is arguably the largest financial market in the world today, and as such abounds with a wealth of different traders of all experience levels and trading styles.

In order to facilitate this varied base of client traders, most forex brokers provide a selection of different accounts which each cater to the specific needs of traders, and are  often designed according to experience level and investment styles.

Many of these accounts come with their own spreads and commissions also tailored to the requirements and the investment potential of specific traders.

IamFX offers three account types, namely the Micro, Standard and Institutional accounts.

Micro Account

• Minimum Deposit: $ 100
• Maximum Deposit: $5000
• Maximum leverage: 400: 1
• Currency pairs: 48

Standard Account:

• Minimum Deposit: $ 2 500
• Maximum Deposit: None
• Maximum leverage: 200: 1
• Currency pairs: 48 CFDs plus gold and silver

Institutional Account

• Minimum Deposit: $ 50 000
• Maximum Deposit: None
• Maximum leverage: 100: 1
• Currency pairs: 48 CFDs plus gold and silver

MARKET INSTRUMENTS

IamFX seems to position itself more as a pure forex broker at this stage, and offers a fairly decent selection of 30 currency pairs, which could make this broker too limited for some traders.

IamFX offers access to Currencies, Metals, CFDs and over 48 currency pairs.

FEES

Different forex brokers will offer different fee structures based on how they make a profit and on the type of traders which they target, or cater for.

Most forex brokers make a profit on the commission, or the spread, or both, and some offer more competitive structures, while others charge higher commissions in return for more lucrative trading options.

Traders will ultimately have to choose a broker whose fee structure best suits their trading style, the investment they have at their disposal, and their trading strategy.

IamFX offers fixed spreads which start as low as 1.2 pips on the Micro account, and go as low as 0.6 pips on the Institutional Account. IamFX seems to offer commission free trading, and only takes a profit from the spread.

DEPOSIT AND WITHDRAWAL

Traders often examine a broker’s deposit and withdrawal options in order to determine how the associated rates charged by the broker might affect their profitability over the long term.

Traders also often seek out brokers who provide a wide range of deposit and withdrawal options in order to make for a more streamlined and cost effective process.

As already noted, the IamFX minimum deposit is $100, and you can deposit with Skrill, Neteller, Visa, and wire transfer. The broker does not seem to charge deposit or withdrawal fees.

TRADING PLATFORMS

IamFX positions itself as a MetaTrader broker, offering the extremely popular MetaTrader 4 platform for all of its accounts.

The MT4 platform has become immensely popular with traders around the world for the following features and benefits:

Trade Multiple Assets. This trading platform is present on the market and has been helping trader make deals for over 20 years now

• Perfect for Developers
• A secured platform
• A multi-language platform
• A Customizable Platform
• A platform with advanced chart capabilities
• Automated Trading

HOW TO OPEN AN ACCOUNT

Opening an account with IamFX is an online process which consists of the following standard steps:

1. Complete an application form.
2. Upon completing the application, you will be registered with a username and password that will give you access to your account.
3. Log in to the brokerage’s client portal.
4. Arrange for the transfer of funds from your bank to deposit funds into your account. This may be through check, credit or debit card, or electronic transfer from your bank account. Note: Using a credit card for this purpose can be subject to interest charges.
5. Once your account has been funded, you are now ready to start trading. At this point, you will want to review any recommendations or special details that your broker provides regarding use of their trading platform before actually making your first trade. Some brokerages may offer trading simulator programs to allow traders to practice before actually putting money into trading.

CUSTOMER SUPPORT

Unfortunately, IamFX offers limited customer support in the form of an online query submission only. There is no direct telephone, email, or live chat option available.

EDUCATION

IamFX offers decent educational resources, allowing for users to learn currency trading online.

The education section consists of trading hand books, currency trading tools and video tutorials for learning currency trading.

RESEARCH

Unfortunately, IamFX does not offer any independent research tools, such as analysis, charts, or a calculator, but the MT4 platform comes inbuilt with multiple charting tools and analysis functions for every trader style and strategy.

AWARDS

Often, the level and number of awards which a broker has received is a strong indication of their standing within the industry, though some brokers do not participate in awards schemes.

IamFX does not list any awards on its website to date, though it does enjoy multiple positive customer reviews.

CONCLUSION

IamFX offers an excellent trading environment, giving individual traders the same STP (Straight Through Processing) liquidity, execution and trading functionality demanded by interbank traders.

Though operating as an offshore broker, the Panama government has enacted some strict regulatory practices, offering a relatively safe trading environment coupled with higher leverage than that available in the more restrictive EEA.

DISCLAIMER

Risk Warning: The Company also offers CFD products which are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with GCI Trading.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Cryptocurrencies are complex, high-risk, and volatile and may result in the loss of all invested capital over a short period of time; they are not appropriate for all investors.

Investors must understand and acknowledge these specific characteristics and risks and be warned that there is no EU regulatory framework governing trading in cryptocurrency products.

CFDs and Forex are not only complex instruments, but they also have a high level of risk which may result in loss of funds that exceed the trader’s initial deposit.

Traders need to evaluate their objective, level of risk exposure and willingness to be exposed to risks, according to research done in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with IamFX?

You can trade up to 48 currency pairs on forex with IamFX, as well as metals and CFDs

Which platforms are supported by IamFX?

IamFX provides the MetaTrader 4 platform

Does IamFX offer leverage?

Yes, IamFX offers a maximum leverage of 1: 400

What spreads can I expect with IamFX?

IamFX’s spreads vary depending on the instrument being traded, but start as low as 0.6 pips

Does IamFX charge commission?

No, IamFX offers commission-free trading.

Is IamFX regulated?

Yes, IamFX is regulated by the Financial Services Commission (FSC) in Panama.

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

Yes, IamFX offers a decent trading environment for both beginner and advanced traders.

What is the overall rating out of 10 for IamFX?

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 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 IamFX offer a demo account?

Yes

How long is the demo account valid?

The demo account is valid for 60 days

Which live trading accounts does IamFX offer?

• Micro Account
• Standard Account
• Institutional Account

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

USD, GBP, EUR

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for IamFX?

$ 100

How do you make a deposit and withdrawal with IamFX?

• Bank wire
• Credit/Debit Card
• E-Wallets

Does IAMFX charge withdrawal fees?

No

How long does it take to make a withdrawal?

Withdrawals can take up to 5 business days depending on your banking institution, although E-Wallets are processed within 24 hours.