NewForex Review

WHO IS NEWFOREX?

According to research in South Africa, NewForex is a Forex and CFD broker domiciled in Belize with trading offices in the UK, United Arab Emirates, China and Russia, the company was founded in 2013 and opened its doors to business in 2014.

SAFE OR SCAM?

One of the best benchmarks to measure the safety of a broker like NewForex, is to establish which regulating authorities are watchdogs over its actions.

NewForex is regulated by the FSC BVI (Financial Services Commission) (British Virgin Islands).

PROS AND CONS

LEVERAGE

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 amount 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, 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.

NewForex offers a maximum leverage ratio of 1:700.

ACCOUNTS

A forex account at NewForex 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.

NewForex offers the following types of accounts:

• The MT4 First Stream Account – This account can be opened with as little as 1 USD; however, it is recommended that you deposit 25 USD, it offers a fixed spread of 2pips and a maximum leverage of 1:100,
• The MT4 New Grade Account – This account ca be opened with as little as 10 USD; however, it is recommended that you deposit 25 USD, it offers a fixed spread of 2pips and a maximum leverage of 1:700

Both of these accounts allow you access to the full MetaTrader4 platform, instant trades, swap-free accounts and a 50% margin call level.

Traders are able to trade with micro or standard lots, expert trading advisors are provided, free intraday market updates and technical analysis and even 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.

NewForex offers the following of the above:

• CFDs
• Over 30 Currency Pairs
• Commodities
• Metals
• Gold

FEES

Cost depends on different factors, like spread and margins, and NewForex 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.

NewForex offers a 2pip fixed spread on both its accounts, there are no extra commission charges per trade.

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 NewForex the following methods and minimum deposits are required:

• Wire Transfer
• Visa
• Mastercard
• Skrill
• E-wallet
• Neteller
• WebMoney
• QIWI
• PayCo

The accepted currencies for deposit and withdrawal are USD, RUB and EUR.

TRADING PLATFORMS

The forex trading platform provided by NewForex to its clients is in essence 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.

NewForex provides the very popular and powerful MetaTrader4 platform, the unfortunate drawback is there is no access to a mobile trading platform and they do not provide their own web-based platform.

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with NewForex for the first time, you will be required to go through a basic “know your customer” process.

This will allow NewForex to ascertain that your submitted details and ensure the safety of your funds and account details.

With NewForex the process entails logging onto their website and starting the application process by filling out your basic personal information. You will then be required to answer a few financial questions and submit documentation such as your ID to get started.

It may take a few days for your account to go live, remember you can always start with the demo account provided.

CUSTOMER SUPPORT

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

In the case of NewForex customers can reach the support team via live chat, email, telephone or skype.

The live chat reply is fast and informative, the consultants are available 24hrs a day, seven days a week.

EDUCATION

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

NewForex offers a variety of informative articles for both beginners and experienced traders, their content is updated regularly and covers many financial topics.

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 NewForex they have access to a news feed, expert trading advisors, free intraday market updates, technical analysis and even a personal account manager.

AWARDS

Although NewForex is acclaimed by customers, there is no indication of awards won on its homepage.

CONCLUSION

NewForex can be described as a company that is certainly new to the world of Forex trading, but offers a competitive edge with their fixed spreads and good customer service. The joining bonus is attractive and they offer a decent variety of trading instruments.

The major drawback is that they only offer MetTrader4 desktop platform and no mobile trading for those who like to trade on the go, also they are not regulated by a top tier financial institution.

DISCLAIMER

NewForex warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.

Before deciding to trade with NewForex, 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.

NewForex 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.

NewForex cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with New Forex?

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

• CFDs
• Over 30 Currency Pairs
• Commodities
• Metals
• Gold

Which platforms are supported by NewForex?

NewForex unfortunately, only provides the MetaTrader4 desktop platform.

Does NewForex offer leverage?

Yes, NewForex offers a maximum leverage of 1:700

What spreads can I expect with NewForex?

NewForex offers fixed spreads at 2pips

If details on the website is not comprehensive, more information can be obtained from the customer support service.

Does NewForex charge commission?

No, more information on commissions can be obtained from the customer support service.

Is NewForex regulated?

Yes, NewForex is regulated by the FSC BVI (Financial Services Commission) (British Virgin Islands)

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

NewForex offers a fair-trading environment for all types of traders/beginners/experienced traders.

What is the overall rating out of 10 for NewForex?

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 NewForex offer a demo account?

Yes

How long is the demo account valid?

The demo account can be used for a maximum of 30 days

Which live trading accounts does NewForex offer?

• The MT4 First Stream Account
• The MT4 New Grade Account

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

USD, RUB, EUR

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for NewForex?

1 USD

How do you make a deposit and withdrawal with NewForex?

NewForex offers the following deposit methods:

• Wire Transfer
• Visa
• Mastercard
• Skrill
• E-wallet
• Neteller
• WebMoney
• QIWI
• PayCo

Withdrawals can be done via:

• Wire Transfer
• Visa
• Mastercard
• Skrill
• E-wallet
• Neteller
• WebMoney
• QIWI
• PayCo

Does NewForex charge withdrawal fees?

No, but fees from financial institution may apply/Yes, the different amounts can be found on the company homepage.

How long does it take to make a withdrawal?

Depending on bank services it may take several days for the money to be available.