WHO IS NOAFX?
According to research in South Africa, NoaFX is a Forex broker that offers both forex and binary options trading, they are the brokerage arm of Capital Market Investments Limited Company and are based in New Zealand.
NoaFX was founded as a Forex broker in 2013, and still resembles close ties to its fund management service by transacting billions of dollars’ worth of volume on a monthly basis.
Min Deposit
USD 10
Regulators
Not Regulated
Trading Platform
MT4, Safari Trader, Blackberry Trader
Crypto
No
Total Pairs
0
Islamic Account
No
Trading Fees
Low
Account Activation
24 Hours
SAFE OR SCAM?
One of the best benchmarks to measure the safety of a broker like NoaFX, is to establish which regulating authorities are watchdogs over its actions.
The broker was previously registered as an FSP (Financial Services Provider) but has allegedly run into some troubles with its primary regulatory organization.
NoaFX claimed to be regulated by the FMA (Financial Markets Authority), however, the FMA has gone on record to warn investors about the potential conflict of interest with NoaFX by labelling it as an unregulated entity that does not have the proper authorizations.
PROS AND CONS
| PROS | CONS |
| 1. Ultra-tight spreads | 1. Unregulated |
| 2. Low deposit requirements | 2. Limited instruments for the Ultra Accounts |
| 3. High leverage | |
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.
NoaFX offers a maximum leverage ratio of 1:500.
ACCOUNTS
A forex account at NoaFX 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.
NoaFX offers the following types of accounts:
- NoaFX Ultra Account – This account is aimed at pure forex traders; it offers ultra-tight spreads starting at 0.2pips and a maximum leverage of 1:500 with a minimum deposit requirement of only 10 USD
- NoaFX Pro Account – This account is aimed at professional multi-instrument traders; it offers various spreads from 1.6pips and a maximum leverage of 1:400 with a minimum deposit requirement of 1000 USD
- NoaFX Joint Account – This account offers all the same great tools as the live accounts but the account is jointly owned and managed by more than two people.
- NoaFX Corporate Account – This account offers multi-platform trading along with MT4 binary options, complete transparency and a superior clearance engine.
- MAMM Account – This account is a ‘Multi Account Money Manager’ which gives investor the ability to make money on the Forex market without any trading.
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.
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.
NoaFX offers the following of the above:
- CFDs
- Commodities
- Metals
- Binary Options
- Indices
FEES
Cost depends on different factors, like spread and margins, and NoaFX 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 the NoaFX ultra account, you have spreads from 0.2pips and a small commission per trade amounting to 0.5pips fixed. On the Pro Account you have spreads from 1.6pips.
DEPOSIT AND WITHDRAWAL
Accounts usually require 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 NoaFX the following methods and minimum deposits are required:
- Visa
- Mastercard
- Wire Transfer
- Neteller
- Skrill
- Payza
- China Union Pay
- Fasapay
There is a minimum 10 USD deposit requirement for you to start trading and the minimum withdrawal amount is 40 USD, AND there are no withdrawal charges.
However, there is a 30 USD charge if you withdrawal using other currencies via Wire Transfer and China Union Pay. Also, 1% of the withdrawal amount will be levied for withdrawals made via Skrill.
TRADING PLATFORMS
The forex trading platform provided by NoaFX 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.
NoaFX provides the following trading platforms:
- MetaTrader4
- MT4 mobile
- Safari Trader
- Blackberry Trader
HOW TO OPEN AN ACCOUNT
Similarly to a bank, to register a forex trading account with NoaFX for the first time, you will be required to go through a basic “know your customer” process.
This which will allow NoaFX to ascertain that your submitted details and ensure the safety of your funds and account details.
With NoaFX the process entails logging onto their website, filling in some basic information, answering a few financial questions and submitting certain documents such as your ID.
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 NoaFX customers can reach the support team via live chat, they are available 24hrs a day over 5 days and email that offers a 30-minute response time.
EDUCATION
Before starting to trade, potential clients of NoaFX should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.
NoaFX offers a full line up of educational material, there are free videos available for both beginners and experienced traders, there is a glossary of terms and definitions, various blogs and at least one market insight that gets posted daily.
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 NoaFX they have access to clear explanations and examples of how to trade CFDs successfully, a margin calculator, stop loss calculator, lot size calculator, profit/loss calculator as well as news feed and charting.
AWARDS
Although NoaFX is acclaimed by customers, there is no indication of awards won on its homepage.
CONCLUSION
NoaFX can be described as a company that offers diverse products and interesting trading platforms, they would greatly benefit from offering bonuses or promotions to attract more traders and proper regulation to give traders more confidence when investing.
DISCLAIMER
NoaFX 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 NoaFX, 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.
NoaFX 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.
NoaFX cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.
Min Deposit
USD 10
Regulators
Not Regulated
Trading Platform
MT4, Safari Trader, Blackberry Trader
Crypto
No
Total Pairs
0
Islamic Account
No
Trading Fees
Low
Account Activation
24 Hours
FAQs
TRADING ENVIRONMENT
How many instruments can I trade with NoaFX?
You can trade several different instruments with NoaFX, which include the following:
- CFDs
- Commodities
- Metals
- Binary Options
- Indices
Which platforms are supported by NoaFX?
NoaFX provides the following popular trading platforms:
- MetaTrader4
- MT4 mobile
- Safari Trader
- Blackberry Trader
Does NoaFX offer leverage?
Yes, NoaFX offers a maximum leverage of 1:500
What spreads can I expect with NoaFX?
NoaFX offers spreads from 0.2pips for Ultra Accounts and 1.6 pips for Pro Accounts
If details on the website is not comprehensive, more information can be obtained from the customer support service.
Does NoaFX charge commission?
Yes, more information on commissions can be obtained from the customer support service.
Is NoaFX regulated?
No
Is NoaFX a recommended forex trading broker for experts and beginners?
NoaFX offers a fair-trading environment for all types of traders/beginners/experienced traders.
What is the overall rating out of 10 for NoaFX?
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 NoaFX 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 NoaFX offer?
- NoaFX Ultra
- NoaFX Pro
- NoaFX Joint Account
- NoaFX Corporate
- MAMM Account
What are the available deposit currencies for a live trading account?
USD, EUR
DEPOSITS AND WITHDRAWALS
What is the minimum deposit for NoaFX?
10 USD
How do you make a deposit and withdrawal with NoaFX?
NoaFX offers the following deposit methods:
- Visa
- Mastercard
- Wire Transfer
- Neteller
- Skrill
- Payza
- China Union Pay
- Fasapay
Withdrawals can be done via:
- Visa
- Mastercard
- Wire Transfer
- Neteller
- Skrill
- Payza
- China Union Pay
- Fasapay
Does NoaFX charge withdrawal fees?
No, but there is a 30 USD charge if you withdrawal using other currencies via Wire Transfer and China Union Pay. Also, 1% of withdrawal amount will be levied for withdrawals made via Skrill.
How long does it take to make a withdrawal?
Depending on bank services it may take several days for the money to be available.
NOAFX AT A GLANCE |
|
| Broker’s Name | NoaFX |
| Headquartered | New Zealand |
| Year Founded | 2013 |
| Regulating Authorities | None |
| Countries not accepted for trade | The United States |
| Islamic Account (Swap Free) | No |
| Demo Account | Yes |
| Institutional Accounts | Yes |
| Managed Accounts | Yes |
| Maximum Leverage | 1:500 |
| Minimum Deposit | 10 USD |
| Deposit Options | Visa, Mastercard, Wire Transfer, Neteller, Skrill, Payza, China Union Pay and Fasapay |
| Withdrawal Options | Visa, Mastercard, Wire Transfer, Neteller, Skrill, Payza, China Union Pay and Fasapay |
| Platform Types | MetaTrader4, MT4 mobile, Safari Trader and Blackberry Trader |
| OS Compatibility | Yes, mobile and pc |
| Tradable Assets | CFDs, Commodities, Metals, Binary Options, Indices |
| Languages supported on Website | English |
| Customer Support Languages | English and others |
| Customer Service Hours | 24hrs a day, five days a week |
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