StartFX Review

WHO IS STARTFX?      

According to research in South Africa, StartFX a multi-asset Georgian-based Forex Broker which is regulated by the National Bank of Georgia.

Although specific regulations do not exist for either Forex or Binary option brokers within Georgia, the National Bank of Georgia holds some supervisory functions which include the covering of non-banking financial sectors within Georgia.

StartFX offers the trade in a variety of financial instruments by using MetaTrader 4 as a trading platform. Trading conditions are spread over a choice in three different account types which cater for a variety of traders despite their varying trading needs.

SAFE OR SCAM?

When evaluating different brokers, it is imperative for traders to research and thoroughly compare brokers firstly based on regulation before considering several other factors.

Offshore brokers are often not regulated, which may compromise the security of client funds, and it may lead to substantial losses that traders have no way of being compensated for as such brokers are not members of compensation or insurance schemes.

Although StartFX is regulated through the National Bank of Georgia, great care needs to be taken when using such a broker to facilitate trades, and further research and inquiry is needed to ensure the broker can adequately provide security of funds.

PRO AND CONS

LEVERAGE

Leverage is an extremely useful tool which can be used to increase the chance of gains and profit by allowing traders to open positions much larger than their initial deposits.

Simultaneously, leverage also exposes traders to substantial losses that may exceed their initial deposit if risk management tools such as stop loss and take profit, trailing stop, and others are not applied, in addition negative balance protection also offers extra safety.

StartFX provides substantially higher maximum leverage when compared to other brokers who are regulated by regulatory entities such as FCA, ASIC, and others, although it competes on the same level as other offshore brokers with leverage of 1:500.

When opening an entry level account with StartFX, and paying the minimum deposit of $250, traders who make use of the maximum leverage offered can open positions of up to $125,000.

ACCOUNTS   

StartFX offers a choice between three different accounts, each tailored to meet the needs of different traders based on their skill, experience, knowledge, financial objectives, and guidelines. These accounts include:

• Micro Account – with a minimum deposit of $250, minimum trade size of 0.01 lots and spreads that start from 1.8 pips.
• VIP Account – with a minimum deposit of $3,000, minimum trade size of 0.01 lots, and spreads from 1.8 pips.
• Premium Account – with a minimum deposit of $25,000, minimum trade size of 0.01 lots, and spreads form 1.8 pips.

One disadvantage that can be noted with these trading conditions, when compared to that of other brokers, is that StartFX offers the same spread across all account types where premium accounts offered by other brokers often offer spreads from 0.0 pips.

Other premium, or more advanced accounts offered by brokers, also offer a lot more benefits and features when taking into consideration the substantially high minimum deposit required.

More information on the accounts StartFX offers cannot be accessed, so it cannot be confirmed what further differences exist between the accounts.

Based on the available information, traders will much rather prefer paying a lower minimum especially when higher deposits do not guarantee more comprehensive trading conditions or benefits.

Previous reviews mention that there is provision made for a demo account, although this cannot be ascertained due to lack of access to the website.

It is also unclear whether StartFX offers the option of an Islamic account for Muslim traders who follow the Sharia Law which prohibits that its followers pay interest and therefore numerous brokers offer Islamic accounts to relieve Muslim traders from overnight fees.

MARKET INSTRUMENTS

StartFX offers the following tradable financial instruments:

• Forex
• CFDs on metals
• CFDs on energies
• CFDs on indices
• CFDs on commodities
• CFDs on shares, and
• Cryptocurrencies

FEES

The only information available on StartFX’s fees relate to the spreads, which are the same across all accounts, starting from 1.8 pips, which is substantially higher than what other brokers are offering.

Commissions are not charged on trades, as far as can be deduced from previous reviews, but the minimum deposits vary from between $250, $3,000, and $25,000 without additional information on the features that traders receive when paying higher minimum deposits.

Extraordinarily little other information is available on this broker regarding additional trading and non-trading fees, and it is imperative for traders to consider additional fees, including:

• Overnight or rollover fees
• Margin requirements
• Inactivity fees along with account maintenance and management
• Deposit and Withdrawal fees, and
• Additional fees that have not been listed here

DEPOSIT AND WITHDRAWAL

StartFX supports a variety of popular payment methods which includes:

• Bank Wire Transfer
• Credit/Debit Cards
• Neteller
• Qiwi
• Skrill, and
• WebMoney

In addition, according to previous reviews, StartFX only supports two deposit currencies namely EUR and USD. When compared to other brokers, who offer several others, StartFX is placed at a disadvantage in flexibility in this regard as it may attract conversion fees.

TRADING PLATFORMS

Trading platforms serve as the trading environment, or vehicle, through which transactions are executed and brokers may offer a variety of trading platforms, or they may rely on their own proprietary in-house trading platform which is tailored to their trading conditions.

StartFX offers the use of the most popular, reliable, comprehensive yet user-friendly trading platform, MetaTrader 4, which is not only highly customizable but offers an array of analytical tools and technical indicators, amidst a vast variety of other functions.

Metatrader 4 can be used across a multitude of devices including web browsers, desktop PCs that run Linux, MacOS, and Windows, mobile devices including smartphones and tablets that run on either Android or iOS.

HOW TO OPEN AN ACCOUNT

The StartFX website does not contain any substantial information with regards to the exact process of opening an account along with the requirements for account verification such as proof of identity and proof of residence, thus, the general process can be assumed.

Traders are however cautioned in opening an account with an offshore broker, despite the existing regulations, and traders are therefore advised to conduct thorough research on brokers such as StartFX before investing any capital that may be compromised.

The StartFX website is inaccessible, so the exact steps in opening an account with the broker cannot be provided, but it is generally accepted that the application can be completed online and will feature basic information, financial, trading and employment information.

As with most brokers, there is the possibility that StartFX will have a ‘Know Your Client’, or KYC, procedure which involves the mandatory submission of documents to prove the legitimacy of the trader’s identity and their proof of residential address.

Traders are warned in submitting such documents to offshore brokers as such sensitive information may be compromised, or traders may be subjected to identity theft in cases where they are dealing with scam brokers.

Thorough research is needed when dealing with brokers and traders are rather advised to make use of well-regulated, reputable, and reliable brokers to facilitate trading activities to avoid the loss of invested capital.

CUSTOMER SUPPORT

There is no information available on how StartFX customer services can be contacted, which pulls into question the legitimacy of this broker as this is a factor that requires careful consideration when evaluating and comparing brokers.

EDUCATION       

According to previous reviews, StartFX offers training material which cater for beginner traders in helping them understand global financial markets, who the participants are, how money can be made from trading, and several other common topics.

RESEARCH         

There is no indication of research tools offered by StartFX, although MetaTrader 4 makes ample provision for several tools which can be used in developing trading strategies and improving overall trading skill, knowledge, and experience.

AWARDS

There are no rewards mentioned for StartFX.

CONCLUSION  

Although regulated through the National Bank of Georgia, there is great concern pertaining to the inaccessibility of the broker website. It is unclear whether there is reconstruction or maintenance being done on the website.
There is extraordinarily little information available on this broker and the information available does not suggest favourable trading conditions especially when comparing StartFX to similar brokers who offer much more attractive trading conditions with lower fees.

DISCLAIMER

Trading of leveraged and margined financial instruments such as Forex holds significant risk that may not be suitable for all traders.

Traders need to adequately evaluate their risk exposure, willingness to be exposed to risk and whether they can financially compensate for losses resulting from such risks.

Traders are, in addition, warned against using brokers who do not provide sufficient information, or access to such, to facilitate trades as client fund security and safekeeping of sensitive information cannot be guaranteed.

FAQs

Trading Environment

How many instruments can I trade with StartFX?

• Forex
• CFDs on metals
• CFDs on energies
• CFDs on indices
• CFDs on commodities
• CFDs on shares, and
• Cryptocurrencies

Which platforms are supported by StartFX?

Metatrader 4.

Does StartFX offer leverage?

Yes. StartFX offers leverage of 1:500.

What spreads can I expect with StartFX?

Spreads from 1.8 pips.

Does StartFX charge commission?

No. StartFX offers commission free trading.

Is StartFX regulated?

Yes. StartFX is regulated through the National Bank of Georgia.

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

No, StartFX is not recommended for use by any traders due to a lack of information in addition to the inaccessibility of the website to confirm available information derived from previous reviews.

What is the overall rating out of 10 for StartFX?

2/10

Accounts

What is the difference between a demo and live trading account?

A Demo Account is a risk-free account which is funded by virtual money and allows traders to either practice trading, explore the brokers offering, or test trading strategies in a mimicked live trading environment.

Does StartFX offer a demo account?

Yes.

For how long is the demo account valid?

This information is not available but when generally comparing demo accounts between brokers, the frequent term is 30-days.

Which live trading accounts does StartFX offer?

• Micro Account – with a minimum deposit of $250, minimum trade size of 0.01 lots and spreads that start from 1.8 pips.
• VIP Account – with a minimum deposit of $3,000, minimum trade size of 0.01 lots, and spreads from 1.8 pips.
• Premium Account – with a minimum deposit of $25,000, minimum trade size of 0.01 lots, and spreads form 1.8 pips.

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

USD and EUR.

Deposits and Withdrawals

What is the minimum deposit for StartFX?

$250.

How do I make a deposit and withdrawal with StartFX?

• Bank Wire Transfer
• Credit/Debit Cards
• Neteller
• Qiwi
• Skrill, and
• WebMoney

Does StartFX charge withdrawal fees?

This cannot be ascertained as there is no information available pertaining specifically to withdrawal fees.

How long does it take to make a withdrawal?

This will depend on the method through which withdrawals are made along with the process involved and generally it can take between one and several business days.