Is FXOpen Indeed a Reliable Brokerage?
Research online regarding the brokerage, FXOpen have rendered positive results, placing the firm’s reputation in a good light.
Most of the reviews about FXOpen allude to its clean track record and the security it offers when it comes to client data and over-all trading conditions. The clean track being referred to here actually pertains to its regulatory status which, to the surprise of the review team, had been found out to be lacking in sanction from the Financial Services Regulatory Commission, one of the most notable regulatory authorities in the trading industry.
The review team aims to look into these positive claims and see what are actually legitimate and what could be discarded as mere propaganda.
This review is a result of months spent with FXOpen in which the review team had delved into the firm’s following facets:
1. FXOpen’s regulatory status
2. The trading instruments that the firm gives access to
3. The trading accounts available through the brokerage
4. The trading platforms that the firm offers its clients to use
Established back in 2003, FXOpen poised itself as a brokerage that caters to the retail and institutional Foreign Exchange industry.
FXOpen had established operations in select international territories with headquarters setup in Perth, Australia, London, United Kingdom, and Charleston, Saint Kitts and Nevis.
Initially, FXOpen was built as a financial entity that specializes in Technical Analysis that is based in Egypt. It was in the year 2005 that the brokerage started offering trading services. A year passed and Micro Accounts were setup alongside Swap Free accounts for traders of the Islam faith to be allowed to trade.
In the year 2009, FXOpen released its own bridge technology that had given access to the ECN Market to retail traders through the MetaTrader trading platform. It is through these developments that the firm started to gain its reputation and set its place in the industry.
Given its four bases, FXOpen had done good by enlisting the guidance of the regulatory authorities that sanction all trading activities conducted within the territories. The regulatory bodies responsible for FXOpen’s business are as follows:
– In Australia (since July 2012): Australian Securities and Investments Commission (ASIC)
– In London (Since March 2013): Financial Conduct Authority (FCA)
– In New Zealand (date not specified): Business registered in Auckland with the registration number, 5598865
– In Nevis (date not specified): Business registered in Nevis with the registration number, C42235
Through the declaration of these regulatory bodies sanctioning the firm’s operations across its base of operations, it is easy to see that FXOpen’s business is legitimate and provides its clients the comfort that every trader deserves given that it is the clients who are gambling their hard-earned money.
Offers and Services
FXOpen allows for the access of multiple markets. The instruments available through these markets include:
– 50 Foreign Currency Pairs
– 5 Commodities
– 39 Cryptocurrencies
– 535 US Equity CFDs
– 9 Index CFDs
Probably the one that jumps out from this selection is the number of Commodities that are being offered through the firm. These can be seen as too few, hence not enough for asset diversification.
Everything else is decent however, and allows for the building of noteworthy portfolios.
Available Trading Accounts
FXOpen offers four (4) types of trading accounts. These are as follows:
1. The ECN Account
The ECN Account was built for high-frequency traders and professional entities. Through this account, a commission of just $1.0 per lot is charged for Raw Spreads. Over 70 Currency pairs are accessible through this account alongside a number of Forex CFDs. This account is one of the two accounts that offer Scalping and HFT.
Given that the ECN Account is meant for the more seasoned traders, the amount needed to open it is at $100.
2. The Crypto Account
For a brokerage that does not necessarily specialize in cryptocurrency trading, FXOpen offers a Crypto Account that has a commission of 0.25%, a total of 43 Cryptocurrency pairs, and can be opened for only $10.
3. The Micro Account
The Micro Account is especially created for new traders. It has no commissions and only takes $1 to open. The Currency pairs that are available through this account amount to 25.
4. The STP Account
The STP Account is seen as the most conducive account for low frequency traders. It does not have any commissions and requires only $10 to pen. In addition, it allows for Scalping and HFT.
Offered Trading Platforms
FXOpen partnered with MetaQuotes to provide its clients with the industry leading trading platforms, MetaTrader 4 and MetaTrader 5.
While both versions of the platforms remain only to be in their most standard issue, the fact remains that these are the most speedy and efficient trading software in the industry.
For the ease of trading, FXOpen had developed its own One-Click trading and Level2 plugin. The only thing that the review team had found to be counterproductive with the trading platforms is that third party plug-ins are still needed so that FXOpen clients would be able to enjoy the full benefits of the MetaTrader platforms.
Trade with FXOpen Today!
What the brokerage, FXOpen needs to improve upon so that their services would be seen as completely outstanding are the following:
1. Its MetaTrader platform offers
2. The number of Commodities that are accessible through the firm
One more thing that could be held beneficial to both the traders and FXOpen itself is that it could look into restructuring its fees for its trading accounts. While it looks good on the surface, the fee of only $10 for account opening may not necessarily be practical. Sure, the amount may be seen as friendly to traders who are just starting out. But then, traders will realize that this will not be enough to cover initial trading losses.
Should these observations be addressed, then trading through FXOpen could be seen as wholly enticing.
Right now, FXOpen is a brokerage that one can entrust its money with. Here, the trading conditions are decent to good and it allows for the building of notable investment portfolios.