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BomanFX Review - is it scam or safe?

BomanFX Review - is bomfx.com scam or good forex broker?

RATING: 1.2 / 0 REVIEWS BomanFX
BomanFX is an offshore broker. Your money is not safe.

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Trading Accounts and Conditions

 

Trading account Min. deposit Max. leverage Spread
Micro  $100 1:200  1.9 - 2.1 pips
Standard  $1 000 1:200  1:200 1.5 - 1.7 pips
VIP  $5 000 1:200  1:200 0.9 - 1.1 pips

 

BomanFX presents itself as a global forex broker who provides online financial services in more than 70 countries. It offers three account types, as well as access to the MetaTarder4 platform.

 

Although its trading conditions seem good, we don’t recommend this brokerage, and the reasons for this will be highlighted below in this review.

 

 

BomanFX Advantages

 

Low demo spreads, up to 1:200 in leverage

When we tried out BomanFX’ platform, we saw the benchmark EUR/USD spread floating around 0.7 pips, and no commission applied, which is a really good pricing.

 

 

BomanFX’s MT4 in demo mode. Click to zoom in.

 

Besides, BomanFX offers solid leverage ratios, up to 1:200, which will be sufficient for most traders. Although we generally consider the availability of high leverage levels as an advantage, we feel the need to warn investors that leverage is a double-edged sword. It can dramatically amplify your profits; however it can also just as easily amplify your losses. When you use excessive leverage, losing trades can quickly offset many winning trades.

 

Trading on the MetaTrader4

As it is already clear, the platform of choice of BomanFX is the ever popular MetaTrader4 (MT4). This platform offers great charting capabilities, an astonishing environment for the development of custom tools (MQL) and automated trading systems (Expert Advisors) which the so called "marketplace" has to offer. Besides, theplatform is available in all forms and shapes – desktop download, web-based version and mobile apps for iOS and Android.

 



>> Extensive list of brokers offering MT4 <<

 

 

 

BomanFX Disadvantages

 

No financial regulation

BomanFX says to be owned and operated by BOMANFX Inc., a company incorporated in ST. Vincent and the Grenadines (SVG). This is an offshore zone, where forex brokers are not subjected to any licensing regime, nor supervision, as the local Financial Services Authority stated.

 

 

Click on the image to view full size.

 

In spite of this, BomanFX claims registered with the NFA of the United States. The National Futures Association (NFA) is a self-regulatory organization reporting to the U.S. Commodity Futures Trading Commission (CFTC), and due to the high capital requirement of $20 million, a few forex brokers are licensed with it. Nonetheless, we checked, and didn’t find BomanFX in its online system of regulated entities called Basic.

 

 

So, we can safely conclude that BomanFX is an unregulated offshore broker presenting misleading information on its website, which is of course a major red flag.

 

Demos spreads don’t match with announced ones

A spread of 2 pips or more on EUR/USD, as the one announced on BomanFX' Micro accounts is by no means an attractive one, considering the current state of the forex markets. Besides, the spreads on all three accounts don’t match the ones we saw on the broker's demo MT4, which is another worrisome sign.Demo accounts are supposes to be identical to live ones, the only difference being that demo account holders are not investing real money.

 

High inactivity fee

In the broker’s Client Agreement we read that BomanFX charges its clients in whose accounts have been no transactions for a period of three (3) consecutive months with maintenance fee of  $250 or the full amount of the free balance in the account.

 

 

No CFDs on stocks & cryptocurrencies

Another thing we noticed while testing the broker’s MT4 is that some popular financial instruments are not present in BomanFX’ product portfolio. It seems that the broker offers trading in forex pairs, CFDs on precious metals, indices, and several commodities. Other brokers offer more CFDs and most have included stocks and cryptocurrencies like Bitcoin in their offer.

 

 

Conclusion

 

BomanFX is just another shady offshore broker, whose offer doesn’t differ much from those of thousands of other CFD providers. As is usually the case with those companies, our main concern is the lack of legit forex broker license – this means that clients of BomanFX have no assurance for the security of their funds, nor for the proper execution of trades in their accounts.

 

Considering all the risks involved in trading with offshore forex brokers and the numerous scams operating in this lucrative business sphere, you’d better find yourself a reliable and well-regulated financial services provider instead.

 

For example, exemplary agencies such as the UK’s Financial Conduct Authority (FCA) or the Cyprus Securities and Exchange Commission (CySEC) oversee the activities of brokers under their gaze from head to toe with a severe case of diligence. Not to mention that those under their jurisdiction are members of compensation funds that cover victimized clients’ losses of up to £85 000 (FCA) and €20 000 (CySEC).

 

 

>> A list of FCA-regulated brokers <<

 

 

And finally, here are the highlights of the present review of BomanFX:

 

Pros

Low demo spreads, up to 1:200 in leverage

Trading on MetaTrader4

 

Cons

No financial regulation

Demos spreads don’t match with announced ones

High inactivity fee

No CFDs on stocks & cryptocurrencies

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Traders` reviews for BomanFX

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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