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Boom Forex Review - Is it scam or safe?

Boom Forex Review - is boomforex.net scam or good forex broker?

RATING: 1 / 0 REVIEWS Boom Forex
Boom Forex is an offshore broker. Your money is not safe.

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Trading Accounts 

 

Account type  Minimum deposit  Maximum leverage Spread
Standard Unknown 1:200 Fixed, from 2.0 pips

 

BoomForex is a forex and CFD broker, with a heavy emphasis on the social trading aspect of their offering. The company’s website was originally developed in French, with traces of still being found in the English version. This leads us to believe the broker is targeting French-speaking clients.

 

The Company. Security of Funds

 

Company Country Regulation
BoomForex Ltd Vanuatu  VFSC

 

Boom Forex is owned by BoomForex Ltd., a Vanuatu-based company. It is registered with the local Vanuatu Financial Services Commission. Off-shore companies are not something we feel comfortable recommending.

 

Vanuatu in particular is probably the least credible of the popular destinations. This is due to the fact, the initial capital requirement, for receiving the license is only $2,000. If you compare that to the UK’s  €730,000 demand, you will get why different types of companies register on both islands. Britain’s financial regulator, the Financial Conduct Authority(FCA), also heavily monitors brokers’ activities and enforces several key rulings.

 

The ones which are most important for forex traders are the segregate accounts rule and the participation in the compensation scheme. Segregate accounts, means, a broker can not freely access your funds, as they must be kept separate from the company’s operating accounts. The Financial Services Compensation Scheme, on the other hand, serves to guarantee your funds, in the off-chance your broker goes insolvent. Trading with an FCA-regulated company covers your account up to £50,000. You will not get these benefits, if you trade with an off-shore broker.

 

Trading Conditions

 

Minimum Initial Deposit

Boom Forex does not provide information on the minimum deposit requirement. That is a bit unusual, especially since some brokers even use their low levels as a marketing tool. As an example, FXTM only requires $5 for a new cent-account.

 

That being said, this is just an oversight on Boom Forex’s part and does not have an impact on their viability as a broker. It’s just an inconvenience for those who are willing to trade with a small account.

 

Average spreads & Commissions

Our testing indicated a 2 pips spread on  EUR/USD, at Boom Forex. This was not mentioned anywhere on the website, the reason being it is not that competitive of a level. Most brokers offer around 1.0-1.5 pips for this pair. Do you want to get an even more precise reading on the spreads provided by some of the leading brokers? If so, feel free to check our real-time comparison page

 

Leverage

The maximum leverage at Boom Forex is 1:200. This is a pretty high level, which should suffice most trader’s needs. That being the case, there are brokers who offer even more leverage, like 1:500.

 

Keep in mind, more leverage does not equate to better trading conditions. The only thing it provides is the ability to take bigger positions with a smaller account, something which can be quite dangerous, if you do not know what you are doing.

 

Trading Platforms

 

Boom Forex provides two trading platforms: SIRIX and MetaTrader4(MT4)

 

MT4 is the world’s most prevalent currency trading solution, as it is appreciated by most traders. It offers a great charting environment and can easily handle multiple instruments. Its most unique feature is the easy to learn coding language, which has led to the development of multiple custom add-ons, like technical indicators and automated trading systems. MetaTrader4 also has very feature-packed mobile version, available for iOS and Android devices.

 

SIRIX is a bit newer to the scene. It does look very appealing, but we find it to be lacking to other platfoms in some regards. Charting, although pleasant to the eye, feels a bit clunky at times. The same can be said for the middle button, which switches between placing a market order or a pending one. The platform’s main distinguishing feature is the social trading panel displayed on the right. 

 

Here is a preview of what Boom Forex’s SIRX platform looks like(click to zoom in):

 

 

Methods of Payment

 

Boom Forex accepts deposits via Credit/Debit Card, e-wallets such as Skrill and Neteller and even Bitcoin. It is not that often you see a broker, accepting cryptocurrencies as a payment method. The company does not specify if you can keep your account balance in Bitcoin or you must convert it. 

 

Conclusion

 

Boom Forex is a Vanuatu-registered forex broker. Althoug the company is regulated by the VFSC, there are still some risks involved in dealing with an off-shore broker. Trading conditions are not amazing, with higher spreads, than the ones you can find with other companies. Boom Forex appears to be focusing on French-speaking clients and puts a huge emphasis on the social trading aspect of its offering. Here are this broker's strong and weak sides:

 

Pros Cons
Choice of Platforms (including MT4) Off-shore regulation
Lots of payment methods High spreads
  Lack of information on minimum deposit
  Few sections of the website only in French

 

Latest news about Boom Forex
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Traders` reviews for Boom Forex

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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