de | cn | ru

DiscountFX Review - is it scam or safe?

DiscountFX Review - is discountfx.com scam or good forx broker?

RATING: 2.9 / 0 REVIEWS DiscountFX
FIND BETTER FOREX BROKER

RECOMMENDED FOREX BROKERS


Trading Accounts and Conditions

 

Trading account Min. deposit  Max. leverage Spread
Standard $500  1:200  from 0 pips + 2 /lot

 

Clients of Cypriot broker DiscountFX are offered a single account type and access to the MeatTrader4 platform. Read the full review to see both the strong and weak sides of this brokerage prior to investing.

 

 

DiscountFX Advantages

 

Solid regulation

What we like most about DiscountFX is that unlike most entities operating on the forex market, its is a regulated and legitimate brokerage. More specifically. DiscountFX is a brand of GBE Brokers Ltd, a company regulated by the Cyprus Securities and Exchange Commission (CySEC). The company is headquartered in Limassol, Cyprus, and has established a branch in Hamburg, Germany. It also operates GBE Brokers.

 

CySEC regulation provides a decent level of security and reliability, as it involves a number of requirements to Cypriot Investment Firms (CIFs). They must meet solid capital adequacy requirements, to keep client funds separated from company assets, to report their transactions, and to provide negative balance protection, among other things. Besides, Cypriot brokers need to comply with all requirements introduced on a EU level, such as leverage restriction of 1:30, provision of negative balance protection to all account holders, disclosing the percentage of clients that lose money, and more.

 

 

>> Check out the best brokers regulated in Cyprus <

 

 

Low trading cost

DiscountFX advertises a very low spread on its website, starting from 0 pips on majors. As it turns out, the cost of trading with this broker has to be around 0.4 pips on EUR/USD per standard lot, if we add the applicable commission of $2 round turn to the average spread of 0.2 pips. Such cost of trading is very low, as most brokers offers spreads within the range of 1.0 – 1.5 pips for this pair.

 

Access to MT4. good selection of assets

Like most than 80% of all brokerages, DiscountFX supports the MT4, which has proved its reliability over the years, and is highly praised in the trading world. There are various reasons for this, but mostly it’s the ease of use and the fact that the MT4 offers a full spectrum of trading tools and services: a number of built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options. Besides, traders can download ready-made or create their own EAs and let the program do all the work.

 

 

>> Choose some of the best MT4 brokers <<

 

 

Furthermore, DiscountFX provides traders with a wide variety of CFDs – on currencies, commodities, indices, stocks, and the most popular digital assets.

 

Higher leverage provided to pros

Retail clients of DiscountFX are able to use higher leverage levels than 1:200. Of course, they have to pass an appropriateness test in order to be approved, as required by law.

 

We remind you that that in early August 2018 the European Securities and Markets Authority (ESMA) caped the maximum leverage allowed with forex trades on the European market at 1:30, while similar restrictions are already in place in the US, Japan, Turkey, and other jurisdictions. 

 

 

DiscountFX Disadvantages

 

Spreads on paper and platform don’t match

The trading costs announced on DiscountFX website actually seem too good to be true, so we weren’t very surprised that when we tried out its MT4 in demo mode, the situation appeared quite different. The EUR/USD spread floated around 1 pips, and no commission whatsoever applied.

 

 

DiscountFX’ demo MT4. Click on the image to view larger.

 

This means that the broker is not transparent about its pricing, which leaves a very bad impression, especially on the part of a licensed CFD provider. For further information and comparison on spreads, check out our dedicated page.

 

 

>> Real-time spread comparison of some of the best forex brokers <<

 

 

High initial deposit

Furthermore, DiscountFX requires an initial deposit of at least $500 for its most basic account type, which is a bit too high, especially given the broker’s missing regulation. Most financial services providers, including major forex brokers, require something in the range of $100- $250 as a start.

 

 

Click on the image to view larger.

 

We also found out that all payment and transfer charges are borne by clients of DiscountFX, while most brokers cover deposit fees. Besides, the amounts of these transfer charges are not specified on the broker’s website.

 

Sloppy website

This is not a major flaw, yet we decided to mention it. It appears that DiscountFX has not bothered to spend much money on its website – it seems very basic, and uses comics, which would better suit a forex educational site.

 

 

 

 

Conclusion

 

The main benefit of trading with DiscountFX, of course, its legit forex broker license. The firm is overseen by the Cyprus Securities and Exchange Commission (CySEC), one of the most famous European financial watchdogs. Besides, the broker supports the ever popular MT4, its trading conditions seem good, and there are many financial instruments.

 

Of course, we also highlighted several negatives of DiscountFX, which are not to be underestimated. And finally, here are the main points of our review of this broker:

 

Pros Cons
CySEC license Spreads on paper and platform don’t match
Low trading costs High initial deposit
MT4 available, good selection of assets

Sloppy website

Wide range of financial instruments  

 

Latest news about DiscountFX
No news about DiscountFX . Check back later.
Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Australia ASIC MT4, MT5,
IRESSTrader
$100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website

Traders` reviews for DiscountFX

Spread

Pros

Cons

 

 

Slippage

Pros

Cons

 

 

Requotes

Pros

Cons

 

 

Price feed

Pros

Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

de | cn | ru