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Elite-fx.biz Review - Is it scam or safe?

Elite-fx.biz Review - is elite-fx.biz scam or safe forex broker?

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Trading Accounts

Account Type Minimum Deposit Maximum Leverage Spread
Micro Unknown 1:500 Fixed from 3 pips
Mini $2,000 1:500 Fixed from 3 pips
Standard $5,000 1:500 Fixed from 3 pips

 

Elite-fx.biz is a forex broker, which offers multiple account types to its clients. The difference in trading conditions is not clearly defined. Swap-free (Islamic) accounts are also offered.

 

 

The Company. Security of Funds

 

Company Country Regulation
Elite Index Limited UAE N/A

 

The company behind eltie-fx.biz is not specifically mentioned mentioned specifically anywhere on the website, except in the bank transfer recipient name. It goes by the name of Elite Index Limited and the bank account is opened with a Dubai-based bank. We presume (maybe falsely), that they operate out of the United Arab Emirates. They do not claim any regulatory oversight, which is enough for us to not recommend trading with this broker.

 

Most countries around the world have dedicated agencies, who create and enforce specific rules for companies in the financial services sector. In the UAE, this role is taken by the Central Bank, which elite-fx does not claim affiliation with. Lets take a look at another example - In the United Kingdom the financial regulator is called the Financial Conduct Authority (FCA). It imposes lots of rules, one of the most crucial of which is the account segregation. In essence, this means a FCA-regulated broker has to maintain separate accounts for client funds, in order not to mix them with the company's own operative accounts. This limits the possibility of "accidents", in which the broker spends its clients' money. Another very important principle, from a forex trader's point of view, is the mandatory participation in the Financial Services Compensation Scheme (FSCS). This is a system, which functions pretty similarly to how insurance companies do - every broker  has to give a small portion of their profit to a collective fund, which in tern acts as a guarantee against one of the brokers going bankrupt. If you trade with an FCA-regulated forex broker, your funds will be protected against its insolvency, up to £50,000.

 
Elite-fx appears to be targeting Arab-speaking clients, as even parts of the English website still has Arabic writing on it. This shouldn't be an issue for anybody, but the lack of regulation is definitely a huge red flag.

 

Trading Conditions

 

Minimum Initial Deposit

Elite-fx does not clearly state what the minimum deposit at the company is. This is a bit bizarre, given the fact, most brokers use this information as an advertisement, especially if the minimum is rally low. For example, you can open an account with XM.com by depositing as low as $5.

 

That being the case, the minimum initial deposit should not be a serious consideration when comparing forex brokers. It is good to deposit less, if you are willing to test a company's service, or are just starting out and want to feel what real-money trading feels like. If you want to be a serious trader, you would need adequate funding.

 

Average spreads & Commissions

The trading costs at elite-fx are all included in fixed spreads. They start from 3 pips on EUR/USD, which is significantly above the offers you can find at other fixed spread brokers. For instance, easyMarkets provides a 1 pip spread on the same pair, if you initially deposit more than $250 in your account.
 

Leverage

Elite-fx offers a 1:500 maximum leverage ratio. This is more than you would ever need, if you plan to trade in some reasonable manner. However, given the pace of the forex industry's development, elite-fx are not alone in offering such high levels.

 

Having massive leverage doesn't necessarily mean you should use it. The only thing it does, is blocking a smaller portion of your account as a margin requirement, whenever you take a new position. You can (and should) still leave a significant portion of your account unused. Be sure to fully understand how forex and CFD trading works, before putting your capital at risk.

 

Trading Platforms

 
Elite-fx offers trading with the technological aid of the MetaTrader4(MT4) platform. This is a common choice, which many forex brokers make, when faced with the alternative of developing their own custom platform. MT4 has many advantages - for one, experienced traders are familiar with it and most of them enjoy it. The platform's numerous user base, combined with the easy to learn programming language has led to the development of a massive number of custom tools. Some of them are paid and some are free, but the most important part is, most of them are offered at the MQL marketplace. The two most common types of add-ons are technical indicators and automated trading systems, known as Expert Advisors.

 

Furthermore, MT4 has mobile apps, available at the iOS and Android app stores. They may not be able to provide you with the same analytical potential as the desktop, but do offer most of its functionality in a condensed form. Additionally, there is a web-based version, allowing you to log in your account from any device. That being said, we would still recommend having the mobile app on your phone, just in case.

 

Methods of Payment

 

There is only one payment method, provided by elite-fx.biz - Bank Transfer. As you may know, international bank transfers may take several business days. This is why many people, prefer instant payment solutions, such as PayPal.

 

Conclusion

 

Elite-fx.biz is a forex broker, which appears to be operating out of the UAE. More importantly, the company is not regulated by any financial watchdog. Usually this is enough for us to advise against dealing with the company, but if that wasn't enough, their trading conditions are also sub-par. You may not consider spreads as a big factor, but overtime they do add-up. The ones offered at this broker a simply not competitive with the rest of the industry. The company's website also doesn't inspire trust - there is missing information on key elements of the trading conditions. Here is a list of this broker's pros and cons:

 

Pros Cons
MetaTrader4 platform Lack of regulation
  Little information about the company
  High fixed spreads
  Lack of full information regarding trading conditions
  One payment method

 

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Spread

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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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Traders` reviews for Elite-fx.biz

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