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Forex Club (EU) Review - Is it scam or safe?

Forex Club (EU) Review - Is fxclub-global.com a good forex broker or a scam?

RATING: 3 / 0 REVIEWS Forex Club (EU)
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Owing to the launch of the broker’s new trading platform and brand, Libertex, https://www.fxclub-global.com/ is no longer available. Besides, Indication Investments Ltd. no longer supports MT4 accounts (as of October 28th, 2016).

 

Trading Accounts

 

Account type  Minimum deposit  Minimum trade size Maximum leverage Average Spreads  Platform
Standard $250 0.01 1:100 2.8 pips on EUR/USD MetaTrader 4

 

Cypriot brokerage ForexClub provides a single type of trading account – a Standard one. This account has a requirement for a minimum deposit of $250, offers leverage up to 1:100, variable spreads and micro tradeable lots on the most widely used forex trading platform, MetaTrader 4.

 

The Company. Security of Funds

 

Formed back in 1997, Forex Club is a collective brand of several entities that provide trading in forex and CFDs on shares, metals, indices, and other instruments. The brokerage has clients in more than 120 countries, mainly within the Commonwealth of Independent States (CIS), or the former Soviet countries. Its subsidiaries are regulated in Russia, Belarus, and Cyprus, and there is also a unit registered in the St. Vincent & the Grenadines.

 

The present review focuses on the EU unit of the group, which operates the www.fxclub-global.com website. This is a forex broker, offering online trading in more than 20 currency pairs and various CFDs within NDD trading environment. Indication Investments Ltd., doing business as ForexClub, is a Cyprus-based company, which is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC).

 

CySEC forex broker regulation is not among the world’s tightest, but surely is one of the most popular in Europe. There is no cap on leverage, however the commission proposed the default leverage to 1:50, in line with the recommendations of the European Securities and Markets Authority.

 

In order to achieve a license from the Cypriot watchdog, forex brokers have to hold at least €730,000 as a proof of financial stability. Moreover, the CySEC applies a compensation scheme as additional guarantee to clients’ funds. All CySEC-regulated companies are members of the Investor Compensation Fund, which protects clients’ funds in case of company insolvency up to £20,000 per person.

 

Besides, brokerages regulated in Cyprus are authorized to provide financial services throughout the EU under the MiFID Passporting Regime.

 

Trading Conditions

 

Minimum Initial Deposit

In order to open an account with ForexClub, traders have to invest at least $250. Such minimum initial amount is average. Other Cyprus-based brokers, like XM, demand just $5 from its clients as a start for their Micro accounts.

 

Spreads & Commissions

ForexClub offers variable spreads. For the EUR/USD pair, it quotes as typical a spread of 2.8 pips. Although ForexClub charges no commission fees, such spreads are considered high. In comparison, XM provides spreads averaged 1.7 pips on EUR/USD on its Micro commission-free accounts.

 

For further information, you may look up real-time spreads of 15 leading brokers here.

 

Leverage

The maximum leverage with ForexClub is 1:100, while many brokers offer leverage up to 1:500 or higher. XM, for instance, offers leverage  up to 1:888.

 

As most of you probably know, leverage is a powerful tool that allows traders to operate with large amounts of money by making relatively small investments. Unfortunately, the higher leverage, the higher the risk of losses, which may even exceed initial investments.  That is why CySEC is planning to set the default leverage to 1:50.

 

Trading Platform

 

ForexClub supports the industry’s standard MetaTrader 4 (MT4), which is preferred by most  brokerages and traders. It comes in desktop and mobile versions and provides ease of use, a number of technical analysis indicators, advanced charting package, and a wide range of Expert Advisors (EAs).  

 

In addition, MT4 features a variety of tools for testing expert advisors. You may use these tools to create:

·         - EAs — Programmed trading strategies that allow for completely automated research and trading.

·         - Custom Indicators — User-defined technical indicators for analyzing price dynamics.

·         - Scripts — Programs that run once on command.

 

Methods of Payment

 

ForexClub’s clients can make deposits to and withdrawals from their accounts via bank cards (Visa, MasterCard) and bank transfer. Popular e-wallet systems, such as Neteller, Skrill, and FasaPay, are not available with this broker. Check deposits and withdrawals are available only for Cypriot customers. 

 

Withdrawals are made only by bank transfer and take between 2 and 5 business days. Keep in mind that ForexClub charges a commission on withdrawals, amounting to EUR 20.

 

Conclusion

 

ForexClub is a Cypriot NDD forex broker, that is part of a large international group with many years of experience. According to us, its main disadvantage are the high spreads. To sum up the above, here are the Pros and Cons with regards to this broker:

 

Pros Cons
Well-regulated, part of international group High spreads
MT4 available No choice of trading accounts and platforms
NDD execution  

 

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Traders` reviews for Forex Club (EU)

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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