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Forex-point Review - Is it scam or safe?

Forex Point Review - is forex-point.com scam or good forex broker?

RATING: 1 / 2 REVIEWS Forex-point
Forex-point is an offshore broker. Your money is not safe.

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Trading Accounts

 

Account type Minimum deposit  Maximum leverage Spread
Classic $3,000 1:200 From 3.0 pips
Gold $5,000 1:200 From 2.5 pips
Platinum $10,000 1:200 From 1.8 pips
VIP $50,000 1:200 From 1.5 pips

 

Forex-point offers multiple account types, as described above. As you can see the deposit requirements (and gaps between different account types) are quite high for the current environment. Islamic (swap-free)  accounts are also offered. 

 

The Company. Security of Funds

 

Company Country Regulation
YUKON GLOBAL LTD Seychelles N/A

 

Despite sounding very similarly to the company behind XM (Trading Point), Forex-point is owned and operated by YUKON GLOBAL LTD. They are based in the Seychelles and do not claim affiliation with any financial regulator. An off-shore, unregulated company is troubling to say the least.

 

As you may know, most countries have a specific agency dedicated to regulating the financial services industry. This is done in order to ensure client protection and a fair and competitive environment. One such government body is the Australian Securities and Investments Commission (ASIC). They monitor brokerages (as well as other companies), registered in the land down under. In order to get their licensing a company must have at least AUD 1 million in capital holdings. This is a high bar for most scammers. Another ruling, which deters such companies from registering is the account segregation principle. It is a mechanism, which assures a broker can not freely access the investments made by its clients. In essence it prevents the most brutal form of scam – a company taking your money and not allowing you to withdraw. 

 

You will not receive any of these benefits, if you decide to trade with an unregulated company. 

 

Trading Conditions

 

Minimum Initial Deposit

The minimum initial deposit level at Forex-point is a bit hard to determine. One section of the website claims it is $250, while the account types start from $3,000. So what will happen if you deposit anything under $3,000? This feels like an insignificant error in the website development. 

 

Although the minimum deposit isn’t that important for experienced traders, it definitely is crucial for beginners. This is why companies like IG have even removed the entry level entirely.

 

Average spreads & Commissions

Forex-point provides floating spreads. For most account types they are above the current industry standard. The VIP account, which requires a $50,000 deposit is the only one, which is close to reasonable. You can find the real-time spreads offered by some of the world’s leading brokers here.

 

Leverage

Leverage at Forex-point is capped at 1:200. Although this is a solid level, you may not believe that, if you follow the current state of the industry, with many companies providing 1:500 or even more.

 

We must note, leverage is a double-edged sword – it can increase the size of your losses, the same way it does your wining trades. Be sure to understand the risks associated with margin trading before participating in it.

 

Trading Platforms

 

Two trading platforms are available at Forex-point: MetaTrader4(MT4) and Sirix. Although they are quite similar, they do offer a slightly different spin on the markets:

 

MT4 is a platform, which has stood the test of time. It offers great charting potential and most uniquely a popular programming environment. The MQL marketplace has thousands of technical indicators and automated trading systems being developed constantly. The platform also has a mobile app and a web-based version. 

 

Here is a preview of the MT4 web-version provided by Forex-point (click to zoom-in):

 

 

 

On the other hand Sirix allows traders to focus more on social trading. By default there is a social trading panel on the right side of the platform. It does appear interesting and users who are familiar with Twitter will feel at home, right away. That being said the platform does offer slightly worse charts in our opinion. 

 

Here is a preview of the Sirix trading platform (click to zoom-in):

 


Methods of Payment

 

The payment options at Forex-point include Bank Transfer, Credit Card and Skrill. Althoug a single e-wallet is being offered, it is a very popular one, especially when it comes to trading.

 

Conclusion

 

Forex-point is an unregulated off-shore broker. This doesn’t appear trustworthy by any standards. Furthermore trading conditions at the company are not even close to the current offerings by other brokers, except for the VIP account. That being said, you would need a solid deposit to get one of them. Here are this broker’s pros and cons:

 

Pros Cons
Choice of trading platforms (including MT4) No regulation
  Off-shore registration
  High spreads
  Big deposit requirement gaps for better account types
  Lack of clarity on minimum deposit
  Few payment methods

 

 

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Traders` reviews for Forex-point

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

 

 

Do not open account with them

I have opened account with them one month ago, provided the documents by email to the support and via the website many times. They told me I would have been contacted by a consulent after the deposit, But I had to write many emails for several days before someone got back to me. The documents on the website still appear as "not provided", after asking many times why and how long should they take, nobody has answered. I have done one positive trade and on my own and after that my account got disabled.
I am in the situation now that nobody and absolutely nobody answers to my emails and I cannot withdrawal my money. Worst broker i have ever seen!!!!! There are many brokers much better than this! Stay away!!!!

Daniele Mazzolini 12/30/2017

lack of clarity

I don t know if the company is trustworthy or not, I can say that for a beginner is definitely not trustworthy. For period I earned a lot then I lost almost everything, It is my fault obviously but I can say that there is no assistance (I heard only one time who was supposed to be my manager, so I learned by myself pro &cons). I contacted as well both the English and Italian customer service , but nobody answered.

Furthermore you should know that you can ask for a withdraw only after 300 trades (they do not say this at the beginning, on the contrary they say that you can have your money back immediately)

Simona Leo 09/11/2017
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