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Formax Review - Is it scam or safe?

Formax Review - Is formaxmarket.com scam or safe forex broker?

RATING: 3 / 0 REVIEWS Formax
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Trading Accounts

 

Account type Minimum deposit Minimum trade size Max leverage Sperads
ECN commission-free £1000 0.01 lot 1:200 From 0.6 pips on EUR/USD
ECN Raw £5000 0.01 lot 1:200 From 0.2 pips on EUR/USD +  £6 commisison

 

Formax prime capital offers its clients a choice of two basic account types. Both of them provide tight variable spreads and leverage up to 1:200, as well as micro tradable lots on the industry’s favorite MetaTrader 4 platform. The only difference between them is that one of the accounts is commission-free, but the spread is higher (markup included), while the Raw ECN one involves a commission, based on the trading volume, but spreads are as low as 0.2 pips on EUR/USD.

 

Account management services are also available with this broker.

 

It is worth noting that at each client of Formax UK is allowed to open only one trading account.

 

The Company. Security of Funds

 

Established in 2014, Formax Prime Capital is a pure STP broker offering trading in currency pairs and Contracts for difference (CFDs) on indices and commodities on the MT4.

 

The London-based Formax Prime Capital is the trading name of Formax Prime Capital (UK) Limited, part of the Formax Group – a provider of Forex trading technologies and services to both private and institutional tradersл

 

Formax Prime Capital Ltd. authorized and regulated by UK’s Financial Conduct Authority (FCA). UK-regulation is famous for its strict rules and supervision. To acquire a license from the UK financial watchdog, brokers have to provide proof of financial stability and to adhere to a number of rules. For example, clients` funds shall be kept in segregated bank accounts and regulated companies must hold a minimum of €730 000 in order to conduct their business activities.

 

Regulation by FCA also involves additional guarantee to clients’ funds, since they fall under the Financial Services Compensation Scheme (FSCS). FSCS’s maximum compensation cover is £50,000 per person in the event that a broker becomes insolvent or ceases trading.

 

Trading Conditions

 

Minimum Initial Deposit

Traders are required to deposit £1000 in order to open an account with Formax Prime Capital, which is high minimum initial deposit. In comparison, FxPro requires $500 from its clients to start with.

 

Average Spreads & Commissions

This broker offers competitive tight variable spreads, the ones on the commission-free ECN account starting from to 0.6 pips on EUR/USD. Average spreads on ECN Raw accounts, on the other hand, are averaged around 0.6 pips on EUR/USD, however a commission of at least £3 per standard lot (per side,) is charged. So basically the average trading costs for this pair amount to around 1.3 pips (commission around $7 round turn + spread), which is average for the forex market

 

In comparison, FxPro offers average spread of 1.4 pips on the EUR/USD for its commission-free accounts and average spreads as low as 0.4 pips on the EUR/USD for its cTrader accounts, charged $4.5 per standard lot.

 

Maximum Leverage

Formax Prime Capital offers leverage up to 1:200 for all account types, which is average. Yet most brokers provide higher levels. FxPro, for instance offers leverage up to 1:500. You may look up more forex brokers offering leverage equal to or exceeding 1:500 here.

 

Leverage allows traders to gain large exposure to diversified markets with a relatively small amount of invested capital, however the higher the leverage level, the higher the risk. That is why we advise traders to be careful when trading on margin with high leverage levels.

 

Trading Platform

 

Formax UK supports the popular MetaTrader 4 (MT4), desktop, and mobile versions available.

 

This is the most widely used forex trading platform, because it is easy to use and traders are able to entirely automate their operations by choosing from a wide range of Expert Advisors (EAs) and let the program do all the work. Of course, the MT4 is also equipped with a professional charting package, a variety of technical indicators, and extensive back-testing environment.

 

Methods of Payment

 

Clients of Formax Prime Capital are able to make deposits and withdrawals via credit or debit card payments and bank transfers. E-wallets Skrill & Neteller are also available.

 

Accepted currencies: USD, EUR and GBP.

 

Conclusion

 

Formax Prime Capital is a relatively new broker, offering forex, and CFDs under competitive trading conditions on the popular MT4 platform. Here are, in a nutshell, the advantages and drawbacks with regards to this broker:

 

Pros Cons
Strong regulation No choice of trading platforms
Low spreads Relatively high minimum initial deposit
Pure STO technology utilized  
   

                                                                                     

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Traders` reviews for Formax

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Requotes

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Price feed

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Platform

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