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FXGate Review - is it scam or safe?

FXGate Review - is fxgate.com scam or good forex broker?

RATING: 2.1 / 1 REVIEWS FXGate
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Trading Accounts and Conditions

 

Account type Initial deposit Maximum leverage  Avg. Spreads
Standard  $100 1:100 1.8 pips
Premium  $5 000 1:100 1.6 pips
Platinum  $25 000 1:100 1.2 pips

  

FXGate is a MT4 forex broker based and authorized in Labuan, Malaysia. It offers its clients the three account types listed above.

 

Here are our impressions of this broker, after we made a thorough research on the company and tested its platform. Make sure you read it prior to investing with FXGate.

 

 

FXGate Advantages 

 

Registered in Labuan

FXGate is a newly-launched forex brokerage with several offices in Malaysia, one in Kuala Lumpur, as well as a representative office in Dubai. Although it has announced plans to get authorized in Saudi Arabia and Egypt, the broker currently operates on the basis of a license issued by the Labuan Financial Services Authority (LFSA).

 

 

Labuan is an offshore Malaysian island that has become a quite popular forex broker hub. The companies registered with the LFSA are subjected to certain registration and annual fees, and are required to keep clients’ money in segregated accounts, separate from the firm’s funds.

 

Although a license with the LFSA does not mean a lot in the trading world, it is still better than nothing. Besides, a number of forex broker business start off offshore and later on, when they acquire larger client base, apply for authorization with more well-established regulatory agencies.

 

MT4 available, generous leverage

We consider the presence of this platform as an advantage of any broker’s offering. The MetaTrader4 (MT4) is preferred by most traders, because it is user-friendly and reliable, supports automated strategies, and offers advanced charting with a number if build-in technical analysis tools.

 

 

>> Choose some of the best MT4 brokers <<

 

 

Furthermore, as we tested its MT4 in demo mode, we saw that the leverage available to users is a lot higher than the announced ratio of 1:100. Although leverage levels as high as 1:500 are not appropriate for everyone, they will suit pretty much suit all trading strategies.

 

Transparent pricing and fees

Another thing we like about FXGate is its transparent pricing policy. The broker has disclosed the average spreads on all account types, and has presented clearly all applicable transfer, which is not the case with all forex brokers and especially offshore ones.

 

Below, as well as on FXGate’s website, you can take a look at the broker’s withdrawal fees:

 

 

Click on the image to view larger.

                                              

 

FXGate Disadvantages

 

Registered offshore


As we already discussed, FXGate is regulated by the Labuan Financial Services Authority. Indeed, there are certain fees applicable to licensed companies, however even their physical presence in Labuan is not required. Forex brokers on this offshore group of islands are simply registered, rather than regulated and supervised.

 

Offshore brokerages are not required to meet any capital adequacy requirements, to report transactions, to apply client protection rules, etc. Therefore we consider that investing with such entities is generally risky and we don’t recommend it.

 

$25k for a decent spread?

Actually, as announced on its website, the spreads of FXGate don’t seem very attractive, averaged 1.8 pips or 1.6 pips on Standard and Premium accounts, respectively. That being said, the demo spreads floated around 1.1 – 1.2 pips, so we assume that this is the Platinum account. In our opinion, an initial deposit of $25k for a decent spread is too much.

 

 

FXGate’s demo MT4 web. Click for a larger view.

 

The majority of forex brokers, including many reliable and licensed ones, offer spread within the range of 1.0 – 1.5 pips for this pair. For further information and comparison, check out the below link:

 

 

>> Compare the spreads of some of the best brokers <<

 

 

Not that many assets covered

At present, FXGate offers more than 50 forex pairs, however its CFD offering is limited to commodities, metals, and energies. So, we suppose some traders might miss CFDs on indices, stocks, commodities, and cryptocurrencies like Bitcoin.

 

 

Conclusion

 

FXGate is a forex brokerage focusing on the Asian and MENA markets. It launched in 2019 and is licensed in Labuan, Malaysia. Although the broker seems relatively solid, it is not regulated by a reputable governmental agency and hasn’t built a reputation yet.

 

If you are looking for a good forex broker in the Gulf region, check out our list of brokers licensed in the United Arab Emirates (UAE).

 

 

>> UAE forex brokers <<

 

 

And finally, here are the highlights of our review of FXGate:

 

Pros Cons
Registered in Labuan Registered offshore
MT4 available, generous leverage Spreads above the average
Transparent pricing No CFDs on indices, stocks, commodities

 

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Traders` reviews for FXGate

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

 

 

Saudi Arabia

Distinguished company in product diversification
Low spreads in FX & commodity margins compared to other companies

Customer service is fast and sophisticated and available in several languages ​​to serve a large segment of customers

There are also many deposit and withdrawal options. For example, a Visa card withdrawal took only 9 hours

bassem_otibi 08/02/2019
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