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FX NextGen Review - Is it scam or safe?

FX NextGen Review - is fxnextgen.com scam or good forex broker?

RATING: 1 / 1 REVIEWS FX NextGen
FX NextGen is an offshore broker. Your money is not safe.

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Trading Accounts

 

Account type Minimum deposit Maximum Leverage Spreads
Standard $100 1:400 Unknown

 

Fx NextGen is an STP forex broker. Their website appears to be unfinished, with some missing sections and no availability for demo trading. That being the case, we would most likely have to update this review in the future. 

 

The Company. Security of Funds

 

Company Country Regulation
Fx NextGen Vanuatu VFSC

 

Fx NextGen is registered in Vanuatu. Although the company is overseen by the local VFSC, this is still an offshore broker. That being the case, we would advice proceeding with caution, when dealing with them.

 

The reason for that is quite obvious – when dealing with an unregulated (or loosely regulated) company your fubnds may be at risk, even before you place your first order. This is why most countries have created government agencies, dedicated to monitoring the financial services sector. The Vanuatu Securities and Exchange Commission is one such regulator, which is best known for its loose requirements – a company must prove they have $2,000 in capital, before obtaining a license. This low entry barrier naturally attracts some dishonest brokers.

 

On the other hand regulators, like the Australian Securities and Investments Commission (ASIC) have set a much higher capital demands. In the case of ASIC, the level is AUD 1 million, which most scammers simply don't have. Furthermore ASIC forces companies to apply segregated accounts. By this ruling a broker can't access its clients funds freely – this must happen under certain circumstances. In effect this ruling prevent dishonest companies from simply taking your money and not allowing you tomorrow withdraw anything. 

 

Fx NextGen also offers to manage client funds, via an interesting scheme, which they call the “High Frequency System”. As far as we could tell from the information provided on their website, this has nothing to do with High Frequency Trading – a technique done by some, with exchange-traded securities, in which trading is done very quickly, in order to take advantage of market inefficiencies. That being said, a broker offering to manage your funds directly can cause a serious conflict of interest – if the broker operates via an STP/ECN model, they can opt to create a strategy, which trades frequently in order to generate more commissions. On the other hand, if they are a market maker, the conflict is even more apparent. 

 

The most unique feature of the Fx NextGen offer are the fees, which are pretty high:

 

 

Nowadays, most hedge funds are even lowering their demands below the previous “2 and 20” (2% management fee + 20% performance fee) norm, in order to attract new clients.

 

Trading Conditions

 

Minimum Initial Deposit

The minimum deposit requirement at Fx NextGen is $100. This is around the industry average, with multiple brokers, such as Fx Pro, having such demands. 

 

Do keep in mind, these levels do not tell you much about a company’s credibility. This should only be a consideration for newer traders, who are willing to risk less than optimal amounts.

 

Average spreads & Commissions

Fx NextGen does not provide any information on the costs of trading i.e. spreads and/or commissions. This is a rather unusual fact, as even the brokers who do not provide highly competitive spreads, at least give some information about them. Furthermore, no demo accounts are available at Fx NextGen, so we couldn’t test their services. On the other hand, you can always compare the spreads provided bby some of the world’s leading brokers with our real-time comparison platform.

 

Leverage 

The maximum leverage, provided by Fx NextGen is 1:400. This may appear to be incredibly high, but some brokers provide even more. Take XM, who even use their leverage offering as a marketing tool – they allow clients to trade with levels up to 1:888 (which is so catchy).

 

Remember high leverage is a double edged blade – it can amplify your winning trades, but the same goes for your losses. Although this may sound to be fair, some beginners do not fully understand the risks involved and blow-up their accounts swiftly. This is why US regulators have capped the leverage, which can be offered to retail clients at 1:50.

 

Trading Platforms 

 

Fx NextGen offers MetaTrader5 (MT5). This is Meta Quotes next iteration of the ever so popular MT4 platform. The similarities between the two are fairly obvious - the interface is basically the same, charts feel basically the same and the execution speeds are still top notch. MT5 was originally designed with the idea to expand into more products than forex, for which it predecessor was famous, but it is still mostly used for currency trading. One of the key improvements over MT4 are the partial closing of positions, which is now available by default. 

 

The biggest downside of MT5 is the fact it still isn't as popular, as its predecessor. This of course means there aren't a many custom add-ons developed for the platform. The old Expert Advisors and custom technical indicators will have to be re-created in order to work on the new platform. 

 

We couldn't test Fx NextGen’s iteration of MT5, for the purposes of this review.

 

Methods of Payment 

 

Fx NextGen only mentions credit cards and Bitcoin as their payment methods. That would be a rather odd choice, limiting the ability to accept popular online payment solutions such as PayPal

 

Conclusions 

 

Fx NextGen is an offshore broker, licensed by the VFSC. Immediately this does not give the company much credibility. Their website feels sightly unpolished, with key information, regarding the trading conditions missing,  most notably anything concerning spreads. Demo accounts are not available. The company offers a fund manage scheme, which is dubious by itself and if that wasn’t enough the fees are absurdly high.

 

Pros Cons
MT5 platform available Off-shore regulation
  No info on spreads
  No demo-accounts available
  High fees on fund management scheme

 

Latest news about FX NextGen
No news about FX NextGen. Check back later.
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Traders` reviews for FX NextGen

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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Summary

Pros

Cons

 

 

Scam company - FX NextGen is basically unregulated and will RIP YOU OFF

Unprofessional, dishonest - scam - Forex "broker" or thieves which way you want to call it

Patricia 01/09/2018
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