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GalaxyFX Review - Is it scam or safe?

GalaxyFX Review - is galaxyfx.com a good forex broker or a scam?

RATING: 3 / 0 REVIEWS GalaxyFX
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Account Types

 

Account Type  Minimum Deposit  Minimum trade size Maximum leverage Spreads
STP Basic $200 0.01 1:100 From 1.8 pips + commission $14/lot
STP Gold $5 000 0.01 1:100 From 1.3 pips
STP VIP $20 000 0.01 1:100 From 1.2 pips
STP Platinum $100 000 0.01 1:100 From 0.8 pips 

 

Like most forex brokers, GalaxyFX offers its clients a choice of several basic account types in order to suit the needs of traders of all levels of experience and preferences. According to the broker’s website, all account types offer STP execution with leverage up to 1:100 and floating spreads which vary by account type. The STP Basic account involves a commission, while the rest are commission-free, but the minimum initial deposit required is significantly higher. The good news is that micro tradeable lots are available on all account types.

 

The Company. Security of Funds

 

GalaxyFX is an STP broker, offering trading in multiple assets, including over 44 currency pairs, various and contracts for differences (CFDs) through the most common MetaTrader 4 platform.

 

GalaxyFX is a trading name of K-DNA Financial Services Ltd., which is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC). The company also operates another forex broker brand, LondonFX.

 

CySEC applies a set of rules and requirements to license holders, which provide a certain level of security in the financial sector.

 

First of all, Cyprus-based forex brokers should hold at least €730,000 as a proof of financial stability.  Furthermore, they must report to the commission on a regular basis and keep client funds in segregated accounts.

 

Furthermore, all CySEC-regulated companies are members of the Investor Compensation Fund, which is able to provide compensations to a maximum of 20,000 EUR per person in the event that a licensed company becomes insolvent.

 

In addition, as CySEC is part of the European MiFID regulations, the companies regulated by Cypriot financial watchdog are free to operate in all EU Member States. Nonetheless, K-DNA Financial Services Ltd. is registered with a number of EU regulators, such as UK’s FCA, Germany’s BaFin, etc.

 

Trading Conditions

 

Minimum Initial Deposit

The minimum initial deposit for GalaxyFX’ clients is $200 (via credit card, $500 via wire transfer), which is average for the forex market. Yet, other Cypriot brokerages, like XM, require just $5 from traders to open an account.

 

Average Spreads & Commissions

GalaxyFX offers floating spreads, which vary by account category – starting from 1.8 pips to 0.8 pips on EUR/USD. Unfortunately, the lowest spreads from 0.8 are only available to Platinum account holders with deposits of $100 000, so we are not going to discuss them.  Spreads offered on the rest of the accounts are averagely high –  around 1.8 pips on EUR/USD. The only account that is accessible to small investors, STP Basic, even includes a commission of $14 per standard lot round trip.

 

In comparison, XM offers spreads as low as 0.1 pips + commission $5 per standard lot (per side) on its zero account types, accessible with just $100. For further information, you may look up real-time spreads of 15 leading brokers here.

 

Leverage

The maximum leverage level provided by this broker is just 1:100. While this is a reasonable ratio, most forex brokers offer higher leverage levels. XM, for instance, provides leverage levels as high as 1:888. More forex brokers, offering leverage 1:500 and higher can be viewed here.

 

Traders, however, should be cautious, for such leverage levels may not only multiply their profits on a relatively small deposit, but also lead to heavy losses in excess of initial investments. 

 

Trading Platforms

 

GalaxyFX supports the popular trading platform MetaTrader 4, desktop, web and mobile versions available.

 

MetaTrader 4 is preferred by most traders, because it is equipped with an advanced charting package, a number of technical indicators, extensive back-testing environment and automated strategies (Expert Advisors). Here is a list of more forex brokers offering MT4 platform.

 

Methods of Payment

 

There are several payment methods available to GalaxyFX’ clients: bank to bank wire transfer, credit card, Skrill, SafeCharge, Yandex and ecommpay.

 

Conclusion

 

GalaxyFX is a well-regulated STP broker, offering trade in currency pairs, CFDs and precious metals on the MT4 platform. However, we find its cost of trading too high on the Basic STP account. To sum up the above, here are the advantages and drawbacks in relation to this broker:

 

Pros

 Cons

Well-regulated

Comparatively high spreads

STP environment

Mediocre leverage levels offered

MetaTrader 4 available

No choice of trading platforms

Latest news about GalaxyFX
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Traders` reviews for GalaxyFX

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

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