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OspreyFX Review - is it scam or safe?

OspreyFX review - Is ospreyfx.com scam or good forex broker?

RATING: 1.2 / 1 REVIEWS ForexBrokerz OspreyFX
OspreyFX is an offshore broker. Your money is not safe.

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OspreyFX is an offshore forex and CFD broker, offering several account types with a maximum leverage of up to 1:500 and a choice between the MetaTrader4 and a web based trading platform. Unfortunately the broker is not licensed to provide services to traders on regulated markets like the Europena Union, USA, UK, Canada, Australia or Japan, so if you are thinking about opening a trading account with them be sure to read this review first.

 

OspreyFX Advantages:

 

You can trade 1 lot with just 200 USD

 

A leverage as high as 1:500 means that you can trade a whole standard lot or 100 000 USD with a deposit of  just 200 USD. As tempting as that might seem, you should not forget that trading with such leverage implies a significant risk, which professional traders usually avoid. Still, if you are willing to take such risks you may also check our list of brokers regulated in Australia, the last major regulatory hub, where higher margin trading remains legal:

 

>>Brokers regulated in Australia<<

 

Nice selection of forex pairs and crypto CFDs

 

OspreyFX offers a comprehensive list of currency pairs - 55, lots f which crosses exotic and minor like USDZAR, USDTRY, USDSGD, USDSEK, USDRUB, USDPLN, USDNOK, USDMXN, USDILS, USDHUF, USDHKD, USDDKK, USDCZK and USDCNH.

 

As for the CFDs we counted 9 indices as well as a number of crypto coins like Bitcoin, Ripple, Dash, Eidoo, EOS, Ethereum, IOTA, Litecoin, NEO, OmiseGO, Santiment, Monero and Zcash, while the rest of the CFDs were on oil, natural gas, silver, gold, platinum and copper. Still, if you are interested in trading crypto assets, you may also check our list of brokers trading with Bitcon CFDs: 

 

>>Bitcoin Forex Brokers<<

 

MetaTrader4 supported

 

This is another positive point for OspreyFX. MetaTrader4 is an extremely reliable trading platform, with a variety of features, including over 100 cutomizable market indicators and trading robots, designed to help you run automated trading sessions. 

 

On top of that MetaTrader4 sports an excellent charting package, so its no wonder, why the platform has been dominating the market for the past 10 years or so. Here you may also check our list of brokers, offering the MT4:

 

>>MT4 Brokers<<

 

You can open a trading account with just 10 USD

 

At OspreyFX you can open a Mini Account with just 10 USD and that is good news. Still, bear in mind that some big players on the forex market like FBS and IG will also allow you to start trading with virtually 5 USD dollars or even less.

 

OspreyFX Disadvantages:

 

No license

 

OspreyFX is owned and operated by Osprey Ltd., a company based offshore on St.Vincent and the Grenadines. The small Caribbean republic do regulate its banking sector, but not forex and CFD brokers, so basically OspreyFX is totally unaccountable for the way they handle their clients' money. 

 

In practice your funds can be safe only with brokers, holding legit licenses from respectable institutions such as the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC).

 

And besides, with a FCA broker your funds will even be covered by an insurance of up to 85 000 GBP. Here you may also check our list of FCA regulated brokers:

 

>>FCA Regulated Forex Brokers<<

 

Managed account offered 

 

Going through OspreyFX Terms and Conditions we noticed that the broker is charging Money Manager fees. That means they are offering managed accounts – a highly controversial practice, banned in Europe and in most other regulated markets. 

 

The reason – almost all forex and CFD brokers, including legit ones, operate as Market Makers and Market Makers make  money when traders lose. So if a Market Maker like OspreyFX offers to manage your account, it will be in a conflict of interest.

 

Also, bear in mind that even when a broker claims to be offering an ECN or a Straight Through Processing (STP) account, this is extremely difficult to be verified.

 

High spreads

 

In its presentation OspreyFX boosts to be offering spreads starting as low as 0,1 pips, with just a small commission of 3,5 USD per side, per standard lot traded. When we tested their trading platform with a demo account, however, at the Mini Account the benchmark EURUSD spread turned out to be as high as 1,9 pips.

 

And although things seem slightly better with OspreyFX Standard and Pro accounts – 1,2 pips and 0,8 pips respectively, with those accounts you will have to pay the trading commission, which when calculated into the equation rises the actual starting spreads to 1,9 pips for the Standard Account and 1,5 pips for the Pro Account. (3,5 USD per side, per standard lot of 100 000 USD adds another 0,7 pips to the spread).

 

Bear in mind that spreads are usually considered attractive only when they start below 1,5 pips with a standard account. And that is why we are not happy with the spreads offered by  OspreyFX. Besides, here you may also check our list of brokers offering better trading conditions:

 

>> Lowest spread forex brokers<<

 

Skrill not accepted as a payment method

 

We consider this a disadvantage not only because Skrill is one of the most widely used payment methods globally, but also because of the new anti scam policy adopted recently by the company, according which Skrill is available only to properly licensed brokers. As we already noted OspreyFX does not have a license to operate in Europe or on any other regulated market.

 

Otherwise at OspreyFX you can pay with major credit or debit cards like VISA and MasterCard, bitcoins and bank wire.

 

Conclusion: 

 

The main disadvantage with OspreyFX is their regulatory status – they do not have a license and that significantly diminishes their credibility. So as usual in such cases we will repeat our general advice to trade only with brokers regulated in the EU, the US, Australia, Canada or the UK.

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Traders` reviews for OspreyFX

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