PipIndex Review - Is it scam or Safe?

PipIndex Capital Markets Review - Is it scam or safe?
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PipIndex is no longer providing trading services.

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Trading Accounts

 

Account type Minimum deposit  Minimum trade size Maximum leverage  Spreads   Trading platform 
Standard  $100 0.01 lot (micro lot)  1:400 (1:200 by dafault) From 0.8 pips on EUR/USD MT4 


Unlike most forex brokers, who provide their clients with several different account types, PipIndex offers a single Straight-Through-Processing (STP) account on the world renown MT4 platform with variable spreads starting from 0.8 pips on EUR/USD. Micro lots are available for trade and the broker says it doesn`t charge any commission.


Traders who deposit funds in excess of $100,000 get Platinum status and are entitled to dedicated senior market analyst additional markets, additional trading instruments as well as lucrative rebates.


This broker, however, does not provide managed account solutions, such as PAMM/MAM accounts, nor Islamic (swap-free) service to Muslim clients, who would not earn or pay interest for religious reasons.


Also, we should warn traders that unlike many other FX brokers, PipIndex does not tolerate scalping strategies.


The Company. Security of Funds


PipIndex Capital Markets (PipIndex) is a relatively young London-based brokerage offering trading in a wide range of instruments, including numerous currency pairs, CFDs on major indices, bonds, commodities and precious metals, as well as major ETFs on the industry’s standard MetaTrader 4 (MT4). Apart from London, PipIndex runs offices in several other key European cities: Paris, Madrid and Frankfurt.


PipIndex is the trading name of PipIndex Capital Markets Limited, an appointed representative of Finsa Europe Ltd., which is authorised and regulated by the UK`s Financial Conduct Authority (FCA).


FCA regulation its famous for being among the strictest in the EU. To acquire a license from the UK financial watchdog, UK-based brokerages must prove their financial stability and to meet various requirements. For example, clients` funds shall be kept in segregated bank accounts, separated from the company operating funds. Moreover, brokers must hold a minimum of €730 000 net tangible assets in order to operate legitimately.


Probably the most important thing in relation to FCA regulation is the fact that it involves a compensation scheme in the event that a licensed broker becomes insolvent or ceases trading. The Financial Services Compensation Scheme (FSCS) provides a maximum compensation cover of £50,000 per person.


Trading Conditions


Minimum Initial deposit

The minimum initial deposit with PipIndex is $100, which is a reasonable to start with. In comparison, Trading 212, another FCA-regulated brokerage, also requires $100 from clients in order to start trading, and leading EU broker FxPro - $500.


Spreads & Commissions

As a STP broker, PipIndex offers variable spreads, starting from 0.8 pips on EUR/USD. Its clients also benefit from commission-free trading, as the broker gets remuneration for its services through the spread, the typical one for the EUR/USD pair amounting around 1.0 pips. Such spread is on the lower end of average, so we can conclude that the pricing of PipIndex is pretty competitive.


In comparison, Trading212, offers variable spreads averaged 0.9 pips on EUR/USD on its commission-free accounts. For further information, you may look up real-time spreads of 15 leading brokers here.


Maximum Leverage
The default leverage with PipIndex is 1:200, however it may be changed upon client request to a maximum of 1:400. A leverage ratio of 1:400 is considered comparatively high, nonetheless many other UK-based brokers offer similar or higher levels. FxPro, for example, provides leverage up to 1:500. More forex brokers offering leverage equal to or exceeding 1:500 can be viewed here.


We would like to remind traders that high leverage levels involve greater risk, not only the probability of multiplied profits earned on a small deposit.


Trading Platform


Clients of PipIndex are offered access to the most commonly used forex trading platform, Metatrader 4 (MT4). It is available for Windows, Mac, iOS and Android devices.


MT4 is globally popular due to it being incredibly reliable, adaptive, and quite easy to use. It is equipped with advanced charting package, a wide range with built-in technical indicators, automated trade options with Expert Advisor strategies (EA) and extensive back-testing environment. Here is a list of more forex brokers offering MT4 platform.


Promotions
At the time of writing the present review PipIndex offers the following promotions:


- Welcome on-deposit bonus from $100 to $7.500, depending on the deposit amount. It is available for deposits over $300 and may be withdrawn after certain trading volume is reached.
- Rebates amounting to 20% of the total transactional costs – available only to Platinum status account holders.
- £50 Referral bonus for both the referral and the referred person.


Methods of Payment


Clients of PipIndex can make deposits to and withdrawals from their accounts via bank wire and credit/debit card. The accepted currencies are: USD, GBP, EUR.


Conclusion


PipIndex is a relatively young broker with strong regulation, whose offerings under the STP model seem quite decent. Yet there aren`t many options in respect of trading accounts, platforms, payment methods, etc. To sum up the above, here are the Pros and Cons with regards to this broker:

 

Pros  Cons
FCA-regulated No choice of trading platforms & accounts, no web-based platform available
MT4 available Scalping is not allowed
STP model No managed account solutions
Attractive promotions available  

 

 

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Spread

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Deposit/Withdraw

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Customer service

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Summary

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