Colmex Pro Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this ColmexPro Review.
Colmex Pro Review
There are two basic accounts with this broker, depending on the financial instruments used: Equities/CFD on Equities account and Forex account. Both account types offer a different plans with varying trading conditions, based on the deposited amount and trading platform used. For instance, if an Equities/CFD on Equities account holder wishes to use the Expert platform, a minimum initial funding of $50,000 is required.
The Company
Colmex Pro is the trading name of Colmex Pro Ltd., a CySEC-regulated company, offering NDD (No Dealing Desk) trading in forex, CFDs, stocks, futures, options through both in-house platforms and the popular MT4.
Security of Funds
Colmex Pro Ltd., doing business as Colmex Pro, is licensed and regulated by the Cyprus Securities and Exchange Commission(CySEC). What is more, the company is also registered with FCA and a number of other EU regulators.
CySEC applies certain rules to license holders, one of them being the requirement to hold a minimum of €1,000,000 in order to prove their financial stability. As regulation of financial services providers usually involves such a requirement, UK-based brokers, for instance, are obliged to hold a minimum of € 730 000 and those in the US – $20 million.
Furthermore, the Cypriot financial watchdog applies a compensation scheme as additional guarantee to clients’ funds. All CySEC-regulated companies are members of the Investor Compensation Fund, where customers of authorized financial services firms may receive a compensation, amounting to a maximum of 20,000 EUR,in the event that the brokerage becomes insolvent or ceases trading. Similar compensation schemes apply in other jurisdictions: FCA-regulated brokers in UK, for example, are under the umbrella of the Financial Services Compensation Scheme, where the maximum compensation cover is £50,000 per person.
Trading Conditions
Minimum Initial Deposit
Colmex Pro accounts require a minimum deposit of $400, which is on the upper end of average. In comparison FxPro requires $500 from traders to start with, FXTM – $100 and Exness demands no initial deposit (as regards its Mini account).
Average Spreads & Commissions
This broker offers variable spreads. The average spread with Colmex Pro is a comparatively low one – 0.9 pips on EUR/USD, however, a commission fee ranging from $3 (for VIP groups) to $15 (for basic groups) per lot per side applies. The commission incurred on the Forex Standard plan account is $8 per lot round turn, so this makes an average spread of around 1.7 pips on EUR/USD with the commission included, which is considered comparatively high.
In comparison, FxPro offers average spread of 1.4 pips on the EUR/USD for its commission-free accounts. You may look up real-time spreads of 15 leading brokers at Topforexbrokers.com.
According to the contract specifications on the Colmex Pro’s website, If the maximum spread amounting to 2 pips on EUR/USD applies, commissions and spread mark-ups are excluded.
Maximum Leverage
The maximum leverage with this broker is offered on the MT4 platform and is 1:400 for the Forex account, which is a comparatively high rate, as some jurisdictions set limitations on leverage, which are significantly lower, for instance, in the USA, maximum leverage allowed is 1:50. The reason for this restrictions is that higher leverage levels may not only multiply traders` earnings on a small deposit, but also lead to heavy losses in excess of the initial deposit. Nonetheless, if you are willing to take the risk, other Cyprus-based brokers offer even higher leverage than Colmex Pro : XM – up to 1:888, FXTM – up to 1:1000 and Exness – up to 1:2000 (the highest available level in the industry). More forex brokers offering leverage equal to or exceeding 1:500 can be viewed at Topforexbrokers.com.
Trading Platform
Colmex Pro offers several proprietary platforms, as well as the industry’s standard MetaTrader 4.
Colmex Pro Trader platform provides real-time, streaming market data in dynamic displays, fast order execution and what is more, users may see daily listing of top 20 performers. Besides, this platform allows you to manage multi-accounts and is available in 11 different languages. Furthermore, the broker offers Colmex Pro Trader CFD, a version of the platform specializing in CFDs trading.
The Colmex Expert platform is a significant upgrade to Colmex Pro Trader, offering solution for professional traders.
This platform is equipped with advanced charting including over 100 built-in indicators, studies and tools, full back-testing system, complete scripting language for all asset classes to design custom executable scripts. It also features a Managed Account Trading (MAT) tool for traders managing multiple accounts and is available as s mobile version.
Furthermore, Colmex Pro has combined its non-deal-desk forex execution with the MetaTrader 4 platform. MT4 is preferred platform by most traders, because it offers a number of technical indicators, extensive back-testing environment, advanced charting package and what is more – Expert Advisors (EAs). By downloading ready-made or creating their own EAs, traders are able to fully automate their trades and just sit back and let the program do all the work. Here is a list of more forex brokers offering MT4 platform.
Methods of Payment
Colmex Pro offers its clients the following payment modes: bank wire, credit/debit cards (Visa, MasterCard), e-wallets (WebMoney, cashU, MoneyBookers).
Colmex Pro is a well-regulated broker, offering a wide range of financial products and competitive spreads, however it charges high commission fees.
Instead of the forex broker you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
Colmex Pro Review Conclusion
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