Boutique brokerage CrescoFX offers a couple of account types, all of which are said provide variable spreads involving volume-based commission fees on two trading platforms. Judging by the commission structure and the maximum monthly trading volumes set, it seems that this broker targets mainly high-volume (institutional) traders.
In addition, MAM accounts are also available at CrescoFX.
– UK regulation
The main advantage of this broker is the fact that it is overseen by one of the most respected and reliable government agencies in the forex world, UK’s Financial Conduct Authority the FCA.
– Choice of trading platforms, MT4 available
CrescoFX offers access to Metatrader 4 and its proprietary web-based CrescoTrader. If you are familiar with forex trading, you probably know all the advantages of trading on MT4. This is the most popular fx platform.
As regards CrescoTrader, it is advertised as an advanced platform, equipped with everything a trader needs. Sadly, we could not test it in order to share our personal experience.
– Low trading cost
According to the information on its website, spreads offered by CrescoFX are typically below 1 pip on majors. We treid out the broker’s demo MT4 and indeed found the spread on EUR/USD floating around 0.7 pips, which is a great pricing. Besides, no commission apply.
As such spreads are really high, we suppose that in live trading environment they are offered exclusively to high-volume traders. If you with to trade with even better spreads with no volume requirements and no minimum deposit required, check out what leading CFD and spread-betting provider IG has to offer.
– High leverage levels
The leverage provided by CrescoFX is not mentioned on its website. Nonetheless, when we tested its MT4, we found the maximum leverage level is 1:500. Such ratio is pretty high, yet a number of brokers offer similar or higher leverage levels.
– High initial investment required
CrescoFX requires $1000 from its clients in order to open an account. Such initial deposit required is pretty high, as most brokers require something in the $100-$250 range as a start. By comparison, you can open an account with IG by investing just $1, as this broker has set no minimum initial deposit requirement.
– Announced trading conditions differ from the ones on demo MT4
Indeed, the manner in which CrescoFX has outlined the trading conditions for the different account types it offers is a bit odd. It is possible that we didn’t get it right. When going through the broker’s website we got the impression that volume-based commission fees apply to each and every CrescoFX account type.
Founded in 2011 by Derek Mayne in Malta, CrescoFX offers more than 30 currency pairs and precious metals for trade on two trading platforms. Its trading costs appear attractively low, however we spotted som inconcistencies between the announced trading conditions and those on its demo MT4.
CrescoFX’s main advantage is the solid regulation. First, it operated ion the basis of a category II dealer license, issued by the Maltese Financial Supervisory Authority (MFSA). Although such a license allows brokerages to operate throughout the EU, UK included, CrescoFX decided to make a step further. It set up a UK entity, Cresco Capital Markets (UK) Limited, and in 2016, it got a license from UK’s FCA.
FCA regulation involves strict rules on client account segregation, minimum capital adequacy, transaction reporting, AML and KYC, and many more. Those brokers who dare not to observe them have to pay salty fines. From a trader’s point of view, FCA license means security, and more specifically – coverage by the Financial Services Compensation Scheme (FSCS). If a FCA-regulated entity becomes insolvent, the FSCS may compensate up to GBP 50 000 per client.
In addition, the compoany has another FCA-regulated unit CrescoCap, which provides investment solutions and advice to institutional and sophisticated professional investors.
CrescoFX Review Conclusion
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