FOREXer Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this FOREXer Review.
There are 2 basic live account types with FOREXer – Limited real and real accounts. Both accounts types offer micro tradeable lots, instant execution, leverage up to 1:500 and 2.5 pips spreads. The difference between the two is that the maximum account balance of the Limited Real account is $ 2,000, so losses are also limited to this amount.
In addition, FOREXer provides Managed accounts with the initial deposit of USD 100,000.
Please, note that scalping is allowed with this broker, but only with leverage up to 1:10.
The Company. Security of Funds
FOREXer was initially established in 2004 in Wilmington (Delaware), USA. Back then, it was called NTWO Capital Markets. The company has established several offices around the globe: in Zurich, Switzerland, Dubai and New Zealand. FOREXer New Zealand allows only trading in currency pairs, while FOREXer USA also offers precious metals, energy and agricultural products.
While FOREXer USA is not regulated by the CFTC or the NFA, the broker’s unit in New Zealand, FOREXER LIMITED, is a Registered Financial Services Provider under the New Zealand’s Financial Markets Conduct Act 2013 and as such it is regulated by the Financial Markets Authority (FMA).
Forex brokers regulated in New Zealand must comply with certain rules and procedures. There have been proposed some legislative amendments lately, requiring forex brokers to hold net tangible assets amounting to at least $1,000,000, which is a step further in tightening up the NZ regime. Nonetheless, a minimum capital requirement for brokerage companies has not yet been introduced.
Minimum Initial Deposit
The minimum initial deposit required by FOREXer is $200, which is average. In comparison, another NZ-based STP brokerage, Circle Markets, require $1000 to start with, however its clients get access to a pure STP environment.
Commission & Spreads
According to the information on its website, FOREXer offers variable spreads, averaged 2.5 pips on EUR/USD, however, when we tried out the broker`s demo account, we found out that the spreads are in fact fixed at 2.5 pips on EUR/USD. Either way, such spreads are considered high for the forex market, despite the fact that no commissions apply.
In comparison, Circle Markets’ spreads start from 0.7 pips on EUR/USD on its commission-free accounts. For further information, you may check out and compare real-time spreads of 15 leading brokers here.
The maximum leverage level offered by FOREXer is 1:500, which is a high ratio. Nonetheless, a number of brokers offer leverage up to 1:500 or higher. FOREXer, however, recommends leverage up to 1:10 for better risk management.
Leverage is a powerful tool that allows traders to operate with large amounts of money by depositing rather small deposits. Yet, there is another side to this story: the higher the leverage level, the greater the risk. That is why some jurisdictions cap leverage to certain levels. In USA, for example, the maximum allowed leverage is 1:50. UK’s FCA recently proposed the same maximum leverage ratios.
FOREXer offers its clients its version of MetaTrader 5 (MT5), called FOREXer 5. It is available as desktop and mobile versions.
The main advantage of MT5 to other trading platforms is that it allows the execution of orders in several financial markets and stock exchanges through a single trading account. The platform features advanced charting package, trading and analysis tools, alerts, signals, and customizable indicators. Besides, MetaQuites has recently made many significant upgrades to it, such as adding a tool for analyzing exchange markets, news management improvement, and most importantly the hedging feature.
Methods of Payment
Currently FOREXer’ clients are able to make payments only via bank wire, however the broker promises to add more options soon.
This broker says it does not charge any fees on deposits or withdrawals.
Despite the fact that FOREXer accepts US clients without being licensed in the US, it looks like a reliable broker: it has 12 years of experience and a NZ-regulated unit. However, its offering seems a bit limited, as there are no CFDs on indices and shares available for trade. What is more, its spreads are a bit high and its seems to us that FOREXer utilizes a Market Maker model.
Instead of the forex broker you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
FOREXer Review Conclusion
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