ForexMart Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this ForexMart Review.
ForexMart Review
ForexMart offers its clients a choice of two account types, except the demo one: ForexMart Standard and ForexMart Zero Spread. The main difference between the two accounts is that the Standard one is commission-free and offers fixed spread of 2 pips on majors, while the Zero Spread, as it name suggests, provides spreads as low as 0 pips on majors, and instead is charged a 2 pip commission fee.
The Company
ForexMart is a trading name of Tradomart Ltd. (previously Fxco Trading Ltd.), a Cypriot Investment Firm, regulated by CySEC. The company offers trading in Forex, CFDs on shares and spot metals through the most popular trading platform MetaTrader4.
Security of Funds
Tradomart Ltd., conducting its brokerage business as ForexMart, is duly licensed and regulated by the Cyprus Securities Exchange (CySEC, license number 266/15).
Furthermore, Tradomart Ltd. has a cross-border CySEC license, permitting investment and ancillary services under the European Financial Instruments Directive (MiFID) across the European Economic Area.
CySEC applies certain rules to investment brokerage companies, one of the most important of which is the minimum capital requirement. Cypriot financial watchdog requires forex brokers to hold at least €1,000,000 in order to conduct their business activities legitimately. Regulation of financial services providers usually involves such a requirement, therefore UK brokers must possess a minimum of 730 000 EUR, Australian ones are obliged to hold at least $1,000,000 and US-based brokerage firms – $20 million.
What is more, an additional guarantee to clients’ funds is provided, as all CySEC-regulated companies are members of the Investor Compensation Fund, which secures the claims of covered clients and provides them with compensation of up to 20,000 EUR per person, if the broker is unable to fulfill its obligations. Similar compensation schemes apply in the UK and FCA-regulated brokers fall under Financial Services Compensation Scheme, where the maximum compensation cover is £50,000 per person.
Trading Conditions
Minimum initial deposit
ForexMart demands just 1 USD/EUR/GBP from its clients to start with. Other Cyprus-regulated brokers require $500 (FxPro) or $50 (FXCM) and there are even such that require none (Exness).
Spreads & Commissions
ForexMart offers fixed spread amounting to 2 pips EUR/USD for its commission-free account. The other account provides spreads as low as 0.0 pips EUR/USD, but it involves a 2 pip commission fee. So, the spreads offered by this broker may be seem high, compared to the variable ones provided by others, however they are in line with fixed ones offered. Other CySEC-regulated companies offer similar fixed spreads: Exness, for example, offers spreads amounting to 2 pips on EUR/USD for its commission-free accounts; Plus500’s typical spreads on the EUR/USD also amount to 2 pips, and charges no commission.
Leverage
The maximum leverage offered by this broker is 1:1000, which is one of the highest levels in the industry. Other CySEC-regulated brokers like FxPro, for instance, offer leverage up to 1:500, and XM – up to 1:888. It is important to point out that high leverage levels can multiply a trader’s profits on a small deposit, but they may also lead to heavy losses. That is why most brokers include a risk warning for leverage products on their websites and some jurisdictions set leverage limitations (1:50 in the US and Turkey, 1:25 in Japan). More forex brokers offering leverage equal to or exceeding 1:500 can be views here.
It is useful to specify that leverage for trading gold and silver is 1:100 and the one for CFD trades is 1:20.
As regards trading accounts with more than $1000 balance leverage can be reduced from 1:1000 to 1:500.
Trading Platform
ForexMart offers its clients the popular MetaTrader 4. This platform is preferred by most traders, because it enables you to track up to four charts simultaneously, trade directly from the chart and is equipped with a number of technical indicators, extensive back-testing environment and Expert Advisors (EA). Here is a list of more forex brokers offering MT4 platform.
Bonuses
This broker offers a Welcome bonus on deposit amounting to 30%, as well as no deposit bonus of up to 150 USD, which cannot be combined with other kinds of bonuses. It is also worth mentioning that the maximum leverage for clients who received a no deposit bonus is 1:200.
Methods of Payment
The broker accepts customer deposits and allows withdrawals via Credit card (Visa/Mastercard) and the following e-wallet systems: Neteller, Skrill, PayPal, Paxum.
ForexMart is a CySEC regulated broker, offering trading in Forex, CFDs on shares and spot metals under reasonable conditions.
Instead of the forex broker you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
ForexMart Review Conclusion
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