FXNET Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this FXNET Review.
FxNET offers three basic forex trading account types, based on the initial deposit amount. All of them offer leverage up to 1:500, market execution, variable spreads and micro tradeable lots. The Standard & VIP accounts are commission-free, while the Platinum one offers raw spreads and involves a small commission.
Besides, the brokerage provides Islamic accounts that allow swap-free trading in compliance with the Sharia Law, which means that such account holders can trade without being charged overnight fees.
The Company. Security of Funds
FxNET is a global, fully licensed STP (Straight Through Processing) broker offering trading in over 40 currency pairs, CFDs on shares, bonds, commodities, and equity Indices on the MT4 platform. Its Liquidity Pool includes some of the best, most credible and widely known banks in the world.
FxNET is the brand name of FxNET Ltd., a company authorized and regulated by the Cyprus Securities Exchange Commission (CySEC), a regulator known for its efficient work. CySEC requires Cyprus Investment Firms to hold at least €730 000 as a proof of financial stability (the same amount is also required from UK-based brokerages by FCA); in addition, forex brokers must keep customer funds in segregated accounts, and regularly report to the commission.
As far as safety goes, FxNet has done its best to ensure high levels of client protection. The broker is also a member of the Investment Compensation Fund (ICF), which means that if anything goes wrong, any customer can get a compensation of up to €20,000. As per regulatory requirements, FxNet LTD fully protects its Clients from negative balances.Thanks to the negative balance protection provided, the risk associated with trading with this broker is limited to the equity gathered on client’s account.
Additionally, every CySEC- regulated investment company is also MiFID compliant and therefore entitled to offer cross-border services within the EU. Nonetheless, FxNET is also registered with UK’s FCA, Germany’s BaFin, Netherlands’ AFM and others EU regulators.
Minimum Initial Deposit
In order to open an account with FxNET, traders have to invest a at least $50. Such minimum initial amount is quite low, as most brokers require around $200 as a start. Of course, there are brokerages which demand less – for example, one may open an account with leading Cypriot brokerage FXTM with just $5.
Spreads & Commissions
As a true STP broker, FxNET provides only variable spreads. Unfortunately, the ones offered on the Standard and VIP accounts are quite wide – starting out at 2.3 and 1.9 pips for the EUR/USD pair, respectively. The best spreads with this broker are offered on the Platinum (ECN account) – starting out at zero for the EUR/USD, but if we add the commission applicable of $12 per lot, the cost of trading appears to be average – within the range of 1.0 – 1.5 pips.
By comparison, FXTM’s typical ECN spreads amount to 0.7 pips and involve a commission of $4 per lot round turn. For more information, you may look up real-time spreads of 15 leading brokers here.
The maximum leverage level offered by FxNET is 1:500, however the default leverage is 1:50. Client’s may request a higher leverage ratio, but the actual leverage assigned to the account depends on client’s knowledge, previous experience in trading and country of residence. Maximum leverage available for Polish citizens is 1:100.
This broker offers its clients the internationally acclaimed trading terminal MetaTrader4 (MT4), available in all forms and shapes: desktop, web based version and mobile apps.
MT4 offers a full spectrum of trading tools and resources: more than 50 built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options for them. Traders can download ready-made or create their own EAs and let the program do all the work.
Besides, FxNET provides VPS hosting so that it clients can run their EAs 24/7, even if their PCs are turned off.
Methods of Payment
FxNET offers an array of payment methods: credit/debit cards (Visa, MasterCard, Maestro), bank wire transfer and e-wallet payment systems, such as Skrill, Neteller, China UnionPay, Qiwi, WebMoney, FastBank, Przelewy24.
FxNET is a well-regulated STP broker offering trading in forex a number of CFDs on the popular MT4 platform. Its offerings seem quite reasonable, but we find the spreads on commission-free accounts too high.
The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
FXNET Review Conclusion
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