Kawase Forex Review
Kawase offers two account types: Standard and Active. The good thing about the Standard account is that there is no minimum initial deposit required. The active account, on the other hand, is intended for large-volume traders and offers lower commission fees, as well as institutional -grade training package with a number of extra features.
Additionally, this broker is suitable for clients who don’t want to earn interest for religious reasons, as it allows swap-free (Islamic) accounts. Besides, Kawase provides demo accounts with unlimited duration with the same conditions as the Active Account), while most brokers offer one-month free practice accounts.
Kawase has been established in 2011 by TOPFX Ltd. as an Institutional Prime Brokerage. It is headquartered in Cyprus and now provides its services to European, Asian and African traders. Currently, Kawase offers more than 3000 instruments to trade, including forex, stocks, indices, CFDs, precious metals, oil through its STP platform cTrader.
Security of Funds
Kawase is operated by TOPFX Ltd. – a company, regulated by the Cyprus Securities Exchange Commission (CySEC), applying strict requirements to financial services providers. One of the most important rules CySEC-regulated companies must adhere to is the minimum capital requirement of €730 000 in order to perform their business activities legitimately and US-based ones are required to possess $20 million.
Client money are kept separately from the company’s operational funds in segregated accounts with triple A banks such as Barclays and Societe Generale.
As regards the security Kawase’s client funds, we would also like to mention that CySec-regulated brokers are members of the Investor Compensation Fund, which secures the claims of the covered clients to a maximum of 20,000 EUR each. Similar compensation schemes are applied in most jurisdictions: that FCA-regulated companies in the UK are under the Financial Services Compensation Scheme (FSCS), which protects consumers up to £50,000 per person.
Furthermore, all transactions on Kawase’s platform are fully encrypted.
Minimum Initial Deposit
There is no minimum initial deposit requirement set toKawase’s clients, however the brokerage recommends traders to start with $100. This is quite an attractive offer. In comparison, Exness, another CySEC-regulated broker, requires just $1 as initial deposit and FXTM -$100. Higher minimum initial deposits required prevent small players from trading.
Spreads & Commission
As regards spreads, this broker offers raw variable spreads, the average one being 0.5 pips on EUR/USD and Standard account holders are charged with a commission of $3.5 per standard lot, so trading cost per lot for this pair is around 1,3 pips, which is average for the forex market. Active account holders, on the other hand, are offered dynamic commission, depending on their trading volumes:
To cut it short, the more an investor trades, the lower the broker’s commissions will be.
For purposes of comparison, FxPro offers average spreads as low as 0.4 pips on the EUR/USD for its cTrader accounts, charged $4.5 per standard lot.
As for the leverage, the default one of live account is 1:200, which can be expanded to 1:500 via contacting the support team. While leverage levels of 1:100 and 1:200 are considered average, 1:500 is relatively high. Other Cyprus based brokers, however, offer even higher maximum leverage levels: Exness – up to 1:2000; FXTM – 1:1000. Traders should be mindful, for higher leverage levels mean higher potential profits, but also involve higher risk. That is why many jurisdictions apply leverage limitations – 1:50 in US, 1:25 in Japan.
This Forex broker utilizes a unique version of the cTrader platform, which nowadays is considered one of the most popular Forex trading platforms. What is more, the platform is crafted specially for Kawase with implemented cAlgo features in it and is available right in your browser. The platform is also available for all traders that have smartphones and tablets.
Kawase’s customized cTrader platform. Click to enlarge.
What is more, Kawase will have a downloadable version of their platform soon
Kawase recently upgraded their customer support services and now offer the following contact options: whatsapp, Facebook, Skype, Telegram, Wechat, Hangouts, Email, Live Chat.
Clients may use a wide range of payment methods and processors, such as credit cards, bank transfers, Neteller, Skrill, Яндекс, QiWI, WebMoney, moneta.ru, BankWire, UnionPay.
Kawase Forex Review Conclusion
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