KlimexCM Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this KlimexCM Review.
Klimex Capital Markets (KlimexCM) is an Australia-based forex broker, which offers trading in currencies, indices and commodities. There are two account types, one being STP and the other one – ECN.The company is a representative of VantageFX and appears to be targeting the Chinese market.
The Company. Security of Funds
Company Country Regulation
Klimex Capital Markets Pty Ltd Australia ASIC
KlimexCM is an Australian company, which is registered with the local Australian Securities and Investment Commission (ASIC). As you may know, a broker’s regulation is key when determining its credibility. Financial regulatory agencies are institutions which impose certain rules, with the chief aim of protecting clients’ interests and creating more competitive and fair investment environment.
Australia is one of South-East Asia’s financial centers and has attracted forex brokers for quite some time. The local watchdog (ASIC) is strict (unlike that in some off-shore zones) and clients can feel safe for their funds when dealing with brokers under its supervision. For instance, a company is required to have minimum holdings of AUD 1 million, as a sign of good will, before it can operate.
Another key rule is that client’s funds must be kept in a “segregated account”, meaning the broker can’t spend them for its own needs.
Minimum Initial Deposit
KlimexCM’s minimum initial deposit is set at $100, which is a reasonable amount. This is a suitable number for testing their services, although creating a reasonable trading plan with such a low investment will be tricky. In order to succeed as a trader one must be willing to trade with adequate capital, among other things.
Average spreads & Commissions
KlimexCM offers an average spread of 1.8 pips for EUR/USD, for the standard account. We tested their claims in the most liquid time of the day, and the spread was around 1.4 – 1.7 pips, which is in line with their claim. Furthermore, it is also close to the industry averages, with most brokers offering spreads around 1.0-1.5 pips for this pair. You may look up a comparison of real-time spreads of 15 leading brokers here.
The Raw Account spreads are lower, with the EUR/USD one starting at 0.6 pips. Keep in mind a commission of $6 per lot is also applied. This would bring the total cost to a minimum of 1.2 pips, which is slightly better than their standard offering.
KlimexCM offers a leverage ratio of 1:500. This is a more than sufficient level, which is in line with the current industry practices, although it is a bit too high in our opinion. Other brokers also offer 1:500 or even higher levels.
As you may know, trading with higher leverage is more risky. This includes the possibility of losses exceeding your initial investment. Be sure to completely understands the risks involved with margin trading before you participate in it.
KlimexCM offers trading through the MetaTrader 4 (MT4) platform. It is a solid choice for currency traders as it feels both simple and comprehensive. Many users enjoy the automated trading environment, where systems (Expert Advisors) can easily be implemented.
The platform’s mobile versions for iOS and Android is also decent, but we would recommend using it only for quick updates and position management. A desktop is still preferable for full-fledged analysis. That being said, one of the disadvantages of the platform is the lack of detachable elements, which prevents multiple monitor support.
Methods of Payment
KlimexCM offers a lot of payment methods. They include: Bank Transfer, Credit/Debit Card, China Union Pay, Neteller and Scrill. Keep in mind Bank transfers can take up to several business days days, while other methods are instant (at least when it comes to deposits).
KlimexCM is an ASIC regulated broker. This immediately adds to their credibility. The company is a representative of VantageFX, which is also a reputable company. Spreads are slightly higher than what you would expect. That being said the prime broker is a stable company, which is always a good sign.
Instead of the forex broker you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
KlimexCM Review Conclusion
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