While most brokers offer a couple to three account levels, Solforex’s customers can sign up for one of five available account types. They can be arranged in two groups: commission-free ones (Mini, Islamic and STP) and ECN accounts on which is charged commission (Standard & Premium), offering tight interbank spreads. Micro lots, usually used by newbies, are available for trade on all account types.
As regards swap-free (Islamic) accounts, swaps are charged for positions maintained for 10 or more days.
The Company. Security of Funds
Solforex is a No-Dealing-Desk (NDD) brokerage company offering online trading services in more than 55 financial instruments, including forex, gold, silver & crude oil.
Solforex is the trading name of Sol Market Limited Partnership, a Registered Financial Services Provider under the New Zealand’s Financial Markets Conduct Act 2013 and as such is regulated by the Financial Markets Authority (FMA).
FMA-regulated companies or “derivatives issuers” have to comply with a certain set of rules, for instance, retail client funds must be in segregated accounts, separated from their operational ones. However, a minimum capital requirement has not yet been introduced. Legislative amendments are to be adopted later this year, requiring Forex brokers to hold net tangible assets amounting to at least $1,000,000. This will be a step further in tightening up the NZ regime, bringing it in line with those in the United Kingdom and Australia, where the minimum capital requirement is 730 000 EUR and 1 000 000 USD respectively.
Furthermore, Sol Market LP is a member of the NZ’s Financial Dispute Resolution Scheme (FDRS, an independent dispute resolution scheme, awarding up to $200,000 in compensation to consumers, if the broker’s default is evidenced.
Minimum Initial Deposit
The minimum initial deposit required by Solforex is low, amounting to $50. In comparison, Key To Markets demands $100, and CMC Markets, a leading NZ-based brokerage, does not require any minimum deposit.
Commission & Spreads
Solforex offers floating spreads, which vary by account type. Generally speaking, the commission-free account types offers comparatively high spreads starting from 1.3 of 1.5 pips on EUR/USD, while Standard and Premium account holders may trade within raw spreads as low as 0.0 on EUR/USD, but are charged commission fee of $11,5 per lot on the Standard ECN account. So, trading costs on this account for the EUR/USD pair are minimum 1.2 pips, which is average.
In comparison, Key To Markets offers spreads starting from 1.0 pips on EUR/USD on its commission-free account, and Pro account holders may trade with spreads as low as 0.0 pips on EUR/USD with a commission of $8.
For further information, you may check out real-time spreads of 15 leading brokers here.
The maximum leverage level offered by Solforex is 1:400, which is comparatively high, however most brokers usually offer similar or higher leverage levels. Leading NZ brokerage CMC Markets, for example, provides leverage up to 1:500. A list of more brokers offering leverage equal to or exceeding 1:500 may be viewed here.
Traders, however, should be mindful of high leverage, for it may lead to substantial losses exceeding their initial investments.
Like most FX brokers, Solforex supports the industry standard, MetaTrader 4 (MT4), coming in desktop and mobile versions.
MT4 the preferred choice of most experienced traders due to its innovative, on the go trading capabilities, variety of built-in indicators, advanced charting and analysis tools, automated trade options with Expert Advisor strategies (EA) and extensive back-testing environment. Here is a list of more forex brokers offering MT4 platform.
What is more, this broker offers advanced auto trading options with AutoTrade, the mirror trading platform by online analysis expert Myfxbook.
At the time of writing this review, Solforex runs he following promotions:
– 20% weekly recovery of losses up to $1000 (available to Mini account holders);
– 100% on deposit bonus up to a maximum of $3000 (available to Standard, STP and Premium account holders);
– Cashback rebates – $2 rebate per every lot traded (inclusive of both losing and winning trades);
– 2.5% annual interest.
Methods of Payment
Solforex’ clients are offered various modes of payment: Credit cards (Visa and MasterCard accepted), bank wire, NETELLER, Skrill, WebMoney, as well as Solforex Prepaid Visa debit card. The broker says Withdrawal requests are processed within 1 business day.
Accepted currencies: USD, EUR, GBP, JPY, NZD.
Solforex is a NZ-regulated NDD broker that provides trading in forex, precious metals and commodities the popular MT4 under reasonable terms and conditions.
Solforex Review Conclusion
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