Synergy FX Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this SynergyFX Review.
Synergy FX Review
Synergy FX offers its clients a choice of two live account types: Standard commission-free one, and ECN account which provides tighter spreads, but also involves a small commission. It uses the ever popular FX trading platform MetaTrader4.
Micro lots are available for trade on both account types and, of course, the broker also provides free Demo accounts for unlimited duration, which are always appreciated by inexperienced traders.
What is more, Multi Account Manager solutions, such as PAMM/MAM accounts are also available with this broker.
The Company. Security of Funds
Founded in 2011, Synergy FX is a straight through processing (STP) forex broker, based in in Sydney, Australia, whose clients include individual traders, money managers and institutional customers. In 2015 it was awarded best Forex Broker in Australia by GFMR.
The company behind the Synergy FX brand is Synergy Financial Markets Pty Ltd., which holds an Australian Financial Services License and is regulated by the Australian Securities and Investment Commission (ASIC).
ASIC requires licensed financial services providers to meet strict capital requirements and to implement certain internal procedures including risk management, staff training, accounting and audits. Australian forex brokers must hold at least $ 1 million in order to prove their good financial standing. In comparison, UK’s FCA and Cyprus’ CySEC require forex brokers to possess at least 730 000 EUR.
In addition, all client funds must be held in fully segregated client trust accounts and Synergy FX says on its website that its clients` funds are kept at the Commonwealth Bank of Australia (CBA).
Unlike many EU-based brokers, however, Australian ones are not covered by any compensation scheme. FCA-regulated brokerages, for example, fall under Financial Services Compensation Scheme (FSCS), which protects consumers up to £50,000 per person per company.
What is more, Synergy Financial Markets Pty Ltd. Is a member of the Financial Ombudsman Service (FOS), an approved Australian external dispute resolution scheme that can deal with complaints about all of the financial services that Synergy provides under its AFSL.
Minimum Initial Deposit
Traders are required to deposit $500 in order to open an account with Synergy FX, which is a bit high initial amount and may prevent some small trader from sighing up with this broker. Most brokers require $100 – $200 as a start, for instance, AxiTrader (holding both ASIC and FCA license) demands $200 from its clients to open an account.
Average Spreads & Commissions
As Synergy FX is a STP/ECN broker, it offers variable spreads, which are quite competitive. Spreads on its commission-free account start from 0.5 pips on EUR/USD, and the ones on the Pure ECN accounts are averaged 0.5 pips on EUR/USD and include a commission of $5.5 round turn. So average trading costs for the EUR/USD pair are around 1 pips or a little over 1 pips for both account types.
In comparison, AxiTrader (holding licenses from both ASIC and FCA) provides spreads starting from 0.6 pips on EUR/USD on its Standard commission free-account and ECN spreads starting from 0.1 pips involving a commission of $7 per standard lot round-turn.
For more information, you may check out and compare real-time spreads of 15 leading brokers here.
The default leverage for Clients of Synergy FX is 100:1 for both accounts, which is quite low for the forex market. The maximum leverage level, however is high, reaching 1:500.
Most brokers usually offer leverage of up to 1:200 or 1:400, for instance Axi Trader, as well as global broker FXCM (also holding an ASIC license) both provide leverage up to 1:400. You should keep in mind that higher leverage involves higher risk of losses in excess of initial investments.
Synergy FX supports the standard forex trading platform MetaTrader 4 (MT4), available to its clients as Mac, iPhone/iPad and Android versions. MT4 provides a full spectrum of trading tools and resources: a number of built-in technical indicators, advanced charting package, wide range of Expert Advisers (EAs) and extensive back-testing environment. By using EAs traders may sit back, while the software does all the work, as Expert Advisers allow full automatization of trades.
If you are running EAs, it is vital that your platform is connected to our servers 24 hours a day. The best solution in this case is VPS and Synergy FX provides such. With a VPS, your trading programs aren’t running on your home computer. This means you can turn off your PC without having to worry about EAs: they’ll just keep running on your VPS.
In addition, Synergy FX provides online social environment where you can follow and copy the successful trading strategies of others within the trading community, in real time. It is called Social Web Trader and is aligned with the MT4 platform, so trades are automatically synced to ensure no delay in execution.
At the time of writing this review, this broker isn`t running any bonus/rebates programs, but there are two ongoing competitions: monthly demo trading competition, with $1000 cash price in a live account, and annual IB competition. This year`s winner in the IB competition will get $1000 reward. The winning IB each year is determined by the amount of total net deposits achieved during the competition.
Furthermore, Synergy FX appears to be a broker focusing on training and education of its clients, offering educational videos, webinars, free trading signals, as well as forex encyclopedia and e-book.
Methods of Payment
SynergyFX offers its clients the following deposit/withdrawal methods: bank transfer, and with all major credit and debit cards. Popular e-wallet payments like Skrill & Neteller are not supported.
Depending on the depositing method, clients may use the following currencies: AUD, USD, GBP, and EUR.
Synergy FX is a reliable Australian STP broker, offering competitive conditions for trading in around 30 currency pairs, precious metals and crude oil on MT4.
Instead of the forex broker you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
Synergy FX Review Conclusion
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