Tier1FX offers its clients a choice of two trading accounts, depending on the manner the broker gets compensated for its services: Spread Markup or Raw Commission. Both accounts offer pure STP execution with variable spreads, leverage up to 1:200, and the option to trade in micro lots. Spread Markup account holders get wider spreads without commission on the MT4, while Raw Commission account holders are able to use spreads as low as 0.1 pips, but a standard commission of $4.40 or 4.60 commission per standard lot (per side), depending on whether they have selected MT4 of JForex.
PAMM solutions are also available with this broker.
The Company. Security of Funds
Hogg Capital Investments Ltd.
Online since 2015 Tier1FX is a STP/DMA agency model broker that offers trading in more than 45 currency pairs and various CFDs through both the MetaTrader 4 and JFroex (Dukascopy Bank’s trading platform).
Hogg Capital Investments Ltd., doing business as Tier1FX, holds a Category II investment services license issued by the Malta Financial Services Authority (The MFSA), which allows them to provide any investment service and to hold or control clients’ money or customers’ assets, but not to operate a multilateral trading facility or deal for their own account or underwrite or place instruments on a firm commitment basis.
MFSA is the single regulator for financial services in Malta and it applies certain rules and requirements to license holders. Apart from the minimum capital requirement of €730,000, which should be satisfied on an ongoing basis, license holders are expected to have local presence, to put in place adequate internal controls for their day-to-day operations, to maintain a risk management system, regularly report to MFSA, among other requirements.
License holders are also required to abide by ESMA guidelines on the sale of complex products where online forex is specifically mentioned as a complex product. Malta has been a member of the European Union since 1st May 2004. So, every MFSA-regulated investment company is also MiFID compliant and therefore entitled to offer cross-border services within the EU under the MiFID Passporting Regime.
In addition, every license holder in possession of a Category 2 or Category 3 license must participate and contribute to the Investor Compensation Scheme – a rescue fund for customers of failed investment firms which are licensed by MFSA.
Minimum Initial Deposit
In order to open an account with Tier1FX, traders have to invest a minimum of $200. Such minimum initial amount is common; however, many other European brokers require less. For instance, FCA-regulated IG has set no minimum amount, so one may open an account with just $1.
Spreads & Commissions
In fact, trading costs on both account types offered by Tier1FX are similar: including tight spread from 0.1 pips on EUR/USD, plus either a commission of around $9, or a markup of 0.9 pips So basically the cost of trading per standard lot for this pair is 1 pips as a minimum, which is average for the forex market.
By comparison comparison, IG charges $5 per lot and offers average spreads as low as 0.2 pips on the EUR/USD on its DMA accounts. For more information, you may look up real-time spreads of 15 leading brokers here.
What is more, high-volume traders may benefit from attractive discounts with Tier1FX: Spread mark-up account holders can use spreads as low as 0.5 pips, while Raw Commission account holders can get a commission of $2 per lot per side or even lower on the JForex platform.
Leverage on T1 trading accounts is determined by account equity and the maximum level offered is 1:200, which is considered average. Although we would not advise traders to operate with higher leverage levels because of the greater risk of heavy loss involved, some small traders may not be able to score big profits with low initial deposits.
This broker supports the renown MetaTrader 4 (MT4), and JForex. Both platforms come in desktop, web and mobile versions.
MT4 is an internationally acclaimed trading terminal, offering a full spectrum of trading tools and resources: a number of built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options. Traders can download ready-made or create their own EAs and let the program do all the work.
JForex, on the other hand, offers unique trading environment, combined with one of the largest ECN liquidity networks – the Swiss Foreign Exchange Marketplace (SWFX). The platform supports wide range of trading orders, algorithmic trading and allows full slippage control.
Methods of Payment
The following payment methods are available to Tier1FX clients: credit/debit cards, bank wire transfer, and the popular e-wallet payment system Neteller.
A fixed fee of USD 20 / 15 EUR / JPY 2,000 applies per withdrawal and will be charged on top of the requested withdrawal amount.
Tier1FX is a pure STP/DMA forex and CFD broker regulated in Malta It supports both MT4 and JForex platforms and offers competitive trading conditions.
Tier1FX Review Conclusion
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