USGFX Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this USGFX Review.
Union Standard Group offers its clients a choice of four basic live account types. All of them, are commission-free and offer micro lots for trade.
In addition, the broker also provides free Demo accounts, which are always appreciated by inexperienced traders.
The Company. Security of Funds
Union Standard Group (USGFX) is an Australian forex brokerage brand. The company behind the brand is Union Standard International Group Pty Ltd., headquartered in Sydney, which has a global reach, also maintaining offices in Shanghai, Hong Kong and Auckland.
Union Standard International Group Pty Ltd. holds an Australian Financial Services License and regulated by the Australian Securities and Investment Commission (ASIC).
ASIC requires licensed companies to meet certain requirements and to comply with a number of rules. Clients’ money is to be kept in segregated trust accounts. As for the minimum capital requirement, forex brokers must hold at least $1 million in order to prove their good financial standing and operate legitimately.
Unlike other European brokers (Cyprus and UK-based ones), however, Australian ones are not covered by any compensation scheme. Despite the ASIC regulation and supervision of Australian brokers, one should be aware of the risks of trading Margin FX and CFDs. Returns and gains are not guaranteed. ASIC, the Australian Government nor any other person guarantees any funds in your account.
USGFX is also registered as a New Zealand Financial Service Providers (FSP) and as such, regulated by NZ Financial Markets Authority.
According to USGFX’s website, the broker provides its clients with Negative Balance Protection.
Minimum Initial Deposit
Traders are required to deposit $100 in order to open an account with Union Standard Group, which is an average initial amount. In comparison, Plus500 also requires $100 and XM (holding, among others, also an ASIC license) demands just $5 from its clients as a start.
Average Spreads & Commissions
USGFX offers floating spreads, varying by account category, however none of them are low enough to be competitive, despite the fact that the broker doesn’t charge commissions. Spreads on Cent and Mini account types, accessible to small investors (due to the $100 initial deposit), offer spreads starting from 2.8 pips on EUR/USD. VIP and ECN PRO account holders (required to invest at least $50 000) are offered spreads from 1.5 pips for the EUR/USD pair, which may not even be classified as average for the forex market.
In comparison, global broker FXCM (holding, among others, also an ASIC license) offers variable spreads from 1.4 pips on EUR/USD on its commission-free Mini Account (you need just $50 to open one). For further information, you may look up real time spreads of 15 leading brokers here.
Clients of Union Standard Group use leverage ratios up to 1:500, which is considered high. Some jurisdictions cap leverage to significantly lower ratios than this (i.e. 1:50 in the US), because higher leverage involves higher risk of losses in excess of initial investments.
Most brokers usually offer leverage of up to 1:200 or 1:400, for instance FXCM, provides leverage up to 1:400. However, many other brokers provide leverage ratios equal to or exceeding 1:500.
This broker offers its clients various trading platforms and solutions: MetaTrader 4, WebTrader, and various social trading solutions.
Web Trader is a web-based trading platform that supports all modern browsers and syncs with your MT4 account in real time. It has customizable charting package with technical indicators, money management tools and allows for Forex & CFDs trading.
Like most FX brokers, USGFX supports the most widely used forex platform MetaTrader 4 (MT4). It is available as desktop and mobile versions. MT4 provides all the tools and resources a trader needs: a number of technical indicators, advanced charting package, a wide range of Expert Advisers (EAs) and extensive back-testing environment for them. By using EAs traders may sit back, while the software does all the work, as Expert Advisers allow full automatization of trades.
What is more, USGFX’s clients interested in social trading are offered advanced options with ZuluTrade and MyFXBook’s AutoTrade platform.
Besides, USGFX MetaTrader 4 MultiTerminal, allows traders to manage multiple MT4 accounts from one interface.
At the time of writing this review, the broker runs the following promotions:
– Welcome bonus of 5% for deposits up to $5000 and of 10% for deposits amounting to at least $5000, which can be withdrawn after trading 20% lots of the bonus amount;
– 50% on deposit bonus which can be turned to tradable cash if during a 2-month period from your deposit date, 14% trading volumes are reached;
– Refer a Friend bonus from $200 to $500, depending on the referred person first deposit amount.
Methods of Payment
USGFX offers its clients a variety of deposit/withdrawal methods: via credit card (Visa, MasterCard), bank wire, Neteller, Skrill, WebMoney, OK PAY, and FasaPay.
Clients may use the following currencies to fund their accounts: AUD, USD, GBP, and EUR.
Union Standard Group Is a well-regulated broker, offering trading in currency pairs and CFDs, however we find the spreads to be too high even on accounts, requiring as much as $50 000 initial deposit.
Instead of the forex broker you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
USGFX Review Conclusion
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