EuropeFX

The Company. Security of Funds

EuropeFX is an online brand that is owned by Maxiflex Global Investments Corp Ltd. The company is located in Cyprus and is subject to the supervision by the Cyprus Securities and Exchange Commissuion (CySEC). This gives them a great deal of trust. The company is also affiliated with several other brands. A few of them are not operating, the only one available as of the writing this review is the Octalios brand..

For those who might not have a good understanding of the financial industry, regulation is vital. Different countries have institutions that specialize in overseeing the sector of financial services.

Although the world of financial markets may not be the first thing that comes to mind when you hear of Cyprus but Cyprus is home to a variety of forex brokers as well as binary options companies. This is because of its EU membership and other aspects. The mentioned CySEC regulates a variety of firms and enforces its decisions on them. From a traders point of perspective, two rules are crucial:

The first and most important thing is that clients’ funds must be stored in so known as segregated accounts. This means that a broker cannot simply take your money . there are certain procedures in the event that they touch the balance on your account. Another important rule is that there must be compensation schemes. This system works in a manner similar to an insurance company in that every broker participating has to pay a portion of their earnings into an account called a collective fund (much similar to the premiums from insurance). This money is then used as collateral in the event that one of these firms goes bankruptcy. If you’re trading with an CySEC licensed broker your account is protected from insolvency or insolvent, up to EUR 200.000.

Trading Conditions

Minimum Initial Deposit

EuropeFX has established a minimum deposit of EUR200. Although this might not sound to be a lot to many however, there are brokers who are willing to take on smaller customers. For instance they are the FCA-regulated market leaders of IG don’t require a minimum deposit and one can create an account for as little as they want.

In this case it is not necessary to consider the minimum deposit amount as the most important factor when looking at forex brokers. Their status as a regulatory entity is the most significant element.

Average spreads and Commissions

The exact spreads offered by EuropeFX are somewhat of an unanswered question. Although the website of the company claims that the spreads are between 1.2 between 1.2 and 1.4 Pips, our tests showed an entirely different picture. The spreads were smaller, with spreads that ranged from 0.1 to 0.4 pip on EUR/USD however, there was a $20 commission per lot, on the top. The commission is two pips.

The spreads offered by this company appear comparable to the current conditions of the market but the conditions on the site aren’t. We aren’t sure what the spreads customers will get in real life however the fact that there’s a huge different between the two appears not trustworthy. If you’re looking to stay up-to-date with the most recent offers offered from the top brokers in the world take a look at our live rate comparison site.

Leverage

EuropeFX offers an maximum leverage ratio in the range of 1:1200. This is a very high ratio that is able to serve trading strategies that require some form in risk control. It is possible to believe that this isn’t the case in the case of offerings of other brokers that offer 1:500 or more..

Remember, higher leverage does not equal better trading conditions. It simply allows you to take on greater risk, while using similar amounts of capital. While this might be appealing to those who are looking for risk, be aware that over-leveraging is one of the primary causes of losing funds on markets for forex.

Trading Platforms

EuropeFX offers its services through the MetaTrader4 (MT4). It is currently the technology that all brokers opt to use. It’s most likely to be less expensive and more secure than developing an entirely new system.

One of the major advantages of trading using MT4 is the excellent charting interface. This is further emphasized by the wide array of technical indicators that can be customized through the MQL marketplace, which is an independent store for brokers which allows users to try buy, sell or lease new tools. Apart from the latest indicators for trading, automated tools are also available. They are more commonly referred to in the field of Expert Advisors which you are able to read our reviews of the ones that are commercially available here..

Here’s a glimpse of the MT4 platform as supplied by EuropeFX (click to zoom in):

Methods of Payment

The payment options at EuropeFX comprise Bank Transfer, Credit/Debit Card and a few e-wallets specifically WebMoney, Yandex and iDeal. Although the list contains a variety of online options but they’re targeted primarily at Russia. Russian market.

Conclusion

EuropeFX is an CySEC approved forex broker. The most distinctive feature they possess is the confusion over the trading conditions , and more specifically, the spread. This could be a temporary error,