Beware! This is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Bogofinance.com is a financial services provider from based in Metn, Lebanon. In this review we will tell you 5 things you should know before trading with Bogofinance.
1. Will your money be safe at Bogofinance?
Regulation is key when it comes to choosing your broker. As a company based in Lebanon Bogofinance is regulated by the Central Bank of Lebanon (“Banque Du Liban BDL”). The country is not known to be an attractive point for shady brokers, like some off-shore destinations. The local watchdog requires brokers to have capital of at least 2,000,000,000 LBP (over $1,3 million) in order to operate.
Furthermore, in April 2017 Bogofinance received a license from the Cyprus Securities and Exchange Commission (CySEC). This move was most likely made in order to gain access to the EU market, which this regulation allows. For potential clients even more stability is assured, as the Cypriot regulator requires brokers to participate in a compensation scheme. This is a procedure, which guarantees clients accounts in case the broker goes bankrupt. In the case of CySEC the guaranteed amount is up to EUR 20,000 per account.
To sum it up, your money will be safe if you trade with Bogofinance.
2. Account types matter
Bogofinance offers tree account types – Classic, Executive and Premium. The company’s website does not state what qualifies each client to each account tyoe, but judging from our experience, it is most likely the size of their initial deposit.
The Classic account offers access to the full range of products they offer – Foxex, CFDs, ETFs, Futures and FX Forwards. All trading is on CFD products. No benefits, except the use of the broker are added.
The Executive account adds a personal account manager as well as access to exclusive market research. This includes an advanced stock screener, designed for non-professional investors.
Premium account holders gain the benefits of Executive ones plus a more personal approach and better trading conditions.
3. What are the trading conditions
Trading conditions are not exclusively mentioned on the website, which is a mistake in our opinion. Classic accounts offer a fixed spreads starting at 3 pips for EUR/USD. This is above the industry average.
The other account types should offer better conditions, especially the Executive one.
4. Wealth Management
Bogofinance also offers wealth management. The company puts the emphasis on the personal approach. Solutions such as portfolio engineering, private equity investments and helping companies hedge their currency risk are available. Given the ways account types operate Bogofinance you will most likely gain more knowledge after contacting them directly.
5. Market Maker model
Bogofinance operates as a market-maker. This is generally viewed as a potential for conflict of interest, as the company profits from the clients’ losses. However this does not always mean they are a bad broker.
| Pros | Cons |
| Security of Funds | High Spreads |
| MetaTrader4 Trading Platform | Market-Maker Model |
| Local approach | Only MetaTraer4 |
| Regulation & Safety 7 | |
| Cost of trading (spread & commission) 3 | |
| Leverage 6 | |
| Editor’s Opinion 3 | |
Summary At this point you may be asking yourself, “Should I even bother with Bogofinance?”. The answer to that question depends on a few factors. If you are Lebanese and have little experience in the world of finance, they may be a good starting place. The company seems like it is focused on the personal relationship and local investment opportunities. If you already have some trading experience, this broker may not be the best choice for you – spreads are relatively high, the company is a market maker and account type conditions are not cleat from the start. In general we believe you can find a better alternative. | High Fixed Spreads |
|---|---|
| : 0 (0 votes) | |
