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.
FX88.com is Forex broker, licensed in Cyprus. In this review we will tell you five hings you need to know before you start trading with them and most importantly should you?
1. Will your money be safe at FX88.com?
A key concern when choosing your Forex broker should be the security of your funds. If you decide to trade with an unregulated broker, you run the risk of depositing your money to a scam. You may not be able to withdraw your profits or even your capital investment.
FX88.com is owned by Galactus Limited. The company is regulated by the Cyprus Securities and Exchange Commission (CySEC). Cyprus is a preferred destination for many Forex brokers, as registering there gives you access to the entire EU market.
The rules are fairly strict – a broker must keep clients’ money seperate from the companies (in the so called “segregated accounts”). Furthermore CySEC requires capital holdings of at least EUR 730,000 for brokers, as a sign of good will. And last but not least – there is a compensation scheme, which guarantees clients funds up to EUR 20,000 per account, in case the broker goes bankrupt.
2. Different account types
FX88 offers two account types – Standard and Premium. Trading conditions do vary slightly for them. The Standard account offers slightly higher spreads, but we will get on them in a moment. On the other hand if you deposit more than EUR 20,000 you will qualify for the Premium account, offering you a personal account manager.
3. How can you Deposit/Withdraw your funds?
At the time of writing of this review FX88 offers only bank transfers as account funding methods. This may be a bit of a downside for clients who would prefer using their credit/debit card or an e-wallet such as Skrill or Nettler.
4. Trading Conditions
FX88.com offers Forex and two spot metals, as trading instruments. This may be good for beginners, but most traders prefer having a bigger pallet of opportunities, including stock market indices or commodities.
The maximum leverage is capped at 1:50, which is quite low by contemporary standards. As you know trading with higher levels of leverage can carry more risk, so this actually seems like a measure to protect clients.
Spreads are fairly high when compared with other brokers. The average spread on EUR/USD is 2.5 pips for the Standard account and 2.0 for the Premium. Other brokers offer much better conditions, with the industry average being around 1.0 – 1.5 pips.
5. Trading Platform
The broker offers only the MetaTrader4 platform. This is pretty much a standard solution which many brokers utilize. The platform is relatively simple to use and has great charting capabilities. A mobile version is available, despite the fact that FX88 does not explicitly state it on their website.
One of the cons of MetaTrader4 is the lack of detachable modules, meaning if you are a seasoned trader, who likes to use multiple monitors you would have to rely on third party software.
|MetaTrader4 Platform||Low Leverage|
|Few Trading Instruments|