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.
Innovestfx.com offers forex trading solutions to its clients. In this review we will tell you 5 things you need to know about InnovestFX if you are considering opening an account with them
1. Will my funds be safe at InnovestFX?
InnovestFX is an Introducing Broker (IB) of TOPFX. As is often the case, InnovestFX (the IB) is not under any direct financial regulation, but this should not worry you. TOPFX, the prime broker, is regulated by the Cyprus Securities and Exchange Commission (CySEC).
You may not initially think about financial markets when somebody mentions Cyprus. However, the country is a preferred destination for lots of forex brokers, as receiving a license there allows operating in the entire EU. CySEC imposes strict regulation on companies, who register with it. One such condition is the compensation scheme – a mechanism by which client funds are guaranteed, in case their broker goes bankrupt. In the case of CySEC regulated brokers, accounts are guaranteed up to EUR 20,000.
2. What instruments are available?
InnovestFX offers only forex and spot metals to its clients. This may come as a bit of a disappointment to some traders, especially given the fact TOPFX can provide a whole lot more.
3. What trading platforms does InnovestFX offer?
InnovestFX offers MetaTrader4 and cTrader to its clients. Both are rather well-known and come with all their respective extras. These include mobile apps for MT4, as well as cTrader’s web version, cAlgo and cMirror.
4. What are the trading conditions?
InnovestFX offers three account types, based on your initial deposit and preference.
|Minimum Deposit||From $ 100||From $ 100||From $1,000|
|Spread (variable)||From 1 pip||From 0.1 pip||From 0.1 pip|
|Commission (per standard lot)||No commission||$8.50||$8.50|
The minimum deposit requirement is $100, which is in line with the industry average. This is a reasonable amount for testing the service, but as you probably know, such sums are not relevant for serious trading with proper risk management.
The broker offers reasonable leverage at 1:100, which is suitable for most trading strategies. Keep in mind that higher leverage ratios carry higher levels of risk.
Spreads are reasonable to slightly higher than expected. Our test on the MT4 platform showed the spread fluctuating between 1.4 and 1.7 pips in the most liquid market session. The industry average for this pair is around 1.0-1.5 pips.
At the same time, the EUR/USD spread on cTrader was gravitating around 0.9-1.0 pips. However this account type also has the flat $8.5 per lot commission. The aggregate costs per trade go up to 1.75-1.85 pips.
5. Deposits and withdrawals
Currently clients can deposit and withdrawal only funds via Bank Transfer. The company is working on the implementation of instant deposit methods such as Credit/Debit Card and Nettler. Keep in mind, bank transfers (and especially international ones) can take several business days.
InnovestFX is an introducing broker for the SySEC regulated TOPFX. Your funds should be secure with them, given the regulation. The conditions they offer are not the best we have seen, but definitely not the worst. The low number of trading instruments can be problematic for experienced traders.