Klimex Capital Markets (KlimexCM) is a broker offering forex and CFD trading. You may be thinking about openig a trading account with them. In this review we will answer five questions you may be asking yourself.
1. Will my funds be safe at KlimexCM?
KlimexCM is an Australian broker, which is a representative of Vantage FX. Both companies are regulated by the Australian Securities and Investment Commission (ASIC). You may already know this, but when it comes to financial markets, most countries have regulatory agencies. These organizations are created in order to provide client protection and a more competitive market environment.
Australia’s watchdog, ASIC has a positive reputation. The regulator imposes strict rules on the companies, who are registered with it. One of the these restrictions is the implementation of “segregated accounts”. When a client deposits money, it is kept in an account, which can’t be freely accessed by the broker. Furthermore, ASIC requires minimum holdings of AUD 1 million, from companies seeking the license. This is done in order to ensure the candidate has a long-term approach and capital adequacy.
2. What are the different account types at KlimexCM?
KlimexCM offers two account types. One of them, the “Standard” is done via STP, meaning the trading costs are all added in the spread. On the other hand, they also offer an ECN account (called the “Raw account”), in which spreads are lower, but a commission is added.
3. What are the trading conditions at KlimexCM?
The EUR/USD spread on the standard account is said to average at 1.8 pips, which is slightly higher that what you would expect. We did a test, during the first part of the European trading session (when the market is generally the most liquid) and the spread varied in the 1.4 – 1.7 pip range. This is in line with what the broker claims, but is still slightly higher than some competitors.
Spreads on the “Raw account” are lower, with the EUR/USD one averaging around 0.6 pips. Keep in mind this is the spread prior to commissions, which are set at $6 per lot. This means the total cost per trade would be on average 1.2 pips, which is obviously better than the standard account.
KlimexCM offers leverage up to 1:500. This is more than enough for all trading systems. In fact, in our opinion it is a bit too much. Keep in mind, higher leverage increases carries a higher level of risk, as it amplifies your losses the same way it does your wining trades. Be sure to fully understand the risks involved with margin trading before you participate in it.
Other than currency pairs, KlimexCM offers spot metals, crude oil and Index CDFs. This gives a lot of options for more experienced traders.
The minimum deposit requirement is $100 which is reasonable. That being said, this is only useful for testing the services. A reasonable trading strategy would require a bigger investment.
Deposit and withdrawal methods include:
- Bank Transfer
- Credit/Debit Card
- China Union Pay
- Skrill (formerly know as Moneybookers)
4. What trading platform does KlimexCM offer?
KlimexCM provides its services via the popular MetaTrader4 platform. It is an industry standard at this point, which many brokers opt to go for instead of developing their own in-house solution. There is a reason for that, as the charting package, automated trading environment and variety of signal providers for MT4 are all solid.
The platform also has mobile apps, which are great for catching up with the markets (and your positions and pending orders) while you are on the go.
5. How good is the support?
The company offers live-chat, e-mail and phone support. We tested the live-chat and were pretty satisfied with the response time. The company offers support in English, Mandarin, Spanish, Filipino and Thai, which is a pretty decent portfolio. The target market is mostly South-East Asia.
KlimexCM is an Australian forex broker, which is a representative of VantageFX. Both companies are regulated by the local ASCI. Trading conditions at KlimexCM are slightly worse than the ones offered by the most competitive brokers in the industry. The company has a strong focus on the South-East Asia market, with China being a big part of their target.