Beware! BYFX Global is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
BYFX Global is an offshore subsidiary of the Japanese SBI Group – a multi million financial services company based in Tokyo. BYFX Global is based and regulated on the Cayman Islands.
Generally we do not credit brokers for licenses issued in offshore territories, but here the reputation of SBI Group and the clear connection between the website and the company, allow us to focus on BYFX Global trading conditions, without worrying too much about their regulatory status.
BYFX Global trading conditions
The broker offers a selection of major currency pairs – 21, a number of which available with a leverage of up to 1:500 – EURUSD, USDJPY, GBPUSD, AUDUSD, USDCAD, GBPJPY, GBPAUD and EURGBP.
Otherwise all other forex pairs, along with the CFDs on gold, silver and oil are offered with a maximum leverage of up to 1:100.
But even leverage as high as 1:100 seems tempting, since the European Securities and Markets Authority capped the maximum leverage allowed with forex transactions at 1:30 and CFDs at 1:20, following similar moves by the regulators in Japan, the U.S. and Canada. This happened in August 2018.
Unfortunately we were not immediately able to open a demo account to check the spreads on the BYFX Global MetaTrader4 platform. Still, the broker advertises spreads as low as 0,3 pips, which however inevitably come with a trading commission.
BYFX Global regulation & safety of funds
As we already noted BYFX Global is incorporated and regulated on the Cayman Islands – the company behind the broker – BYFX Global Co., Limited is an overseas subsidiary of the Japanese SBI Group and is authorized and regulated by Cayman Islands Monetary Authority (CIMA) under the local Securities Investment Business Law (SIBL).
The CIMA Cayman Islands forex license includes a requirement for a minimum payed up capital of at least 100000 Cayman Islands Dollars or about 120 000 USD and basically that is all. And you can even incorporate your business there over the internet with the help of a legal consultant.
That is the reason we generally regard forex licenses issued by offshore financial regulators such as the CIMA or the Financial commission in Vanuatu as “decorative” – they are simply not comparable to the regulatory requirements of well known and reputable financial institutions such as the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC).
For example the minimum operational capital requirement with all EU regulators like FCA or CySEC is 730 000 EUR, and regulated brokers are even required to participate in client compensation schemes, which protect the trading capital in the event a broker files for bankruptcy. With a FCA broker that insurance will cover up to 85 000 GBP and that is another reason for a careful consideration when choosing a broker.
On top of that offshore financial regulators simply lack the capacity to oversee internationally operating brokers.
And yet as we noted, because of the reputation of SBI Group and the clear connection between the broker and the Group we will review BYFX Global as a legit and reliable broker.
Bear in mind that since regulators throughout Europe, the US, Japan and Canada caped he maximum leverage with all retail forex transactions, many legit brokers opened offshore subsidiaries, which allow them to offer their clients virtually unlimited leverage.
BYFX Global trading platforms
BYFX Global offers a classic trading solution – the MetaTrader4. The platform has many advantages including the fully customizable market indicators and trading robots, which will help you run automated trading sessions. Also MetaTrader4 features an advanced charting package so it is no wander why so many traders prefer the platform.
BYFX Global deposit/withdrawal methods and fees
At BYFX Global you can fund your trading account with major credit cards like VISA and MasterCard, bank wire and Union Pay. And besides, the minimum deposit requirement is as low as 100 USD and that is another advantage.