RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
PomeloFX is an interesting broker, one that does many things right but leaves others in a very shady realm. Read the review to see what we mean.
We easily went through the first step of the account creation process, but not the rest. The reason for this is a good one: the broker wishes to verify each new user and learn as much of him/her as possible. This approach is used by legit brokers because they won’t allow anyone to enter. This is the exact opposite of what illicit brokers do.
We have taken the following trading conditions from the website. Users can trade is forex currency pairs, precious metals, energies, and indices The average spread is 0.5 pips, although we found discerning evidence that the average spread is also 4 pips, which we think is a misunderstanding of that the broker committed. However, we cannot give a specific EUR/USD spread value. The leverage is capped at 1:200.
English, Deutch, French, Arabic, Italian, Portuguese, Chinese, Japanese, Thai, Indonesia, and Spanish are all available languages.
POMELOFX REGULATION AND SAFETY OF FUNDS
We have a couple of things that we have to cover here, so let us not delay. There are two branches bearing the PomeloFX brand name.
- First of all, we have to mention that Pomelo Limited or PomeloFX is fully regulated by the Vanuatu Financial Services Commission. The main thing that is known about this regulator is that all brokers overseen by it have to hold a minimum capital requirement of $50 000. Pomelo Limited seems to be the main broker branch. However, offshore licensed brokers are double-edged blades, for they offer a lot more freedom than other mainland regulators while at the same time can and will, at some point, overlook certain practices or allow other shady ones. This has always been a habit of offshore regulators.
- Next, we have a questionable claim that Pomelo Limited is registered in Cyprus but not licensed by CySEC. This is very odd, and it gives to show the jeopardy that offshore regulated brokers put users in. We find it implausible that PomeloFX is regulated in Vanuatu while incorporated in Cyprus. There is something fishy here.
- Finally, the footer reveals that the second branch – Pomelo Services – is registered in the Dubai Multi Commodities Centre (DMCC), which is a HUB for global markets trading. We found Pomelo Services in DMCC’s register meaning that the broker is incorporated there. But is it licensed in the United Arab Emirates, of which Dubai is a part of? The main body that oversees that oversees the FX market in the nation is the Central Bank of the United Arab Emirates (CBUAE). We found no trace of evidence that Pomelo Services is authorized to offer FX and CFDs trading by the CBUAE.
So, yes, PomeloFX is technically regulated, but in its other claims, we find too many faults. Users will be dealing with a licensed broker, but one that may, at times, function in a questionable and downright suspicious manner.
POMELOFX TRADING SOFTWARE
By far one of the best feature of the broker is that it offers both the MT4 and MT5 side to side. These are the two best trading softwares in the industry and allow for an enormous amount of diversification in the trader’s repertoire. The terminals will help the client using them become a far better trader!
POMELOFX DEPOSIT/WITHDRAW METHODS AND FEES
Withdrawals use only bank transfers, while all other aforementioned payment methods are “coming soon”. Withdrawals are not burdened by any fees, and it takes some 3 hours to process a withdrawal.
Overall, decent payment conditions.
PomeloFX is a regulated broker, with seemingly solid trading and payment conditions. But there are nuisances that may discourage some users from trading with it.