RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Axi is a UK based broker offering a basic package of forex and CFD trading services. Unlike many of the websites we describe, Axi is a legitimate and regulated broker, which means it guarantees a certain level of transparency and protection for its clients. In some respects, however, the information on Axi’s website is not comprehensive enough, and the range of services offered is limited compared to the competition.
AXI REGULATION AND SAFETY OF FUNDS
Axi is the current name of the brand formerly known as AxiTrader. The axi.com/uk website, which is the focus of this review, is run by AxiCorp Limited, a company registered in England and Wales and regulated by the Financial Conduct Authority (FCA):
Although no longer part of the European Union, the United Kingdom continues to impose financial regulations that match and in some respects exceed those of the European Securities and Markets Authority (ЕSМА). Brokers operating in the UK must meet stringent requirements for financial stability and transparency of operations.
They must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. Brokerage firms are also required to participate in an Investor Compensation Fund which may cover a maximum of 85 000 GBP, in comparison with 20 000 EUR in the EU. Clients of these brokers receive other guaranties such as negative balance protection and segregation of the client’s funds from the broker’s funds.
It should be stressed that these guarantees and protections only cover customers who are classified as retail traders. Axi puts a lot of emphasis on the services it offers for professional clients, and the website doesn’t do a good job of clarifying the difference. This category of professional clients does not receive the same rights and protections as retail clients.
In addition to this, during the registration process you get the choice of being a client of a UK licensed company or an offshore company based in the Saint Vincent and the Grenadines (SVG), a jurisdiction where there are no broker regulations in place:
Establishing offshore subsidiaries is standard practice among brokers because it allows them to compete more effectively in unregulated emerging markets in Africa and Asia. Axi warns that opting for the offshore company will deprive the client of the guarantees provided by the FCA regulation, but there is no information whatsoever on the website itself about this alternative option.
AXI TRADING SOFTWARE
Axi offers MetaTrader 4 (MT4), the trading platform that remains the most popular among the majority of brokers around the world despite being on the market since 2005. MT4 and the newer MT5 version of the software have earned their leadership position thanks to advanced automated trading capabilities that include the use of Expert Advisor bots and the ability to design custom scripts for back-testing trading strategies.
The broker offers the platform in versions for browser, Windows and Mac operating systems, as well as Android and iOS mobile devices. Here is what the desktop version looks like:
Axi offers multiple plugins and software tools that further extend the functionality of MT4 and narrow the gap with MT5. These include Autochartist, Sentiment Indicator, Correlation trader, Alarm manager, Economic Calendar and Automated trade journal.
Clients also get the opportunity to use the PsyQuation software package, which assists individual investment decisions through artificial intelligence and machine learning.
The broker also provides Virtual Private Servers (VPS) through third party providers. VPS allows automated trading scripts to function around the clock and independently of the trader’s personal hardware. Packages for this service start at 35 USD per month, and Axi offers to subsidize part or all of this cost for traders who trade more than 20 standard lots in a calendar month.
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AXI TRADING CONDITIONS
Most brokers offer different account types tailored to the needs of traders with different capital, experience and investment intentions. However, Axi has only one standard account for retail traders with no set minimum deposit. This technically makes Axi one of the brokers allowing trading with a very low initial investment.
The base currency of the account can be GBP, EUR. USD, CHF or PLN.
When using a standard account, the trader pays the broker only a spread without additional commissions. The spread in the MT4 platform corresponds to the average spread listed on the website – 1.1-1.2 pips for the benchmark currency pair EUR/USD. This is a fairly competitive level.
For professional clients another model is offered – raw spreads close to zero, but combined with a commission per traded lot. However, the website and legal documentation does not specify the exact amount of this monitor. Professional clients also have the ability to trade cryptocurrencies CFDs, which is prohibited for retail traders under FCA regulations.
The leverage with which UK retail traders can trade is the same as in the EU – 1:30 for major currency pairs, 1:20 for non-major pairs, gold and major indices, 1:10 for other commodities and non-major indices, and 1:2 for cryptocurrencies.
These restrictions do not apply to professional clients, but Axi does not specify what leverage it offers to this class of traders. The website only mentions 1:5 leverage for cryptocurrency trading.
In order to apply for classification as a professional trader, the client must meet high requirements – to have made significant transactions in the financial markets in the past four quarters, to have an investment portfolio exceeding EUR 500 000 and/or to have professional experience of working in the financial sector. Professional clients waive negative balance protection, the investment guarantee fund and the right to turn to a financial ombudsman in a dispute with the broker.
Axi also offers the increasingly popular social trading service. It allows you to automatically copy the trades of a selected trader. This is particularly useful for novice traders who can benefit from the insight of experienced investors.
AXI DEPOSIT/WITHDRAW METHODS AND FEES
Axi’s customers can use a wide range of payment methods for depositing and withdrawing funds – credit/debit card, bank transfer, e-wallets Sofort, GiroPay, iDeal, Neteller and Skrill, as well as Polish Internet Banking.
There are no additional deposit or withdrawal fees. Bank transfers have a minimum withdrawal amount of 50 currency units and some e-wallets have a minimum withdrawal amount of 5 currency units.
BOTTOM LINE
Axi offers a robust set of technological trading tools, but in other respects client choice is extremely limited and not up to industry standards. Axi’s services appear to be aimed primarily at seasoned investors, but the information on the website is not comprehensive and in some cases may be misleading, which does not inspire confidence.
