Beware! Nozak 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.
Nozax is a broker licensed in Montenegro that seems to be a fairly decent trading option. The broker offers the well-known trading platform MetaTrader 5 as well as great conditions. There is no minimum deposit amounts, the fees and commissions Nozax charges are very low, and the spreads – tight. We would have liked more specific information regarding certain conditions, and more educational tools but the broker is still an option worth considering – especially for local traders from Montenegro. There are, however, many brokers licensed by stricter authorities that can also offer amazing conditions and platforms. Read our review and try to make a well-calculated decision when choosing a broker to open an account with.
Nozax REGULATION AND SAFETY OF FUNDS
Nozax is based in Montenegro and is licensed by the local financial regulator – the Montenegrin Capital Market Authority. Although this is not a first or even second-tier financial regulator, a license is never to be neglected. Such licenses prove that the broker had to meet at least some requirements to prove its reliability.
Obtaining a license in Montenegro can take up to 6 months and requires the broker to pay some mandatory state fees. The minimum capital brokers are required to maintain in order to prove their financial stability is just €125 000 – which, compared to stricter jurisdictions like the UK, the EU, the US, and Australia, is fairly little. The director of such companies must be a resident of Montenegro and there are some additional requirements regarding the staff. The employees of such financial companies should have appropriate education and experience and good reputation. Local brokers should also report to authorities regularly to ensure transparency.
We still would consider turning to a broker licensed in the UK, the EU, or Australia a better choice. In order to prove that they are well-capitalized and financially stable, all such companies have to maintain a minimum capital of €730 000 (in the UK and the EU), and of A$1 million (in Australia). Negative balance protection is a big plus of trading with such a broker – you could never suffer losses exceeding the amount of money you have in your account. Client money must be kept separate from the broker’s money in segregated bank accounts – which means that the broker would have very limited access to your money once you have deposited it. As a result, they would surely not be able to use it for their own purposes. This also means faster withdrawals. If you are a client of an EU or UK broker, you should keep in mind that you could receive compensation in case your broker goes bankrupt – up to £85 000 in the UK and €20 000 in the EU because all such brokers are obligated to provide funds for compensation funds.
Nozax TRADING SOFTWARE
Nozax offers access to one of the best platforms in the world of trading – MetaTrader 5. This software is surely known to most traders, and has turned into a favorite to many in the last decade or so since its introduction. MT5 is both quite easy to navigate and highly functional. If you start trading on the platform, you would be getting access to a wide variety of indicators, timeframes, and graphical objects, as well as to many other useful tools. You could employ preprogrammed Expert Advisors that track markets and trade automatically, or create your own trading bots and indicators from scratch or using building blocks. Setting signals for prices going up or down, or subscribing to those set by other traders is another useful option. You will also be able to access a community chat, a built-in economic calendar, and a vast market for additional trading-apps.
MT5 is definitely the platform to try if you are looking for efficiency and advanced trading tools. Here are some other brokers that offer it:
Nozax TRADING CONDITIONS
Nozax seems to offer quite good trading conditions. The broker allows you to open an account in USD, EUR, or JPY and trade forex, shares, indices, commodities, and cryptocurrencies. The total number of instruments is around 100 – which is not really that much considering the fact that some brokers provide access to thousands of trading instruments. Clients can choose between two different account types – NZK ZERO and NZK CORE. There is no minimum deposit requirement – you can start trading with as little as $1.
The main difference between the two account type is the commissions you would have to pay. On the NZK Zero account, you would get access to spreads starting from 0.o pips but would have to pay an additional commission of $3.5 per lot (presumably per side). This is still very acceptable. There are no additional commissions on the NZK CORE account but the spreads are also not that tight. The broker did not specify what spreads we should expect stating instead that we would get access to “institutional STP spreads”. And since we were denied access to a demo account for some reason, we also could not see what spreads we would be trading with. We do wish that the broker’s account information was slightly more comprehensive.
The maximum leverage you could trade with is 1:500. Always be careful when trading with such high rates. The promise of bigger profits might be tempting but trading with high leverage could also result in much bigger losses – especially for inexperienced new traders.
Nozax DEPOSIT AND WITHDRAWAL METHODS AND FEES
Nozax supports a number of payment solutions and does not charge any deposit or withdrawal fees. You could deposit with a Visa or MasterCard card, via international wire transfer or a local banking solution, or via online solutions such as Skrill or Neteller. The possible deposit currencies are USD, EUR, and JPY. If you are depositing or withdrawing via wire transfer, the minimum deposit and withdrawal amount is $100. Otherwise, there is no minimum to keep in mind.
BOTTOM LINE
There are a lot of good things about Nozax. They seem to be a very affordable broker that still allows you to trade on a great trading platform and with high leverage. The fact that they are licensed is also not to be neglected. However, they are hardly licensed by the strictest authority – and the number of instruments you would be able to trade is quite limited.
Nozax is a solid enough option – but hardly your best option. You might be able to get more out of your trading if you open an account with a big broker regulated in the UK or the EU.
