RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Monaxa is a forex and CFD broker primarily targeting clients in Southeast Asia and Australia. The website is available in English, Malaysian and Thai. The broker offers relatively standard trading conditions and advanced software solutions.
But on the other hand payment methods are limited and most clients cannot rely on regulatory protection. In this review, we’ll take a look at exactly what Monaxa offers so you’ll be able to decide if this broker is a good choice for you.
MONAXA REGULATION AND SAFETY OF FUNDS
The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.
Monaxa is a brand name with a group of companies behind it. One of them is Monaxa AU PTY Ltd, a company based in Australia and regulated by the Australian Securities & Investment Commission (ASIC).
If you are a resident of Australia, you can also check out the terms offered by the industry leading brands operating in this market.
Monaxa’s clients outside of Australia are served by Monaxa Ltd , a company incorporated in Saint Vincent and the Grenadines (SVG).
It is standard practice for forex brokers to set up subsidiaries in offshore areas such as SVG. This has allowed them to offer their services in fast growing markets in regions such as Asia and Africa. Established brokers ensure high quality services for all their clients to maintain brand image. But you should keep in mind that as a client of an offshore company, you are not covered by the guarantees and protections imposed by financial regulators in jurisdictions like Australia.
There are no regulations in place for forex, CFD and binary options brokers in SVG. Because of this, along with legitimate brokers, this offshore area is also exploited as a base by many scammers. To counter this, in early 2023 the local Financial Services Authority began requiring companies operating as brokers to present licences for the markets in which they offer their services.
Monaxa Ltd clients can still rely on some basic safeguards such as negative balance protection and segregation of their money from the company’s operating funds. However, Monaxa reserves the right to remove a client’s funds from segregated accounts if the client has been inactive for more than six months and the company has not been able to contact him.
MONAXA TRADING SOFTWARE
Monaxa offers clients one of the most advanced trading platforms, cTrader. The software is available in desktop and web versions as well as mobile apps.
Here’s what the desktop platform looks like:
cTrader has a large number of technical indicators that allow monitoring and analysing market movements. The platform also allows the use of customised scripts for automated trading. This puts it on par with the most widely used platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
Monaxa also offers separate cTrader mobile and web applications for copy trading. This means that you can automatically copy the trades of traders of your choice. Traders receive a portion of the profits made as commission. This type of trading is suitable for inexperienced investors, as well as for those who do not have time to follow the market and make strategies themselves.
MONAXA TRADING CONDITIONS
Monaxa offers a choice of three trading account types – Standard, Pro and Zero. All three accounts allow you to trade forex, indices, metals, energy, stocks, commodities and cryptocurrencies. The base currency can be USD, EUR or GBP.
The minimum deposit for different account types varies between 15 USD and 200 USD. But at the same time the minimum amount for a single deposit to the broker is 100 USD. Therefore, 15 USD is actually the minimum amount for an internal transfer to different accounts of one user.
There are many established brokers that allow you to start trading with a very low initial investment.
Standard and Pro accounts charge the trader only the spread. For a Standard account this spread is about 2 pips, which is not a very competitive level.
With these accounts there is a swap-free trading option on certain instruments. This makes them suitable for clients of the Muslim faith who comply with religious requirements and against interest.
The Zero account promises a spread close to zero, but charges a commission of 6 USD per round turn lot.
Registration with SVG allows a broker to offer high leverage to clients outside Australia. Leverage depends on the account exposures and ranges between 1:100 and 1:4000.
The ASIC limits the maximum leverage for retail traders to 1:30. This is done to protect investors because high leverage can lead to high losses.
ASIC regulations prohibit bonuses and promotions. But these restrictions do not apply to the SVG-based company. However, Monaxa does not offer bonuses and prize games like you will find at most offshore brokers. But if you become an introducer and bring in new clients for a broker, you can receive up to 10% of the profits they generate.
MONAXA DEPOSIT/WITHDRAW METHODS AND FEES
One aspect in which Monaxalags significantly behind its competitors is the available payment methods. Most of the broker’s clients can make deposits and withdrawals solely through cryptocurrencies.
A local bank transfer option is also available in some countries. In this case, Monaxa will cover the associated fees.
You should keep in mind that cryptocurrency transactions do not require a refund or a chargeback.
Most brokers offer clients a wide choice of payment methods, starting with credit/debit cards and popular e-wallets such as PayPal, Skrill, Neteller, UnionPay and FasaPay. If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.
Monaxa is not a broker suitable for beginner traders. We recommend that you only consider investing through this broker if you are sufficiently experienced and aware of the risks involved.
The standard trading account does not offer particularly competitive terms and the available payment methods are very limited. As a plus for Monaxa can be highlighted the connection with a regulated company in Australia.