BFS Forex Review
BFS Forex is a forex broker, which offers several account types as described above. The more interesting thing is that spreads do not get significantly better with the more demanding account types.
The Company. Security of Funds
Company Country Regulation
BFS Markets Ltd Mauritius N/A
BFS Forex is owned and operated by BFS Markets Ltd. The company used to be licensed by the Financial Services Commission of Mauritius, but lost its license in November 2013. This is a huge red flag for us. Off-shore zones are usually considered risky, but a company, which has lost its license in such a jurisdiction is even more dangerous.
On that note, taking away a broker’s license is not something most off-shore regulators do frequently, but apparently the FSC of Mauritius is a bit more stringent.
We like to make comparisons with some of the well know global watchdogs, when possible. For instance the Australian Securities and Investments Commission (ASIC), would have probably not given a license to BFS in the first place. The Commission has set a minimum capital holdings requirement of AUD 1 million, which prevents most dishonest companies from attempting to register. Furthermore the segregated accounts policy is in place. This means a broker can not freely access their clients’ investments, which drastically limits the possibility of fraud.
There are a few complaints against BFS Forex in popular online forums. They involve: the company not allowing traders to withdraw their funds, the live-chat support dodging questions and even the lack of ability to close winning positions. We can neither confirm nor deny these claims, but since the broker lost its license, at least some form of shady practices have occurred.
Minimum Initial Deposit
BFS Forex has demands a minimum initial deposit of $5 (for the micro account). This may appear strange to you, but the creation of micro and even cent accounts has allowed brokerages to accept even the smallest of clients. This is not an uncommon practice, as even CySEC regulated FXTM has a $5 requirement.
Average spreads & Commissions
The cost of trading at BFS Forex is slightly higher than the current industry averages. A fixed spread offering of 2 pips is barely competitive. On the other hand, spreads at the better account types don’t seem to improve. Our testing during the European trading session revealed the floating spreads also rarely falling below 2 pips. Most brokers provide tighter spreads nowadays. Feel free to look at our real-time comparison of the offerings by some of the world’s leading brokers here.
BFS Forex provides a 1:1000 leverage ratio to its smallest account holders. This is an extremely high level, which can only turn your trading into gambling.
The thing which some newbies do not recognize is the fact, you should not use your entire account balance to guarantee a single position. If you do so with 1:1000 leverage, the market has to move a tenth of a percent against you, for you to loses it all. Be sure to understand the risks involved in margin trading before participating in it.
MetaTrader 4 (MT4) is the platform, offered by BFS Forex. Although we have our doubts against the company, there is nothing we can sat against MT4. This is the most popular platform, when it comes to forex and there is a reason for that. Probably its most unique feature is the software development environment, which has led to the creation of many custom tools. They range from technical indicators to automated trading systems.
Methods of Payment
The payment options ar BFS Forex aren’t that many, but at least some e-wallets are available. All the methods are Bank Transfer, Credit/Debit Card, Perfect Money and China UnionPay.
BFS Forex Review Conclusion
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