BluFX is not a traditional forex broker, in which you deposit your own funds and trade for yourself. Instead, it offers three account types for proprietary forex day trading.
– The broker offers a 25K trading account
BluFX offers proprietary (or prop) trading, which means that it gives traders the opportunity to trade its capital against a monthly fee. Its Basic account type provides you with the opportunity to trade 25K.
– BluFX takes the full risk
Supposedly, the above also means that BluFX takes the full risk (and a part of the potential profit). So, a trader earns half of what he makes, without risking anything more than the monthly fee.
– Growth potential (Profit targets)
Standard and Pro account types at BluFX provide the opportunity for future account growth, which seems attractive. Each step of the “Trader’s Path” is achieved after gaining 10% on the account balance and not withdrawing anything.
– Not regulated
The firm behind BluFX is called Blueprint Capital Ltd., which is based in the United Kingdom. That being the case, they do not claim affiliation with the Financial Conduct Authority (FCA). This immediately raises suspicion, as dealing with an unregulated company always carries counterparty risk.
– Spreads not disclosed
The costs of trading with the BluFX platform are not disclosed by the company. Given the fact they only facilitate day trading, a slightly higher spread can greatly impact the bottom line of any trader. Usually forex brokers offer spreads within the range of 1.0 – 1.5 pips for the EUR/USD pair.
Don’t forget, you can always check the spreads offered by some of the industry-leading forex brokes at our dedicated page.
In order to get access to the company’s capital one must pay monthly fees specified in the beginning of this review, ranging from £99 to £249, according to the account type.
-The profit split
Now, this is related to the fact that the broker takes the full risk. Y=That is why the profit split at BluFX is 50:50.
– 10% profit requirement for withdrawals
With BluFX, you can only withdraw funds from your trading account after you have made a 10% profit (your first withdrawal can be $2,500, if you chose one of the latter two account types and have reached an account balance of $55,000).
-Low leverage levels
The leverage ratio provided by BluFX is 1:3, while traditional forex brokers offer at least 1:100 or 1:200.
It is not surprising that this broker, unconventional as it is, does not support the good old MetaTrader4 (MT4) platform. Instead, it offers its proprietary web-based platform that has most of the functionalities the MT4 offers. There are no demo versions available, but the company has a video explaining the basic functionality. The window for opening a new order has the familiar tick-chart, which MT4 utilizes.
BluFX is an unregulated forex proprietary trading firm. Unlike other similar companies, it does not require any previous track record or some form of testing or education. On the other hand, access to the company’s services comes with a monthly fee. While the broker provides clients with at least 25K to trade forex and takes all the risk, there is a monthly fee, the potential profit is split 50:50 and a number of other requirements apply.
This business model is rather questionable, and is only suitable for day traders.
BluFX Review Conclusion
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