Essence FX Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this Essence FX Review.
Essence FX Review
Essecnce FX is a forex broker, which offers multiple account types. There is no description of spreads getting better with bigger deposits, which is the common practice. Islamic (swap-free) accounts are also available.
The Company. Security of Funds
Essence FX claims to be regulated by the “Ministry of Financial Estonia (EU)”. This both a wrong spelling of the institution’s name and more importantly the wrong institution. Forex brokers in Estonia are supposed to be register with the Estonian Financial Supervision Authority, which is independent from the Ministry of Finance. At this point we are treating Essence FX as an unregulated company.
A screenshot of Essence FX’s regulatory claim (Click to zoom-in)
Financial regulation is a key issue for us (and should be for you) when evaluating forex brokers. An unregulated company can, in theory, not provide access to any financial markets and simply accept deposits. It would then probably provide some kind of “monopoly money” trading, without allowing clients to ever withdraw a cent.
This is why most countries have created financial regulatory agencies, as the aforementioned Estonian Financial Supervision Authority. We do not know much about their practices, but Essence FX isn’t registered with them either way. Just to give you a glimpse of what these agencies do, the UK’s Financial Conduct Authority applies multiple rules on the companies which it oversees, but two are the most important ones.
Brokerages must keep their clients’ funds in the so called segregated accounts. This means the firm can not freely access the money and spend it on something else. On the other hand every FCA-regulated broker must participate in the Financial Services Compensation Scheme, which guarantees investments in the off-chance the company becomes insolvent. It the UK’s case all accounts are guaranteed, up to £50,000 against broker bankruptcy.
We are not saying Essence FX are scammers, but they have either failed to represent their regulation, or are not properly overseen (for a forex broker).
Trading Conditions
Minimum Initial Deposit
Essence FX has set the entry requirement at $100. This level is considered to be the current “standard” with many brokers, such as FxPro demanding it. On the other hand the are companies, which accept even lower deposits, in attempt to attract more clients, like FXCM, who only require $50.
Remember, these levels are suitable for beginners, while if you would like to trade with a long-term approach, you would require much more serious capital.
Average spreads & Commissions
Spreads are not mentioned anywhere on Essence FX’s website’ which is a rather unusual practice. Our testing, with the trading platform revealed the EUR/USD spread averaging around 2 pips, during European market hours. Nowadays, this isn’t a competitive level, as most brokers offer something in the 1.0-1.5 pip range. By the way, did you know you can compare the spreads provided by some of the top-rated forex brokers, in real-time, with our comparison page? Feel free to check it out.
Leverage
Leverage at Essence FX changes with the different account types, starting from 1:500, for the first account type. Although this may sound like a very big, potentially dangerous level, Essence FX is not the only broker providing it.
With bigger accounts the ratios go down, which is good from a risk management perspective.
Trading Platforms
MetaTrader4 is the platform provided by Essence FX. This is the world’s leading currency trading solution, which is provided by many brokers and enjoyed by an even bigger number of traders. The platform can easily handle dozens of instruments being open at the same time, and allows a great speed of execution (depending on your broker and internet connection, of course).
One of the greatest advantages of MT4 is the coding environment, which has led to the creation of thousands of new technical indicators and automated trading systems (also known as Expert Advisors).
Methods of Payment
The methods of payment at Essence FX are: Bank Transfer, Credit/Debit Card, Neteller and China Unionpay. This is a respectable line-up, including both a globaly popular e-wallet and a China-centric one.
The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
Essence FX Review Conclusion
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