KlasFX allegedly offers multiple account types. That being the case, the presentation of their trading conditions is very poor. We had to contact the live support, to get some of the details, and we are not certain if that is their real offering.
The Company. Security of Funds
KlasFX claims to be operating out of Dubai, UAE. The company behind this broker, Klas Trading LTD has a license by the Vanuatu Financial Services Commission (VFSC). A portion of their website claims having an ASIC license, but our investigation (as well as contact with the live support) indicates this is not the case. Such a misrepresentation is very dubious and lowers the overall credibility of the broker substanitally.
The difference between, being regulated in an off-shore zone and by a reputable agency, like the Australian Securities and Investments Commission is huge. Vanuatu in particular is probably the country with the lowest regulatory requirements in the world – the minimum capital holdings requirement is a mere $2,000. This naturally attracts a lot of shady companies, whose aim main not be providing the best service to clients. On the other hand ASIC demands at least AUD 1 million, which most scammers simply can not afford. Additionally, companies must store their clients’ funds in the so called segregated accounts. This is a ruling, which prevents brokers from freely taking the trading capital and spending it for their own purposes.
There are a few specifics about KlasFX, other than the loose regulation and the false claims. The company focuses primarily on Turkish clients. This makes the lack of an Islamic (swap-free) account rather bizarre. Furthermore, as we hinted in the beginning, the overall presentation of the services is rather poor.
Minimum Initial Deposit
The minimum deposit at KlasFX is $100. This is the level which a lot of brokers, like HYCM, for instance, require nowadays. On the other hand, some have no entry level whatsoever, like the FCA-regulated forex and spreadbetting veterans at IG.
That being said, the minimum deposit should only be a consideration for those who are willing to learn trading, by risking small amounts. Experienced traders will tell you, trading with $100 or less is not worth the time.
Average spreads & Commissions
KlasFX provides favorable spreads, on paper. Our testing with the demo version of the platform was in line with the standard account type description. The EUR/USD spread varied between 1.2 and 1.5 pips in the early European session – probably the most liquid time of the day.
That being the case, we can not guarantee if these conditions, or the ones mentioned on the company’s website will be valid in a live trading environment. This is always the case, but we feel the need to reiterate the point, as the company’s website is full of poorly presented conditions. On the other hand, you cn always use our real-time spread comparison platform, to see the verified spreads, provided by some of the top-rated forex brokes.
The maximum leverage at KlasFX varies based on your initial deposit, with 1:500 being offered for the smallest account type and 1:200 for the rest. The policy of offering lower levels to the bigger traders is generally a positive one, although both of these levels can be pretty dangerous, if placed in the wrong hands.
Misuse of high leverage is probably one of the key reasons, why most new traders loose money trading forex. Be sure to learn the basics of risk management before you start trading.
KlasFX provides access to the global currency markets via MetaTrader4(MT4). This is a solid choice, as the platform has proven itself over time. It allows for multiple instruments to be loaded at the same time, without much difficulty. Furthermore the charting package falls short to none. This is especially true, given the plethora of custom technical indicators which are available via the MQL marketplace. This is a broker-independent store, where developers sell their newly created indicators and automated trading systems, also known as Expert Advisors.
There is no information about the payment options, provided by KlasFX. This is rather odd, but in line with the overall feeling of a poor presentation. Most brokers advertise the alternative solutions which they provide, such as PayPal, Skrill or even Bitcoin.
KlasFX is an off-shore forex broker, which attempts to attract mainly Turkish clients. The company’s website feels poorly structured, with lost of missing key information points. The live-chat customer support did answer our questions, but was a bit pushy (nothing overly aggressive though). If trading conditions, in reality match the ones mentioned on the website, they would be rather competitive.
KlasFX Review Conclusion
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