UFX Trading Review
While most forex brokers offer clients a choice of several basic account types, UFX provides six, in order to suit the needs of traders of all levels of experience and preferences. All account types offer fixed spreads and wide range of financial instruments to trade. Micro lots are available for trade on Micro and Mini accounts.
What is more, there is a special Islamic account available to Muslim investors, which is swap-free.
The Company. Security of Funds
UFX (formerly UFXMarkets, UFX Bank) is an international broker, offering trading in broad-based array of asset choices: around 50 currency pairs, various CFDs on commodities, indices, and stocks, as well as a number of ETFs.
Founded in 2007, UFX is the trading name of Reliantco Investments Limited, a company which is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) since 2011.
The Cypriot financial watchdog applies a set of rules and requirements to license holders, such as the minimum capital requirement and the clients’ money rule.
The CySEC requires Cyprus-based forex brokers to hold at least €1,000,000 as a proof of financial stability and to keep clients’ money separated from the brokerage’s operational funds. Furthermore, CySEC applies a compensation scheme as an additional guarantee to clients’ funds. All CySEC-regulated companies are members of the Investor Compensation Fund, able to provide compensations to a maximum of 20,000 EUR per person in the event that the broker is at default. Similar compensation schemes also apply in other jurisdictions.
In addition, as CySEC is part of the European MiFID regulations, all companies regulated in Cyprus are free to operate in all EU Member States.
Minimum Initial Deposit
The minimum initial deposit for UFX’ clients is $100, however in order to enjoy all essential services, the required minimum deposit is $500. In comparison, easyMarkets, another Cyprus-based brokerage, requires 2$5 from traders to open an account.
Average Spreads & Commissions
Spreads with UFX are fixed, varying by account classification. However, we find them comparatively high, as they amount to 4 pips for the EUR/USD pair on most accounts. The best spreads with this broker are on the Gold and Platinum accounts – 2 pips on EUR/USD, however one has to deposit at least $5 000 in order to be able to use them. In fact, fixed spreads of 2 pips are average for the forex market and according to us, premium account types (such as Gold and Platinum ones) with high minimum initial deposits are expected to offer better pricing.
In comparison, the fixed spreads offered by easyMarkets on their Standard account type (accessible with just $25) amount to 3 pips.
Like most fixed-spread brokers, UFX does not charge any commission, as it gets its remuneration through the spread. Keep in mind, however, that UFX charges inactivation fee of $50 when a client account has been inactive for a period of three months.
You may look up real-time spreads of 15 leading brokers here.
The maximum leverage level provided by this broker is 1:400, which is considered high, although most FX brokers offer similar or higher ratios. easyMarkets, for example, also offers maximum leverage rates of 1:400. You can check out a list of forex brokers, offering leverage equal to or higher than 1:500 here.
UFX offers its clients a choice of two trading platforms: its proprietary ParagonEx Web Trader, and the most widely used forex software, MetaTrader 4.
Accessible through any web browser and with no download required, ParagonEx 4.0, puts the most popular assets front and center. There is also a Single Asset Page option that provides traders with all the information they need on a specific asset.
UBX’ proprietary platform – ParagonEx Web Trader. Click to enlarge
What we like most about UFX’ in-house platform, is the MassInsights™ Technology, located in the right side of the screen, It is a unique trading technology that offers a comprehensive live stream of market events and aggregated trader behavior.
Of course, if you prefer to stick with the good old MT4, that option is also available. MetaTrader 4 is preferred by most traders, because it is equipped with an advanced charting package, a number of technical indicators, extensive back-testing environment and Expert Advisors (EA). Here is a list of more forex brokers offering MT4 platform.
Scalping is allowed with this broker, however keep in mind that UFX has a one-minute minimum time to close a deal after it has been opened.
UFX looks like a generous broker. At the time of writing this review, it offers on-deposit, Refer-a-friend and Practice Mode Bonus.
30% on deposit bonus up to $10,000, which can be withdrawn after the required trading volume is reached.
Refer-a-friend bonus of $100, if the New Account Referral makes an initial deposit between $500 to $1,000, or 10% bonus from the New Account Referral’s deposit if the initial deposit is between USD 1,000 to USD 10,000. The bonus will be credited directly to the Referrer’s account and will be subjected to USD 1 million of trading volume for each USD 100 bonus to become withdrawable.
Practice Mode Bonus up to USD 60 is also available to demo account holders.
Furthermore, UFX offers Rebate Bonus, Pip Spread Bonus, Happy Hour Bonus and other promotions.
Methods of Payment
UFX offers its clients a wide range of payment methods: bank to bank wire transfer, via credit/debit card, Skrill, Neteller, SOFORT, ELV, iDEAL, CUP, Qiwi, WebMoney, paysafecard, Neosurf, Giropay POLi CashU, and Bitcoin.
UFX trader accounts use US Dollars only.
The broker does not charge fees on money transfers, but keep in mind that withdrawals take from 3 to10 business days to process.
UFX is a reliable and well-regulated FX & CFD broker that utilizes both its in-house web-based platform and the popular MetaTrader 4. It claims to be a pure STP broker, however it offers only fixed spreads, which are not quite competitive.
UFX Trading Review Conclusion
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