AxnFX Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this AxnFX Review.
AxnFX Review
AxnFX is a forex broker, which hasn’t released a lot of information on its trading conditions. This gives an immediate negative impression, but here are the full details about this broker.
The Company. Security of Funds
Company Country Regulation
POWER BUSINESS GROUP LIMITED Seychelles N/A
AxnFX is owned and operated by POWER BUSINESS GROUP LIMITED. The company is based in the Seychelles, which generally is a negative sign. The reason for that is quite simple – off-shore companies are usually not regulated as heavily as their ones based in other countries.
On top of that, Axnfx is not overseen by any regulatory agency. The difference between simply having a registered company and one which is overseen by any major financial watchdog is huge. You away carry some sort degree of counterparty risk (the risk of not getting paid) with unregulated entities.
On the other hand, different countries have their own agencies, dedicated to monitoring financial service providers. For instance, Cyprus is a relatively popular destination for forex brokers. Being a member of the European Union, the country allows access to the entire single market. More importantly, the local regulators, the Cyprus Securities and Exchange Commission (CySEC) enforces strict rules upon the companies, which it oversees. Two of them are the most prevalent in terms of the security of your trading capital.
All CySEC-regulated brokers have their client’s funds kept in the so-called segregated accounts. This means the companies can’t simply take your deposit and not offer anything in return (the most ugly form of scam). These segregated accounts can only be touched under certain rules.
Additionally, companies registered with the Commission must participate in the local compensation scheme. This is a mechanism, by which brokers contribute a relatively small portion of their profit to a fund. The fund then acts as guarantee, in case one of the participating brokers happens to go bankrupt. In the case of CySEC, the fund covers trading accounts, up to €20,000.
Trading Conditions
Minimum Initial Deposit
AxnFX requires a minimum deposit of $100. This level can be considered the current industry average, as a lot of brokers have set is as a criteria. For instance, you can open a trading account with the FCA-regulated industry veterans at HYCM with $100.
That being said, this criteria is only important for those traders who can’t afford a more serious trading account, as it does not tell you much about a company’s credibility.
Average spreads & Commissions
The average spreads at AxnFX are not disclosed by the company. After doing some tests with the demo version of the trading platform, we saw relatively tight spreads and a substantial commission. While the EUR/USD spread varied in the 0.1 – 0.5 pips range, there was a $20 commission. This translates to an effective spread of around 2.1 – 2.5 pips, which isn’t attractive. Nowadays, a lot of brokers offer far better conditions. To get the full picture, be sure to try our real-time spread comparison platform.
Leverage
The maximum leverage at AxnFX is 1:400. This is very high ratio, which can lead to substantial losses, if you don’t know what you are doing. That being said, a lot of brokers offer 1:500 or even more, in leverage.
While a higher ratio sounds better, it does not actually represent better trading conditions. More leverage simply allows you to take more risk. This can lead to very big losses, especially if you don’t know the basic principles of position sizing.
Trading Platforms
AxnFX offers the popular MetaTrader4 (MT 4) trading platform. This shouldn’t come as a surprise to anybody who is familiar with the forex market. The platform is being offered by many brokers and there is a reason for that – the charting provided by MT4 is amazing. On top of that multiple custom tools for the platform are available. The most popular ones are technical indicators and automated trading systems.
MT4 also has an excellent mobile app, available for both Android and iOS. It captures almost all of the functionality of the desktop. In fact it may actually be too complicated for total beginners, which is its only major downside.
Methods of Payment
The payment methods at AxnFX are Bank Transfer, Credit/Debit Card, Skrill and Neteller. While this may not satisfy everybody, at least the e-wallets are the two most popular ones (when it comes to trading).
AxnFX is an unregulated broker, with an off-shore registration. These two factors immediately spell “danger”. Additionally the company does not fully disclose its trading conditions on the website. The spreads we observed after opening a demo account were not even close to the current state of the industry.
The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
AxnFX Review Conclusion
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