FintechFX is an Australian broker that offers the two account types above. Both of them provide default leverage of 1:100 (up to 1:500), variable spreads and the option to trade in micro lots. In addition, swap-free options are available for both of them to investors of Islamic belief.
– Regsitered with ASIC
FintechFX is registered with the Australian Securities and Investments Commission (ASIC). While this adds certain level of reliability to the broker, it is not proper regulation, especially taking into account that the company behind FintechFX is incorporated in Saint Vincent and The Grenadines
– Low cost of trading on Ultimate ECN accounts
FintechFX does not specify the spreads it offers on the website, it only mentions the commission of $10 applicable to Ultimate ECN account holders. When we tried out its demo MT4, we found the same commission is charged, so we assumed that our demo account is an ECN one. The spread itself was flaoting around 0.1 – 0.2 pips on EUR/USD, so the average trading costs are around 1.1 pips per standard lot for this pair, which is a good pricing.
FintechFX’s demo MT4. It gets larger if you click on it.
– MT4 offered
Another good thing about trading with FintechFX is that it offers its services via Metatrader 4 platform. Although its developer announced that it will stop selling MT4, it is still the most popular forex trading platform. This is due to its ease of use, advanced charting, wide range of automated strategies (Expert Advisors) and technical analysis indicators, customization options, etc.
– High leverage levels provided
FintechFX belongs to the group of forex brokers that provide high leverage levels. Indeed, this option is an advantage, yet we feel obliged to warn you that high leverage ratios may both multiply your profits and your losses. So, don’t forget your risk management strategy and be sure to understand the risks of trading on margin.
– An offshore broker
FintechFX is operated by My Group Fintech Co Pty Ltd., a company incorporated in Saint Vincent and the Grenadines (SVG). Due to its lax legal and tax regimes SVG is a rather popular offshore zone, where forex brokers are not regulated. Being a client of such a company means you are not protected and that the money you invest in it is not safe.
– Not very extensive product portfolio
This brokers offers less than 30 currency pairs for trade, as well as several CFDs (on precious metals and crude oil). Popular financial instruments such as CFDs on indices, stocks or Bitcoin and other cryptocurrencies are not available with FintechFX. If you are keen on trading Bitcoin or other pop[ular digital assets.
– Salty withdrawal fees, slow processing
The only deposit and withdrawal method allowed by FintechFX is bank wire. Even worse, withdrawals take up to 7 business days and are charged with $20 each. Most forex brokers have no fees for deposits and withdrawals.
– Spreads not specified
Unlike most credible brokers, FintechFX does not specify the spreads it offers on its website. Such lack of transparency in terms of a broker’s pricing policy is certainly a disadvantage.
Australian broker FintechFX has left us with mixed feelings. On the one hand, its pricing seems good (at least on the ECN account), MT4 is supported, and it offers high leverage levels, while the minimum investment required is reasonable. On the other hand, FintechFX has not announced the spreads on its website, its product offering seems somewhat limited, and it charges hefty withdrawal fees. Nonetheless, its most important weak side is the fact that the company owning and operating the broker is incorporated in an offshore zone. We have warned our readers multiple times of the risks involved in trading with an offshore broker. Yet, we cannot say that FintechFX is a scam, all the more so because it is registered in Australia.
Brokers that are duly regulated by ASIC are required to hold a minimum of AUD1,000,000, to keep clints; funds in segragated accounts and to comply with a number of standards.
FintechFX Review Conclusion
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