Fort-FX is a company which allegedly provides spot forex trading and something similar to binary options. They are not the first company to call binary options something else, as some people have a negative association with the term. That being said we could not get their “MT4 Derivatives” plugin running.
The Company. Security of Funds
Company Country Regulation
FortFX Vanuatu VFSC
FortFX is registered in Vanuatu and falls under the regulatory zeal of the local VFSC. This does not inspire a lot of trust. Off-shore companies are not something we would generally recommend. This is due to the fact, the legal environment in which they operate can be rather loose.
Speaking of loose standards, Vanuatu is probably the least credible of the popular destinations for forex brokers. The aforementioned Vanuatu Financial Services Commission (VFSC) requires a company to prove it has $2,000 in capital before receiving the license. Compare that to the UK’ Financial Conduct Authority (FCA)’s demand of EUYR 730,000 and you will see what we mean. The FCA also requires brokers to periodically report their activities and follow certain rules. One of the most important ones is the segregation of client funds. It stipulates a broker must separate traders’ funds from its own operational bank accounts. That being the case, most basic forms of scam are prevented.
Furthermore all FCA-regulated brokers participate in the Financial Services Compensation Scheme (FSCS). This is a mechanism, which guarantees clients’ accounts against broker bankruptcy. The coverage is limited to GBP 50,000 per account.
Minimum Initial Deposit
Fort-FX demands a minimum investment of $100, for the creation of a new account. This is the current average, with many brokers, like HYCM requiring $100.
Do keep in mind, this shouldn’t really be a major factor when comparing forex brokers, unless you are a new trader. In that case you may even want to start with a cent-account. FXTM, for instance only requires $5 as an initial deposit for such an account,
Average spreads & Commissions
The costs of trading at Fort-FX are aggregated in the fixed spread. Their offer starts from 2.5 pips on EUR/USD, which is higher than the current fixed spread offers from other brokers. If you deposit $250 or more at easyMarkets, you will receive a 1 pip fixed spread on this pair. On the other hand, variable spreads can go even lower.
Fort-FX offers a maximum of 1:500 in leverage. This may sound like an absurd level, if you are familiar with trading other asset classes, but when it comes to currencies, similar levels are provided by many brokers.
Some sources cite this as the number one reason for the losses experienced by beginners. Not understanding how leverage works and placing incredibly large positions (in relation to your account) is a big mistake.
Forrt-FX offers its services via MetaTrader4 (MT4), the current industry standard. The platform is quite old, but when it comes to finance, software changes do not take over as quickly as they do in other fields. As long as MT4 is supported traders will continue to enjoy its charting package and the ability to load many instruments with a relatively small hardware requirement.
MT4’s defining feature may very well be the easy to learn coding environment. It, combined with the platform’s massive popularity has led to the creation of numerous automated trading robots and newly designed technical indicators.
Although we did mention it, we will reiterate, the company offers “MT4 Derivatives”, which is supposed to be a plug-in allowing something similar to binary options to be traded on the platform. This is a relatively new trend, which we quite frankly do not understand. If a company wants to provide binary options, they should do it via a different platform, while leaving the spot market to MT4, in our opinion
Methods of Payment
The payment options at Fort-FX are: Bank transfer, Credit/Debit Cards, Skrill and China UnionPay. This is a decent line-up which has all of the bases covered,
Fort-fx is an off-shore forex broker. The company is regulated by the VFSC, which doesn’t have a reputation for stringency. Fort-fx allegedly also provides something similar to binary options, via MT4, although we could not get the platform running. When it comes to the trading conditions, they are below the current offerings of other forex brokers.
FortFX Review Conclusion
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