PremierFX (or Pfxmarket) is fore broker which offers the aforementioned account types. That being said, when we are not entirely sure about the validity of these trading conditions, as the company’s website presents them in the most absurd way possible.
MT4 trading platform – The main benefit of dealing with PremierFX is the solid trading platform which they offer. For those of you who are not familiar with the forex trading industry, MetaTrader4 is the leading solution. Some of the best brokers, like IG, FXTM and HYCM allow clients to trade with it. That being said, a lot of untrustworthy brokers also offer it, so this factor by itself does not give the company any credibility.
High Leverage – The leverage offered for the different account types at PremierFX is quite high. While this is a beneficial factor, it can also lead to high losses. Be sure to fully grasp the principles of margin trading and the risks involved, before you start trading.
Popular payment methods – PremierFX accepts deposits via Credit Cards, Neteller and FasaPay. These payment providers are instant and more importantly wide-spread.
Reasonable Minimum Deposit – With a $100 minimum deposit, PremierFX allows most people to join the world of trading. On the other hand there are brokers, who do not discriminate clients on their financial capabilities and accept even smaller clients. As an example XM only requires $5 and even often has non-deposit promotions.
Off-shore Regulation – PremierFX is registered in one of the new hotspot for shady forex brokers, Vanuatu. They have obtained the Vanuatu Financial Services Commission (VFSC) “Dealer in Securities” license, but this is no that much of an achievement.
High fixed spreads – The costs of trading aren’t fully revealed by PremierFX (at their website), but when testing their demo platform we saw a 4 pips fixed spread on EUR/USD. This level was not competitive even a couple of years ago, but for the current environment, it is just absurd. If you are that keen on trading with a fixed spread, easyMarkets has a much better offer, where you will get a 1 pips spread on the same currency pair, if you deposit more than $250.
Scalpers not accepted – The minimum delay between opening a trade at PremierFX and closing it is 2 minutes. This may not seem like a lot of time when you are a long term traders, but it basically prevents scalpers (and scalping automated trading systems) to trade with this broker.
Four-digit quoting – Nowadays, almost all forex brokers provide a fifth symbol after the decimal point. In case you are not that familiar with currency trading, this is a very big issue. Trading with only four digit quotes facilitates much less precise order executions, and can even totally ruin the performance of short term trading strategies (much like the previous 2 minute rule)
New company – While being young isn’t a flaw when it comes to people, this broker was founded in 2017, which means they haven’t proven themselves. This is not that big of a concern, but when combined with the rest of the factors, raises worries.
PremierFX is a Vanuatu-based forex broker. They are overseen by the infamous VFSC, which doesn’t inspire credibility.
In case you are not familiar with the forex industry, we must warn you there are a lot of dishonest companies out there. Vanuatu has attracted a lot of them, with the loose regulation and easily obtainable broker license. The minimum capital holdings requirement for a forex trading company there is a mere $2,000. This speaks for itself.
On the other hand, the island of Cyprus is also a popular destination among brokers, but only legitimate companies register there. As a comparison, the Cyprus Securities and Exchange Commission (CySEC) demands € 730,000 in initial holdings before a broker can register there.
Additionally there are a lot of other rules and procedures, which Cypriot companies must follow. From a trader’s perspective two are the most important – the segregation of client funds and the Investor Compensation Fund (ICF).
The first of them means, once you deposit money to a CySEC regulated broker, they can’t simply take it and leave – it is kept in a special bank account, with all the necessary conditions. On op of that, the ICF will provide you protection, in case your broker goes bankrupt. The maximum you can claim from it is € 20,000.
As you may have concluded by now, financial regulation is a key issue for us. Sadly, being based in Vanuatu, PremierFX does not stand highly in our opinion. That being said the trading conditions provided by this broker are something we haven’t seen in years: a four pip fixed spread, couple with four-digit quoting is way outdated.
PremierFX Review Conclusion
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