This broker a single Standard account type with variable spreads, leverage up to 1:50, no commission fees, and the chance to trade in micro lots for better risk management on the renown MetaTrader 4.
The Company. Security of Funds
Royal Forex Ltd.
RoyalForex is a brokerage offering trading in over 60 currency pairs, precious metals, CFDs on stocks, indexes and ETF funds, which utilizes pure STP execution. The brand is operated by Royal Forex Ltd., a company which is licensed by the Cyprus Securities and Exchange Comission (CySEC) since 2015.
Cyprus is one of the most popular forex broker jurisdictions in Europe. CySEC applies certain rules and requirements to Cyprus Investment Firms: they must hold at least €730 000 as a proof of financial stability (the same amount is also required from UK-based brokerages by FCA); in addition, forex brokers must keep customer funds in segregated accounts, and regularly report to CySEC.
As a further guarantee to clients’ funds, all CySEC-regulated companies are members of the Investor Compensation Fund, which is able to pay compensation up to €20 000, If the company is in default.
Additionally, every CySEC- regulated investment company is also MiFID compliant and therefore entitled to offer cross-border services within the EU.
Minimum Initial Deposit
There is no requirement for minimum amount to deposit. However, in order to maintain a minimum amount of collateral (needed for marginal trading), you have to deposit some funds – about 20 USD to open a position (micro lot with leverage 1:50).
Average Spreads & Commissions
This broker doesn’t charge commission fees and its typical spreads amount to around 1.4 pips on EUR/USD, which is a competitive pricing. Most brokerages offer spreads for this pair within the range of 1.0 – 1.5 pips.
For example, FXTM offers average spread of 0.7 pips and involve a commission $4 per standard lot (round turn). For further information and comparison, you may look up and compare real-time spreads of 15 leading brokers here.
RoyalForex offers leverage up to 1:50, which is a comparatively low ratio, yet it is in line with the latest CySEC regulations. At the end of 2016 the Cypriot financial watchdog proposed default leverage levels to be 1:50, nonetheless most Cypriot brokers still offer high maximum leverage ratios – FXTM – up to 1:1000 and XM – up to 1:888. You may check out more forex brokers offering leverage equal to or exceeding 1:500 here.
Many jurisdictions introduce restrictions on leverage, because the higher the leverage, the greater the risk.
This broker supports the industry’s standard MetaTrader 4 (MT4), which comes in desktop, and mobile versions with RoyalForex. This platform is preferred by most traders, because it is user-friendly, supports automated strategies, offers extensive back-testing environment and a number if build-in technical analysis tools, as well as advanced charting package.
Methods of Payment
RoyalForex offers its clients only two payment methods: Credit/debit cards and bank wire transfer. Popular e-wallets such as Skrill or PayPal are not available with this broker.
RoyalForex is a CySEC-licensed STP broker that offers reasonable trading conditions on the MT4 platform. Some may find the maximum leverage levels provided too low and besides, there is no choice of trading accounts and payment moethods.
RoyalForex Review Conclusion
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