FXNet: Are You Dealing With A Genuine Forex Broker? Find Out In This FXNet Review
FXNet is another mainstream Forex broker that is domiciled in Limassol, Cyprus but the broker has its clients located in over 100 different countries across the world. FXNet is another European Forex broker that has taken advantage of the excellent business environment and regulatory protection of the Cyprus Government, in addition to the unabridged market access to the European Union under the European Economic Area (EEA) agreement. Read our comprehensive FXNet broker review to find out whether you are indeed dealing with a regulated and safe Forex broker that guarantees the safety of your trading capital.
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- Website: www.fxnet.com
- Support: +357 25 108 111
- 37 Theklas Lysioti St
- Gemini House
- Office Suite 301
- 3030 Limassol
Comparing The FXNet Accounts & Trading Protocols
FXNet promises full Straight Through Processing (STP) protocols for its brokerage model that is devoid of any interference from the broker or its dealers. FXNet guarantees direct market access to liquidity providers without passing them through a dealing desk, which ensures that there is no conflict of interest between FXNet and its traders. In this regard, FXNet has designed three different types of trading accounts according to the initial deposit requirements, the FXNet spreads, and the trading conditions. Anyone can open an account at FXNet for $50, which allows them to trade the markets using a maximum FXNet leverage of 1:500. The minimum order size starts from 0.01 lots, with the maximum order size limited to 20 lots for Forex, commodities, equities, and indices trading. The primary trading account is also known as the Standard Account, which does seem to be one of the most expensive account offerings with insanely larger spreads that start from 2.3 pips. In comparison, we have worked with several market maker brokers that promise ultra-competitive spreads that start from 0.8 pips. We are not entirely sure as to the reason why FXNet charges a high amount of spreads for its STP accounts, but we would have liked the company to lower its spreads to a more acceptable 1.5 pip range that seems to be the average spreads for the regular STP accounts. FXNet does offer a slightly better spread of 1.9 pips for its VIP account package, but it requires a minimum deposit of $2,000. The VIP account is similar in almost all aspects of the Standard account, albeit with the addition of 24 hours dealing support feature and a slightly more preferential treatment. For the complete ECN package with 0 pips spread assurance, traders will be required to shell out a least $5,000, which is more expensive than conventional ECN accounts at other mainstream Forex trading companies. The ECN account, branded as the Platinum account, also has an unusually high commission of $12 per lot for round turn, which is more than double the commissions that are prevalent in the market. Irrespective of the high cost of trading, all traders receive the best Direct Market Access (DMA) conditions that are devoid of requotes or price manipulation. On the flipside, DMA trading does involve significant slippages and partial fills, which is why FXNet has limited its maximum order size to 20 lots at a time for all account types. It might seem counter-intuitive for traders to experience an upper limit in ECN trading, but the broker has purposefully imposed such a restriction on its trading account to avoid the occurrence of massive slippages that are common in direct market access trading.
How Are My Fund Kept Secure From Broker Misuse?
FXNet may not be as economical or as cost-effective as other traditional STP or ECN account offerings, which does hamper the broker’s ability to market its services to retail traders in an efficient manner. Regardless, the broker has managed to offer a reliable and secure trading environment under the CySEC regulation that guarantees to provide complete peace of mind while dealing with FXNet. FXNet clients are provided protection under the CySEC framework that requires brokers to hold its customers’ trading capital in segregated accounts and offer protection against broker insolvency issues through the Investor Compensation Fund (ICF). ICF is a unique European regulatory protection scheme that offers compensation of up to €20,000 to traders if their broker winds up insolvent or faces bankruptcy without meeting its clients’ debt obligations. CySEC also supervises the financial activities of FXNet and requires routine audit reports from the broker to make sure that the broker does not misuse its client funds or indulge in any fraudulent activities. FXNet is bound by all the laws of the European Union and may be subjected to legal proceedings by any regulatory organization for failure to adhere to the regulatory standards.
FXNet Deposit & Withdrawal Options
FXNet deposits and withdrawals can be accomplished through Visa, MasterCard, Skrill, WebMoney, Neteller, and Wire transfers. Apart from the wire transfer option, all other payment modes offer instant deposits, while there is a 24-hour delay for processing withdrawals. Most brokers adopt this 24 hours processing period to ensure that the trader does not have any open positions, or even if they do, the withdrawal amount does not lead to a margin call or negative balance. According to the actual customer testimonials from verified clients, FXNet has a high percentage of successful withdrawals, which means that you can expect to receive your payments without any major troubles.
FXNet Apps & Mobile Trading
FXNet has followed in the footsteps of its peers in the industry by adopting the MetaTrader4 terminal as the standard FXNet trading platform for all the three different types of trading accounts. FXNet clients may also opt for the VPS option for low-latency trading and EA support, while regular traders may find the MT4 terminal to be more than sufficient for their trading needs. The availability of FXNet mobile apps through the MT4 versions for iOS and Android also gives plenty of opportunities for traders to access the markets on the move. FXNet has also offered support for fund managers and multiple account holders through its MT4 Multi-Terminal and the PAMM/MAM accounts. You can get a fair idea about the broker’s trading platforms through an FXNet demo trading account, which can also be beneficial for beginner traders that have just begun investing in the Forex markets.
Customer Support & Islamic Trading Option
FXNet follows the usual customer support channels such as live chat, email, phone numbers, and web contact forms, as are required by the CySEC and other EU regulatory organizations. It is important for FXNet to offer the best customer service to its clients, or face a regulatory backlash if any trader decides to approach the CySEC regarding any non-compliance. If you are not too concerned about the cost of trading, FXNet can be a reliable option for trading the Forex markets, even for Islamic traders, who ca opt for a SWAP-free account according to Islamic religious beliefs. FXNet may be able to offer a reliable Forex trading service, but we would also recommend you to compare other options in the market before making your final decision.