Is It Safe To Trade With FXUnited? Find Out In This FXUnited Review
First of all, FXUnited has an official website that has a lot of stuff happening on the information front. The broker comes across as a vivid motorsport fan that is proud to advertise its involvement with numerous racing series and the sponsorship of different drives across several racing categories. The website is riddled with information on a wide page theme that tries to cram as much information as it can into the home page. Traders might be inconvenienced by the cluttered design, especially considering that most modern mainstream Forex brokers are opting for a minimalist approach. Regardless, traders can get in-depth information about the broker’s services and products through well-placed links, which should help in eradicating some of the confusion in the first place. FXUnited is a Forex broker that burst on to the retail FX trading scene in 2006. The company was initially thought to be under the ownership of investors from Belgium, but the company has ever since publicly advertised its affiliation with the Financial Markets Authority (FMA) of New Zealand and its subsequent inclusion in the Financial Services Providers Registry (FSPR) of NZ. However, several large-scale scams, crash of the NZ economy and instances of financial abuse had prompted the FMA and the FSPR to issue new guidelines to curb the number of financial irregularities in the market.
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- Website: www.fxunited.com
- Support: firstname.lastname@example.org
- Level 9, 86 Victoria Street
- Wellington, 6011
- New Zealand
FXUnited was one of the popular Forex brokers to be negatively affected by the new FMA guidelines, which ultimately led to the cancellation of the FMA regulatory license and removal from the FSPR. The FMA also publicly issued a notice in May of 2016 warning its investors about the potential conflicts of interests while investing or trading with FXUnited. The FMA regulated the broker under the brand name ‘United Global Holdings Ltd.’, which was consequently blacklisted after the company failed to adhere to the new guidelines imposed by the FMA on financial firms in the country.
Is There Any Allure To An FXUnited Account?
FXUnited tries hard to compete in the highly competitive FX market and does so by offering a standard FX trading product in two different guises. FXUnited provides two different types of accounts, known as the Standard account and the Premium account. Both accounts are available for a minimum initial deposit of $25, with subtle differences differentiating the two accounts. The Standard account has a fixed minimum FXUnited spread of 3 pips, while the Premium account has variable spreads starting at 0 pips. The Premium account is being marketed as an ECN alternative, but the account is similar to a standard STP account that does not have the usual benefits of an ECN bridge. Other differences include fifth decimal pricing available for the Premium account along with a commission per trade. The maximum FXUnited leverage available for both accounts is restricted to a maximum of 1:200, which is comparatively smaller than other competitors in the market. Lower leverage does have its advantage, but FXUnited accounts are aimed at smaller traders that are looking for an edge in the market through a small capital and higher leverage. The broker also promises guaranteed stops and limit orders, which is impossible in a real ECN account due to liquidity purposes. Hence, traders shouldn’t blindly trust FXUnited for its ECN offering; instead, use the other resources available with the broker to trade their strategies according to existing market conditions. The broker does provide a free SWAP feature, which is traditionally a feature only provided with Sharia-compliant accounts. Therefore, traders that hold on to overnight trades can radically lower their SWAP costs by taking advantage of the free SWAP functionality. However, lack of SWAP is applicable for both positive as well as negative SWAP, which may prevent some trading strategies from making money through positive rollover. A majority of trading conditions provided by FXUnited consistently points to a conventional dealing desk model, regardless of how much the broker stresses about its brokerage being based on the non-dealing desk model.
FXUnited Platforms Available For Forex Trading
FXUnited is another broker that uses the MT4 terminal for its brokerage purposes. Traders can download the MT4 on their PC as well as on their smartphones or tablets for accessing the financial markets on the move. FXUnited mobile trading may not be as rewarding an experience as the traditional desktop platform, primarily due to the range of charting options and other features that are typically available with the desktop interface. Regardless, both desktop, as well as mobile FXUnited apps, grant access to a wide range of currency pairs, commodities, precious metals, and indices to allow traders to diversify their investment portfolios into different markets. FXUnited also supports the WebTrader interface offered by the MT4 terminal, which provides further flexibility for traders to access their accounts without a dedicated device. The broker also provides a unique investment oriented trading account that allows investors to enjoy a steady income without actually trading in the markets. The Capital Gain Auto Trading (CGAT) platform is designed to pay a fixed fee return on investments, which are managed by Expert Advisors and manual trades performed by experienced traders. FXUnited understands the implications of their regulatory status being canceled by the FMA, which has forced the company to attract new traders through exceptional FXUnited bonuses. All new clients are offered a straight 30% bonus on their initial deposit, with all additional deposits being eligible for a 100% bonus. Immaterial of the strategies adopted by the broker, FXUnited is finding it hard to sustain itself in the wake of competition from regulated and trusted brokers from around the world. FXUnited’s management team should concentrate their efforts on being governed by an agency if they expect to increase their brand’s visibility to the highly lucrative retail trading market.