Your Guide To FX Trading With NoaFX Through This NoaFX Review
NoaFX is a Forex broker that is owned and operated by a team of financial investors who are known to run a successful hedge fund. Initially known as the Capital Markets Investments Limited, the group has an extensive history in the financial markets by managing funds for both public as well as private investors from as early as 1975. NoaFX was founded as a Forex broker in 2013, and still resembles close ties to its fund management service by transacting billions of dollars’ worth of volume on a monthly basis. Since the broker is operated by professionals that have extensive experience in the industry, traders can be assured of a top-quality environment that offers unprecedented access to the world of currency transactions.
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How Is NoaFX Regulated?
NoaFX regulation seems to be one of the sore points for the broker, as the company has allegedly run into some troubles with its primary regulatory organization. Being based out of New Zealand, NoaFX claimed to be regulated by the FMA (Financial Markets Authority) and a listed member of the New Zealand FSP (Financial Service Providers) registry. However, the FMA has gone on record to warn its investors about the potential conflict of interest with NoaFX by terming it as an unregulated entity that does not have the proper authorizations from the NZ Government. The fallout with the FMA, or the lack of any regulatory licenses in the first place, should be a huge deterrent for a majority of traders in the industry that are looking to hold an account with a safe and regulated broker. NoaFX also does not correctly point out to any official regulatory status, which does indeed sound dangerous from a trader’s perspective. The broker, in its defense, follows almost all the policies and guidelines that are usually implemented for regulated Forex brokers, such as holding client money in segregated accounts, creating routine third party audits, and having an insolvency procedure in place to protect traders from broker liquidation. As of the information available with the customer support, the company appears to be registered in St. Vincent and the Grenadines, but the regulatory status does sound dubious at best.
Is There Any Information On The Different Types of NoaFX Accounts?
Fundamentally, NoaFX offers ECN as the standard protocol for all traders, and the company does not support any other kind of standard or micro accounts. The ECN account comes in two different forms, the NoaFX Ultra, and the NoaFX Pro accounts. The NoaFX Ultra account is a real ECN account that starts with a minimum initial deposit of $10, which qualifies for small NoaFX spreads that are as low as 0.2 pips. There is also a small commission per trade amounting to 0.5 pips fixed. Therefore, the Ultra account is certainly one of the best ECN accounts available in the market. The Pro account, however, is very confusing, especially due to the spreads, which start at 1.6 pips. Although the Pro account connects the trader to 71 different liquidity providers through state of the art ECN protocols, the trading conditions are worryingly less beneficial than the Ultra account. The maximum NoaFX leverage for the Ultra account is 1:500, when compared to the lower leverage of 1:400 for the Pro account. Even the initial minimum capital required for opening a Pro account is significantly higher at $1000. Nevertheless, the Pro account provides more instruments such as commodities and indices, along with features such as scalping, social trading, trading signal notifications, and no commissions per trade. The two different NoaFX accounts may seem confusing to clients, especially due to the inconsistency in features and trading conditions. All trader accounts are routed through the MT4 platform, which is available for PC, Mac, Android, iOS, and Mac. The broker supports mobile trading through its MT4 NoaFX mobile apps, which is once again the proprietary platform designed by MetaQuotes, the leading software service provider for FX trading. The speed of execution and reliability of the NoaFX trading platforms are steady and reliable, without any nasty surprises regarding dropped connectivity or latency issues. Larger traders, institutional investors, and money managers can make use of the corporate accounts, or the MAMM accounts for trading the FX market either through managed accounts or by investing in other MAMM accounts. The MT4 Multi-Account platform offers an excellent tool for traders to unify several investor accounts into a single trading account and enjoy more profits at considerably fewer costs of account management. NoaFX also offers the option of Binary Options trading through its proprietary platform, but most experienced traders stick to the traditional FX market for stability and decreased volatility. Binary options may not be suitable for all investors, but Forex traders can use the option if they wish to experience the thrills of binary trading without risking too much capital.
Why Should I Open A NoaFX Trading Account?
NoaFX offers an ECN account with a small initial deposit of just $10, which not only qualifies for a 1:500 leverage but also enables traders to enjoy the best trading conditions along with lower spreads. New account holders are also offered a 15% NoaFX bonus on their initial deposit, supplemented by extensive training and one-on-one sessions to help traders to learn the rules of trading from experienced professionals. Therefore, smaller traders can benefit from the excellent trading environment that can be enjoyed with a small investment, without worrying about the safety of your large capital. On the contrary, NoaFX’s regulatory status also puts a huge doubt into a trader’s mind, which may prevent large traders from depositing their money with the broker. Unless NoaFX commits to its traders’ interests by being regulated by a genuine and reliable authority, the broker may find it hard to impress traders in the highly competitive FX marketplace. Until then, Forex traders from any market and of any stature must exercise caution while dealing with unregulated Forex brokers.