A TopFX Review Of Prime Brokerage & Asset Management Services
TopFX is a Forex brokerage company that was introduced to global traders in 2010. TopFX caters to one of the largest group of retail traders from North and South America to the Asia-Pacific, while the broker has based its Forex operations in Limassol, Cyprus. TopFX not only serves as a prime Forex brokerage that deals in Forex currency pairs, indices, equities, and CFD trading but also offers its services to investors by offering a wide range of asset management services through active and passive fund management. TopFX has a global reach with a categorical NOP limit of $825 million in transaction volumes, in order to ensure that the broker operates well within its risk threshold. One of the primary drawbacks of the TopFX brokerage is the absence of an ECN account option, but the broker does make up for its shortcomings by offering an STP model that provides a combination of direct market access and automated dealing desk trading protocols. It should be assumed that TopFX may have a slight conflict of interest with its traders, mainly when it comes to trading the news and investing in the markets during times of high volatility.
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Trading instruments, or securities, are the various market types you can trade. Examples include CFDs, stocks, currencies, metals, and commodity futures.
Type of Brokers
Market Maker, DMA
Platform for trading Forex, analysing financial markets and using expert advisors.
Multi-asset platform for trading Forex and CFDs.
Trade online without downloading any software.
Wire Transfer, Bank Transfer, Credit or Debit Cards, PayPal
A TopFX trading account is available for a minimum investment of $200, which offers access to Forex, equities, indices, and CFD trading through a single trading account. The maximum TopFX leverage starts from 1:20 for share trading, while the maximum leverage is fixed at 1:500 for Forex currency pairs. The leverage and minimum margin requirements are different for different financial products, which see the currency markets being eligible for the maximum leverage offered by the company. It may not seem much, but we would usually not recommend any type of leverage that is larger than 1:100. Nevertheless, traders will be able to play around with their strategies with the higher leverage option and experiment with high-risk trading calls for having a better understanding of their risk-appetite. TopFX operates a hybrid of market maker and STP models, which does lead to an average TopFX spread of 1.5 pips on the major currency pairs. We wouldn’t want to call the spreads as highly competitive, but the broker does have a slightly higher spread than other modern STP Forex brokers. There isn’t any commission on trades, yet, traders will have to pay SWAP and any other fees that may be associated with Forex trading.
Where Are My Funds Held?
TopFX is a well-regulated Forex trading firm that is regulated by the Cyprus Securities and Exchange Commission (CySEC). The company is also registered with the FCA, the BaFin, the Banque de France, and all other leading regulatory organizations in the EU under the European Economic Area (EEA) agreement. TopFX regulation is carried out as per the regulatory policies and framework created by the European Markets in Financial Instruments Derivatives (MiFID), which oversees the secure functioning of Forex brokers and other non-banking financial organization operating in the EU. As per the CySEC regulatory framework, TopFX has partnered up with Barclays, a top-tier investment grade bank in the world, to hold its client deposits in segregated bank accounts. The CySEC has also prescribed a minimum €1 million in operating capital for all Forex brokers operating in the country, which is kept in separate bank accounts, completely away from client funds. Therefore, in the event of any legal concerns, clients’ funds can be visibly distinguished from the company’s operating capital, which in turn allows investors to claim their rightful money without any major concerns. TopFX is also subject to regulatory supervision and legal jurisdiction of other leading regulators in the European Union, which may stipulate different guidelines for TopFX to follow while offering their services to traders from a particular country. Therefore, failure to comply with the policies should invite a range of legal sanctions along with strict penalties, which put investors as the center of priority for TopFX services. Additionally, TopFX also offers protection of client funds up to €20,000 through the Investor Compensation Fund (ICF), if a broker fails to tend to its client debts due to broker insolvency or bankruptcy.
The Collection of TopFX Trading Platforms & Account Funding Options
TopFX has roped in the services of MT4 and the cTrader to offer its various products under the CySEC banner. The MT4 is primarily designed as a market maker trading platform, while the cTrader is a proprietary STP/ECN trading platform. Hence, it would make more sense for traders to opt for the cTrader app, especially with the cTrader Startup offer, which offers a range of services and product benefits on top of a standard trading account. On the other hand, the MT4 might be more suited for traders that are more comfortable with the MetaTrader platform, which also enables clients to access one of the largest databases of EAs, indicators, and charting options. The MT4 and the cTrader versions are available as TopFX mobile apps, dedicated desktop trading platforms, and mobile WebTrader versions. TopFX clients are certainly spoilt for choices when it comes to the selection of TopFX platforms, which further allows traders to trade on different versions according to their requirements. Your TopFX trading account can be funded through the usual suspects such as Skrill, Neteller, credit/debit cards, Bank wire, WebMoney, and UnionPay. These payment options do allow traders to deposit or withdraw money through some of the fastest and the most secure payment options available in the market. Of course, choosing a Bank wire will involve a significant delay, when compared to online e-wallets or credit/debit cards. But overall, depositing and withdrawing money should be an easy and secure affair, as is expected from a European Forex broker that is regulated by some of the top regulatory agencies in the EU.
The Slight Disadvantages To Consider Before Opening A TopFX Account
The broker does not offer a pure ECN account, even though traders can trade through the DMA protocol of the cTrader. The initial trading capital for a TopFX account is also not as small as some of the other competing brokers, as the broker should have offered a couple of options that are dedicated for small and large traders. The cost of trading is also strictly in the average zone, which does not provide any further incentives for traders to make a switch from their existing broker. Nevertheless, these issues do pale in stark contrast to the overall trading security, the safety of funds, and the competitive trading services that are available for the seasoned trader.