Summary: Formax has established itself as a regulated forex broker offering competitive trading conditions, particularly through its ECN model. However, the high minimum deposit and limited educational resources may deter some traders. This review highlights both the strengths and weaknesses of Formax based on user experiences and expert opinions.
Note: It is essential to recognize that Formax operates under different entities in various regions, which may affect its regulatory status and user experience. Our analysis aims for fairness and accuracy by considering multiple sources.
Rating Box
How We Rated the Broker: Our ratings are based on a comprehensive analysis of user feedback, expert opinions, and factual data from various sources.
Broker Overview
Founded in 2014, Formax Prime Capital (UK) Limited operates as a forex broker regulated by the Financial Conduct Authority (FCA) in the UK. The broker offers trading through the widely used MetaTrader 4 (MT4) platform, providing access to various asset classes, including forex, commodities, and indices. Despite its relatively recent establishment, Formax has attracted a global clientele due to its competitive trading conditions and commitment to transparency.
Detailed Section
Regulated Geographical Areas/Regions: Formax is primarily regulated by the FCA in the UK, which is known for its stringent oversight and consumer protection measures. The FCA requires brokers to maintain client funds in segregated accounts and provides compensation coverage through the Financial Services Compensation Scheme (FSCS).
Deposit/Withdrawal Currencies/Cryptocurrencies: Formax accepts deposits and withdrawals in multiple currencies, including USD, EUR, and GBP. However, it does not currently support cryptocurrency trading.
Minimum Deposit: The minimum deposit requirement for opening an account with Formax is £1,000 for the ECN commission-free account and £5,000 for the ECN raw account. This relatively high entry point may limit access for novice traders or those with smaller budgets.
Bonuses/Promotions: Formax does not offer bonuses or promotions, aligning with FCA regulations that restrict such incentives. This lack of promotional offers may be a drawback for traders seeking additional value.
Available Asset Classes: Traders can access a range of instruments on Formax, including more than 60 forex currency pairs, several major commodities (like gold and silver), and indices. The variety of assets allows traders to diversify their portfolios effectively.
Costs (Spreads, Fees, Commissions): The broker offers competitive spreads, starting from 0.6 pips for the ECN commission-free account and as low as 0.2 pips for the ECN raw account, which incurs a commission of £3 per lot. Overall, trading costs are reasonable compared to industry standards.
Leverage: Formax offers a maximum leverage of 1:200, which is considered average in the industry. While this level of leverage allows for significant exposure, it also comes with increased risk.
Allowed Trading Platforms: Formax supports the MetaTrader 4 platform, which is favored for its user-friendly interface and advanced trading features. Additionally, the broker offers Zulutrade for social trading, allowing users to copy trades from successful traders.
Restricted Areas: Formax does not accept clients from the United States, which is a common restriction among many forex brokers due to regulatory challenges.
Available Customer Support Languages: Customer support is available in several languages, including English, Estonian, Chinese, French, Japanese, and Korean. The support team is accessible through various channels, including email, phone, and live chat.
Repeated Rating Box
Detailed Breakdown Section
-
Account Conditions: The high minimum deposit of £1,000 for the commission-free ECN account may be a barrier for new traders. However, the competitive spreads make it appealing for experienced traders.
Tools and Resources: While Formax provides access to the MT4 platform, it lacks comprehensive educational resources, which may be a disadvantage for beginners looking to enhance their trading knowledge.
Customer Service and Support: The customer service team is generally well-rated for its responsiveness and professionalism. Support is available 24/5, which is beneficial for traders across different time zones.
Trading Setup (Experience): The trading experience on Formax is solid, with low latency and direct access to liquidity providers. However, the limited number of available platforms may not cater to all trader preferences.
Trustworthiness: Being regulated by the FCA adds a layer of trust, ensuring that Formax adheres to strict financial standards and client protection measures.
User Experience: Overall, user feedback indicates that while Formax provides a satisfactory trading environment, the high minimum deposit and limited educational resources may affect the overall user experience.
Additional Features: The lack of bonuses and promotions is a notable downside, but the availability of a demo account allows traders to practice without financial risk.
In conclusion, Formax presents a mixed offering for traders, balancing competitive trading conditions against some limitations, particularly in educational resources and minimum deposit requirements. Traders should weigh these factors carefully before deciding to open an account with Formax.
