Summary: Formax Prime has garnered mixed reviews from users and experts alike, with notable strengths in regulatory compliance and competitive trading conditions. However, concerns arise regarding its high minimum deposit requirements and the status of its regulatory license, which is flagged as a "suspicious clone" by the FCA.
Note: It is crucial to understand that Formax operates through different entities in various regions, which can impact the services and regulations applicable to users. This review aims to present a fair and accurate assessment based on available data.
Ratings Overview
We rate brokers based on user reviews, expert analysis, and available trading conditions.
Broker Overview
Founded in 2014, Formax Prime operates as a forex trading provider based in the United Kingdom. The broker is regulated by the Financial Conduct Authority (FCA), which provides a level of security and oversight for clients. Formax Prime primarily offers trading through the widely recognized MetaTrader 4 (MT4) platform, known for its robust analytical tools and user-friendly interface. Traders can access a variety of asset classes, including over 60 forex currency pairs, commodities, and indices, making it a versatile choice for different trading strategies.
Detailed Analysis
Regulatory Regions
Formax Prime is regulated in the UK by the FCA, which is known for its stringent standards. However, the broker is currently listed as a "suspicious clone," raising concerns about its legitimacy. According to WikiFX, the specific license number attributed to Formax Prime is 624225, but its official website is currently inactive, which further complicates its regulatory standing.
Deposit/Withdrawal Currencies
Formax Prime supports multiple currencies for deposits and withdrawals, including USD, EUR, and GBP. Clients can fund their accounts through several methods, such as bank transfers, credit/debit cards, and e-wallets like Skrill and Neteller. Notably, deposits via bank transfer do not incur fees, while credit/debit card deposits attract a 3% transaction fee. Withdrawals, however, may incur fees depending on the method, with bank transfers costing $25 per transaction.
Minimum Deposit
The minimum deposit to open an account with Formax Prime is relatively high at £1,000 for the ECN commission-free account and £5,000 for the ECN raw account. This could be a barrier for beginner traders or those with limited capital. As noted by Forex Suggest, this high minimum deposit requirement may deter new traders looking to enter the market.
Currently, Formax Prime does not offer any significant bonuses or promotions, which is consistent with the regulatory environment in Europe, particularly under ESMA regulations. The absence of bonuses may be seen as a downside for traders who are looking for additional incentives.
Tradable Asset Classes
Traders at Formax Prime can access a diverse range of asset classes, including 60 forex currency pairs, commodities like gold and silver, and various indices. This variety allows traders to diversify their portfolios and engage in different markets, which is a positive aspect highlighted in various reviews.
Costs (Spreads, Fees, Commissions)
Formax Prime offers competitive spreads, starting from 0.2 pips on the ECN raw account, although a commission of approximately £3 per lot is charged. The ECN commission-free account has spreads starting from 0.6 pips, which are also competitive but may include hidden costs. According to Forexing, the overall trading costs for the EUR/USD pair would average around 1.3 pips when accounting for commissions.
Leverage
The broker provides a maximum leverage of up to 1:200 for all account types, which is relatively standard in the industry. High leverage can amplify potential gains but also increases risk, making it essential for traders to manage their positions carefully.
Formax Prime primarily supports the MetaTrader 4 platform, which is widely regarded for its advanced features and user-friendly interface. Additionally, traders can utilize ZuluTrade for social trading, allowing them to copy trades from experienced traders. This dual-platform offering is a significant advantage for users looking for flexibility in their trading approach.
Restricted Areas
Formax Prime does not accept clients from the United States, which is a common restriction among many brokers due to regulatory challenges and compliance issues.
Available Customer Support Languages
Customer support at Formax Prime is available in multiple languages, including English, Estonian, Chinese, French, Japanese, and Korean. This multilingual support is beneficial for catering to a diverse client base.
Final Ratings Overview
In conclusion, the Formax Prime review indicates that while the broker has strengths in regulatory compliance and competitive trading conditions, potential clients should be cautious due to the high minimum deposit requirements and the current status of its regulatory license. As always, prospective traders should conduct thorough research and consider their trading needs before engaging with any broker.
