Key Takeaways
-
FXOpen is an online broker founded in Egypt in 2005 after beginning as an educational center.
-
FXOpen is regulated in the UK by the tier-1 Financial Conduct Authority (FCA).
-
FXOpen clients are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000.
-
The broker works under the Electronic Communications Network (ECN) and the Straight Through Processing (STP) trading models.
-
The broker provides Contracts for Difference (CFD) access to over 100 markets in asset classes, such as FOREX, indices, commodities, shares and cryptocurrencies.
-
FXOpen offers selected competitive spreads and commissions across its account types, although its fees are not always competitive, with its deposit and withdrawal fees being particularly high.
-
FXOpen offers four main account types: the ECN, STP, Crypto and Micro accounts.
-
The broker provides clients with desktop and mobile access to MetaTrader4 (MT4) and MetaTrader5 (MT5). It offers desktop-only access to trading platform TickTrader.
-
As per European rules, the broker must provide clients with negative balance protection so they will never lose more than what is in their account.
[main-info]
Overall Summary
The brokerage division of FXOpen was founded in Egypt in 2005, after successfully operating as an educational center that offered technical analysis and financial courses. The broker began its operations with the desire to fulfill what it saw as a need for fair and open trading conditions for traders around the world.
Leaping off what it called a “trader-oriented approach,” FXOpen concentrated on offering constant customer service support and superior platform technology. Coupled with low costs, such as spreads from 0.0 pips and commission from $1.50 per lot, the broker has been able to grow over the last few years.
The broker operates in 100+ markets, with access to FOREX, indices, commodities, shares and cryptocurrencies. FXOpen prides itself on instant trade execution and access to a vast array of top tier liquidity providers that work with real-time pricing.
FXOpen is a pure ECN broker. This means there is no conflict of interest when you trade with it. ECN brokers bypass traditional market makers when routing order flows. In this way, they act as the middleman, using an ECN to connect market players together. FXOpen prides itself on providing institutional liquidity as well as fast and accurate order execution.
[pros-cons]
Who Is FXOpen Good For?
FXOpen’s arsenal of quality tools will serve elite traders and institutional clients alike. Indeed, the broker says it welcomes the most experienced traders, and anyone who prefers scalping as their main trading approach.
The broker’s ECN model allows traders access to real-time quotes from the industry's largest liquidity providers. The broker works with top-tier liquidity providers like Standard Chartered, Barclays Capital and Bank of America.
It is clear FXOpen is not good for US clients. In 2012, the broker was sued by the Commodity Futures Trading Commission (CFTC) for unlawfully accepting US clients. The broker settled the matter, but now steers well clear of American clients. Here are some key factors to consider before engaging with this broker:
Is FXOpen Safe?
FXOpen is considered a low-risk broker with which it is safe to deal. This is primarily because the broker is regulated by the UK’s FCA under FRN: 579202. This tier-1 regulator is a high-trust watchdog that enforces several safeguards designed to keep customer funds secure.
According to these rules, the broker offers negative balance protection, meaning they will not lose more than they have in their account. Also, regulation with the FCA means that FXOpen must offer clients investor protection of up to £85,000 through the FSCS. Additionally, retail client funds are fully segregated from broker operating accounts and are kept in tier-1 banking institutions.
[profile-info]
Offering of Investments
The broker has a strong slate of products that give traders solid access to markets. Here is what is on offer:
-
FOREX: Clients can trade in 50+ FOREX markets. The broker offers deep liquidity and spreads from 0.0 pips.
-
Indices: Users can trade global indices with low commissions, tight spreads and flexible contract sizes. The broker has access to major global markets like the CAC40, US SPX 500, and UK 100.
-
Commodities: Clients can operate in commodity markets, including energy and metals, with the benefit of tight spreads and rapid execution.
-
Shares: Traders can access well-known US stocks such as Tesla, Microsoft and Google. Clients can trade these stocks and many more as CFDs.
-
Cryptocurrencies: Clients can trade cryptocurrencies without owning the underlying asset when they trade as CFDs. Traders should note that cryptocurrency CFDs are only available for trading by professional clients.
[advantages]
Account Types
The broker offers four account types, as follows:
-
Micro: Featuring floating spreads and no commissions, entry-level traders have access to 28 currency pairs through this account. The minimum deposit is only $1. The minimum transaction size is 0.1 micro lot, making it perfect for beginner or undercapitalized traders.
-
STP: This account offers tight spreads and no commissions. Clients have access to 50+ currency pairs. Scalping is allowed, and the minimum deposit is only $10. This account is available on MT4.
-
ECN: This is the broker’s most popular account. Featuring raw spreads and commissions from 1.5 units per lot, traders can access 50+ currency pairs and 25+ cryptocurrency CFDs, as well as share CFDs, index CFDs, spot metals CFDs and commodity CFDs. Scalping is allowed, and this account is available on MT4, MT5 and TickTrader. It features an affordable minimum deposit of $100.
-
Crypto: With tight spreads and low commissions from 0.5%, traders can access 43 crypto pairs, which they can trade on MT4. The minimum deposit is $10.
The company also offers Percentage Allocation Master Module (PAMM) trading capabilities. This technology allows traders to follow the trading strategy of another client. This copy trading method is available on the ECN, STP and Crypto accounts and allows traders the chance to mimic other traders’ strategies without having to do their own research.
Furthermore, FXOpen accommodates Islamic traders, who can trade FOREX according to Sharia law through swap-free accounts.
Account Opening
Opening an account is easy. By now traders will be familiar with the need to satisfy the standard compliance checks. These include declaring your trading history and experience as well as providing information, such as a color copy of your passport, driving license or national ID. You will also need to provide a recent utility bill to prove your address details.
Demo Account
FXOpen clients can practice FOREX trading using the broker’s free Demo Account. Traders can enjoy the latest market data in real time as they build their track records and improve on their analysis skills. Traders can access FOREX spot, CFD crypto, CFD metals, CFD commodities, CFD stocks and CFD indexes through their Demo Account.
Bonuses and Promotions
At the time of writing, FXOpen offered the following promotions:
-
FXOpen Cashback Program: This promotion allows traders to receive a refund for any kind of trades, including loss-making ones. Cashback is determined in accordance with the total margin used on all client's trading accounts.
-
FOREX Contests: Brokers can join FOREX trading contests and earn real prize money for live trading. The broker’s FOREX trading competitions are usually free to join, although some come at a cost. The idea is for traders to gain experience in FOREX trading while having fun.
Deposits and Withdrawals
FXOpen offers several methods with which to deposit and withdraw funds from your account:
-
Credit/debit cards.
-
China Union Pay.
-
Paypaid.
-
Airtm.
-
Boleto.
-
Oxxo.
-
Rapipago.
-
WebMoney.
-
FasaPay.
-
Advcash.
-
Bitcoin.
-
BitcoinCash.
-
Litecoin.
-
Emercoin.
-
Ethereum.
-
Tether.
-
AstroPay.
-
Redeem.
-
Local bank transfer.
This is where one of the major drawbacks of this broker comes into evidence. Its deposit and withdrawal fees are high and are out of step with the market. Traders should visit the broker’s Website for the full list of fees, but some examples include a 3.5% deposit fee on major credit and debit cards, like Visa and Mastercard. Deposit providers, such as Oxxo and Boleto, are subject to a whopping 5% deposit fee! Regarding withdrawals, there is a 3% withdrawal fee on China UnionPay, and a 2.5% withdrawal fee on selected credit and debit cards.
Customer Service
Clients can access the broker’s customer service desk via live chat, email and telephone. The broker’s Website provides a full list of international telephone numbers for clients to call. Live chat and telephone options are available 24/5.
Commissions and Fees
The broker’s trading fees are competitive, with spreads from 0.0 pips and commission from $1.50 per lot. The ECN account creates the best conditions for cost-effective FOREX trading, as there are no fixed spreads or additional pips added.
However, these low trading fees can only be accessed by trading extremely high volumes. For moderate volumes, FXOpen’s fees slide back into the crowd, with major FOREX pairs such as the EUR/USD coming in at 0.2 pips, which is not spectacular. A pair such as the EUR/GBP averages around 0.5 pips, which is higher still.
Spreads on indices, such as the UK 100, start from 0.8 pips. Spreads on commodities, such as gold and silver, average 0.27 and 1.2, respectively. These rates are respectable, though not market leading.
Meanwhile, the broker’s ECN account contains incentivized FOREX commissions, with accounts bearing lower than $1,000 being charged a commission of $3.50, while accounts with balances over $250,000 attracting a $1.50 commission.
The broker’s non-trading fees are not competitive. In particular, its withdrawal and deposit methods bear fees as high as 5%. This is not capped according to the size of the transaction, and traders will rightly feel aggrieved for being doubly billed as they face both deposit fees and withdrawal fees, making trading with this broker an expensive exercise.
Leverage
As per European rules, retail clients can access leverage as high as 1:30 on major FOREX pairs and 1:20 on minor FOREX pairs. The highest available leverage is 1:500, but this is only available to professional clients.
Platforms and Tools
FXOpen offers access to three trading platforms:
-
MT4: This platform is available on all the broker’s account types. MT4 is an industry staple for good reason. It features well-trusted account features, such as a powerful charting package and extensive technical indicators. Traders should note that there are different versions of MT4 for the ECN and Crypto accounts, and another version for the STP and Micro accounts. As such, traders need to make sure they download the propermodification.
-
MT5: This multi-asset trading platform can only be used on ECN Accounts. The platform is ideally suited to the requirements of the high-level ECN account as it provides advanced features, such as executing stop-limit pending orders without negative slippage. It also provides netting, hedging and algorithmic trading via Expert Advisors (EA).
-
TickTrader: This new trading platform allows clients to trade five of the most popular asset classes: FOREX, stocks, commodities, indices and cryptocurrencies through the same trading account. This multi-asset trading platform helps users become more profitable through comprehensive functionality, such as a customizable interface, advanced technical analysis tools, a trading alert system and a detailed charting system.
Mobile Trading
Users can download MT4 or MT5 from the App Store or Google Play. Clients can trade on the go, safe in the knowledge that they have total control over their trading accounts. The mobile versions of MT4 and MT5 offer the same essential features as the desktop version. Among other things, clients can place market-pending orders, use interactive charts and get push notifications of key events.
Research and Development
FXOpen has a well-developed research and development section. It features an economic calendar that condenses important news that is published during trading sessions.
This data can help traders make better decisions. By providing real-time analysis, particularly related to the ever-changing FOREX market, traders can be more informed.
The company also offers a Live FOREX Market News service, which is a rolling selection of news and insights, prepared by in-house experts and supplemented by authoritative third-party services. The broker’s FOREX Trading Blog is another source of impactful and topical information, carefully curated according to market-shaping trends in the industry.
Education
The broker’s education section is a little sparse and is somewhat of a disappointment. Featuring a brief Frequently Asked Questions (FAQ) section, traders do not learn much more than three topics: “What is a FOREX broker?” “What is FOREX?” and “How to start trading.”
Final Thoughts
FXOpen offers a high-quality trading experience driven by advanced technology, deep liquidity and exceptional trading speed.
This growing company offers robust platforms that will get inexperienced users started in a safe trading environment. Though not at the leading edge of trading diversity and market penetration, FXOpen still provides a satisfactory level of access, with over 100 markets available.
The broker does not offer market-low fees. Granted, high-volume traders benefit from tight spreads, but this is the case with most brokers. The broker’s customer service desk is of an acceptable quality and its research and education sections are well-developed and curated, even if the education section lacks depth.
The broker has also instituted some inviting programs and promotions that will motivate users to trade more. Using the power of advanced tools that cater to all trading levels, while also facilitating copy trading, this company is set to forge ahead on its route to success.
Conclusion
FXOpen has done the demanding work of ensuring that it is well-regulated, has access to good liquidity, and has advanced trading platforms. This ECN broker prides itself on protecting investor interests through its ECN trading model while providing them with fast and safe trade execution.
Traders who are interested in advanced algorithmic trading backed by excellent liquidity and powerful trade execution will be most interested in this broker. They will find a partner that is at pains to provide clients with aspirational trading tools and a consistent trading environment.
FXOpen in Brief
FXOpen is a well-regulated growing broker that offers superior platform access and competitive fees with tight spreads. Its research facilities are well-designed and will help all levels of traders to get ahead. With good regulation, powerful technologies and solid market access, traders can do worse than try this broker.
Review Methodology
The team at Arincen collected over 120 pieces of data covering in excess of 100 licensed FOREX companies. Data collection was done in three ways:
-
Companies’ Websites.
-
Other Websites that have ranked FOREX companies.
-
A survey questionnaire (referred to here as Survey “1”) we had sent to the companies invited to participate in the exercise.
We have identified 12 criteria for our assessment, each containing several aspects and carrying its own relative weight. These include licensing, deposits and withdrawals, number of assets etc.
Afterward we validated the data by:
-
Registering with FOREX companies as a secret shopper and/or as Arincen.
-
Survey number “2,” in which we asked these companies’ customers for important feedback and past experience.
The next step saw us evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were very careful in ensuring the most accurate assessment possible, including taking into account different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung etc.
To add credibility to our research project, we sent a final and third survey (referred to here as Survey “3”) to enable participating FOREX companies evaluate our own research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%.
FXOpen FAQs
-
Where is this broker regulated?
FXOpen is regulated by the tier-1 (high trust) FCA in the UK.
-
In what other ways does this broker protect me?
According to rules set out by its regulators, the broker offers negative balance protection, meaning clients will not lose more than they have in their account. Also, regulation with the FCA means that FXOpen must offer clients investor protection of up to £85,000 through the FSCS. Additionally, retail client funds are fully segregated from broker operating accounts and are kept in tier-1 banking institutions.
-
Which countries does this broker serve?
FXOpen is a global broker, but it does not serve US customers.
-
Does this broker offer Cryptocurrency trading?
Yes. The broker offers cryptocurrency CFD trading.
-
Does this broker provide any extra offerings?
At the time of writing, FXOpen offered two promotions. The first was the FXOpen Cashback Program. This promotion allows traders to receive a refund for any kind of trades, including those that are loss-making. Cashback is determined in accordance with the total margin used on all client's trading accounts.
The second promotion was entry into a FOREX contest, where traders can play FOREX trading games and earn real-money for live trading. The broker’s FOREX trading competitions are usually free to join, although some come at a cost. The idea is for traders to gain experience in FOREX trading.
-
How do I fund my account?
FXOpen offers an extensive list of methods with which to deposit and withdraw funds from your account: Credit/debit cards, China Union Pay, Paypaid, Airtm, Boleto, Oxxo, Rapipago, WebMoney, FasaPay, Advcash, Bitcoin, BitcoinCash, Litecoin, Emercoin, Ethereum, Tether, AstroPay, Redeem and local bank transfer. Traders are advised to check the broker’s Website for the fees related to deposits and withdrawals.
-
Which trading platforms does this broker offer?
The broker offers access to MT4, MT5 and TickTrader.
-
How can I access customer service?
Customers can access the broker’s customer service desk via live chat, email and telephone. The broker’s Website provides a full list of international telephone numbers for clients to call. Live chat and telephone options are available 24/5.
