If you re in the market for a new broker, it may be tempting to sign up with ZFX. Despite being a popular name in the online forex trading community, this company is a poor choice for US residents and citizens. It doesn t offer material research support on its website, and it lacks analytical videos and webinars to help investors learn how to trade. Though they do provide some news and market outlook, the content is outdated, and they don t offer any research support whatsoever.
If you want to trade the currencies of the world, ZFX offers an array of assets. Traders can choose from over sixty currency pairs, 10 commodities, 35 stocks, fifteen indices, three cryptocurrencies, and three numbered stocks. CFDs, or contract-for-differences, let traders make bets on securities without owning them. They often offer large leverage and are ideal for short-term trading.
ZFX is regulated by the Financial Conduct Authority and the Financial Services Authority. While they do not have an independent regulator, they do offer a compensation scheme of up to PS85,000 for a negative balance, and they also hold client funds separately. However, the main drawback of ZFX is the high entry threshold for retail investors, with a minimum deposit of $1,000. However, this barrier is relatively low compared to other platforms, such as FSA or CFTC.
While many brokers offer high leverage, ZFX keeps their spreads low. Their spreads on the ECN account are low, starting at 0.2 pips. Standard STP account spreads start at 1.3 pips, while the Mini Trading account has spreads as low as 1.5 ppi. A USD 50 minimum deposit is required. Choosing the right broker can mean the difference between a profit and a loss.
As far as commissions go, ZFX is among the best options. Although the company does not charge a fixed brokerage fee, the spreads on its trading accounts are very low and depend on the currency pair. Professional and ECN accounts offer the tightest spreads. MT4 and Mini Trading accounts have lower spreads, but both offer low leverage, which means that if you lose, the spreads will be wider.
As an NDD broker, ZFX supports MetaTrader 4 on desktop and mobile devices, as well as a range of technical indicators and charts. ECN trading allows clients to trade on up to one hundred times leverage. However, there are a few drawbacks. One of them is that the company offers only 120 trading instruments, which is too small for beginners. Other than that, they offer a very limited product portfolio and do not offer any popular asset classes like equities and commodities.
Withdrawals can be done using bank transfers, credit cards, or e-wallets. The broker usually credits your account within 24 hours after you have approved the withdrawal request. If you d like to withdraw funds, you can deposit your profits to your bank account or convert them to cryptocurrency while you re at it. Unregistered users can reach out to a customer support representative via email, chat, or messenger services. In addition, they can also contact the company s social media pages.