FXCitizen is a Forex broker that works on the White Label platform, which makes it slightly different from the concept of conventional brokerage services. A white label company is simply an entity that sells another company’s product or services as an affiliate to make profits, either by using a profit sharing model or by earning a hefty commission. There are numerous white label Forex brokers in the industry, and FXCitizen is one of the largest among them.
White label Forex brokers are rarely regulated. In most cases, the parent company is usually regulated by a well-known regulatory agency, which prevents the white label brokers from indulging in any financial malpractices. Predictably, FXCitizen is also not governed by any organization; however, FXCitizen claims to be a White Label broker of IKOFX.
IKOFX is a Forex broker situated in Vanuatu, a group of islands in the South Pacific Ocean. Vanuatu is known for its proximity to the Australian continent, and might not be easily recognizable to the average trader. IKOFX is regulated by the Financial Services Commission of Vanuatu, which is once again a lesser known regulatory organization in the FX markets.
FXCitizen has been around since 2010, but the company had faced criticism from a few of their clients regarding the way they operate. However, over the years, FXCitizen has improved their services to keep up with the competition, and we will take a detailed look at how the company operates through this FXCitizen review.
Useful Information On FXCitizen Forex Accounts
Perhaps the most interesting aspect of opening an account with the company is the leverage. Traders can enjoy a maximum FXCitizen leverage of 1:1000, which is one of the highest leverages offered in the market. The ability to hold an enormous position using a 1% margin is extremely dangerous, but the high leverage is suitable for traders who like to take a risk and scalp the markets.
Surprisingly, FXCitizen limits the ability to scalp the markets by introducing a two minutes freeze on all trades. Even if traders manage to bypass the restriction by closing trades within the 2-minute timeframe, all profits from such trades will be wiped out of the account, and in the case of losses, the lost money will not be refunded to the trader. It is certainly a disadvantage for traders who would like to get out of wrong trade entries, and the resulting losses can be significant during extreme market volatility.
Traders are offered the option of choosing from four different types of accounts. The most basic account is known as the Cent Micro account, which starts from a small initial deposit of $10. The maximum equity that can be held in the Cent Micro account is $1000 with a maximum leverage of 1:1000, therefore, this account is aimed at low volume traders who wish to scalp the markets or make considerable gains using a small capital. Of course, the downside risk is also significant, which is something that traders have to be careful while using high leverage. The Micro account allows traders to open trades in micro lots, and the FXCitizen spreads start from 2 pips for the majors, which is a bit high as expected from a white label broker.
The Standard Mini account is the next tier that is available for deposits greater than $300, which limits the leverage to 1:500. The main difference between the Mini and Micro account is the ability to open trades in mini lots and enjoying ECN like execution that starts from zero pips spread. Trades are also associated with a commission, but the company claims that a commission is charged only for ECN assets. Both the Micro and the Mini accounts qualify for cashback of up to $2 per trade, which is deposited directly into a traders account after the required number of lots are traded.
The ECN Premium and IKOFX Premium accounts are higher accounts available for an initial deposit of $2000 and $15000 respectively, which offers ECN order execution and spreads. All trades are opened using standard lots, with the IKOFX Premium account having several added advantages such as better spreads, unlimited equity, and a maximum order size.
The Premium accounts also offer a reduced leverage of 1:200. ECN accounts incur a commission per traded lot, which is higher than a regular ECN account available at other established brokers. FXCitizen clients should accommodate higher spreads, commissions, swaps, and other fees into their trading, as white label brokers usually charge a premium over regular brokers. Therefore, the net results in trading with such brokers will always show reduced performance when compared to mainstream brokers that offer tight spreads and lower cost of trading.
What Are The Major FXCitizen Financial Instruments
FXCitizen offers an exhaustive range of currency pairs, indices, and commodities across all accounts except for the Cent Micro account, which only provides currencies and commodities. FXCitizen also offers the option of trading binary options for traders who want to incorporate a bit of FX trading as well as Binary Options trading into their investment strategies.
FXCitizen Trading Platforms
Being a white label broker under the IKOFX umbrella, FXCitizen platform uses the same interface as the IKOFX broker, which is the MT4 trading terminal. It is a good thing that the broker has decided to include support for all devices, including Windows, Mac, iOS, and Android. FXCitizen understands the need to cater to all types of traders if they have to gain a sizeable market share in the highly competitive FX marketplace.
FXCitizen Bonus For Their Clients
FXCitizen does not provide a remarkable bonus structure to entice customers into opening an account with them, but they just about offer a maximum of 30% bonus on the initial deposit. On the other hand, clients can also opt for a 100% margin bonus, which offers up to 1:2000 in leverage, which is hugely risky, but well worth it for clients looking for maximum leverage. Therefore, FXCitizen is the perfect broker for high-risk traders looking for maximum leverage and small initial investment.
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