Baxter FX Review
Baxter FX offers the option of ECN trading through its various partnerships with FXCM and GAIN Capital, and it is believed that Baxter FX works as a white label platform. Baxter FX also claims to offer the best ECN settings through its association with FX Clearing House, which grants direct market access to a pool of global liquidity providers through proprietary technologies. Baxter FX does seem like a mainstream Forex broker that offers its Forex trading services to both professional and retail traders, but there are a few concerns with the company that may not be particularly suitable for average traders. In this Baxter FX broker review, we provide our readers some of the top-quality information about the broker’s different products and services, which should help you in making a wise choice for your investments.
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Proper Information On Baxter FX Location & Regulation
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Baxter FX is not entirely candid about its location, and it did take a while to learn more about the broker’s actual location and regulatory licenses. Baxter FX started its Forex operations in 1996 and has more than two decades of experience in the market. Baxter FX has its offices in Dublin and Australia and is deemed to be regulated by the Central Bank of Ireland, as well as the Australian Securities and Investment Commission (ASIC). However, the company only offers a couple of phone numbers for its office in Dublin, while it provides an actual physical address for its office in Sydney. Baxter FX does seem to be covered by a good amount of regulatory compliance, especially under the ASIC, which does have an efficient system of a regulatory framework in place to thwart any instances of investor abuse or financial malpractices.
The Central Bank of Ireland works under the European regulatory environment, which is presided over by the European Markets in Financial Instruments Derivatives (MiFID) and the European Economic Area (EEA) agreement. Although the broker is bound by the laws and guidelines of some of the most established regulatory organizations, the broker’s association with several trading partners does pose a risk to traders. For instance, the FX Clearing House had been at the epicenter of a legal issue with the FCA, which had resulted in penalties and subsequent regulatory sanctions. Therefore, we cannot consider the broker to be entirely reliable, but there is a fair amount or regulatory protection that cannot be disputed.
What Are The Baxter FX Platforms For ECN Access?
Unlike traditional ECN brokers that either uses a third-party ECN trading platform or a proprietary trading interface, traders get to choose from white label Baxter FX trading platforms such as Currenex, HOTSPOT, FXall, Gain Capital, and FXCM Trading Station. These trading platforms offer complete ECN access through secure trading protocols that not only assure the best prices and competitive spreads, but they also guarantee the lowest latency and the fastest execution speeds.
All Baxter FX trading interfaces are also available as mobile apps, but the company does not provide any dedicated support for mobile traders. Currenex, HOTSPOT, Trading Station, and FXall are available for download on the iOS and Android stores, along with the option of web trading for accessing the markets on the move. Regardless, Most professional traders use dedicated desktop platforms for their trading requirements, with only a select few investors using their mobile devices to keep track of their open positions and to manage them according to market fluctuations.
What Is The Cost For A Baxter FX ECN Account?
While the broker outperforms in its ECN offering, there is still a huge concern over the minimum deposit requirements for new and existing clients. A Baxter FX trading account will require a minimum deposit of $50,000, which is way too high for regular retail traders. The company might justify their minimum capital requirements by quoting the importance of professional trading and larger deposits for negotiating the liquidity in an ECN account, but it does come as a surprise in this day and age where brokers offer ECN accounts for as little as $5. Baxter FX has certainly made it impossible for smaller traders to open an account at their brokerage, which certainly puts it out of reach for more than 90% of the retail trading market.
Baxter FX does provide competitive spreads, and they do offer the option of trading with 0 pip spreads in exchange for a highly competitive commission of $1 per million traded. Institutional traders and professional traders with access to a large trading capital can certainly enjoy one of the most economical trading costs in the market. It is really disappointing that the company does not offer any micro or mini account option for smaller traders, but we cannot argue the company’s policy to entertain only professional traders.
The maximum Baxter FX leverage is also pegged at a maximum of 1:50 or a 2% minimum margin requirement, which is in line with the leverage requirements of US-based brokers. Of course, Baxter FX does not entertain clients from the US due to the regulatory ban from the CFTC and the NFA on brokers operating outside the US, but such a maximum leverage option is essential to protect a significant amount of trading capital from the immense liquidity in the Forex markets. Normally, most professional traders and institutional investors usually don’t use a high amount of leverage, as even 1:50 is considered to be much greater than that is traditionally desired.
Deposits and withdrawals can only be made using bank wire; as such a high amount of deposit ‘s hard to process with other popular payment methods. Even online e-wallets have numerous restrictions regarding depositing and withdrawing large funds of money, particularly due to the anti-money laundering policies that are in place in different global jurisdictions.
Does The High Deposit Requirement Guarantee A Good Customer Service Experience?
Higher deposit requirements are in no way guaranteed to provide an excellent customer service experience. Baxter FX provides a direct phone and email support, which is available for 24 hours a day during regular market hours. The support isn’t what one would like to describe as excellent, but there isn’t an option for an online live chat or other options that might help traders to receive professional support through an online interface. However, due to the regulatory requirements of the ASIC and the EU MiFID, the broker is expected to offer top-quality customer support to its clients.
Baxter FX is not a recommended Forex broker for retail traders due to the obvious issues of higher deposit requirements, lower leverage, and the lack of support for smaller account holders. Unless you are a large trader that transacts a hefty amount of money in the Forex markets, you should consider other options that are more suited for a nominal trading capital.