There are numerous options for traders to invest in the Forex markets without worrying about the safety and security of their deposits. BelforFX is a relatively new Forex broker that has been around since 2011. The company claims to have its offices in London, Bulgaria, New Zealand, and the Caribbean, but there are no mentions of any representative offices or official addresses. It would not be wise to deal with any company that is not transparent about its broker locations and contact addresses, especially in the financial markets where clients trust their brokers to offer a safe and secure trading environment. In this detailed BelforFX broker review, we will give you more information about the organization’s Forex products and services, which should serve as a reference point in your quest to find a reliable trading partner.
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Are Traders Assured Of A Sound BelforFX Regulatory Status?
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BelforFX used to be regulated by the FMA of New Zealand and was a registered entity in NZ’s FSPR. However, as of writing this review, BelforFX is no longer regulated by the FMA, neither does the company has any affiliations or any licenses from known regulatory organizations. At present, BelforFX is a non-regulated Forex broker that operates through its subsidiary branches and partnership with major liquidity providers. We do not recommend trading with any unregulated and unlicensed entities due to various security concerns. It is possible that a non-regulated company may withhold your payments, trade against your positions, and indulge in financial malpractices to trick their customers. A lack of regulation and proactive supervision enables brokers to indulge in a wide variety of scams that are harmful to investors in the long run.
As a Forex broker with more than five years of experience in the market, it is indeed confusing as to why BelforFX hasn’t dedicated its resources to maintaining a stable and reliable regulatory license to offer a sense of confidence and security to its traders. Even some of the new brokers with a significantly lower operating capital make it a priority to get regulated by a reputable regulatory agency, which does help companies to display their commitment towards ensuring a transparent environment for its investors. Therefore, as a trader, you should always choose a regulated entity that can guarantee the safety of your funds against any type of malpractice.
What Are The BelforFX Account Specifications?
BelforFX offers the option of opening either a regular market maker account, or a dedicated ECN account via its partnership with some of the leading liquidity providers and banks such as UBS, Goldman Sachs, Barclays, Bank of America, Credit Suisse, COMMERZBANK, and FX SpotStream. Both types of accounts are accessible through the MT4 trading platform, which uses a dedicated ECN bridge for accessing the liquidity pool and direct market access trading. The market maker account is a conventional automated dealing desk protocol that matches orders internally, which also poses a massive conflict of interest between the broker and the trader.
A market maker broker has the option of opening positions against their traders, or tamper with the price feeds to make trading less favorable for clients. Market maker brokers are also among the ever-increasing list of non-compliant scam brokers that follow illegal means of broker practices for gaining an unfair advantage over their customers. Hence, it is certainly a good option for traders to choose an ECN account as often as possible, which will reduce the conflict of interest by a significant margin.
Nevertheless, a trader can choose from three different types of accounts, which are categorized according to the initial deposit. The Standard account option is the most basic account package that starts with a $500 minimum account balance, which provides access to a maximum BelforFX leverage of 1:400. Clients do receive a periodic technical analysis of the markets, but the BelforFX spreads start from a whopping 3 pips on the EUR/USD. Although the EUR/USD pair has been known to have the lowest spreads in the currency markets, 3 pips spreads are certainly way too high, even for a regular market maker account. Unless you choose a regular ECN account, the BelforFX is certainly not a wise choice due to the high spreads.
For the same trading conditions and few additional account features, traders can choose between the Gold and Platinum accounts. The Gold account is available for a minimum deposit of $2500, which grants access to trading signals, and other features such as IsocialFX and GetFunded, while the Platinum account offers access to a dedicated trading desk and an account manager for an initial minimum deposit of $5000. All accounts can be accessed through the MT4 terminal, which is available for both desktop and mobile devices. BelforFX mobile traders can also take advantage of the dedicated BelforFX mobile apps for iOS, Android, and Windows operating systems, which makes it a breeze to trade on smartphones and tablets.
Making A Deposit & Withdrawal With BelforFX
BelforFX accepts different modes of payments that allow clients to make a deposit through credit/debit cards, bank wire, and online payment processors such as Skrill and Neteller. Every first deposit made to a new trading account provides a deposit bonus of 15% on the deposit amount, which does sound ideal for all new account holders. However, when it comes to withdrawals, BelforFX has some of the most stringent and odd withdrawal conditions on top of their existing bonus terms. BelforFX reserves the right to split up your withdrawals into partial payments, which may be sent as per the broker’s existing policies and guidelines. There is also a hefty withdrawal fee that may charge a significant percentage of the withdrawal amount.
There have also been numerous cases where existing clients have reported a failure in receiving their funds, while traders have also reported about blocked accounts and erroneous account information. The broker is also suspected of manipulating client funds, which is one of the reasons why the FMA and the FSPR of New Zealand canceled the broker’s license in the first place. Therefore, we would recommend exercising extreme caution while dealing with the company.
How Are Customers Treated At BelforFX?
BelforFX has covered all important customer service channels by offering a dedicated 24X6 live chat function, email addresses, web contact forms, and direct phone numbers. New clients will find it easy to get in touch with the customer service department without any issues, but existing customers may face some delays while contacting their respective account managers. The broker is also not as efficient as other regulated brokers in dealing with customer complaints, which are further compounded by the company’s internal policies to prioritize new clients over existing clients.
As a result, BelforFX has been on a steady decline, and the recent regulatory issues are certainly making matters worse for existing customers. BelforFX should consider it a priority to revamp its service offerings and get a valid regulatory license if it is expected to entertain traders in this highly competitive FX trading market. Take a look at other recommended Forex brokers to see if they would be able to offer a better opportunity for your investments.