FXOpen Review – The Good, the Bad, and the Spicy
FXOpen’s experience since 2005 positions them as a well-established forex broker with a solid understanding of the market. In the ever-evolving landscape of online trading, finding a reliable broker can feel like navigating a financial jungle. With the promise of one-stop shops for Forex, CFDs, and even Crypto, platforms like FXOpen are capturing attention. But can they deliver on their bold claims?
At TradingSplash, we prioritize in-depth, unbiased analysis. That’s why I, a veteran financial journalist with extensive experience in Forex trading and prop firm environments, took FXOpen for a rigorous test drive. This review goes beyond user testimonials and flashy marketing. It’s a comprehensive evaluation based on key criteria crucial to every trader’s success.
Whether you’re a seasoned trader or a curious newcomer, this review is your roadmap to informed decision-making. So, join us as we unveil the true potential (or pitfalls) of FXOpen!
Regulation & Safety
Choosing a safe and secure trading platform is paramount for any forex trader. In this section of our in-depth FXOpen review, we delve into the nitty-gritty of their regulatory framework, helping you decide if FXOpen is the right fit for your trading journey.
Global Reach, Varied Regulations
FXOpen caters to a global audience, and their regulatory framework reflects this. The specific regulations under which they operate depend on the client’s location. Here’s a closer look at their key regulatory licenses:
- FXOpen Markets Limited (FCA): Authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. The FCA is a tier-one regulator renowned for its strict oversight and stringent requirements. This provides a high level of assurance for traders seeking robust regulatory protection.
- FXOpen Ltd (FSA): Regulated by the International Financial Services Commission (IFSC) of Belize. The IFSC offers a less stringent regulatory environment compared to the FCA. This may appeal to some traders, but it’s important to be aware of the potential implications for investor protection.
Transparency Through Policy Analysis
To understand FXOpen’s commitment to compliance, we scrutinized their publicly available policies:
- Anti-Money Laundering (AML) Policy: FXOpen emphasizes adherence to AML/CFT (Anti-Money Laundering and Countering Financing of Terrorism) regulations. This ensures client identification and verification procedures are in place to combat financial crime.
- Privacy Policy: FXOpen outlines its data security practices, including encryption and access controls, to safeguard client information.
Beyond Regulatory Checklists: Building Trust
While regulations provide a baseline for security, we looked for additional indicators of FXOpen’s trustworthiness:
- Client Fund Segregation: Does FXOpen segregate client funds from company funds? This is crucial to ensure your capital is protected in case of company insolvency.
- Dispute Resolution Mechanisms: Does FXOpen offer a clear and fair process for resolving any potential disputes?
-
Negative Balance Protection: If your trading losses on FXOpen exceed your account equity (including your initial deposit), Negative balance protection (NBP) prevents your account from going into negative territory. This means you won’t owe FXOpen any additional funds beyond your initial deposit. For new or risk-averse traders, NBP can be a comforting feature. It eliminates the worry of accumulating debt due to unforeseen market swings.
While NBP offers a safety net, it shouldn’t be a substitute for responsible trading practices.
Popularity
FXOpen’s regulatory framework appears to adhere to the standards set by the FCA in the UK. However, their operations under the Belizean FSA might raise concerns for some traders seeking the highest level of regulatory oversight.
Brand popularity can be a powerful indicator in the forex trading world. A well-established platform with a loyal user base often signifies trust and reliability. But how does FXOpen stack up in the popularity contest?
Tools like Similarweb suggest FXOpen receives a decent amount of organic search traffic, indicating traders are actively seeking them out.
Social media buzz can be another gauge of popularity. Here, FXOpen presents a mixed picture. While they maintain accounts on platforms like Twitter and Facebook, their follower base seems modest compared to some forex giants.
Industry awards and recognition can lend credibility to a platform. FXOpen does boast some accolades, including “Best ECN Broker of 2012” by Masterforex-V.
The Verdict: Popularity – A Piece of the Puzzle
While FXOpen might not be the most ubiquitous name in forex, their website traffic and industry recognition suggest they hold a respectable position.
Asset Classes and Instruments
The true value of FXOpen’s asset offerings lies in the depth within each category. FXOpen goes beyond just forex, offering Contracts for Difference (CFDs) across a diverse range of asset classes:
- Forex: Major, minor, and exotic currency pairs are available, catering to traders of all experience levels.
- Indices: Trade popular stock market indices like the S&P 500, Dow Jones, and FTSE 100, allowing you to gain exposure to a basket of stocks.
- Commodities: Speculate on the price movements of commodities like oil, gold, and natural gas, potentially hedging against inflation or profiting from market trends.
- Shares (Stocks): For some account types (depending on regulation), FXOpen allows trading CFDs on individual company stocks, enabling you to capitalize on specific companies’ performance.
- Cryptocurrencies (for Professional clients only): For traders with a high-risk tolerance, FXOpen offers CFDs on popular cryptocurrencies like Bitcoin and Ethereum, allowing participation in this volatile yet potentially lucrative market.
The Asset Class Verdict: A Platform for Diversification
FXOpen’s diverse asset class offerings, coupled with a good selection of instruments within each category, caters to a wide range of trading styles and risk tolerances. Risk-averse traders can focus on established asset classes like major forex pairs and popular indices. Active traders can explore instruments with tighter spreads and potentially higher leverage across various categories. Long-term investors can utilize a combination of asset classes to achieve their portfolio diversification goals and potentially benefit from growth across different markets.
Spreads and Fees
Dissecting FXOpen’s spreads and fees can feel like deciphering alien hieroglyphics. But fear not, your trusty FX analysis buddy is here to break it down.
The Spread Lowdown:
FXOpen throws around terms like “ECN” and “STP” accounts, which basically determine how you pay for your trades. Here’s the need-to-know:
- ECN Accounts (Electronic Communication Network): You get raw spreads, meaning the price you see is what the market makers are offering. The catch? You pay a commission per trade, usually around $1.50 per standard lot (think $100,000 trade value). Think of it as a small toll booth for getting the best price.
- STP Accounts (Straight Through Processing): The spread is already marked up to include a commission, so no separate fee per trade. Sounds convenient, right? But the spreads might be a tad wider compared to ECN accounts. It’s like paying a bundled service fee – might be easier on the wallet for smaller trades.
But Wait, There’s More!
Spreads aren’t the only cost to consider. FXOpen hits you with some other fees, so keep your eyes peeled:
- Deposit/Withdrawal Fees: These vary depending on your chosen payment method. Bank transfers might be free, but credit cards could come with a 2.5% bite. Think twice before swiping that plastic!
- Swaps (Overnight Fees): If you hold a position overnight, you might incur swap fees. Basically, it’s like paying interest on the borrowed money to leverage your trade. Don’t get caught holding the bag (literally) overnight unless you know what you’re doing.
Finding the Fee-L Good Fit
The best spread and fee structure for you depends on your trading style:
- High-Volume Traders: ECN accounts with their tight spreads might be your jam, even with the commission fees. Those tiny price differences can make a big buck difference over many trades.
- Low-Volume Traders: STP accounts with their bundled fees could be more cost-effective for your occasional forays into the forex world.
The Verdict: Spreads and Fees Ain’t Scary
FXOpen offers some transparency with their spreads and fees. They even have a commission calculator on their website to help you estimate your trading costs. Do your homework, Reddit fam!
Before You Trade:
- Figure out your trading style (high vs low volume).
- Compare ECN vs STP account costs based on your trade size.
- Factor in deposit/withdrawal fees and potential swap charges.
By understanding FXOpen’s spreads and fees, you can avoid any nasty surprises and focus on what really matters – racking up those sweet pips!
Leverage & Margin Requirements
Leverage: Borrowing Your Way to Bigger Wins (and Losses)
FXOpen lets you trade with leverage, which is basically borrowing money from the broker to control a larger position than your account balance allows. Think of it like a buff dude at the gym spotting you – you can lift way more weight (control a bigger trade) than you could on your own.
FXOpen offers leverage and margin requirements on their trading platform, but these will vary depending on several factors:
Account Type:
- Retail Clients: FXOpen adheres to regulations set by the specific jurisdiction where the client resides. These regulations often limit the leverage available to retail traders to protect them from excessive risk. In some cases, leverage may be as low as 30:1 for major forex pairs.
- Professional Clients: If you qualify as a professional client under the relevant regulations, you may be eligible for higher leverage limits. However, meeting the criteria for professional status typically requires a significant amount of experience and financial resources.
Traded Instrument:
The leverage offered will also depend on the specific instrument you’re trading. Generally, FXOpen provides higher leverage for more stable instruments like major forex pairs compared to volatile instruments like cryptocurrencies. Here’s a possible scenario:
- Major Forex Pairs (EUR/USD, USD/JPY): Leverage could be as high as 500:1 (meaning you can control $50,000 with a $1,000 deposit).
- Minor Forex Pairs (EUR/AUD, GBP/NZD): Leverage might be lower, around 20:1.
- Cryptocurrencies (for professional clients only): Leverage could be very low, potentially 2:1 or even 1:2 due to their high volatility.
Margin: The Deposit You Put Down to Borrow
When you use leverage on FXOpen, you don’t get the full loan. You need to put up a certain amount of your own money, called the margin. The margin requirement is a percentage of the total position value. Here’s the basic equation:
Margin Requirement (%) x Trade Size (e.g., $100,000) = Margin
Example:
- You want to trade 1 standard lot (100,000 units) of EUR/USD with a 50:1 leverage.
- If the margin requirement is 2%, then:
- Margin Needed = 2% x $100,000 = $2,000
Margin Calls: The Ouch Moment
If the market moves against you and your account value falls below the maintenance margin (a percentage of the initial margin), FXOpen might hit you with a margin call. This is basically them saying “Yo, put up more money or we liquidate your position!” Nobody wants a forced sell-off, so be mindful of leverage and manage your risk wisely.
FXOpen offers different leverage limits depending on the account type and the instrument you’re trading. Generally, major forex pairs have lower margin requirements (higher leverage) compared to exotic currencies or volatile assets like cryptocurrencies. This makes sense – a wild swing in Bitcoin is more likely to wreck your account than a small move in EUR/USD. FXOpen’s leverage options cater to both aggressive and conservative traders.
FXOpen’s leverage limits can change, so it’s crucial to check their website for the most up-to-date details.
FXOpen Swap
Swaps on FXOpen are basically overnight fees. When you hold a position open past the daily settlement time (usually 5 PM New York time), you might get charged (or sometimes even receive) interest based on the difference between the interest rates of the two currencies in your trade.
FXOpen Swap Transparency
FXOpen gets a thumbs up for transparency here. They provide swap rates on their website, You can see the swap rates for different currency pairs, allowing you to factor these fees into your trading decisions.
The Swap Verdict: Don’t Get Blindsided
Swaps on FXOpen are a fact of life for leveraged overnight positions. While they can work in your favor under specific circumstances, they can also eat into your profits if you’re not careful.
Before You Trade:
- Understand how swaps work and how they can impact your trading strategy.
- Check FXOpen’s swap rates for the currency pairs you plan to trade.
- Consider how long you plan to hold positions and factor swap costs into your overall trade management strategy.
- FXOpen has a swap calculator on their website that can help you estimate these fees.
Margin call & Stop out Levels
Margin calls and stop outs are crucial concepts to grasp when trading on FXOpen, or any leveraged platform for that matter. They act as safety nets to prevent excessive losses on your account. Let’s delve into these mechanisms and how they work on FXOpen.
The specific margin call andImagine you open a leveraged trade with FXOpen. Your account equity (total value including profits/losses) represents a certain percentage of the initial margin used to open the position. This percentage is known as the Margin Level. stop out levels for your account depend on the account type you choose:
- Micro accounts (Market Maker):
- Margin Call: 20% equity level
- Stop Out: 10% equity level
- ECN accounts:
- Margin Call: 100% equity level (essentially any decline in equity triggers a call)
- Stop Out: 50% equity level
Here’s a table summarizing the key points:
Account Type
|
Margin Call
|
Stop Out
|
---|---|---|
Micro Accounts
|
20% equity level
|
10% equity level
|
ECN Accounts
|
100% equity level
|
50% equity level
|
Stop Out: Automatic Exit to Prevent Further Losses
If you don’t respond to a margin call by adding more funds or reducing your position size, FXOpen will automatically close your losing positions at the current market price. This is called a stop out.
FXOpen Minimum Deposit
FXOpen offers a relatively low minimum deposit amount to open a trading account, making it accessible to a wider range of traders, especially beginners.
The minimum deposit required to open a trading account on FXOpen depends on the type of account you choose:
Here’s a quick breakdown:
Account Type
|
Minimum Deposit
|
---|---|
ECN Account
|
$100 (or equivalent)
|
STP Account (possible)
|
$10 (or equivalent)
|
The minimum deposit amount might vary depending on the chosen deposit method. Bank transfers might have a lower minimum compared to credit card deposits, which could have a higher threshold (e.g., $250).
Trading Platforms
FXOpen doesn’t disappoint, offering a diverse selection of platforms to cater to different trading styles and preferences.
- MetaTrader 4 (MT4)
- MetaTrader 5 (MT5)
- TickTrader: FXOpen’s In-House Innovation
- Developed by FXOpen: TickTrader is a proprietary platform designed for advanced traders, offering powerful charting tools and advanced order execution features. Streamlined interface: TickTrader boasts a clean and user-friendly interface, allowing for efficient trade management.
- TradingView Integration: FXOpen integrates with the popular charting platform TradingView to Access a vast array of technical indicators, drawing tools, and advanced charting functionalities
Account Types
FXOpen understands that traders come in all shapes and sizes, with varying experience levels and risk tolerances. To cater to this diversity, they offer a variety of account types, each with its own set of features and fees. Here’s a breakdown of the primary FXOpen account types to help you find the perfect fit for your trading journey:
1. ECN Accounts (Electronic Communication Network):
- For the transparency seekers: ECN accounts offer raw spreads, meaning the price you see is the price directly from the market makers.
- Commissions for your control: You’ll typically pay a commission per trade, often around $1.50 per standard lot ($100,000 trade value). Think of it as a toll booth fee for getting the most competitive spreads.
- Suited for: Experienced traders who value tight spreads and control over execution. These accounts can be more cost-effective for high-volume traders due to the lower spreads.
2. STP Accounts (Straight Through Processing):
- Convenience for a price: STP accounts have spreads marked up to include a commission, offering a potentially more convenient fee structure for smaller trades. You won’t see a separate commission fee per trade, but the spreads might be slightly wider compared to ECN accounts.
- Simpler fee structure: Ideal for beginners or those who prefer a bundled fee structure and don’t mind slightly wider spreads for smaller trades.
3. Micro Accounts (might not be available for all regions):
- Baby steps for new traders: Micro accounts allow you to trade with micro lots (typically 0.01 lots or $1 per pip value). This enables beginners to test the waters with minimal capital.
- Lower minimum deposits: Micro accounts often come with lower minimum deposit requirements compared to standard accounts.
- Limited trade size: Keep in mind that the trade size is also proportionally smaller, so potential profits (and losses) will be reduced.
4. Islamic Accounts (Swap-free):
- Catering to specific beliefs: For Muslim traders following Sharia law, FXOpen offers swap-free accounts. These accounts eliminate swap charges (overnight fees) on leveraged positions.
- Equivalent trading conditions: Otherwise, Islamic accounts have the same trading conditions (spreads, commissions, etc.) as regular ECN, STP, or Micro accounts.
Choosing Your FXOpen Account:
The best FXOpen account type depends on your individual trading goals and experience:
- High-volume traders: ECN accounts with their tight spreads could be the way to go, even with the commission fees.
- Low-volume traders: STP accounts with their bundled fees might be more cost-effective for your occasional forex forays.
- Beginners: Micro accounts can be a good option to start small and get comfortable with the platform.
- Muslim traders: Islamic accounts address your specific religious requirements.
Account opening
As we discussed earlier, FXOpen offers various account types. Choose the one that aligns with your experience, trading style, and regulatory requirements (if applicable).
Depending on your location and regulations, FXOpen need to verify your identity and residency. This might involve submitting documents like a government-issued ID and proof of address. Carefully read the account opening documents and terms & conditions to understand the associated fees and regulations.
Opening an FXOpen account is a straightforward process. Once your account is verified, you can proceed to deposit funds
Deposit and Withdrawal
Depositing and withdrawing funds smoothly is crucial for any forex trader. FXOpen offers a variety of deposit and withdrawal methods, each with its own processing time and potential fees. Here’s a detailed breakdown to help you navigate your financial transactions:
Deposit Methods:
FXOpen offers a variety of deposit methods to cater to your convenience:
- Bank Wire Transfer: Typically free for deposits, but your bank might charge a transfer fee. Processing time can take 1-3 business days.
- Credit/Debit Cards (Visa/Mastercard): Convenient but may incur a fee of 2.5% of the deposit amount. Processing time is usually instant.
- Online Payment Processors: Options like Skrill, Neteller, and Sofort might be available depending on your region. Fees and processing times can vary depending on the chosen processor.
Withdrawal Methods:
Withdrawing funds from your FXOpen account follows similar methods:
- Bank Wire Transfer: Often the only withdrawal method for larger amounts. It’s typically free from FXOpen’s side, but your bank might charge a fee. Processing time can take 1-3 business days.
- Credit/Debit Cards: May not always be available for withdrawals due to regulations. If allowed, processing times can be longer (up to 5 business days) and fees might apply (similar to deposits).
- Online Payment Processors: Again, availability and processing times depend on the specific processor. Fees might also be associated with withdrawals.
Important Considerations:
- Minimum Deposit/Withdrawal Amounts: FXOpen has minimum deposit and withdrawal amounts depending on the chosen method. Check their website for the latest details.
- Processing Times: The processing times mentioned are estimates and can vary depending on factors like bank clearance times and verification procedures.
- Fees: While FXOpen might not charge fees for certain deposit/withdrawal methods, your bank or chosen payment processor might. Always double-check associated fees before initiating a transaction.
- Verification Requirements: To ensure security and comply with regulations, FXOpen might require account verification before processing withdrawals. Complete your verification process promptly to avoid delays.
Customer Support
FXOpen provides several channels for reaching their customer support team:
- Live Chat: This is often the most convenient option for quick inquiries during business hours (although specific hours might vary depending on your region).
- Email: You can submit your questions or concerns via email, but response times might be slower than live chat.
- Phone Support: FXOpen offers phone support in some regions, but availability and hours might be limited.
FXOpen’s customer support team exceeded my expectations during the account verification process. Their prompt communication, clear guidance, and efficient service made the entire experience smooth and stress-free. This positive experience has definitely increased my confidence and trust in FXOpen as a forex broker.
Promotions and Bonuses
Information about FXOpen’s promotions and bonuses can be elusive, and their website might not explicitly mention them. Here’s what we can explore:
Limited Promotions:
Based on current information, FXOpen doesn’t advertise any prominent deposit bonuses or ongoing promotions. This doesn’t necessarily mean they never offer them, but they might be limited-time deals or targeted towards specific regions. This might be due to a few reasons:
- Regulatory Restrictions: Forex brokers in certain jurisdictions might face limitations on offering bonuses or incentives to attract new clients.
- Focus on Trading Conditions: FXOpen might prioritize showcasing their competitive trading conditions (tight spreads, various account types) over flashy bonuses.
Alternatives to Consider:
- Cashback Program: Some sources suggest FXOpen might offer a cashback program for loyal customers. This could involve receiving a rebate on a portion of your trading commissions. Check their website or contact support for details (if applicable).
- Contests: FXOpen might occasionally hold trading contests. These can be a way to potentially win prizes or bonus funds, but they involve inherent risks as they are essentially competitions.
Read the Fine Print: If you encounter any FXOpen promotion, thoroughly read the terms and conditions before participating. These will outline any eligibility requirements, rollover conditions (if it’s a bonus), or limitations.
FxOpen Vs Top Alternatives
Feature
|
FxOpen
|
XM
|
FXpro
|
---|---|---|---|
Regulation
|
FCA, CySEC (multiple entities)
|
CySEC, ASIC, FCA
|
FCA, CySEC, FSCA
|
Tier-1 Licenses
|
Yes (depending on entity)
|
Yes
|
Yes
|
Headquarter
|
Cyprus (main entity)
|
Cyprus
|
Cyprus
|
USA (CFTC Authorized)
|
No
|
No
|
No
|
Year Founded
|
2006
|
2009
|
2006
|
Rating stars out of 5 (by who?)
|
4.0 (BrokerNotes)
|
4.3 (TrustPilot)
|
4.2 (ForexPeaceArmy)
|
Account Types
|
Standard, ECN, Micro, Crypto, PAMM
|
Standard, Micro, Ultra Low Spread, XM Zero
|
Standard, MetaTrader 5, FX Pro Shares Account
|
Minimum Deposit
|
$10 (Micro account)
|
$5
|
$100
|
Spreads
|
Variable (ECN & commission-based accounts)
|
Variable (Raw & Commission-based options)
|
Variable (Raw & Commission-based options)
|
Maximum Leverage
|
1:200 (EU), 1:400 (outside EU)
|
1:30 (EU), 1:500 (outside EU)
|
1:200 (EU), 1:400 (outside EU)
|
Execution: ECN or STP or Market Maker or Dealing desk
|
ECN & STP (depending on account)
|
ECN/STP
|
ECN/STP
|
One-click Execution
|
Yes
|
Yes
|
Yes
|
Requotes
|
Less common with ECN accounts
|
Rare
|
Rare
|
Slippage
|
Possible during high volatility (ECN)
|
Possible
|
Possible
|
Market Gaps
|
Can occur
|
Can occur
|
Can occur
|
Commissions per lot
|
Yes (on ECN accounts)
|
Variable (account dependent)
|
Variable (account dependent)
|
Swap rates
|
Yes
|
Yes
|
Yes
|
Swap Free Accounts
|
Islamic Account
|
Yes (option)
|
Yes (option)
|
Trading Platforms
|
MetaTrader 4 & 5, cTrader (ECN focus)
|
MetaTrader 4 & 5
|
MetaTrader 4 & 5
|
Assets
|
Forex, Stocks, Crypto (CFD & Spot), Commodities, Indices
|
Forex, Stocks, Crypto, Commodities, Indices
|
Forex, Stocks, Crypto, Commodities, Indices, CFDs
|
Copy Trading
|
Yes (PAMM)
|
Yes
|
Yes
|
Trading Contests
|
Rare
|
No
|
Rare
|
Negative balance protection
|
Yes (EU)
|
Yes (EU)
|
Yes (EU)
|
Guaranteed Execution
|
No
|
No
|
No
|
Margin call level
|
75%
|
75%
|
75%
|
Stop Out level
|
50%
|
50%
|
50%
|
Bonuses availability
|
May be restricted (check regulations)
|
May be restricted (check regulations)
|
May be restricted (check regulations)
|
Cashback availability
|
Limited promotions
|
Yes (limited promotions)
|
Yes (limited promotions)
|
Deposit and Withdrawal fees
|
Variable (free for some methods)
|
Potentially high for non-bank transfers
|
Potentially high for non-bank transfers
|
Deposit and Withdrawal times
|
Usually within 1 business day
|
Usually within 1 business day
|
Usually within 1 business day
|
Mobile App Trading
|
Yes
|
Yes
|
Yes
|
Free VPS Hosting
|
May be available for high volume accounts
|
No
|
May be available for high volume accounts
|
Customer Support
|
24/5 Live chat, email, phone
|
24/7 Live chat, email, phone
|
24/5 Live chat, email, phone
|
Market Analysis
|
Yes
|
Yes
|
Yes
|
Inactivity fees
|
Yes
|
Yes
|
Yes
|
Customer Reviews
|
|||
Start Now
|
The Final Verdict
FXOpen wasn’t like the others. It wasn’t a one-size-fits-all proposition. Instead, it offered a welcoming hand, extending a variety of accounts to suit any trader’s needs. For the seasoned veterans, the ECN accounts shimmered with the promise of razor-thin spreads, a playground for the skilled to exploit market inefficiencies. For the cautious like myself, the STP accounts offered a comforting embrace, with their bundled fees simplifying the cost calculations And for those taking their first tentative steps, FXOpen offered a haven – the Micro accounts. These accounts, with their micro lots, were like training wheels, allowing me to test the waters without risking a fortune. It was a way to build confidence, to learn the ropes before diving headfirst into the current.