Note: Formax Prime's official site - https://www.formaxprime.co.uk/is currently not functional. Therefore, we could only gather relevant information from the Internet to present a rough picture of this broker.
What is Formax Prime？
Formax Prime (Formax Prime Capital Limited) is a broker based in the United Kingdom in 2014. It currently holds no regulations and its official website has already shut down.
Pros & Cons
Pros of Formax Prime
Competitive Spreads: Formax Prime offers competitive spreads, particularly on popular currency pairs like EUR/USD, where spreads can start as low as 0.2 pips on the ECN Raw account.
MT4 Supported: The broker provides access to the industry-leading MetaTrader 4 (MT4) platform, renowned for its powerful analytical tools, advanced charting, and extensive customization options.
Demo Accounts Available: Formax Prime offers demo accounts, allowing traders to practice and refine their trading strategies in a risk-free environment.
Cons of Formax Prime
Suspicious Clone Regulation: The firm's regulatory status is flagged as a “Suspicious Clone” by the Financial Conduct Authority (FCA), raising concerns about the legitimacy and trustworthiness of the broker.
Dead Official Website: The official website of Formax Prime is dead, which undermines the brokers credibility, and it is very difficult for users to search for Formax Prime's information.
High Minimum Deposit: The broker requires a relatively high minimum deposit of £1000, which can be very high for new or small-scale traders looking to start with a smaller capital investment.
Commission Charged: While Formax Prime offers low spreads, the ECN Raw account involves a commission of approximately £3 per standard lot (per side), which will add extra costs.
Is Formax Prime Legit？
Regulatory Sight: Formax Prime's regulatory status is overseen by the Financial Conduct Authority (FCA) in the United Kingdom. The company holds a Straight Through Processing (STP) license, which means that its trading operations are designed to provide direct market access without dealing desk intervention. However, the current status of Formax Prime is listed as a “Suspicious Clone” under the FCA's oversight, which concerns users about its legitimacy. The specific license number attributed to Formax Prime by the FCA is 624225.
User Feedback: Users should check the reviews and feedback from other clients to gain a more comprehensive sight of the broker, or look for reviews on reputable websites and forums.
Security Measures: So far we haven't found any information about the security measures for this broker.
Market Instruments
Formax Prime offers a certain range of market instruments. These include:
Forex Currency Pairs: Formax Prime provides the opportunity to trade in more than 60 currency pairs. This includes major pairs such as EUR/USD, GBP/USD, and USD/JPY, as well as a variety of minor and exotic pairs.
Gold and Silver: The platform allows trading in precious metals, specifically gold and silver.
CFDs (Contract for Difference): CFDs are financial derivatives that let traders speculate on the rising or falling prices of fast-moving global financial markets.
Indices: Trading in indices allows traders to speculate on the performance of a basket of stocks, representing a specific market segment or economy.
Commodities: Besides precious metals, Formax Prime offers other commodities like oil, natural gas, and agricultural goods.
Account Types
Formax Prime offers two types of trading accounts: the ECN Commission Free Account and the ECN Raw Account. You can only open one account on Formax Prime. It also allows traders to open a demo account to practice trading.
Leverage
Formax Prime offers a maximum leverage ratio of up to 1:200 for all its account types, which provides traders with the ability to significantly amplify their market exposure compared to their initial investment. This leverage means that for every $1 of the trader's capital, they can control up to $200 worth of assets.
Spreads & Commissions
Formax Prime provides different spreads and commission structures for both accounts:
The ECN Raw Account offers raw spreads that can be as low as 0.2 pips on major currency pairs like EUR/USD. However, this account involves a commission based on trading volume, with an average spread around 0.6 pips on EUR/USD and a commission fee of approximately £3 per standard lot per side, resulting in a total of £6 round trip.
On the other hand, the ECN Commission Free Account does not charge any commission but incorporates costs into the spreads. Traders using this account can expect spreads starting from 0.6 pips on EUR/USD.
What's more, the minimum deposit required is £1,000, which is a bit high in the industry. So Formax Prime will be more suitable for the ones with larger capitals.
Trading Platforms
Formax Prime provides users with these two trading platforms:
MetaTrader 4 (MT4): MT4 is one of the most popular and widely used forex trading platforms in the industry. Known for its robustness, reliability, and a broad array of features. MT4 supports extensive customization, and automated trading through Expert Advisors (EAs), and has advanced charting and analysis capabilities. The platform also includes a variety of technical indicators and an extensive back-testing environment that allows traders to test their strategies against historical data. Supporting MT4 will provide users with more convenience.
ZuluTrade: ZuluTrade is a different type of platform that specializes in social trading, particularly known for its copy trading features. It enables traders to follow and copy the trades of experienced traders, known as signal providers. ZuluTrade ranks these providers based on various performance metrics, allowing users to choose whom to follow based on their individual risk tolerance and trading objectives.
Deposits & Withdrawals
Formax Prime offers several payment methods, all managed through the Clients dashboard. For deposits, traders can choose from several multi-currency solutions. Bank transfers are available without any fee charges. Credit and debit card deposits incur a 3% transaction charge. Traders can also deposit securely using popular e-wallets, including Skrill, Neteller, and China UnionPay, which come with respective fees of 2.9%, 4%, and 1.5%.
For withdrawals, Bank transfers incur a fee of $25 per transaction, while credit card withdrawals are free of charge. For e-wallet withdrawals, Skrill has a fee of 1% plus $2.50 per transaction.
Customer Support
Formax Prime offers several customer support channels including telephone, email, and social media. The telephone line, +44 (0)20 3819 3100, provides direct access to support representatives. Email support is available atsupport@formaxprime.co.uk, allowing customers to send detailed questions or issues and receive thorough responses.
Additionally, the presence on social media platforms like Twitter and Facebook allow traders to stay updated with the latest news, receive quick responses to queries, and engage with the community.
Conclusion
As a broker, Formax Prime provides competitive spreads, allows demos, and supports MT4 and Zulutrade. However, it currently holds a suspicious clone regulatory license and has no accessible official website. In this case, we do not recommend users to trade with this broker.
Frequently Asked Questions (FAQs)
Question: Is there a commission charged？
Answer: Yes. A commission is charged for the ECN Raw Accounts, which is at around £3 per standard lot per side.
Question: Does Formax Prime support MT4/5？
Answer: Yes. It does support MT4.
Question: Is Formax Prime regulated？
Answer: Yes. However, its regulatory license is suspected to be a clone.
Question: Can I open a demo account to practice trading？
Answer: Yes.
Question: What is the lowest spread offered by Formax Prime？
Answer: The lowest spread offered by Formax Prime is 0.2 pips.
Question: What is the minimum deposit required to open an account？
Answer: The minimum deposit required is £1000.
Risk Warning
Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information provided in this review may be subject to change due to the constant updating of the company's services and policies.
2023-03-16 16:05
2023-02-21 15:10
