- Instrument Variety
- Leverage: (200:1)
- Scalping: Forbidden
- Spreads: 4pips
- Regulation: CySEC
- History: 2 Warnings FSMA, CySEC
- User Feedback:
UFX has sketchy regulatory history, a no-deal stamp from the ForexPeaceArmy, and has one of the widest spreads in the industry with fixed 3-4p. The user reviews are extremely negative here, and elsewhere. We recommend: avoid.
- About the Company: UFX Markets is the trading name of Reliantco Investments Ltd.
- Founded: In 2009 as UFX Bank re-branded as UFX Markets in 2011.
- Payment Options: Debit and Credit Cars, Skrill, CashU and Local Bank Transfer.
- Platforms: MetaTrader 4 and ParagonEx Trader.
- Minimum Deposit: $100
- Regulation: Reliantco Investments Ltd. is regulated by CySEC of Cyprus.
- Social Trading: N/A.
- Support Options: Contact Form, Email, Live Chat and Phone.
UFX Markets offers both MetaTrader 4 platform and the ParagonEx Trading platform. Many traders will already be familiar with MetaTrader 4, one of the most popular Forex trading platforms out there. While many brokerages offer the MetaTrader 4 platform to all their clients, only platinum customers are able to use MetaTrader 4 with UFX Markets. This means only those who have deposited $10,000 or more can use the MetaTrader platform. The alternative on offer is the Paragon Ex web trading platform. While the platform is a decent web trading platform, it is not as powerful as the MetaTrader 4 platform. It seems a shame that the MetaTrader platform is only available to those with Platinum accounts. At the present time it doesn’t appear that UFX Markets offers any Mobile Trading support.
- Leverage: Up to 1:200.
- Scalping: Forbidden. Positions must be open for a minute or longer.
- Expert Advisors: Allowed.
- Trailing Stops: Yes.
- Spreads: Fixed, 4 pips Micro and Mini accounts, Standard 3 pips, Gold+ 2pips.
The trading conditions on offer at UFX Markets aren’t particularly competitive, with the brokerage offering a fixed spread of four pips on the EUR/USD for those with Micro and Mini accounts. Those who have bigger accounts with the brokerage can take advantage of tighter fixed spreads, with those with Gold or better accounts being able to trade the EUR/USD with a 2 pip fixed spread. However the minimum deposit for a Gold account is $5,000. Also rather interestingly scalping isn’t permitted with traders being required to keep positions open for over a minute.
- Currency Pairings: 32 currency pairings.
- Other Instruments: A range of Stocks, Indices and Commodities.
UFX Markets offers all the major currency pairings that the majority of traders will be looking to trade, however the range of currency pairings on offer is significantly smaller than the range on offer at other brokerages. It is important to note that the brokerage also offers a number of other instruments including Stocks, Indices and Commodities. While this adds diversity to the platform, the range of other instruments available on the platform is again still quite limited. I can think of a number of other brokerages that offer a wider range of trading instruments.
- Contact Methods: Live Chat, Telephone, Contact Form and Email.
- Telephone Numbers: A range of international phone numbers.
- Support Languages: Arabic, English, Italian, Portuguese, Russian, Spanish and Turkish.
There are a number of negative reports regarding the service offered by UFX Markets, for instance ForexPeaceArmy is very negative regarding the firm. A number of different sources have alleged misconduct, though it should be noted that it very difficult to establish the validity of these claims. Those interested in depositing with the brokerage would be well served undertaking further research regarding the company. It should be noted that the brokerage offers a range of contact methods, including 24 Hr live chat and provide a number of international phone numbers.
- Regulated: By CySEC of Cyprus.
- MiFID Regulated: Yes.
- US Traders: No, UFX Markets cannot accept US traders.
- Regulatory Record: In 2013, UFX Markets settled with CySEC for 100,000 Euros.
UFX Markets previously traded under the name UFX Bank until 2011, when the brokerage became regulated by CySEC of Cyprus. Prior to re-branding of the company in 2011, regulators had released several warnings regarding the firm (FSMA of Belgium and CySEC of Cyprus). Of course these warnings became null when the organisation gained their CySEC license, allowing them to operate throughout the European Union in virtue of MiFID outward passporting. In 2013, the brokerage settled with CySEC of Cyprus for a total of 100,000 Euros for possible violations of the countries securities laws. The settlement meant that the brokerage did not have to accept any wrongdoing and CySEC considered the firm to have not breached the relevant regulation. According to Reliantco, the fine related to the “Company’s disproportionate high growth rate compared to its increase in personnel.” Source. The firm made assurances that they would expand their team of employees at their CySEC office. In addition to the reassurances made by the firm, CySEC stated they would ensure that the firm was complying with all the necessary regulation during their upcoming investigation of firm Source. While no further action has been taken against the firm, many traders will be wary regarding the firm.
Recently, UFX Markets has made the move to on-board new non-EU clients not to their CySEC regulated Reliantco Ltd. company but instead to a company based and regulated in Belize. Forex regulation is the jurisdiction of Belize is notoriously light touch, with the value of a licence from the regulatory authorities in Belize being very questionable. Those trading with the Belize based arm of the brokerage will be offered little regulatory protection and provides those outside the European Union another reason to avoid trading with the brokerage. Traders should be aware that they may not be trading with a EU regulated firm, something which is important to many traders.
Overall, UFX Markets fails to be competitive when it comes to spreads on it’s smaller size accounts. Many traders may also be wary of the firm due to the fact that the brokerage has a somewhat checkered regulatory record. There are also numerous negative reports regarding the company, though the validity of such claims is hard to establish – update: ForexPeaceArmy which we trust most consider UFX a scam.
What did you think of our UFX Markets review? If you have had experience with UFX Markets, please feel free to share.