Formax Forex Broker Review
Last Updated: January, 2020.
Established in 2014, Formax is a division of Formax Prime Capital UK Limited and is part of the Formax Group. The company provides Forex and other asset class trading technologies and services to institutional and private traders around the world. The firm is based in London, UK and is a pure STP broker. STP stands for Straight Through Processing, which means that trades are automatically routed directly to major liquidity providers such as banks and larger Forex brokers.
Formax has an impressive worldwide presence with subsidiaries in the UK, China, Australia, New Zealand, Thailand, Hong Kong and India. The company’s official website is located at https://www.formaxprime.co.uk. Please take note that Formax does not accept clients in the United States.
As far as regulation is concerned, its parent company Formax Prime Capital UK Limited is incorporated in the UK and regulated by the UK’s Financial Conduct Authority or FCA. Formax has an FCA reference number of 624225, with their main registered office situated at 107 Cheapside, London, EC2V 6DN. In England and Wales, the company is registered under the reference number 08891879.
The UK’s Financial Conduct Authority or FCA is widely known for its thorough supervision and strict rules. To acquire an FCA license, a prospective broker must first provide proof of their financial stability and adhere to a strict set of rules. One of these rules states that a customer’s funds must be maintained in a segregated bank account, with the broker required to hold a minimum of 730,000 EUR to do business. Also, having the FCA’s oversight qualifies Formax clients for the Financial Services Compensation Scheme or FSCS. The FSCS gives qualifying traders a maximum compensation of 50,000 GBP in the event of the broker’s cessation of trading or insolvency.
Formax allows traders to use a maximum leverage ratio of 200:1 with the option of selecting an ECN or Electronic Communications Network account to trade on the company’s MetaTrader 4 trading platform.
This service provides traders with inexpensive trading costs and price accuracy extending to five decimal places. Furthermore, Formax’s cooperation mechanism with liquidity providers on their ECN gives their customers the best available market price with a stable and expedient execution service.
In addition to the company’s normal funded accounts, Formax offers customers a demo account for traders to use to evaluate their brokering services with, as well as Islamic accounts and ECN accounts. Also, Formax gives its clients trading incentives, such as an initial cash bonus and a trading competition for demo accounts with cash prize rewards.
Formaxm offers trading via the market standard MT4 trading platform.
They are an ECN/STP Agency Model Only
Formax permits scalping, hedging, EAs
Deposits and Withdrawals
Opening an account at Formax is quite simple, with no minimum deposit required. Nevertheless, Formax offers a $100 USD incentive for accounts opened with a minimum deposit of $1,000. Minimum trading volume on all account types is 0.01 lot, with a maximum available size per trade of of 100 lots for Forex trades and 30 lots for commodities.
Deposits to Formax can be made in USD, EUR and GBP, and they take one to five business days to process. Deposits that are routed to Formax’s bank account at Barclays can be made for free, although ECN and Islamic accounts can only be funded with U.S. Dollars.
Customers can deposit funds through credit or debit cards, such as Visa, MasterCard, Maestro and JCB cards. The processing time for credit and debit cards is instant, with debit cards charged a fee at the rate of 0.25% for GBP, USD and EUR deposits, while credit cards are charged a fee of 2.0% for deposits in GBP, USD or EUR.
E-wallet deposits in USD, GBP and EUR are accepted from Neteller and Skrill and also have an instant processing time. For deposits using Skrill, the fee is 2.9% of the deposit amount plus a fixed fee of 2.50 USD, GBP or EUR per transaction.
Neteller deposits are charged at a rate of 3.9% of the amount deposited, with a fixed fee of $0.29 charged per transaction. A charge of 0.5% is made on deposits from clients residing in Argentina, Bangladesh, Brazil, Chile, Columbia, India, Indonesia, Japan, Korea, Malaysia, Mexico, Russia, Thailand or Vietnam, and an additional 1% is charged to residents of Taiwan.
For withdrawals, the account must first be verified and validated. Once checked, the customer must log into their account and select the withdrawal button. They then choose the option corresponding to the form of withdrawal they desire. Once the form is filled out with the type of withdrawal selected, the client enters the amount of the withdrawal, and that quantity is then deducted from their trading account.
Bank transfer withdrawals can be made in EUR, GBP or USD and typically take 24 hours to complete, excluding weekends. Withdrawals from the company’s Barclays bank account usually take three to five business days and are performed at no charge. For a Fast Payment, which is ready in two hours, a fee of 5.00 GBP is charged.
Withdrawals using the Clearing House Automated Payment System or CHAPS are done on the same day and have a fee of 15 GBP for withdrawals in Sterling, 7.00 EUR for withdrawals in Euros, and $25.00 for withdrawals in USD.
Withdrawing funds using a credit card are also free of charge and can usually be processed on the same day, with the funds going to the credit or debit card account that was used for the deposit. Withdrawals to credit and debit cards can be made in GBP, USD or EUR and they have a typical processing time of 24 hours, excluding weekends.
Formax customer support is available via email, as well as by using a 24-hour, 5 day a week customer telephone support line. The company offers customer support in English, Estonian, Chinese, French, Japanese and Korean.
Live chat is another option, as well as regional customer support telephone numbers in the UK, Indonesia, Malaysia and Thailand.
Formax is authorized and regulated by the British Financial Conduct Authority (FCA) with their registration number being #624225. We feel that this forex broker is a very safe broker to trade with.
Overall, Formax offers a full service forex brokerage with the ability to trade commodities, CFDs and metals. Despite a relatively low maximum leverage ratio of only 200:1, lower leverage could be a benefit to many traders that tend to get overextended in their positioning.