The financial market consists of sundry brokers which includes both the authentic and fake ones. It takes the entire life to earn money and just one second to lose everything. Thus, the choice of broker plays a vital role. You cannot simply put your money or risk with any fake brokerage firms. Freshforex broker is one of the oldest brokerage firms established in the year 2004. We have seen many traders searching for these questions: Is Freshforex scam or safe? What are the pros and cons of Freshforex broker? Does the broker stand on the expectations of traders? Thus, here in the review, we have covered all the points related to the broker.
Is Freshforex scam or safe?
In the financial world where almost all brokers are regulated by one or more than one regulatory authority, Freshforex is an unregulated firm. There are no details about the regulation of brokers on its official website. It is important to note that the non-regulated firms are considered unsafe for the investment than those authorised with central regulatory bodies.
Thus, looking at this point, we can only conclude that before investing your fund with the firm stay cautious. Check every single detail.
Financial markets available for trading
The following financial instruments are available for trading:
1) 49 currency pairs (including minor, major and exotic crosses)
2) 65 stocks CFDs
3) 3 energies
4) 5 metals
5) 6 cryptocurrencies
We can clearly see that the number of instruments provided in each market is limited compared to other renowned and advanced brokerage firms such as HFTrading, Global TradeATF and several others. The broker should expand its tradable assets as it ultimately impacts the trading portfolio size of traders. Larger the assets wider will be the trading choices for investors and, hence, smaller the risk.
The broker website says that the maximum leverage offered by the broker on trade is 1:2000. This number seems to be very high. There are sundry renowned and experienced brokerage firms in the financial market, and they offer leverage in the range of 100-400 or maximum 1:500. It again raises the question in mind that how come Freshforex offers 1:2000 leverage.
If we say that the amount of leverage offered completely depends on the brokerage firm, they can provide as per their business plan and profit. But we should never forget this fact that leverage is a double-ended sword. It magnifies your profit; at the same time, it also magnifies your losses. How can one trade with a massive risk associated with the leverage value of 1:2000?
On a serious note, the broker should think about this particular point. It should try to work on these loopholes.
The minimum deposit to open an online trading account with the broker is $200, it is high. The fee is not up to the mark. There are other experienced firms such as 101investing which has a minimum deposit of $100. This amount is just half of what Freshforex asks its traders to pay.
The trading platforms offered by the broker are MetaTrader 4 and MetaTrader 5. The MT 5 is a good choice for traders, but at the same time, it comes with various complex functionality. Sometimes it becomes hard for traders to handle this complicated software. Thus, the broker should also incorporate free videos and tutorials for the novice traders, which guides them to use MT 4 effectively.
Withdrawal and deposit
The withdrawal and deposit options available with the broker seems pretty limited and conventional in nature.
Customer support service
The ways to contact the broker do not work most of the times. The broker’s customer support team is poor. Also, sometimes it takes a longer time to respond in case of email.
Cons of trading with Freshforex:
There are several cons to selecting this brokerage firm:
1) The official website of the broker lacks certain important information
2) The user interface of the website is complex and also stuffed with too much data
3) The firm is not regulated by world-renowned financial bodies such as FCA or CySEC
4) The firm does not allow scalping
5) It is an offshore financial service provider
6) Limited tradable assets available for traders
7) The customer reviews of the broker who undertook the service are not good
8) Educational hub need
The Bottom Line
Freshforex broker has been operating in the market for 15 years, and still, it has not registered itself with any of the financial regulatory authorities such as FCA and CySEC. It is the first and foremost point which every trader checks before getting started. Also, the broker’s website needs several changes as sometimes it becomes hard for a novice to go through the complex user interface. Technology and the financial market is changing with each passing day, and numerous new (but advanced) brokerage firms are capturing the market. Hence, the broker should also upgrade and pay heed on its negative side to remain in this financial trading race.
A trader can choose Global Trade ATF, Brokereo, InvestLite and ETFinance. These brokerage firms offer better features with low charges and minimum deposits, all these brokers are highly regulated and authorised.
Frequently asked questions
What is the minimum deposit of Freshforex?
The minimum deposit required to open an online trading account with the broker is $200.
Is Frexhforex regulated?
No, the broker is not regulated.
What are the cons of selecting the Freshforex?
Some cons of the firm are:
1) The firm does not allow scalping
2) It is an offshore financial service provider
3) Limited tradable assets available for traders
4) The firm is not regulated by world-renowned financial bodies such as FCA or CySEC
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