Beware! SmartFX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
We sometimes wonder what goes into the minds of the creators of brokers such as SmartFX. Do they think that they are being original, or are they trying to hide behind the other online companies that have the word “smart” in them? Whatever the case it might be, and soon enough we will have a better picture of it, SmartFX seems to be one of those brokers that is all talk but no walk. Are we quick to judge? Read the review to find out.
We registered fairly easily, but what followed was a blockade. In a good way, SmartFX has blocked the creation of a live account to all users that have not yet been identified. This step is usually taken by legitimate brokers wishing to check on each user, thus allowing only safe and serious traders.
However, there was the ability to open a demo trading account, which we did. Interestingly though, the demos account only gave us credentials for the MT5 trading terminal, and no details for a user dashboard area. However, we did pass the first steps of the live account, and as a result, able to take a sneak peek inside of the client portal. It turned to be a fairly simple but elegant area.
The demo account gave us an unfulfilling spread of 3 pips for the EUR/USD currency pair, immediately putting us on the edge.We hope that this cost of trade does not reflect the actual one found on the live account. The website mentions not any specific spread values, so we just have to hang on hope. Users should take note of this. The leverage has been capped at 1:400. The demo MT5 revealed only one asset type, so we went to the website and found the following instruments that users can trade with: forex pairs, equities, indices, futures, commodities, and stocks.
SmartFX is able to be translated into Arabic, English, and Japanese.
SMARTFX REGULATION AND SAFETY OF FUNDS
Well, as it turns out, SmartFX is based and licensed in Vanuatu. In this nation, the responsibility of regulating the FX market sector falls into the hands of the Vanuatu Financial Services Commission (VFSC). On of the most important rules that the commission has set forth is that all forex brokers must have at least $50 000 in capital at all times.
Vanuatu is still considered as an offshore destination for brokers, making the VFSC not as severe as the FCA, ASIC, or CySEC for instance. However, in recent times Vanuatu has endeavored to increase the stability of its market, and one way of doing this is to increase capacity as a regulator. one of the new requirement is that all brokers must maintain a physical presence on the island nation and have at least one local director/manager. There are other newly introduced decrees, some considering crypto trading. For now, we trust this regulator as it seems to be headed in the right direction, albeit taking its time.
SMARTFX DEPOSIT/WITHDRAW METHODS AND FEES
Skrill, Neteller, StickPay, wire transfer, VISA, and MasterCard are the account funding gateways. However, without verifying our identity to the company, we had no way to get a hold of a minimum deposit value. For the same reason, the withdrawal section was blocked, so we have to rely on the website for these details. Seeing that the company is regulated, it should not pose any problem.
Unfortunately, the website did not inform us of a minimum deposit amount. There was nothing given on this topic, and we even went to the FAQ section. None of the questions there covered a minimum account funding requirement. We guess this info is given only to verified users. Just to have it here: the average deposit requirement is around $250.
We recommend users deposit the minimum, whatever it is, because, as we already discussed, the spread situation is uneasy.
The same depositing methods are used for withdrawing. Processing time is some 3 hours, which we find hard to believe, given that most brokers process these requests in a day or more. The Deposit & Withdraw Policy claims that it can take up to 6 days for a user’s funds to appear in her bank account. The only fees that we found were those issued by the payment systems. These charges have no relations to SmartFX whatsoever and are how these things proceed.