NordFX Is Why Im Broke

 50 Words on – Why you can go Broke with NordFX?

Check this out: “an hour before market closing margin call/stop out levels can be increased up to 200%” (according to their website). Two hundred percent… hmm, that’s a bit steep, don’t you think? And things don’t stop here: if you open an “Integral” account which has a minimum deposit of 20,000 USD (expensive, huh?), then “Up to 10% of the account balance may be blocked of trade in order to secure the payment of fees, in case if the methods of fees prepayment or the inclusion in a spread are not switched on.”. Wait a minute, they will block $2K of my money to make sure fees are paid? I am sure there has to be a better solution…

 

How to Avoid Going Broke With Nordfx

  • Make sure you have enough margin an hour before market closes because an increase up to 200% in margin call/stop loss levels is a big deal.
  • Do not open an “Integral” account for obvious reasons: 10% of your balance may be blocked in order to secure payment fees. If you still want to open such an account, make sure you choose a prepayment of fees or an inclusion in spread. Anyway, just make sure you understand their conditions regarding the blocking of the 10%.
  • NordFX offers a welcome Bonus. Although forexiswhyimbroke.com recommends not taking any form of bonus because it comes with strings attached, if you choose to accept one, make sure you understand the Terms and Conditions of this Bonus.
  • There have been reports of increased spreads and some platform slowdown at news time. While this is not a never-seen-before thing, caution and common sense must be used if trading during volatile times.
  • Book a plane ticket for Mauritius in advance. You’ll need it in case something goes wrong with your money.
  • Take a look at other brokers before opening an account with NordFX. Maybe you will find better trading conditions.

 

 

The Good, the Bad and the Ugly Speak

Licensed, Regulated… Trustworthy? Licensed, Regulated… Trustworthy?

According to their website, Nord FX is licensed by the Mauritius Financial Services Commission (I’ve included a screenshot [1] as well as a link to the Nord FX website [2]. This review is written in April 2015 and that’s how their website looked at the time). But I always want to check these license numbers, so I went to the Mauritius Financial Services Commission website and let’s just say I was disappointed… take a look at the screenshot at the bottom of the review [3] or visit this link and search the number yourself: FSC Mauritius. Now what am I supposed to think about them? I am pretty confused: either the Mauritius Financial Services Commission cannot build a website properly so the search function doesn’t work, or… Nord FX is not licensed by Mauritius FSC.

The overall opinion on the Internet is mixed: on one hand we found users who complain about the stop out level increase to 200% (mentioned earlier) – check out the comment of JSR from Philippines on the Forex Peace Army forums [4] – and on the other hand people say they had a good experience trading with Nord FX [4]. What I don’t like is that most of the positive user reviews feel somewhat too pushy and stiff: “Long Term association with NordFx compelled me to leave a positive feedback for NordFx. Really NordFx is an awesome Fx Brokers.” And another one: “Fabulous, Prompt Online Support and On time Withdrawals bound me to get tied with NordFx“. Both these comments can be found in the links already posted at the bottom of our review and if I were to spend some time analyzing the writing style, I’d say they come from the same person.. but I won’t. What I will try to do is answer the question below.

 

Everybody goes to Cyprus? Everybody goes to Cyprus?

I must admit I have mixed feelings about this brokerage. They don’t seem all bad and in fact, they do offer some competitive conditions… but – there’s always a “but” – they are located in Mauritius. We all hope it doesn’t get there, but if legal action is required because your broker mistreated you, what are you going to do? Pack your bags and go to Mauritius? And how will this trip affect your lawyer fees? Anyway, Nord FX recently opened another branch named NordFX CY. This subsidiary holds “one of the most recognized certifications in the world of finance – a license from the Cyprus Securities and Exchange Commission (CySEC)”. Oh well, big words when it comes to CySEC… come on getting a CySEC license is not that hard. I mean even some shady binary options brokers are regulated by this authority. In fact almost all binary options brokers that are regulated are located in Cyprus so it’s not such a big deal and we know how many scammers the binary options industry has. To sum it up, being located in Mauritius and Cyprus doesn’t offer extra confidence.

 

I Need Platforms… Lots of Platforms I Need Platforms… Lots of Platforms

Nord FX was launched in 2008 so we can say they have enough experience under their belt. Recently they’ve announced on their website that they reached 1,000,000 accounts which is huge, but unfortunately there’s no way to verify that so we’ll have to take their word for it. But let’s stick to the good: they offer a wide variety of accounts (Integral, Micro, Standard, Premium) and the possibility to choose between fixed or floating spreads (both can widen during volatile market conditions). The leverage can go as high as 1:1000 for certain account types and ECN commissions are fair: $25 per million traded per side but this varies depending on the type of account as well. The popular Meta Trader 4 platform is available but traders have other choices like Meta Trader 5, Blackberry Trader, Multi Terminal, mobile platforms for IOS and Android as well as NFX Trades, a trading terminal built on FX Inside Professional platform. Overall I believe that even the most demanding traders will find a platform and an account type to suit them but the minimum deposit for some accounts is too high ($20,000 for an “Integral” account).

 

 

Editor’s Note – Is NordFX a Scam?

Let’s be honest, that’s what we all fear: that our broker will turn out to be a scam and separate us from our hard earned dough. But calling a company a scam without hard evidence is too harsh and so far I wouldn’t put Nord FX in the Scam category. Yea it’s true there are some mixed opinions on the Internet and that their regulation is not very clear but nobody is perfect so I’ll give them the benefit of the doubt.

 

Bottom Line – Would I Trade with NordFX?

My answer to that question is simple: No, because I don’t see a single reason to do it. If all other reputable brokers would close their doors, then I would give NordFX another look… maybe. But until that happens, I am not sending my money in Mauritius and I am not trading with a 200% margin call/stop out level.

 

References

  1. Printscreen1
  2. About NordFX
  3. Printscreen2
  4. FPA on NordFX

 

Have We Saved You From Going Broke?

  • Mark

    Opened the deposit $ 500, gave a bonus. It is important that the bonus is involved in the drawdown. So far, so good. Some glitches in the work did not notice. There was no need to contact support. He did not gain a lot of profit, but he managed without any problems. At the moment, from me plus this broker.

    Reply
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