NordFX: The Truth of Offshore Regulated Broker

January 25, 2024
9:24 am
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When selecting a forex broker, sifting through detailed reviews is key to making an informed choice. Today, we focus on NordFX review, a brokerage firm established in 2008 and headquartered in the United States.

Forex trading broker review aims to provide a balanced perspective on NordFX’s services, regulatory status, and overall trading experience, assisting traders in determining if it aligns with their trading needs.

NordFX: Overview

Established: 2008
Headquarters: United States
Trading Platforms: MetaTrader 4
Mobile Trading: Yes
Minimum Deposit: $10
Account Types: Fix, Pro, Zero, Savings

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NordFX, established in 2008 and based in the United States, has expanded its services globally, adapting to various international trading requirements. They provide various account types, including Fix, Pro, Zero, and Savings, to suit a wide range of trading preferences and experiences.

However, NordFX is not regulated by major financial like the FCA, ASIC, or NFA. Instead, they are overseen by the Vanuatu Financial Services Commission (VFSC), an offshore regulator with different standards and requirements.

Regulation and Registration

NordFX is reported to be owned and operated by NFX CAPITAL VU INC, regulated by the Vanuatu Financial Services Commission (VFSC) under license number 15008. This implies regulatory oversight, but it’s crucial to understand that the VFSC, an offshore regulator, has relatively low capital requirements and quick licensing processes, especially when compared to stricter regulators such as the FCA, ASIC, or NFA.

The regulatory environment in Vanuatu offers benefits like no income tax or capital gains tax, which can be attractive to businesses. However, the level of regulatory scrutiny and investor protection may not be as robust as those provided by regulators in other jurisdictions. Additionally, the VFSC does not provide comprehensive authentication details or domains for companies it licenses. This lack of detailed information can lead to challenges in verifying whether NFX CAPITAL VU INC is indeed the entity operating under the NordFX brand.

Account Types of NordFX

NordFX stands out in the forex trading market with its unique range of trading accounts, catering to various trading strategies and preferences. Unlike many other brokers, NordFX distinguishes itself by offering a savings account, a feature not commonly found in the forex arena.

Fix Account

Minimum Deposit: $10
Spread: From 2 pips
Commission: No commissions
Maximum Leverage: Up to 1:1000
Instruments: 28 FX pairs, metals, crypto, CFD indices & stocks, oil

Pro Account

Minimum Deposit: $100
Spread: From 0.9 pips
Commission: No commissions
Maximum Leverage: Up to 1:1000
Instruments: 33 FX pairs, metals, crypto, CFD indices & stocks, oil

Zero Account

Minimum Deposit: $500
Spread: From 0.0 pips
Commission: 0.0035% per trade (each side)
Maximum Leverage: Up to 1:1000
Instruments: 33 FX Pairs, Metals, Crypto, CFD Indices & Stocks, Oil, access to interbank liquidity (ECN)

Savings Account

Minimal Investment: $500
Average Yearly Interest: 30%
Payouts: Daily
Yearly Loan Interest: 3%
Account Balance: Stablecoin (USDT, DAI, USDC)
Available to: All account holders
Additional Feature: Savings account owners can take loans on their investments to trade, thus generating extra profit on their trading activity. Profit is generated daily and can be used at any time.

Deposit and Withdrawal

NordFX offers a wide range of deposit and withdrawal methods, including online bank transfers, bank cards, online payment systems, and cryptocurrencies. The broker supports various currencies and provides multiple options for global traders. Most deposit methods, such as VISA, MasterCard, and e-wallets like Skrill and NETELLER, are commission-free. For crypto transactions, NordFX charges no commission.

The processing time for transactions is efficient, with many methods offering instant deposits and withdrawals.

Products in NordFX

NordFX provides a range of trading products to cater to diverse trading preferences. The list of assets available for trading includes:

Forex pairs
Metals
Cryptocurrencies
CFD indices & stocks
Oil

Trading Platform of NordFX

NordFX offers its trading services through the MetaTrader 4 (MT4) platform. It does not currently offer MetaTrader 5 (MT5), the newer version of the platform.

Fees of NordFX

NordFX’s fee structure includes a few key components. Commission fees are charged only on the Zero account, which offers very low spreads (starting from 0.0 pips), with a rate of 0.0035% per trade on each side. Other accounts, like the Fix and Pro accounts, do not incur commission fees and have higher spreads, starting from 2 pips and 0.9 pips respectively.

Swap fees are applied, though specific rates are not detailed. Additionally, NordFX does not charge inactivity fees for dormant accounts. The broker keeps the entry barrier low with a minimum deposit requirement of just 1 GBP/USD/EUR.

NordFX Promotions

The NordFX Super Lottery, exclusively for its clients, offers a total prize fund of $100,000. This is divided over three draws within 2023. Participants are required to have a Pro account, which they must replenish with at least $200 and achieve a trading turnover of a specified volume to earn lottery tickets.

The number of tickets per participant is unlimited, increasing their chances of winning. Prizes range from $250 to $5,000, and winners can use the prize funds for trading or withdrawal without restrictions.

For more details and rules, please visit NordFX Super Lottery.

Customer Support

Email: [email protected]
Phone: +44 2038688742 (Global Support)

Pros & Cons

Pros

Accessible minimum deposit
Diverse account selection
Options for commission-free trading

Cons

Absence of advanced MT5 features
Regulation by an offshore authority (VFSC)
Swap charges on overnight positions

Pros Explained

NordFX’s low minimum deposit requirement makes it easier for a wider range of traders to access the forex market. This feature is particularly appealing to beginners or those looking to start trading with a smaller capital outlay.
The broker offers a range of account types, including Fix, Pro, Zero, and Savings. This diversity ensures that traders of all experience levels and trading strategies can find an account type that suits their needs.
NordFX offers commission-free trading options in specific account types, particularly the ‘Fix’ and ‘Pro’ accounts.

Cons Explained

NordFX only offers MetaTrader 4 and limits users to an older platform, lacking the advanced features and expanded instrument offerings of MetaTrader 5. This could be a drawback for traders seeking more sophisticated trading tools.
NordFX is regulated by the Vanuatu Financial Services Commission, an offshore regulatory body, which might raise concerns about the level of oversight and protection compared to brokers regulated by more stringent authorities like the FCA or ASIC.
NordFX imposes swap fees for positions held overnight. This is a common practice in forex trading but can add to the cost of trading, especially for those who tend to hold positions for longer periods.

Is NordFX Worth Considering?

While NordFX offers certain appealing features, such as a low minimum deposit of $10 and a range of account types, there are critical aspects that suggest caution. The broker operates on the MT4 platform. This limitation to MT4 means that NordFX users may not have the opportunity to utilise these more sophisticated trading tools and broader market access that MT5 offers. A significant concern arises from its regulatory oversight by the Vanuatu Financial Services Commission (VFSC), which may not provide the same level of rigor and protection as more stringent regulatory bodies.

Furthermore, the fee structure, including swap fees and potential charges for certain payment methods, requires careful consideration by prospective traders. Given these factors, particularly the regulatory concerns, NordFX might not be the recommended choice for traders seeking a highly regulated environment with advanced trading features. It’s advisable for traders to thoroughly evaluate these aspects against their individual trading strategies and risk appetite before making a decision.

FAQs

1. What is NordFX?

NordFX is a forex broker established in 2008 based in the United States, offering a range of trading services across various markets, including forex, metals, cryptocurrencies, and CFDs.

2. What types of accounts does NordFX offer?

NordFX provides several account types to suit different trading preferences, including Fix, Pro, Zero, and Savings accounts. Each account type varies in terms of minimum deposit, spreads, commission, and other trading conditions.

3. Is NordFX regulated?

Yes, NordFX is regulated by the Vanuatu Financial Services Commission (VFSC). However, it’s important to note that VFSC is considered an offshore regulator, which might have different standards compared to more stringent regulatory bodies.

4. What is the minimum deposit required to trade with NordFX?

The minimum deposit at NordFX starts at $10 for the Fix account, making it accessible for traders with different financial capabilities.

5. Does NordFX offer commission-free trading?

Yes, NordFX offers commission-free trading options in certain account types like the Fix and Pro accounts. However, other accounts, such as the Zero account, may include commission fees.

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