ZFX Review: Is It the Right Broker for You?

February 16, 2024
8:46 am
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The complex world of forex trading demands a broker that not only understands the intricacies of the market but also offers a platform that caters to the varied needs of its clientele. Today, Finxpdx is diving into an in-depth review of ZFX, a forex trading broker established in 2016 in the United Kingdom.

This forex trading broker review aims to provide a balanced viewpoint, helping you to ascertain if ZFX aligns with your trading goals and preferences.

ZFX: Overview

Established: 2016
Headquarters: United Kingdom
Trading Platforms: MetaTrader 4
Mobile Trading: Yes
Minimum Deposit: $50
Account Types: Mini Trading Account, Standard STP Trading Account, ECN Trading Account

Open an Account

ZFX, also known as Zeal Capital Market, is a trading platform that offers a variety of services. It maintains a zero-tolerance policy for abusive trading strategies, fraudulent activities, manipulation, chargebacks, or any other deceptive practices. The platform provides 100+ trading assets, including forex, stocks, indices, gold, and crude oil, and offers 3 types of trading accounts to meet the needs of its customers.

ZFX has won the Best Trading Platform Award 2019 from Financial Weekly. It also offers a powerful trading platform that executes 50,000 orders per second and provides 24-hour customer service. Additionally, ZFX offers 0 commission, low spread, and a leverage ratio of up to 1:2000

Regulation and Registration

ZFX operates through its online trading brand, managing regulated companies globally to offer forex and CFD trading services. Clients opening accounts with ZFX are serviced by either Zeal Capital Market (UK) Limited or Zeal Capital Market (Seychelles) Limited, depending on their location and regulatory requirements. Zeal Capital Market (UK) Limited is regulated by the Financial Conduct Authority (FCA) in the UK, holding the firm reference number 768451, ensuring compliance with stringent financial standards.

On the other hand, Zeal Capital Market (Seychelles) Limited is authorized as a securities dealer by the Financial Services Authority of Seychelles, with licence number SD027, adhering to the regulatory framework for securities dealers. Both entities are duly listed and verified on their respective regulator’s websites, showcasing ZFX’s commitment to regulatory compliance and the provision of secure trading environments for its clients.

Account Types of ZFX

Mini Trading Account

Minimum Deposit: $50
Spread: From 1.5 pips
Commission: Not specified
Maximum Leverage: Up to 1:2000
Instruments: Forex, commodities, stock indices, and shares

Standard STP Trading Account

Minimum Deposit: $200
Spread: From 1.3 pips
Commission: Not specified
Maximum Leverage: Up to 1:500
Instruments: Forex, commodities, stock indices, and shares

ECN Trading Account

Minimum Deposit: $1000
Spread: From 0.2 pips (commission may apply)
Commission: Not specified
Maximum Leverage: Up to 1:500
Instruments: Forex, commodities, stock indices, and shares

Deposit and Withdrawal

ZFX offers a variety of payment methods for depositing and withdrawing funds, ensuring flexibility for traders globally. Customers can utilize international bank transfers, local bank transfers in Southeast Asia, credit/debit cards (VISA or Mastercard), and e-wallets such as Skrill, Neteller, and Perfect Money. If you’re using an international bank transfer, the least amount you can deposit is $1,000, and there’s no upper limit on how much you can deposit.

For credit or debit card payments, you need to deposit at least $200. The most you can deposit with these cards is $10,000. The rules for deposits in local currencies and through e-wallets vary, depending on the local partners and the details of your account.

International transfers recommend using USD to avoid additional fees, and funds usually clear within two days. Local bank transfers offer a cost-effective option for deposits in Thailand, Malaysia, Indonesia, and Vietnam, converting to USD upon receipt. Credit/debit card transactions are processed in USD, with exchange rates determined by the issuing bank. It’s important to use payment methods registered in the trader’s name to ensure transactions are not declined.

Products in ZFX

ZFX offers a broad spectrum of trading options, including:

Forex
Stocks (shares)
Indices
Commodities
Cryptocurrencies

Trading Platform of ZFX

ZFX provides its traders with access to:

MetaTrader 4

Fees of ZFX

ZFX does not charge any fees for making a deposit, but third-party fees such as bank wire transfer fees may apply. The minimum deposit amount is $50 for Mini and Standard Trading accounts and $500 for ECN Trading accounts.

The spread depends on the account type and currency pair, and there is no fixed brokerage commission at ZFX. The tightest spreads (from 0.2 pips) are on ECN and Professional accounts. On the Standard STP Trading account, spreads start from 1.3 pips, and on the Mini Trading account, they start from 1.5 pips.

ZFX Promotions

ZFX doesn’t offer any promotions at the moment.

Customer Support

Email: [email protected]
Phone: 400-8424-611 (Mon – Fri: 24 hours. Sat-Sun: 07:30 AM to the next day 02:00 AM)

Pros & Cons

Pros

Regulated NDD, STP, and ECN broker
Wide range of accounts for retail and professional clients
Ability to trade over 100 assets

Cons

Lack of a web-based trading platform
Limited maximum number of open positions
High spreads on Standard accounts for beginners and traders without capital reserves

Pros Explained

ZFX being regulated implies adherence to certain standards, offering a level of security and transparency to traders. The NDD (No Dealing Desk), STP (Straight Through Processing), and ECN (Electronic Communication Network) features indicate efficient order execution without interference from a dealing desk.
ZFX caters to different types of traders, offering various account types suitable for both retail and professional clients. This flexibility allows traders to choose an account that aligns with their trading preferences and goals.
ZFX offers over 100 assets, including forex, stock indices, commodities, and stocks. This provides traders ample opportunities to diversify their portfolios and explore different markets.

Cons Explained

The absence of a web-based trading platform may inconvenience traders who prefer the flexibility of accessing their accounts and executing trades via a web browser, especially if they cannot or do not want to download additional software.
The restriction on the maximum number of open positions in Standard and ECN accounts to 200 may limit the trading strategies of some traders, particularly those who engage in high-frequency trading or trade across multiple instruments simultaneously.
High spreads on standard accounts may be disadvantageous for beginner traders or those without significant capital reserves, as it can increase trading costs and potentially reduce profitability, especially when compared to accounts with tighter spreads.

Is ZFX Worth Considering?

The evaluation of ZFX as a brokerage highlights several key factors. It is regulated as an NDD, STP, and ECN broker in London, ensuring credibility and security for traders. The range of accounts caters to both retail and professional clients, but the $1,000 deposit requirement for retail traders on ECN accounts may deter some. Tight spreads and a diverse selection of assets, including forex, indices, commodities, and stocks, enhance its appeal for experienced traders.

However, the absence of a web-based trading platform and beginner-friendly features, along with high spreads on standard accounts, may inconvenience novice traders. Ultimately, traders should carefully weigh these factors against their preferences and requirements before deciding if ZFX is suitable for their trading needs.

FAQs

1. What is ZFX?

ZFX is a brokerage firm based in London that operates as an NDD (No Dealing Desk), STP (Straight Through Processing), and ECN (Electronic Communication Network) broker. They offer trading services in various financial instruments, including forex, indices, commodities, and stocks.

2. How is ZFX regulated?

ZFX is regulated by relevant financial authorities in the UK. As an NDD, STP, and ECN broker, it adheres to industry standards set by regulatory bodies to ensure transparency, security, and fairness in its operations.

3. What types of accounts does ZFX offer?

ZFX offers a range of accounts tailored to different trader needs, including retail and professional accounts, Mini Trading accounts, Standard STP Trading accounts, and ECN Trading accounts.

4. What are the deposit requirements for opening an account with ZFX?

The deposit requirements vary depending on the type of account chosen. For retail traders, the deposit requirement for ECN accounts may be $1,000 or another amount, while Standard accounts might have different deposit requirements. Professional accounts may have separate criteria.

5. What assets can I trade with ZFX?

ZFX provides access to a diverse selection of assets for trading, including major and minor currency pairs in the forex market, indices representing various global markets, commodities such as gold, silver, and oil, as well as individual stocks from different exchanges worldwide.

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