Is Colmex Pro Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with Colmex Pro try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Colmex Pro is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker Colmex Pro
Colmex is a professional broker founded in 2009 for Forex and OTC markets. The company allows trading CFDs on all types of standard assets, except for cryptocurrencies. It also offers to invest in over 9,000 stock assets of OTC and exchange markets, including IPOs and ETFs. The broker is headquartered in Cyprus and licensed by the regulators of Cyprus and South Africa.
| 💰 Account currency: | USD, EUR, and GBP |
|---|---|
| 🚀 Minimum deposit: | From USD 500-2,000. |
| ⚖️ Leverage: | from 1:200 up to 1:400 |
| 💱 Spread: | By Forex assets: from 1.4 pips for a Basic account |
| 🔧 Instruments: | Over 11,000 instruments, 8,000+ of which are stocks |
| 💹 Margin Call / Stop Out: | 50%. There is no stop-out for traders with the "Professional/Qualified" status |
Pros and cons of Colmex Pro
👍 Advantages of trading with Colmex Pro:
•Over 11,000 trading asset types are available including Blue chips, OTC markets, IPOs, and depositary receipts; also classic CFD assets.
•Availability of an insurance fund with payment of up to €20 thousand for each trader's account.
•Segregation of customer accounts.
•Flexible approach to the formation of tariff policy.
•A proprietary platform for professional trading that surpasses MT4 in many respects.
👎 Disadvantages of Colmex Pro:
•High initial deposit. For most accounts, the minimum entry threshold is from 2-3,000 USD.
•Offshore regulation.
•Withdrawal commission.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is Colmex Pro Regulated? Broker’s license
Security (Protection for Investors)
The Colmex Pro broker provides services in the European and Asian regions and is licensed by the CySEC 123/10 (Cyprus) and the South African regulator (46990). The broker also guarantees the protection of client deposits placed in European banks and the protection of transactions from outside interference.
👍 Advantages
- The license availability indicates that the broker periodically undergoes an external audit
👎 Disadvantages
- It is not licensed by SEC, FCA, or BaFin regulators that are considered the most reputable in the world
- The interests of private traders are almost unprotected
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by Colmex Pro, which you can see below.
The experts at Traders Union have analyzed Colmex trading terms for explicit and hidden commissions. There is some difficulty in presenting the information. The Basic for Pairs account has a commission of $14.5 for example, in the Forex account group. This means a spread of 1.4 pips for pairs with reverse quotes for a full lot. Does this figure include the fixed commission for ECN accounts? Does the commission of $14.5 mean equal spreads for all pairs? Why are the commissions for major pairs and "exotic" pairs the same and very high? Ask all these questions to the support team. Also, the Traders Union analysts noted a commission for withdrawing funds under several сonditions.
| Account type | Spread (minimum value) | Withdrawal commission |
| Basic | $14.5 | Yes |
| Semi Standard | $7 | Yes |
| Standard | $4 | Yes |
| VIP | $3 | Yes |
| Premium VIP | $2 | Yes |
Brokers that are similar to Colmex Pro
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of Colmex Pro conditions with its closest competitors.
Comparison of Colmex Pro with other Brokers
| Colmex Pro | RoboForex | Pocket Option | Exness | FBS | 4XC | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, Colmex Pro 2.0 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading |
MT5, MT4, WebTrader |
Min deposit |
$500 |
$10 |
$5 |
$10 |
$1 |
$50 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 1.4 point |
From 0 points |
From 1.2 point |
From 1 point |
From 0.2 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
$5 |
$50 |
Cent accounts |
No |
Yes |
No |
No |
Yes |
No |
Colmex is a broker for professional traders who are ready to invest over $1,000 in the stock markets.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
FBS is a broker for those who appreciate a variety of trading instruments and prompt support. The company is suitable for both beginners and experienced traders working on PCs and smartphones.
The broker is suitable for traders with a basic trading experience, who are prepared to start trading on a real account right away.
Conclusions
Colmex Pro is a quite reliable broker for trading. Colmex Pro operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.