Is FXChoice 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 FXChoice try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether FXChoice 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 FXChoice
FXChoice was established in 2010. The broker is licensed by the International Financial Services Commission of Belize (FSC, 000067/501) and provides quality brokerage services for active and passive trading on the Forex market. FXChoice enjoys popularity among Western traders thanks to the broker’s commitment to business integrity, focus on customers, and to high requirements for its global employees. In particular, in 2019 the broker received the LiveHelpNow’s Exceptional Customer Service award every month of the year!
💰 Account currency: | USD, EUR, GBP, AUD, CAD, Gold, Bitcoin, BitcoinCash, Litecoin, Ethereum, XRP |
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🚀 Minimum deposit: | USD 10 |
⚖️ Leverage: | up to 1:1000 |
💱 Spread: | from 0.0 pips (Pro), from 0.5 pips (Classic), from 1.5 pips (Optimum) |
🔧 Instruments: | Currency pairs, cryptocurrency, CFDs on stocks, commodities, metals, and energies |
💹 Margin Call / Stop Out: | 25/15% |
Pros and cons of FXChoice
👍 Advantages of trading with FXChoice:
•Tight market spreads (from 0.0 pips) on popular currency pairs;
•The license by FSC, an international regulator;
•Several passive income options: partnership program, copy trading services, and MAM accounts.
👎 Disadvantages of FXChoice:
•No cent accounts;
•Withdrawals via Visa and Mastercard debit/credit cards are not available;
•Low leverage;
•Customer support responds in English only.
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 FXChoice Regulated? Broker’s license
Security (Protection for Investors)
The operation of FXChoice is regulated by the International Financial Services Commission of Belize (license number 000067/96).
The FSC is a government agency of Belize that is guided by the laws that control the financial transactions of its licensees. After issuing the license, FSC strictly controls whether all the requirements are observed. Also, FXChoice operates in compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act.
👍 Advantages
- Customer funds are kept in segregated accounts away from the broker’s equity
- Negative balance protection
- Full control over the broker’s activity by the state
👎 Disadvantages
- The regulator does not consider claims of private traders with small amounts
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 FXChoice, which you can see below.
Traders Union analysts have thoroughly reviewed the trading conditions of FXChoice to uncover clear and hidden commissions. The information about all commissions and fees is publicly available on the broker’s website. A deposit fee for deposits via a wire trader is 0.25% (min EUR 150); Perfect Money and FasaPay — 0.5%; Skrill — 1%; and VLOAD — 3.5%. On the Pro Account, the broker charges a $3.5 commission per side per notional amount of $100,000 (1 lot).
Account type | Spread (minimum value) | Withdrawal commission |
Classic | from $5 | No |
Pro | from $5 | Charged in certain situations |
Optimum | from 15$ | No |
Brokers that are similar to FXChoice
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 FXChoice conditions with its closest competitors.
Comparison of FXChoice with other Brokers
FXChoice | RoboForex | Pocket Option | Exness | Vantage Markets | InstaForex | |
---|---|---|---|---|---|---|
Trading platform |
MT4, MT5, Webterminal |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5, WebTrader, Mobile Apps |
MT4, MultiTerminal, MobileTrading, MT5, WebTrader |
Min deposit |
$10 |
$10 |
$5 |
$10 |
$50 |
$1 |
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 |
Yes |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 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 |
Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
Yes |
FXChoice is a broker for active and passive trading that is more suitable for professional traders that have a certain amount of free funds.
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.
Vantage Markets is a broker that is a real catch for traders who prefer ECN trading.
InstaForex is the best option for traders with any level of experience. For active professional traders, there is a large pool of non-standard technological solutions for more accurate analysis. For novice traders, there are comfortable starting conditions, such as a $1 minimum deposit under the regulation of FSC and a $200 minimum deposit with the broker regulated by CySEC. There are PAMM accounts and social trading for investors.
Conclusions
FXChoice cannot be considered absolutely reliable. The broker operates on a license of an offshore regulator. This creates certain risks regarding security of your funds. The broker has a good reputation. However, you can work with companies with an offshore regulation only at your own risk.
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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.
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.