Is iFOREX 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 iFOREX try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether iFOREX 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 iFOREX
The iFOREX broker (iforex.in) is part of Formula Investment House Ltd., which was created by a group of bankers and Forex dealers in 1996. In 2004, the company introduced its trading platform, and in 2010 received a license from the BVI FSC (SIBA/L/13/1060), the British Virgin Islands Financial Services Commission. Nowadays, the broker seeks to ensure full protection of its clients’ capital and brings to the table the most favorable conditions for active trading.
| 💰 Account currency: | USD only |
|---|---|
| 🚀 Minimum deposit: | $100 |
| ⚖️ Leverage: | Up to 1:400 |
| 💱 Spread: | From 1.8 pips |
| 🔧 Instruments: | 90 currency pairs, commodities, indices, ETFs, and crypto-based CFDs |
| 💹 Margin Call / Stop Out: | Not indicated |
Pros and cons of iFOREX
👍 Advantages of trading with iFOREX:
•license availability from the international regulator BVI FSC;
•a wide range of 800+ financial instruments;
•trading platform, website, and support in 11 languages.
👎 Disadvantages of iFOREX:
•high spread: from 1.8 pips;
•the minimum deposit is $100;
•there are trading restrictions on scalping and algorithmic trading;
•broker's clients cannot receive passive profit through investments in PAMM accounts and ready-made investment portfolios;
•potential clients can’t test the broker's conditions on cent (micro) accounts.
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 iFOREX Regulated? Broker’s license
Security (Protection for Investors)
The iFOREX broker is part of the Formula Investment House Ltd investment company. It is regulated by the BVI FSC: Financial Services Commission of the British Virgin Islands (license number SIBA / L / 13/1060).
BVI FSC is a reputable regulator with strict requirements. Brokers who have received its license must provide quality services, ensure the transparency of all transactions, and protect their clients' funds.
👍 Advantages
- Keeping customer funds in accounts with leading banks with enhanced security, which are completely separated from the company's capital
- There is a negative balance protection program
👎 Disadvantages
- The regulator does not have its own compensation fund
- A trader cannot check for a license on the official website of the regulator
- Withdrawal of funds is possible only after passing the verification
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 iFOREX, which you can see below.
Traders Union specialists analyzed the iFOREX trading conditions to reveal the size of the spread and commissions for withdrawing funds. The broker does not deduct a withdrawal fee from clients. However, payment systems may charge for withdrawals. For example, bank transfer fees are $20 per transaction. There is no broker commission per lot.
| Account type | Spread (minimum value) | Withdrawal commission |
| Real | From $18 | No |
Brokers that are similar to iFOREX
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 iFOREX conditions with its closest competitors.
Comparison of iFOREX with other Brokers
| iFOREX | RoboForex | Pocket Option | Exness | FxPro | 4XC | |
|---|---|---|---|---|---|---|
Trading platform |
iFOREX authoring platforms |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading, MT5, cTrader, FxPro Edge |
MT5, MT4, WebTrader |
Min deposit |
$100 |
$10 |
$5 |
$10 |
$100 |
$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 1.8 point |
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 |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$50 |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
iFOREX is a regulated broker for professional traders with capital reserves who independently trade on the Forex market.
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.
FxPro is a reliable broker company that offers market access to all traders, regardless of their level of knowledge and experience. Broker's clients are protected from negative balance; their activities are carried out in comfortable conditions and with competent professional support.
The broker is suitable for traders with a basic trading experience, who are prepared to start trading on a real account right away.
Conclusions
iFOREX 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.
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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.