Is Orbex 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 Orbex try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Orbex 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 Orbex
The Orbex brokerage has been providing services since 2010. Orbex Limited is regulated by the Cyprus Securities and Exchange Commission (CySEC, 124/10), while Orbex Global Limited is regulated by the Mauritius Financial Services Commission (View License). Orbex Limited is regulated by the FSA SD110 (Seychelles ). The broker provides access to currency pairs, CFDs on stocks, indices, energy resources, and precious metals. According to the Global Banking and Finance Review, Orbex is recognized as the best Forex broker in Europe and the Middle East by MENA in 2020.
| 💰 Account currency: | EUR, USD, GBP, PLN |
|---|---|
| 🚀 Minimum deposit: | $100 (Starter), $500 (Premium), $25,000 (Ultimate) |
| ⚖️ Leverage: | Up to 1:500 |
| 💱 Spread: | From 1.5 pips (Starter), from 0.0 pips (Premium, Ultimate) |
| 🔧 Instruments: | Currencies, CFDs on stocks, indices, energy resources, precious metals, cryptocurrencies, agricultural products. |
| 💹 Margin Call / Stop Out: | 50-100%/20% |
Pros and cons of Orbex
👍 Advantages of trading with Orbex:
•ability to choose an account with a different level and type of spread;
•ability to copy trades and use trading advisors;
•protection from a negative balance.
👎 Disadvantages of Orbex:
•no list of best-trading terms for novice traders;
•There is no cent account for novice traders and traders who want to test the broker's services;
•the only trading terminal is the MT4. There is no web platform or MT5;
•the support service responds within 24 hours.
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 Orbex Regulated? Broker’s license
Security (Protection for Investors)
Orbex is represented by two offices. Orbex Global Limited is regulated by the FSC (Mauritius Financial Services Commission), and Orbex Limited is regulated by CySEC (Cyprus Securities and Exchange Commission).
Both international regulators exercise strict control over the activities of licensed brokers. The companies shall provide investment services within the legal framework and ensure transparency of all transactions to their clients.
👍 Advantages
- Funds of traders are stored in accounts segregated from the brokerage company's capital
- Protection from negative balance
- The possibility of getting compensation from an independent investor fund ICF
👎 Disadvantages
- Identity verification is a mandatory procedure for each client
- Processing a trader's complaint takes 1-2 months
- A claim can only be submitted if there is recorded evidence in writing or audio format
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 Orbex, which you can see below.
The experts at Traders Union thoroughly analyzed the trading conditions of the broker on all types of accounts to identify explicit and hidden commissions. The broker doesn't charge a fee for deposits and withdrawals. Payment systems charge a commission to withdraw funds, but the exact amounts are not specified on the company's website. Professional accounts provide a commission for a completed contract in both directions: Eight dollars on Premium accounts and $5 on Ultimate accounts.
| Account type | Spread (minimum value) | Withdrawal commission |
| Starter | from $17 | No |
| Premium | from $0 | Yes |
| Ultimate | from $0 | Yes |
Brokers that are similar to Orbex
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 Orbex conditions with its closest competitors.
Comparison of Orbex with other Brokers
| Orbex | RoboForex | Pocket Option | Exness | Eightcap | Vantage Markets | |
|---|---|---|---|---|---|---|
Trading platform |
MT5 Desktop, MT5 Android, MT5 IOS, MT4 Multi Terminal, MT4 Android Trader, Desktop MT4 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5 |
MT4, MT5, WebTrader, Mobile Apps |
Min deposit |
$100 |
$10 |
$5 |
$10 |
$100 |
$50 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:30 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
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 |
NDD, Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
Orbex is a reliable broker for active and passive trading, which offers trading terms adapted to professionals.
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.
Eightcap has favorable working conditions due to a large choice of instruments, tight spreads, high leverage, and no withdrawal fees. Integration with popular trading platforms and basic deposit/withdrawal options greatly facilitates work with the broker and reduces the entry threshold. In addition to comfortable conditions and low financial costs, traders get free educational materials and special services for technical analysis. Some solutions, like Capitalise.ai, have no constructive counterparts. A relative disadvantage is the absence of opportunities for passive income. Also, the broker works only with CFDs, so other groups of trading instruments are not available.
Vantage Markets is a broker that is a real catch for traders who prefer ECN trading.
Conclusions
Orbex 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.