Is ZFX Broker 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 ZFX Broker try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether ZFX Broker 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 ZFX Broker
The ZFX is an NDD, STP, and ECN broker headquartered in London. It has been providing online FX and CFD trading services since 2016. It is regulated by the British FCA (768451) and Seychelles supervisory authority FSA (SD027). Traders from Europe, Asia, and Africa can trade currency pairs, indices, stocks, and commodities on the ZFX platform. The broker is part of the Zeal Group of fintech companies specializing in liquidity solutions for regulated markets in major regions of the world.
| 💰 Account currency: | USD |
|---|---|
| 🚀 Minimum deposit: | From $50 for retail clients, from $10,000 for professional clients |
| ⚖️ Leverage: | Up to 1:100 for professional clients, up to 1:2000 for retail traders |
| 💱 Spread: | From 0.2 pips |
| 🔧 Instruments: | Currency pairs, CFDs on stocks, indices, commodities (oil, gold, silver, copper) |
| 💹 Margin Call / Stop Out: | Stop out: 20%/30%/50% |
Pros and cons of ZFX Broker
👍 Advantages of trading with ZFX Broker:
•Execution of trades without going through a dealing center and liquidity from major financial institutions.
•Regulation by the FCA (UK) and the FSA (Seychelles).
•Mini Trading Account with a minimum deal size of 0.1 lot and deposit from $50.
•A humongous array of accounts for retail and professional clients.
•Tighter spreads (from 0.2 pips) on ECN accounts.
•Ability to trade over 100 assets, including Forex, stock indices, commodities (precious metals and crude oil), and stocks.
•High leverage (up to 1:500) on standard and ECN accounts.
👎 Disadvantages of ZFX Broker:
•Lack of a web-based trading platform.
•Hefty $1,000 deposit for retail traders on ECN accounts.
•The maximum number of open positions in Standard and ECN accounts is limited and cannot exceed 200.
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 ZFX Broker Regulated? Broker’s license
Security (Protection for Investors)
ZFX is the trade name of Zeal Capital Market (UK) Limited, which is authorized and regulated by the Financial Conduct Authority (FCA), under this FRN: 768451 number. It is registered in England and Wales under number 10219924 and is part of the Zeal Group holding company, which also includes Zeal Capital Market (Seychelles) Ltd, a division licensed by the Financial Services Authority of Seychelles (FSA) under number SD027.
The British branch of ZFX participates in the Financial Service Compensation Scheme (FSCS). According to its terms, in case of the broker's default and its liquidation each of its clients automatically receives compensation up to £85,000.
👍 Advantages
- Client funds are segregated from ZFX corporate funds and deposited in separate accounts at very large banks
- Professional traders are available for compensation under the FSCS scheme
- The broker strictly fulfills the obligations spelled out in its legal contracts
👎 Disadvantages
- It is not possible to withdraw funds from FCA-regulated accounts to cards and e-wallets
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 ZFX Broker, which you can see below.
To determine what trading fees ZFX charges its clients, the broker's trading conditions were analyzed by experts at the Traders Union. There is no fixed brokerage commission at ZFX, and the spread depends on the account type and currency pair. 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. Additional commissions may be charged for transactions on ECN accounts. Depositing and withdrawing funds are free of charge, but a commission may be charged by payment systems or the receiving bank.
| Account type | Spread (minimum value) | Withdrawal commission |
| Mini Trading Account | From $15 | No |
| Standard STP Trading Account | From $13 | No |
| ECN Trading Account | From $2 | No |
| Professional Account | From $2 | No |
Brokers that are similar to ZFX Broker
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 ZFX Broker conditions with its closest competitors.
Comparison of ZFX Broker with other Brokers
| ZFX Broker | RoboForex | Pocket Option | Exness | FxPro | AMarkets | |
|---|---|---|---|---|---|---|
Trading platform |
Zeal MT4 Desktop, Zeal MT4 Mobile |
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 |
MT4, MT5, AMarkets App |
Min deposit |
$50 |
$10 |
$5 |
$10 |
$100 |
$100 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
Yes |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.2 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 |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
Yes |
Yes |
No |
No |
No |
No |
The ZFX broker offers tight spreads only to owners of ECN accounts. However, the minimum deposit size is $1,000 on accounts of this type. For this reason, beginners and investors without a capital reserve have to trade from standard accounts with high spreads, which does not make ZFX the best choice for beginner traders.
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.
AMarkets is a broker that is more suitable for professional trading. Everything here is designed to accommodate trading with EAs and that is the broker’s strength. The weakness of the broker is that it won’t be easy for traders without experience to work here.
Conclusions
ZFX Broker is a quite reliable broker for trading. ZFX Broker 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.