Is Forex4you 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 Forex4you try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Forex4you 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 Forex4you
Forex4you caters to a wide range of traders, offering different account types, including cent accounts and ECN accounts with tight spreads from 0.1 pips. The broker provides leverage of up to 1:1000, order execution speed from 0.1 sec, and access to over 150 trading instruments, including Forex pairs, indices, commodities, and stocks. Its proprietary copy trading platform, Share4you, allows traders to earn additional income by sharing their strategies or copying successful traders. Additional features like cashback, bonuses, and partnership programs further enhance the trading experience.
Forex4you doesn't accept clients from the U.S., Canada, Japan, and EU countries, but it presents a compelling option for eligible traders seeking a well-rounded trading experience.
| 💰 Account currency: | EUR, USD |
|---|---|
| 🚀 Minimum deposit: | From 0 USD |
| ⚖️ Leverage: | Up to 1:2000 |
| 💱 Spread: | From 0.1–2.0 pips |
| 🔧 Instruments: | currency pairs, CFDs on stocks, stock indices, metals, and energies |
| 💹 Margin Call / Stop Out: | 50-100%/10-20% |
Pros and cons of Forex4you
👍 Advantages of trading with Forex4you:
•best trading conditions for novice traders;
•no trading restrictions on scalping and algorithmic trading;
•the possibility of passive income - social trading platform Share4you;
•the broker has an insurance for $10 million on a contingency basis;
•there are cent accounts with a minimum transaction amount of 2 cents.
•customer support responds to customer inquiries within 8 hours, even on weekends.
👎 Disadvantages of Forex4you:
•Relatively high fixed fees on Pro accounts.
•Traders from the U.S, Canada, Japan, and EU countries cannot use services of the broker.
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 Forex4you Regulated? Broker’s license
Security (Protection for Investors)
Forex4you activities are regulated by the British Virgin Islands Financial Services Commission BVI FSC (license number SIBA / L / 12/1027).
BVI FSC — international regulator acting within the legal framework of European legislation. Strict control of regulatory requirements to the licensees — the guarantee of broker’s responsible performance and the safety of traders’ money in segregated accounts.
👍 Advantages
- Segregated accounts, in accordance with all requirements of the regulator
- Negative balance protection
- Providing support in controversial matters involving an independent judge
👎 Disadvantages
- The regulator does not consider the claims of private traders with minor 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 Forex4you, which you can see below.
Traders Union experts analyzed Forex4you trading conditions. Cent Pro and Classic Pro have fixed fees per each full lot of $0.1 and $8 respectively in addition to spreads. There are no deposit fees, but withdrawal fees are 0.8-2.5% subject to the payment method.
| Account type | Spread (minimum value) | Withdrawal commission |
| Cent Fixed | from $0.2 | Yes |
| Cent Pro | From $0.01 | Yes |
| Classic Fixed | From $20 | Yes |
| Classic Pro | From $1 | Yes |
| Classic Standard | from $9 | Yes |
Brokers that are similar to Forex4you
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 Forex4you conditions with its closest competitors.
Comparison of Forex4you with other Brokers
| Forex4you | RoboForex | Pocket Option | Exness | AMarkets | Libertex | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MobileTrading, MT5 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5, AMarkets App |
Libertex, MT5, MT4 |
Min deposit |
No |
$10 |
$5 |
$10 |
$100 |
$100 |
Leverage |
From 1:10 |
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 0.1 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0.1 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
Yes |
Yes |
No |
No |
No |
No |
Forex4you is an all-in-one broker for active and passive trading, rates well for both novice traders and professional level 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.
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.
Libertex is a reputable broker. It would be worthwhile to look at the platform as a technical solution. It will appeal to those who can not imagine their life without gadgets and are eager to keep up with the time.
Conclusions
Forex4you 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.