Is UFX 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 UFX try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether UFX 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 UFX
The UFX Forex broker is for trading currency pairs, CFDs, and ETFs. It has offices all over the world and has been providing top-notch brokerage services since 2007. It has also received more than 20 international awards while being regulated by two commissions — CySEC (Cyprus) and VFSC (Vanuatu). The broker is focused on active traders who prefer to trade with fixed spreads and high leverage, but it allows its clients to use passive strategies as well. Traders can copy trades of successful market participants and connect expert advisors for automated trading.
| 💰 Account currency: | USD |
|---|---|
| 🚀 Minimum deposit: | $100 |
| ⚖️ Leverage: | Up to 1:400 |
| 💱 Spread: | Fixed, from 2 pips |
| 🔧 Instruments: | Currency pairs (49), Bitcoin, CFD on metals (2), energy stocks (2), indices (8), stocks (300+), ETFs (40) |
| 💹 Margin Call / Stop Out: | 50%/25% |
Pros and cons of UFX
👍 Advantages of trading with UFX:
•Availability of licenses from two international regulators — VFSC and CySEC.
•The extensive list of trading assets such as currency pairs, CFDs, and ETFs.
•A vast array of payment systems for deposits and withdrawals.
•High affiliate payments for the connection of new clients.
•Access to trade on cent, standard, and professional accounts with high leverage.
•Possibility to open an Islamic account, the conditions of which allow you to refuse a charge for transferring the position to the following trading day (swap).
•Participation of traders domiciled in CySEC jurisdiction in the Investor Compensation Fund with maximum coverage up to €20,000 per person.
👎 Disadvantages of UFX:
•The company keeps high fixed spreads — from 2 pips (on major currency pairs).
•The broker does not accept traders residing in the US or the UK.
•At the moment, only Bitcoin is available from cryptocurrencies.
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 UFX Regulated? Broker’s license
Security (Protection for Investors)
UFX is a part of UFX Global Markets Inc. It is licensed by two regulators — Cyprus Securities and Exchange Commission and Vanuatu Financial Services Commission. The CySEC license number is 127/10 and the VFSC license number is 14581.
EU customers are served by a CySEC regulated unit and are therefore protected by the Investor Compensation Fund (ICF). Under its terms, each trader may receive up to €20,000 in the event of a financial collapse of UFX.
👍 Advantages
- VFSC and CySEC regularly monitor the financial activity of licensees
- Client funds are kept in segregated accounts with worldwide banks and are separated from the broker's capital
- Regulators allow deposits and withdrawals via electronic wallets
👎 Disadvantages
- ICF compensation is not available for traders residing outside the EU
- ICF coverage is only available to retail clients without Professional status
- No deposits or withdrawals can be made without 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 UFX, which you can see below.
The analysis of UFX conditions showed that the broker keeps a fixed spread as a trading commission. The lowest spreads are charged for transactions in the currency pair EUR/USD. On Micro, Mini, and Islamic accounts, the company charges a spread of 4 pips, on the Standard account, it is 3 pips, on the Gold and Platinum accounts, it is 2 pips. There are no additional fees for trading. UFX does not charge deposit or withdrawal fees. However, the broker may charge a $100 fee for account deactivation. It is withheld if the client's account is inactive for three months, provided that there is at least $100 in the balance.
| Account type | Spread (minimum value) | Withdrawal commission |
| Micro | From $0.4 | No |
| Mini | From $40 | No |
| Standard | From $30 | No |
| Gold | From $20 | No |
| Platinum | From $20 | No |
| Islamic | From $40 | No |
Brokers that are similar to UFX
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 UFX conditions with its closest competitors.
Comparison of UFX with other Brokers
| UFX | RoboForex | Pocket Option | Exness | FBS | Eightcap | |
|---|---|---|---|---|---|---|
Trading platform |
No |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading |
MT4, MT5 |
Min deposit |
No |
$10 |
$5 |
$10 |
$1 |
$100 |
Leverage |
No |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:30 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
No |
From 0 points |
From 1.2 point |
From 1 point |
From 0.2 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
No |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
$5 |
No |
Cent accounts |
No |
Yes |
No |
No |
Yes |
No |
UFX is a regulated broker that offers global clients (except those from the UK or US) to trade from different types of accounts with fixed spreads.
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.
FBS is a broker for those who appreciate a variety of trading instruments and prompt support. The company is suitable for both beginners and experienced traders working on PCs and smartphones.
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.
Conclusions
UFX 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.