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Fondex: An In-Depth Review by Trade Forex
Introduction to Fondex
Fondex is a well-established Forex broker, founded in Cyprus in 2017. This broker offers a comprehensive range of Forex trading services primarily catering to traders from the European Union (EU). In addition to its Cyprus office, Fondex maintains a presence in Seychelles to serve international traders. It’s important to note that while Fondex accepts clients from around the world, there are certain exceptions, including restrictions on clients from the USA, Japan, North Korea, Iran, Belgium, Canada, and other countries where regulatory restrictions apply.
Regulation and Security
Fondex operates under the umbrella of two distinct brokerage entities:
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Fondex CY: This branch, located in Cyprus, is regulated by the Cyprus Securities and Exchange Commission (CySEC).
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Fondex SEY: Situated in Seychelles, this branch operates under the regulation of the Seychelles Financial Services Authority (SFSA).
One key aspect of client protection is the segregation of client funds from the broker’s own funds. Fondex adheres to this practice, ensuring that client funds are stored in segregated accounts. Furthermore, Fondex participates in a deposit insurance program, providing an additional layer of security for its clients in the event of the broker’s insolvency.
Leverage Levels
Leverage is an important consideration for traders, and Fondex offers varying levels depending on the location of the client:
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EU Traders: As Fondex’s Cyprus branch falls under the regulatory oversight of ESMA (European Securities and Markets Authority), the maximum leverage for EU traders is capped at 1:30 for major currency pairs.
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International Clients: For traders working through Fondex’s Seychelles branch, the maximum leverage can be as high as 1:500, providing greater flexibility for those seeking higher leverage ratios.
Account Types
Fondex takes a straightforward approach when it comes to account types. Unlike many other brokers, Fondex offers a single trading account type. This account resembles an ECN-style account, featuring low spreads on highly liquid instruments. However, it’s worth noting that a commission applies to most transactions.
Spreads and Commissions
As of the time of this review, Fondex charges a commission of US $2.5 on each side for every US$100,000 traded for currency and commodity CFDs. Additionally, a commission of US $1 is applied for every 100 shares traded for stocks and ETFs. However, cryptocurrency trading is commission-free, with spreads applied. The average spread for the BTCUSD pair is approximately $10, while for ETHUSD, it stands at around $2.29, making Fondex competitive in the cryptocurrency CFD market.
Trading Platforms
Fondex offers a modern and versatile cTrader trading terminal. This platform allows traders to choose from various trading methods, including manual trading, social trading (copying trades from other traders), and deploying their automated trading strategies.
Available Trading Instruments
Fondex provides traders with a diverse range of trading instruments, including:
- Over 60 currency pairs.
- 15 major stock indices.
- 900 stocks.
- Precious metals such as gold and silver.
- Energy commodities like oil and natural gas.
- 18 ETFs.
- Popular cryptocurrencies like Bitcoin, Ethereum, Ripple, Dash, and Litecoin.
This extensive selection caters to the diverse needs and interests of traders.
Minimum Deposit and Funding Options
Fondex offers flexible funding options for its clients. For EU customers, these options include bank transfers, major credit and debit cards, as well as popular e-wallets like Skrill, Neteller, and PayPal. International clients have additional options such as PayTrust, Paymero, and EPS, in addition to cryptocurrency funding through a third-party service. Remarkably, there is no minimum deposit requirement, providing accessibility to traders with varying capital levels.
Conclusion
In conclusion, Fondex is a forex broker that holds appeal for traders using the cTrader platform. It offers a broad range of trading instruments with competitive leverage options. With strong regulatory oversight, secure fund management, and a commission structure that balances the benefits of low spreads and commission-free cryptocurrency trading, Fondex is a viable choice for traders looking to diversify their portfolio and explore new trading opportunities.
Before making a decision to select a broker, we recommend thoroughly researching Fondex and comparing it to other options in the market. You can also consult our rating of Forex brokers for further insights.
General Information about Fondex
- Broker Name: Fondex
- Year of Foundation: 2017
- Headquarters: Cyprus
- Regulation: CySEC, SFSA
- Trading Platforms: cTrader
- EURUSD Spread: 0.7 pips
- Demo Account: Available
- Minimum Deposit: $0
- Base Currencies: USD, EUR
- Maximum Leverage: 1:500
- Assets: Currency pairs, stocks, indices, ETFs, Metals, cryptocurrencies
- Deposit Replenishment: Bank Transfer, Visa/MasterCard, Skrill, Neteller, BTC, and more
- Withdrawal Fee: Not specified
- Payment for Inaction: Not specified
- Islamic Accounts: Not specified
- Segregated Accounts: Yes
- PAMM Accounts: Not specified
- Partner Account: Available
- Scalping: Allowed
- Automatic Trading: Supported
- Mobile Trading: Supported
- Web Terminal: Available
- Social Trading: Supported
- Signals: Not specified
- VPS: Not specified
- Deposit Bonuses: Not specified
- Contests: Not specified
- Support: 24/5
