FXOpen Review

FXOpen Review | A Helpful Guide Before You Sign Up

Forex, Indices, Energy, Precious Metals and Cryptocurrencies

  • FCA regulated ✔
  • EUR/USD spreads from 0.0
  • ECN trading
  • MT4
  • ECN, STP and Crypto trading
  • FX commissions: $1.5-$5
  • Minimum deposit £200
  • 12+ cryptocurrencies
MT4 ECN trading with Cryptocurrency CFDs • FXOpen

FXOpen Review

FXOpen is an FCA regulated MT4 broker which provides ECN trading across a range of markets. It has a no dealing desk model, and does not reject or requote orders. It allows trading such as scalping, automated and high frequency trading. Furthermore it has a relatively wide range of Cryptocurrency CFDs available.

ECN trading

FXOpen has three account types, ECN, STP and Crypto. STP does not charge commissions, ECN does, as does Crypto for cryptocurrencies. FXOpen allows traders to access the Interbank market, by aggregating Interbank prices. It sends orders to this market. This market is composed of direct participants such as banks and institutions and indirect participants, such as clients trading through their broker into this market. In a dealing desk model, the trader trades with the broker, and the broker becomes the counterparty to their trades (and may hedge this trade in the Interbank market).

There are both positives and negatives to this (or any) model. For example, ECN trading is typically composed of market execution orders, which can thus have slippage, that is the order may be filled at a different price. A dealing desk broker may (but not necessarily will) be able to provide no or reduced slippage, as they are filling the order. However when the order is sent to the Interbank market, the broker does not determine the filled price, and slippage can happen.

One way ECN brokers try to deal with this, is to provide very fast order processing, to reduce the latency or delay between the client placing the order and it being filled. This can be facilitated by co-locating the broker's trading servers physically near finance hubs, where the Interbank liquidity providers operate electronically. For this purpose, FXOpen uses Equinix NY4 servers (located in New York).

But a dealing desk broker may reject an order or may requote it (instead of providing slippage). Whether this is an issue for a client, may depend on what style of trading they use. The broker may restrict the style of trading used by the client. But this is normally for styles such as scalping and high frequency trading (which may not be suitable for a dealing desk model or many traders). However FXOpen simply sends orders, it does not intervene in the order process, thus all styles are in effect allowed. Its high speed order processing, makes some styles feasible. But if the client wants to trade without a commission charge, they can use the STP account.

What is the minimum deposit ?

The minimum deposit is $300, £200 or €300. FXOpen.

What are the Commission charges ?

Commissions are charged on the ECN account, not the STP account. The Crypto account charges commissions for cryptocurrencies. The Forex commission charge varies according to account equity and traded volume, from $1.5 per lot per side to $5 per lot per side.

What trading platform is available ?

FXOpen provides MT4. This platform is how the client trades on the Interbank market through FXOpen. When the trader first opens MT4 on FXOpen, they will find an interface with a group of charts. These charts can be customised with time frames from 1 minute to monthly, candlestick, bar or line charts, and a range of technical indicators, and other tools.

By clicking on View and then Symbols a full list of markets available can be found. By right clicking on the symbol list and choosing spread, the spread for each market can be found. As can be seen, this can change, indicating a variable spread. This platform is available on desktop for download, as a web trader, and as apps for tablet and mobile trading.

What markets are available ?

The range of markets offered depends on the account. The ECN accounts has the widest range, covering Forex, Indices, Energy and Precious Metals (Gold and Silver), with 65+ available. The STP account has Forex and Precious Metals, with 50+. The Crypto account has Forex, Precious Metals and Cryptocurrencies, for a total of 60+.

Can Cryptocurrencies be traded at FXOpen ?

Cryptocurrencies are typically traded on exchanges, and can exhibit wide variations in price, sometimes in short periods of time (i.e. they can be extremely volatile). When a trader buys a cryptocurrency on an exchange, they normally own it and need to store it electronically (for example in a Wallet). However FXOpen offers Cryptocurrency CFD trading.

CFD trading is a way to speculate on price movement, without owning the underlying asset. Thus when buying a selling a Cryptocurrency CFD, the trader does not own any cryptocurrency and does not need to store it. However, as they are speculating on the price movement of the cryptocurrency, they are still subject to highly volatile price movements.

FXOpen provides Cryptocurrency CFD trading on its Crypto account and charges commissions of 0.5% per side (1% round turn), in addition to the variable spread. Like with other markets, FXOpen does not restirct trading styles, meaning that cryptocurrencies can be news traded or traded with automated strategies.

What cryptocurencies are offered ?

FXOpen offers Bitcoin, Ethereum, Litecoin, DASH, Ripple, EOS, IOTA, Monero, NEO, OMNI, NameCoin, PeerCoin and Emercoin. It offers these as pairs: crosses with currencies and each other, for a total of 35+.

What is the maximum leverage ?

Maximum leverage at FXOpen (FCA regulated) is for Forex. For other products leverage can be lower. For Cryptocurrency CFDs, maximum leverage is 1:2 at FXOpen (FCA regulated).

How may a trader fund their account ?

The client can fund their account by bank wire transfer, credit/debit cards, China UnionPay, WebMoney, Neteller, Skrill and Payza. FXOpen does not charge a fee to deposit or withdraw using debit and credit cards or for GBP bank wire withdrawals. Other methods can incur deposit and withdrawal fees.

What account currencies are available ?

The client can open an account in GBP, USD or EUR.

What is the minimum trade size ?

The minimum trade size is 0.01 lots (including for cryptocurrencies).

Summary

For a minimum deposit of $300, FXOpen gives the client access to ECN, STP and Cryptocurrency CFD trading, on different accounts. The number of Forex pairs provided (45+) is about average. The range of markets is competitive with other ECN brokers (but less than some spread betting and CFD dealing desk brokers in the UK). But it has an above average (in terms of numbers of cryptocurrencies and number of crosses) offering of Cryptocurrency CFDs. As an ECN broker it gives traders the opportunity to trade markets free from restrictions on trading styles, with high speed order processing.