Formaxmarket was established in 2014 as Formax Prime Capital UK Limited, a part of the Formax Group which provides Forex services and trading technologies to private and institutional traders worldwide. The company is based in London, England and is a pure STP broker, which means that it is a Straight Through Processing or STP forex broker. An STP broker routes their customer’s orders directly to liquidity providers such as banks and larger brokers.
Formaxmarket has several subsidiaries in the UK, Hong Kong, China, Australia, New Zealand, Thailand and India. Formaxmarket’s official website is located at https://www.formaxmarket.co.uk/. Take note that Formaxmarket does not accept clients in the United States at this time.
From a regulatory perspective, Formax Prime Capital UK Ltd, the parent company of Formaxmarket and is incorporated in the UK and authorized and regulated by the Financial Conduct Authority or FCA. The company’s reference number is 624225 with a registered office at 107 Cheapside, London, EC2V 6DN. The company is registered in England and Wales under the reference number 08891879.
The UK’s Financial Conduct Authority is well-known for its strict rules and supervision. In order to acquire an FCA license, a broker must provide proof of their financial stability with adherence to a number of rules. One rule states that client funds must be maintained in segregated bank accounts with the broker required to hold a minimum of 730,000 EUR to conduct business. In addition, being regulated by the FCA, client funds qualify for the Financial Services Compensation Scheme or FSCS. The FSCS maximum compensation per client is 50,000 GBP in the event of the broker’s insolvency or cessation of trading.
Features at Formax
Formaxmarket permits a maximum leverage of 200:1 with an option for an ECN or Electronic Communications Network account based on Formaxmarket’s MT4 trading platform.
The service provides customers with access to low cost trading and offers price accuracy extending to five decimal places. Also, Formaxmarket’s ECN cooperation mechanism with their liquidity providers gives their clients the best market prices, reliability and speed of execution available.
Formaxmarket offers MT4 demo accounts to customers that hesitate to commit funds immediately, in addition to live funded MT4 accounts, Islamic accounts and an ECN account option. The company also gives incentives, such as an initial cash bonus for opening an account, and they hold a demo trading competition that awards real cash prizes.
Formaxmarket permits scalping, hedging, EAs!
Formaxmarket offers MT4 demo accounts in addition to live funded MT4 accounts, Islamic accounts and an ECN account option. They are an ECN/STP agency model only.
Deposits and Withdrawals
To open an account with Formaxmarket, no minimum deposit is required. Nevertheless, the company offers a cash incentive of 100 USD for a minimum deposit of 1,000 USD. The minimum volume for trades on all account types is 0.01 lot, and the maximum trading size is 100 lots for Forex and 30 lots for commodities.
At Formaxmarket, deposits can be made in USD, GBP and EUR with a processing time of one to five business days, although Islamic and ECN accounts can only be funded in U.S. Dollars. No fees are charged for deposits, which are routed to Formaxmarket’s Barclay’s bank account.
Deposits can be made through debit or credit cards, with Visa, MasterCard, Maestro and JCB cards accepted. Credit and debit card processing is instant, with debit card fees charged of 0.25% for GBP, EUR and USD, while credit card fees are 2.0% for GBP, USD and EUR.
Electronic deposits from an e-wallet are accepted in GBP, USD and EUR from Skrill and Neteller, which also have an instant processing time. The fee for a Skrill deposit is 2.9% of the deposit amount plus a fixed fee of 2.50 USD, GBP and EUR per transaction.
For a Neteller deposit, a fee of 3.9% plus a fixed USD $0.29 fee is charged per transaction. An additional 0.5% surcharge is added to deposits from customers residing in Argentina, Bangladesh, Brazil, Chile, Columbia, India, Indonesia, Japan, Korea, Malaysia, Mexico, Russia, Thailand or Vietnam, and an additional 1% is charged to residents of Taiwan.
To make a withdrawal, the customer’s account must first be validated. Once validated, the customer must log into their account and select the withdrawal button, and then choose the option pertaining to their desired form of withdrawal. Once the form of withdrawal is selected, the customer enters the amount, and that quantity is deducted from their trading account.
Withdrawals can be made in EUR, USD or GBP by bank transfer, with a processing time of 24 hours excluding weekends. Withdrawals from the company’s Barclay’s account typically take three to five business days with no charge. For a Fast Payment ready in two hours, the charge is 5.00 GBP.
Withdrawals using the CHAP or Clearing House Automated Payment system is done on the same day and has a fee of 15 GBP for withdrawals in Sterling, 7.00 EUR for withdrawals in Euros and $25.00 for withdrawals in USD.
Credit Card withdrawals are free and are made to the same card a deposit was originally made from. Credit and debit card withdrawals can be made in USD, EUR and GBP. The processing time is 24 hours, excluding weekends.
Formaxmarket offers clients email support and 24-hour, 5 day a week customer telephone support in Chinese, English, Estonian, French, Japanese and Korean.
The company also offers live chat and has regional phone numbers in the UK, Indonesia, Malaysia and Thailand to service clients at all levels of expertise.
Formax – Conclusion
Overall, Formaxmarket is a well regulated broker that offers a full service forex brokerage with the ability to trade commodities, CFDs and metals.
While the maximum leverage offered by this broker is only 200:1 — which is significantly less than some other brokers — a lower leverage amount could be beneficial to many traders since it means they can take less risk.
In addition, the company offers a well developed social trading platform that could be extremely beneficial to traders with less experience.
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