The last twenty years of retail forex trading has been marked by brokers entering the market at various times, with lots of mergers and acquisitions. However, the expanding market continues to prove to be an allure for those who want to engage in the business of forex brokerage. As such, we continue to have new entrants coming into the market periodically. The last four years has seen some evolution in the market, as new technologies such as blockchain-based products (cryptocurrencies) and artificial intelligence-driven algos start to make their way into the market. This article aims to provide an update on the latest entrants into the retail forex brokerage arena, as well as a review of what these brokers have to offer.
The New FX Brokers on the Block
Let’s discuss five new forex brokers that started working in the foreign exchange market not so long ago. There’s a chance that you actually met some of them before or even used to work with these brokers. Please share your trading experience in the comments in this case. Ok, without further ado, let’s meet them one after the other.
1. Coinexx (2017)
Established in 2017, Coinexx is located in the island nation of St. Vincent and Grenadines. This broker offers leverage of up to 1:500. However, it is presently unregulated and offers several deposit options that are all crypto-based. Cryptos used in deposits and withdrawals include Bitcoin, Ethereum, Litecoin, Dash and Ripple. All trading is performed from the MT4 platform, which comes in various versions.
Coinexx offers instant account setup without verification, which is the standard for brokers that do not offer fiat currency payment methods. Spreads can be as low as 0 pips and there is no minimum deposit amount. The only account type offered is a Pro ECN account, which means that all trading is done under ECN conditions. One great feature of the Coinexx site is the number of calculators it offers. You can calculate margin, swap, commissions as well as profit/loss on the Coinexx platform, simply by entering the required figures and letting the calculators do the job for you. A free forex VPS is provided to owners of funded accounts. There are also facilities for PAMM and MAM accounts, allowing traders the benefit of passive investment into forex, CFDs and cryptocurrencies.
2. HQ Broker (2017)
HQ Brokers commenced operations in 2017 as a forex and CFD brokerage, offering a leverage cap of 1:400. This brokerage operates out of the Marshall Islands and is presently unregulated. Using 5 account types, traders can trade up to 500 stocks CFDs, 50 + currency pairs and futures on bonds, metals, energy assets and indices. The Starter Account is the beginner account which starts from $250. The Investor account is for the high-rollers; you need at least $100,000 as account opening capital. All trading products are delivered using the various versions of the MT4 platform. There is a trader education suite, which makes up for the dearth of quality features such as robust technical analysis and other trading tools such as a VPS. As has become the pattern with new brokers, crypto deposit and withdrawal options are now being offered along with the conventional options. You can deposit and withdraw with Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
3. Leo Prime (2017)
Leo Prime was established in 2017 and has branches in both Vanuatu and Marshall Islands. These branches are known as Leo Prime MH and Leo Prime VU; both are the constituent companies of the Leo Prime Group. It is regulated by the Vanuatu Financial Services Commission (VFSC). Priding itself as a next generation forex broker, Leo Prime offers a monthly trading contest which gives out $10,000 worth of trading bonuses. Leo Prime provides three account types: the Cent account (for beginners), Classic and the ECN account (which comes with a spread of 0.1 pips). Leo Prime provides negative balance protection and allows hedging on its platforms. The ECN account’s leverage is capped at 1:200, but other account types enjoy leverage as high as 1:1000. VPS hosting of EAs used on its MetaTrader4 platform is offered. The VPS is free for funded account holders, and account must have at least $1000 for use on the provided VPS.
4. No1 Capital Markets (2017)
2017 seems to be the year of the new brokers, because we have yet another brokerage that was started the same year. №1 Capital Markets (N1CM) is new forex and CFD brokerage which is located in Vanuatu and licensed by the Vanuatu Financial Services Commission (VFSC). It is a hybrid brokerage, offering market maker and ECN trading conditions to suitable clients. The ECN offering provides access to 60 currency pairs, with liquidity pooled from 50 different banks, which ensures spreads as low as 0.0. Ultra-fast execution on its Equinix servers located in London and New York is assured via its connection to various VPS provides, which ensures that traders can do their business under conditions of very low latency. Liquidity providers to N1CM include Barclays, UBS, BNP Paribas, Nomura and Bank of America. The N1CM MetaTrader is available for Windows and Mac computers, as well as on the web and in mobile versions for the iPhone and Android devices. The home page of its website features the day’s Economic Calendar and Daily Analysis of the markets.
A 30% no-deposit welcome bonus is provided to all new traders. Leverage offered starts from 1:25 and is capped at 1:1000. Three account types are provided: Cent (for beginners), Standard and ECN Pro. Commissions payable on trades from the ECN Pro account are set at $5 per traded Lot. A variety of deposit and withdrawal options are provided, spanning from e-wallets to local bank payment options and conventional channels such as credit/debit cards and bank wires. You can also deposit and withdraw in cryptos, with Bitcoin, Dogecoin, Ethereum, Bitcoin Cash and Litecoin being the listed crypto options.
5. Prime XBT (2018)
PrimeXBT is a Seychelles-based multi-asset broker which offers the trading of forex, CFDs and cryptocurrencies, all from a single account. Leverage offered by PrimeXBT is high and for crypto assets, this is as high as 1:100. Liquid forex assets such as the EUR/USD attract a leverage cap of 1:1000, and CFDs such as gold are leveraged up to a limit of 1:500. One of the selling points of PrimeXBT is that it offers anonymous account creation, which is in keeping with an emerging trend for brokers that offer crypto deposits and withdrawals. PrimeXBT also offers a mobile trading platform, and both mobile and web-based platforms offer professional charting and a customizable layout. Traders are provided with their own wallets for deposits with at least 130 altcoins. PrimeXBT was established in 2018, making it a very new brokerage indeed.
Let’s summarize it
These new forex brokers, most of who were born out of the cryptocurrency craze of that year, have adopted cryptos as a way of depositing and withdrawing funds from accounts. This presents new challenges to traders in terms of keeping their wallet information safe. However, these wallets are not hot wallets and they can be protected from hackers using conventional safety measures.
The use of crypto-only deposits and withdrawals by Coinexx and PrimeXBT presents a novelty in terms of payment options. We may yet see more brokers coming into the market with newer products.