Here Are the 14 Pros and Cons

FXOpen Fact sheet

There are various things to consider when choosing your broker. For instance fees, safety, trading software, the list of tradable assets, and more. Among many important aspects, the number one priority is the safety and security of your hard-earned money.

What can guarantee the safety of your funds? The answer is regulations. FXOpen is regulated by the Financial Conduct Authority of the UK, the Cyprus Securities and Exchange Commission, and the Australian Securities and Investments Commission. FXOpen is a global company, which means in certain countries, such as Australia, the broker operates under the supervision of the ASIC. Meanwhile, in the UK, the accounts are opened under FCA regulations. 

• In the UK the broker is operating as FXOpen LTD. 
• Europe: FXOpen EU LTD.
• Australia: FXOpen AU PTY LTD
• Internationally: FXOpen Markets Limited

The broker is a True ECN/STP type, which means there’s no conflict of interest when you place your orders. Some brokers win money when you lose funds. Thus, you want a broker that is not interested in you making wrong market predictions. 

Policies that FXOpen follows

FXOpen provides negative balance protection for clients from the UK, Australia, and Europe. Unfortunately, international traders should use stop-loss and other tools to protect themselves from going negative. Whether you trade Forex or other assets when using leverage to speculate on the markets, you are using borrowed money. As a result, there’s a chance for you to lose more money than is in your bank account. 

In addition to the negative balance protection, the broker keeps clients’ funds in segregated accounts, but not for international traders. Many low-trust brokers mix clients’ funds with their own and in the event of bankruptcy, traders might lose everything. Segregated funds increase the safety of your money. 

Just keep in mind that the minimum initial deposit for the UK, European, and Australia starts at $300, whereas for international traders they offer micro accounts from $1.

Trading assets offered by FXOpen vary depending on your account type and region. In addition, some trading software, like TickTrader and MetaTrader 5, offers access to a wider range of assets. You can trade cryptocurrencies using various platforms from every account type. However, if you want to solely trade cryptos and access the largest pool of trading symbols, you should open a dedicated crypto trading account that offers up to 43 coins. 

Most of the portfolio consists of derivative products, aka CFDs, which means that you don’t actually own the stock when you press the buy button. You simply speculate on the price changes you expect and benefit from price going up or down by going long or short. In addition, liquidity and spreads are much better for CFD trading, and brokers give higher leverage when trading these.

Forex

One of the main reasons why people trade on Forex markets is that the market is the largest and the most liquid in the world. High liquidity guarantees tight spreads. FXOpen offers 50 currency pairs for trading. Keep in mind that Major pairs such as EUR/USD, EUR/JPY, GBP/USD, and others are more liquid than minor and exotic ones. 

The commission per standard lot starts from $1.5 on an ECN account and the spreads are starting from 0. The leverage offered goes up to 500:1. Be aware that high leverage can be dangerous and result in a fast decline of your account balance or fast growth.

Stock CFDs and ETFs

The broker provides access to various stock CFDs and ETFs. CFDs are short for Contract for Difference and they are mostly traded by short-time speculators due to affordable fees and simpler access. Long-term investors prefer real stocks to stock CFDs. 

With the FXOpen ECN account, traders can speculate on famous company prices such as Apple, Tesla, Microsoft, Amazon, Netflix, Citigroup, NIKE, and more. More than 600 single-stock assets are available. 

For trading ETF CFDs, offered leverage goes up to 5:1. Commission for trading stocks is 0.1% and the broker offers up to 50 levels of market depth. This means you’ll be able to see your limit orders inside the order book. 

Cryptocurrency CFDs

There are 43 cryptocurrency pairs to choose from when trading using the dedicated Crypto account. The list includes BTC/EUR, BTC/USD, BTC/JPY, LTC/USD, ETH/EUR, EOS/USD, NEO/BTC, and more. What’s more, you can trade cryptos 24/7, whereas Forex markets are only open 24/5.

Spreads start from 1 pip. Stop Out level for the 3:1 leverage account is 15%. As for the 1:10 leverage account, the Stop Out level is 50%. When your margin reaches a predetermined amount, brokers automatically close out your open positions in order to protect your balance from going negative. The swap rate is 10% per annum of your open position. Swaps are fees that are incurred whenever your open position is moved to the next trading session. 

Indices

Indices are a good indicator of the health of certain industries and economies. For instance, the Australia 200 index consists of the top 200 Australian publicly traded companies. The index measures the collective performance of the stocks. Most traders use indexes as technical indicators when predicting future prices. In addition, you can trade indices as CFDs.

There are 13 indices available for trading with FXOpen. The list includes UK100, US Tech 100, Wall Street 30, Europe 50, France 40, Australia 200, Hong Kong 50, Japan 225, US SPX 500, and Germany 40. The Indices are accessible via MetaTrader and TickTrader platforms. The maximum leverage varies depending on the index and goes up to 100:1.

Commodities

Commodities are raw materials that are turned into consumer goods later. FXOpen provides access to trading CFDs on precious metals and energies. These include XAU/USD, XAG/USD, XBR/USD, XTI/USD, and US natural gas.

Precious metals are immune to a lot of inflationary processes. Therefore, investors are using them as tools for hedging against inflation. However, CFDs are not particularly great for long-term investments. 

Energy prices such as natural gas and oil are affected by demand and supply. Disputes between countries, wars, developing renewable energy sources and other factors can influence energy prices. 

The maximum leverage available differs for each asset. 

• The leverage for trading gold and silver is up to 500:1
• US crude oil goes up to 50:1 leverage
• US natural gas goes up to 25:1

Pros & cons of FXOpen account types

Some traders are more experienced than others. Some like position trading, while others place 10+ trades in an hour. The list of differences is endless. In order to meet the needs of different kinds of traders, the broker provides access to a wide range of account types. We’ll discuss each in detail to make it easier for you to pick the one that best suits you. 

Demo account of FXOpen

The demo account is very similar to the real account in terms of execution, pricing, and offered trading instruments. You can get familiar with the trading software, and develop, test, and improve trading strategies without the risk of losing real money. 

FXOpen offers two types of demo accounts, ECN and STP. You can choose from MetaTrader 4, MetaTrader 5, and TickTrader platforms. 

FXOpen ECN demo account provides raw spreads from liquidity providers using electronic communication networks. As a trader, you can demo trade Forex pairs, crypto CFDs, metals, energies, stocks, and indices.

The STP demo account includes the trading fees in the spread, access to the asset classes, and execution is no different from the ECN demo account.

Micro account of FXOpen

The FXOpen Micro account uses the Market Maker business model and not the true ECN/STP model. The Micro account is only offered by FXOpen Markets Limited to international traders. 

The minimum initial deposit to open the account is only $1 and the maximum balance is $3,000. The leverage offered goes up to 500:1 and the Stop Out level is 10%. The account has floating spreads. On the downside, available assets for trading are limited to 28 currency pairs, gold, and silver.

The account is great for testing your algorithms and trading strategies in a live trading environment without investing too much. 

ECN account of FXOpen

ECN stands for Electronic Communication Network and describes the way FXOpen aggregates prices. The prices are raw and spreads are starting from 0 pips. The commission per 1 mil is $15 or in other words - $3 per standard lot (round-turn). 

The minimum initial deposit required to open the account is $100, with up to 500:1 leverage and a 50% Stop Out level. Traders have access to MetaTrader software and TickTrader.

What’s more, you can trade 50 currency pairs, more than 25 crypto CFDs, stocks CFDs, indices, and commodities.

The ECN account is ideal for high-frequency and intraday trading, as well as algorithmic trading and scalping. Traders that open many orders per day prefer to pay less on spreads and more on commission. 

STP account of FXOpen

The STP account offers access to fewer asset classes than the ECN account. You can trade 50 currency pairs as well as silver and gold, using only the MetaTrader 4 platform. 

The STP account is preferred by position traders as there’s no commission charged per lot traded. On the other hand, financial service provider fees are integrated into floating spreads. 

Maximum leverage is 500:1 and the Stop Out level is 30%. The minimum initial deposit required to open the STP account is $10.

Crypto account of FXOpen

The Crypto account was specifically made for crypto CFD traders. The account provides access to trading 43 cryptocurrency pairs with BTC, LTC, EOS, PPC, ETH, DASH, and EMC using the MetaTrader 4 platform.

The minimum initial deposit required to open the account is $10. Leverage goes up to 3:1 with a 15% Stop Out level. The business model is ECN, which means that the prices are raw, straight from the liquidity providers. Commission charged is 0.5% of trade volume (round-turn).

Islamic account of FXOpen

FXOpen offers Islamic versions of the ECN and STP account types. Note that the broker does not offer an Islamic crypto account type. Traders can contact the customer support of the broker and they’ll convert the account to Islamic. 

Islamic accounts are swap-free accounts that are compliant with Sharia laws. This enables Muslim traders to place orders without going against their beliefs. 

Keep in mind that just because Islamic accounts are not charged with swaps doesn’t mean they are charged less. The account holders are charged additional commission fees. Therefore, at the end of the day, there’s no difference in terms of trading fees.

Getting started on FXOpen - Main steps

In case you are impressed with the broker and decided to open a live account, we’ll guide you through the entire process in detail and explain everything in simple steps. 

Step 1: Choose & create your account

The first thing to do to get started is to open the broker’s main page and press the Open an Account Now button in orange. By pressing begin Application you’ll be transferred to the eWallet registration. 

Follow the user-friendly instructions and fill in your personal information.

Step 2: Verify your account

The next step is to verify your account. In order to be able to deposit or withdraw money to your trading account your account must be verified. 

The broker asks for proof of identity, proof of residence, and a selfie from you. Make sure the original ID documents that you provide do not expire in the next 3 months and the documents for proving your residence are not older than 3 months.

The verification process usually takes 2 business days and on rare occasions, it may take 3-5 business days. 

Step 3: Choose the account type and download the trading platform

After the verification process is complete, you’ll be able to choose between a Micro account, ECN account, STP account, and Crypto account. In addition, you’ll be able to choose your leverage and currency type. It’s recommended to choose the currency that you use the most in your everyday life as your account currency to save money on conversions. 

You’ll be offered to download MetaTrader 4, MetaTrader 5, or TickTrader, based on which software is available on your preferred account type.

Step 4: Deposit funds

The next step is funding your account. Note that the broker offers various ways for funding your account. However, most of them charge high fees. Also, note that there are no Visa payments available. 

Step 5: Start analysis & trading

The final step is to start trading. Keep in mind that most traders lose money and blow up their accounts. It’s vitally important to:

• Have a trading system that gives you an edge.
• Manage your risks properly to let that edge work.
• Manage your emotions to keep you from placing unplanned orders.

Creating and developing a profitable trading system requires hard work and dedication.

Fees and commissions are affordable with FXOpen. The fees vary depending on the account type and asset class you choose to trade. In general, the broker offers low trading fees but the funding, deposit, and inactivity fees can be a turn-off for many traders. On the downside, STP account-type floating fees are not transparent.

Inactivity fee

It’s common among brokers to charge for inactive accounts and FXOpen is no different.

The broker charges $10 per month after 3 months of inactivity. To avoid paying unnecessary fees, it’s better to keep the funds in eWallet. In case your account is disabled, you will be charged $50 to reopen it.

Comparing FXOpen fees with other brokers

In order to better understand the difference between FXOpen and other brokers' prices, let’s make a comparison.

We’ll compare STP account prices to other brokers’ commission-free account types to make choosing easier for you. The STP spreads are floating and it’s difficult to get a clear idea of how they are calculated. One of the biggest downsides is that the account type fees lack transparency. We’ve picked the minimum live fee of 0.8 pips as the starting point. 

FXOpen fees compared to Interactive Brokers fees

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m

FXOpen fees compared to eToro fees

FXOpen fees compared to IG fees

FXOpen provides MetaTrader software and TickTrader to its clients. The MetaTrader software was created by a Russian software company called MetaQuotes. MT4 was released in 2005 and has become dominant in the trading world due to its usability and simplicity. MT5 was released 5 years later and is more complex, offering access to a wider range of assets and more technical tools. 

TickTraider comes with advanced technical analysis tools, a user-friendly interface, and level 2 pricing. The platform gives you the ability to see your order in the orders book. In addition, it gives you up to 200 levels of market depth. Which is particularly useful for trading stocks.

MetaTrader 4, MetaTrader 5, and TickTrader all offer mobile versions of the software. Mobile trading is very useful in the sense that it keeps you close to your trading. Monitoring, opening, and closing trades and checking the price become easier from anywhere in the world. The mobile apps provide all of the necessary features traders require to place orders, however, it’s recommended to analyze the markets using larger screens to process information better. 

Quality education is vitally important for novice traders when they are starting their careers. FXOpen is a true ECN/STP type broker, which means the broker is not interested in teaching you something that will cause you to lose money.

The broker provides extended tools for research such as an economic calendar, Forex market analysis, market news, blogs, forums, and trading contests. On the downside, the company lacks video guides and webinars. 

The customer service provided by the broker is superb. The team of customer support agents is professional and very friendly. There are various ways you can contact the broker. You can send them an email, register a ticket and they’ll contact you, call them or chat with them online. 

The live chat is accessible via Facebook Messenger, Telegram, Twitter, WhatsApp, Line, WeChat, and the broker’s main page. The agents don’t keep you waiting for long to start the conversation and resolve issues in a professional manner.

To sum everything up, the broker offers a wide range of assets to trade, is regulated by top-tier financial institutions, and provides professional customer support. The fees are low if we take the deposit and withdrawal fees out of the conversation. Traders can choose between a complete set of MetaTrader platforms and TickTrader. The account types offered by the broker meet the needs of many different kinds of traders. On the downside, educational material is limited compared to competitors.