Here Are the 9 Pros and Cons:

Orbex Fact sheet

When choosing a broker, the safety and security of your funds should be your top priority among other factors such as fees, trading platforms, and offered assets. The best indication of safety is the number of regulatory bodies under which a brokerage operates. 

The broker is authorized and regulated by the Financial Service Commission (FSC) in Mauritius and by the Seychelles Financial Services Authority (FSA). 

It should also be mentioned that Orbex also operates a secondary entity in Cypres that is regulated by the Cyprus Securities and Exchange Commission (CySEC).

Policies that Orbex follows

In order to increase the safety level, the broker offers Negative Balance Protection and keeps the funds of its clients in segregated accounts. 

Orbex provides negative balance protection across all account types and ensures that your losses will never exceed your initial investment amount. CFD trading is highly leveraged, with the broker offering up to 500:1 leverage on all account types. This means that you can speculate on the financial markets using borrowed money with up to 500 times more buying power than is on your balance. 

For this reason, traders might lose more money than is in their accounts. In order to protect traders from going negative, brokers use Stop Out levels and automatically close positions once the account balance reaches a predetermined margin percentage. Orbex uses a 20% Stop Out level across all of the account types. 

What’s more, each account type provided by the broker comes with a free Virtual Private Server in order to protect traders from computer viruses and connection failures.

Furthermore, the broker encrypts data across all platforms and communications to increase the level of security. 

Moreover, Orbex keeps traders’ funds in segregated accounts. By not mixing the funds, traders get better security. In addition, Orxex is a member of the Investor Compensation Fund (ICF). 

Orbex offers more than 300 trading instruments to its clients. The number is limited compared to what industry leaders are offering. The portfolio mainly consists of CFDs. 

CFD trading gives short-term traders the ability to benefit from price fluctuations in both upward and downward markets without actually owning an asset. Furthermore, CFDs are more liquid and therefore offer tighter spreads. On the other hand, actually owning stocks, cryptocurrencies, etc. is preferred for investing long-term due to lower long-term trading fees. CFDs are perfect for short-term traders.

Forex

Keep in mind that high liquidity decreases the distance between the bid and the ask price. Major pairs are the most liquid. Minor pairs are less liquid than majors but more liquid than exotic ones. In order to pay lower fees on spreads, traders often avoid trading exotic currencies.

Orbex provides access to trading 44 Forex pairs:

• 7 major Forex pairs such as EUR/USD, USD/JPY, GBP/USD, etc. 
• 29 minor Forex pairs including EUR/GBP, GBP/JPY, NZD/JPY, etc.
• 8 exotic Forex pairs such as USD/TRY, USD/ZAR, USD/NOK, etc. 

You can trade currencies using one of the 3 account types offered. All of them provide an average order execution speed of 0.03 seconds, Maximum leverage up to 500:1 with a Stop Out level of 20%.

Average spreads for 0 commission account types start from 1.5 pips on EUR/USD, which is not very different from the industry’s average price. 

Stock CFDs

Orbex provides access to European, US, and UK stock CFDs. The number of CFDs is up to 146. In addition to spreads provided by market liquidity, traders are paying a 0.2% commission for each lot traded. There’s no spread markup from the Orbex when using Premium and Ultimate account types. 

As already mentioned, stock CFDs are great for speculating on the markets short-term. For investing and position trading, real stocks are handier due to the fee policies.

Indices

With Orbex, speculators can trade 5 cash indices: US30, NAS 100, GER30, UK 100, and S&P 500. 

Indexes show the collective performance of stock baskets, industries, and sectors. For instance, the US30, more commonly known as the Dow Jones Index, measures the performance of the top 30 US companies that are publicly traded in the stock market. 

Indices can be used as technical indicators that show the state of certain economies or industries. And they can also be traded as CFDs.

Commodities

Commodities can be mined or grown. Commodities that can be mined are referred to as hard commodities. Orbex offers 7 hard commodity CFDs for trading:

• 4 Metals: XAU/USD, XAG/USD, XPD/USD, XPT/USD.
• 3 Energies: USOILQ2, NGQ2, UKOILU2.

Commodities such as precious metals are often bought by investors to protect their funds from inflation. Precious metals are often viewed as safe investments due to low volatility and historical bull market performance.

Energy prices are affected by global demand and supply. In times of war, embargo, and other restrictions oil prices increase. 

Spreads for commodity trading with Orbex start from 0 pips and the maximum leverage is different for each asset. 

Cryptocurrencies

Cryptocurrencies are in high demand when it comes to trading. Orbex offers 11 crypto CFDs to its clients, these including BTC/USD, ETH/USD, LTC/USD, BCH/USD, XRP/USD, ADA/USD, DOG/USD, DOT/USD, EOS/USD, LNK/USD and XLM/USD.

As already mentioned, trading crypto CFDs offer a better alternative for short-term speculators than owning actual coins:

• Better liquidity, as more people trade CFDs worldwide. Which translates into better spreads.
• Higher leverage is offered by brokers.
• No need to worry about cashing out profits.
• No need to worry about crypto wallets.

The margin for trading crypto CFDs is 50%. In addition, you will be charged by 0.5% commission per trade by Orbex.

There are various types of traders in the markets. They differ in terms of experience, trading style, preferred timeframe, preferred asset class, and more. In order to meet the needs of various traders, Orbex offers 3 types of trading accounts. In addition, the broker provides access to Islamic accounts and free-of-charge demo versions of each account type. 

What’s more, you can choose your account currency out of EUR, USD, GBP, and PLN. It’s recommended to choose the currency type you use the most in your day-to-day life in order to save on fees for currency conversion. Let’s discuss each account in detail and find out which one best suits your needs. 

Pros & cons of Orbex account types

Demo account of Orbex

Most Forex brokers offer demo versions of their live accounts to their clients. Orbex is no different in this regard. The demo account gives you full access to trading all of the assets offered by the broker without risking real money.

Demo trading can be useful in various ways. It can help traders get used to using a trading platform, test the fees and policies of brokers, and create and develop trading strategies. 

Starter account of Orbex

The starter account charges no commission. On the other hand, traders are charged with spread markups. An average spread on EUR/USD is 1.5 pips. 

The starter account is suitable for position traders that open fewer positions than high-frequency traders. Therefore, it’s better for them to pay a higher spread per traded position and 0 commission. 

The leverage offered is up to 500:1 with a Stop Out level of 20% and the minimum initial deposit required to open the Starter account is $100.

When choosing the leverage level, be aware that high leverage is a double-edged sword. It can increase your earnings as well as your losses. High leverage is one of the biggest reasons why novice traders blow up their accounts.

Premium account of Orbex

The Premium account requires a $500 initial deposit and the account has no spread markup. Meaning, traders get market prices when they’re opening positions. On the other hand, the broker charges account holders an $8 (round-turn) commission per lot, which is higher than what most other brokers are charging.

Leverage is up to 500:1, depending on the asset class you’re trading with a Stop Out level of 20%.

The account type is aimed at active, intraday traders. In addition, account holders get exclusive webinars and advanced educational material. 

Ultimate account of Orbex

The Ultimate account is made for VIP clients. The minimum deposit required to open the account is $25 000. Leverage is 500:1. Stop Out level is 20%. The commission per lot is only $5 (round-turn), which is lower than the industry average. The account is suitable for active intraday traders. 

Spreads are starting from 0 pips. However, be informed that in low liquidity, spreads can get much higher. 

Islamic account of Orbex

Orbex offers swap-free account versions of each account type. Swap-free accounts are also known as Islamic accounts. 

The swap-free accounts charge no interest for keeping the position overnight in order to enable Muslim traders to place orders without going against the teachings of the Quran.

Getting started on Orbex - Main steps

Getting started on Orbex is super easy. The broker provides a user-friendly account opening experience. 

In case you’ve already decided to open an account with this broker, we’ll help you throughout the entire process step by step.

Step 1: Choose & create your account

To get started with Orbex, go ahead and open the broker’s main page. In the top right corner, you’ll be able to see the Register button in blue, click it. 

After you fill in the application form, check your email. You’ll be able to set your password for the member area. The member area gives you access to choosing your account type of preference. After choosing the account type, you’ll be able to finish your registration process, choose account currency, leverage numbers and provide your documents. 

Step 2: Verify your account

After providing the broker with your personal information, the next step is to upload your documents. The broker requires proof of identity and proof of residence from you. You can upload scanned documents or digital versions of your documents captured by your phone. In case you’re uploading the photo versions, make sure the documents clearly show important details such as your name. Make sure there are no shadows or light reflections while you’re taking the photos.

Step 3: Deposit funds

After completing the verification process, you’ll be able to deposit funds into your trading account. The broker doesn’t charge any deposit and withdrawal fees. In addition, traders can choose from Mastercard, Visa, Skrill, Neteller, Perfect Money, and other funding options. Most options require up to 2 hours of processing time, except for bank wire transfer, which takes 3-5 business days to process your request.

Step 4: Start analysis & trading

The last and most important step is trading. It’s time for you to download and install MetaTrader 4 or MetaTrader 5 on your computer and start placing orders. Keep in mind that developing a trading system that offers an edge and using suitable risk management strategies are the two most important aspects of trading. 

The fees and commissions vary depending on the account type of preference. Commision-free account type has an average fee of 1.5 pips for EUR/USD trades. As for 0 spread account types, the commission is $5 and $8 per lot (round-turn) traded. The prices are average compared to the industry. 

Moreover, Orbex doesn’t charge clients deposit and withdrawal fees. However, on the downside, the broker charges $20 per month after six months of inactivity. The fee will be deducted from the account until the balance reaches less than $20 and the funds will never go negative. 

Comparing Orbex fees with other brokers

The broker uses variable markup spreads for commission-free accounts. And the average spread for EUR/USD is 1.5 pips. It’s hard to compare the broker fees as the spreads are not fixed but we can take 1.3 pips as a close comparison number. Usually spreads on EUR/USD are close to the minimum.

Orbex fees compared to Interactive Brokers fees

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

Orbex fees compared to eToro fees

Orbex fees compared to IG fees

The broker offers MetaTrader 4 (MT4) and MetaTrader 5 (MT5) to its clients. MT4 is a widely known and used trading platform among Forex traders. The software was developed by a Russian software company called MetaQuotes in 2005 before later releasing MT5 for those looking to trade in other asset classes. Both pieces of software are simple to use and loved by beginner and seasoned professionals alike. 

With these two pieces of software on offer, the broker has got something for everyone and despite not having more platforms to choose from, most traders will be happy with these. 

Mobile trading comes with several benefits. Orbex traders can get a mobile version of the MetaTrader 4 and MetaTrader 5  platforms on Google Play or the Apple App Store. These apps have had some recent updates making them even more useful when trading on the go. 

Along with the MetaTrader apps, there is also the feature-rich Orbex Mobile App which can be installed on both iOS and Android.

Orbex truly shines when it comes to traders’ education. The broker offers extensive material for enhancing knowledge in trading including articles, e-books, videos, webinars, and glossaries.  Videos help traders learn how to use trading platforms,  and there are plenty of webinars and seminars to give both beginner and advanced traders a decent amount of knowledge.

 In addition to the educational material, Orbex provides access to an economic calendar for Forex markets, a Forex glossary, and an online calculator for currency conversion. The calculator is also useful for pip value calculations. They also provide access to the much-loved Trading Central, which is a research portal that uses technical analysis to give traders a better idea of everything that is happening in the markets.

Great customer support is essential for every company’s growth. This broker provides 24-hour customer support 5 days a week (Monday to Friday). The online chat is accessible through the web page chat window and Facebook messenger. In addition, you can send them an email and they’ll get back to you. The customer support experience is average compared to other brokerage firms. 

To sum everything up, Orbex is slowly positioning itself as something more than just an average broker. They are regulated, offer 300+ trading instruments, and have average fees, but the broker continually strives to improve its offerings. With the recent addition of MetaTrader 5, the continued support for MetaTrader 4, and their own decent-looking trading app, things are shaping up well. One of their main draws for those just getting into trading is the educational materials offered by this broker, as they have an extensive library that can be well utilized by novice traders.