Have you ever wondered what to do with your savings? Nowadays more and more banks are charging fees for having a bank account. Investing in digital assets is a good way to earn passive income. Our EuropeFX broker review 2020 gives you all the ins and outs you need to know before you start investing.
EuropeFX broker review, what you need to know
EuropeFX is an international forex and CFD broker and one of the leading brokers in Europe. Founded in 2013 with two offices located in Berlin and Limassol. EuropeFX has all the registrations and licenses to operate as a broker and it’s considered a reliable online trader.
EuropeFX professional website gives you all the information you are searching for, a comprehensive overview of their platforms and products, and more details on trading. This informative website and the user-friendly app give the impression that they focus on new investors who can easily adapt to modern trading techniques and are used to mobile devices.
RoboX and MirrorTrader are two trading tools that make your life as a trader easier. MirrorTrader gives you the ability to mirror the investment strategies of your fellow EuropeFX traders. RoboX is a program that will match you as an investor to your favourite investment strategy out of 1,000,000 investment strategies.
To keep up to date of the current demand of traders, they offer a new asset: Cannabis Stocks. This broker is especially interested in investments of $1,000 or more, but you can start slowly by exploring the Demo app or a small deposit of $200.
What makes EuropeFX unique?
Having looked at all aspects of EuropeFX, these are our top findings:
- Advanced digital technology makes trading via EuropeFX a unique experience and makes you stay ahead of the game, finding your investment strategy is made easier with MirrorTrader and RoboX
- The website holds all the information you need to fully understand the investment world
- They offer a wide variety of investment products
- EuropeFX offers many additional benefits for big investors
- ESMA has made EuropeFX suspend the stocks and indices in France, Italy, and Spain due to risk in loss of market confidence
- MT4 trading platform offers you many features while trading via the app
Is EuropeFX a trustworthy broker?
EuropeFX’s first priority is giving its clients security over their funds. It is a safe broker to trade cryptocurrencies, CFDs, and forex. EuropeFX is managed and owned by MAXIFLEX Ltd.
- Authorised by the Cyprus Securities and Exchange Commission (CySEC)
- EuropeFX complies with the Markets in Financial Instruments Directive (MiFID II) which regulates and supervises the financial transparency of the investment services in the European Economic Area (EEA) to protect its consumers.
- Until the 31st of January, EuropeFX under MAXIFLEX Ltd was registered in Australia. However, since the 1st of February 2020, EuropeFX is no longer authorised by the Australian Financial Services License (ASIC). Their previous clients are moved to trading at USGfx.com.
MAXIFLEX LTD is also registered:
- The UK – Financial Conduct Authority (FCA)
- Germany – Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
- Italy – (Consob)
- Netherlands – Authority for the Financial Markets (AFM)
- Sweden – Finansinspektionen (FI)
- Spain – Comisión Nacional de Mercado de Valores (CNMV)
- Austria – Austrian Financial Market Authority (FMA)
- Norway – (Finanstilsynet)
- Finland – Financial Supervisory Authority (FIN-FSA)
Protection for traders
EuropeFX is a member of the Investor Compensation Fund (I.C.F.) to secure claims covered clients against Cyprus Investment Firms (CIF). The I.C.F. covers losses up to €20,000. This gives smaller investors security; even tough investing always has risks.
A few setbacks
Due to a risk of loss of market confidence The European Security and Markets Authority (ESMA) had decided that EuropeFX had to suspend all stocks and indices from France, Spain, and Italy on the 26th of March 2020. The suspension will be in power until the ESMA allows the sell and buy of affected instruments again. The prediction will be until ad least mid-April for Spain and France and mid-June for Italy.
Which investment options does EuropeFX offer?
EuropeFX offers most investment options available. With even looking outside the box and following a worldwide trend in the investment world: cannabis stocks. Offering all investment options will allow you to have a good overview of one location.
CFDs are Contracts For Difference, which means a contract between you as an investor and the market. It is the process of buying a contract for a particular asset and sell the contract back to the market. With this process, you can gain profit or lose your investment. EuropeFX offers these CFDs on Shares, Incides and Commodities. A full explanation of how CFDs work is given on their website.
It is also known as the Foreign Currency market, a game of speculation in currency appreciation and depreciation worldwide. EuropeFX quotes prices with 5-digits. Because changes happen in many digits the profit you will gain from forex trading is low, therefore brokers offer you leverage. Leverage means that a broker lends you a multiple of the amount you want to trade. 1:30 leverage means for every $1 you want to trade, the broker lends you $30. I.e. you want to deposit $1,000 then you can make the trade worth $30,000.
Forex currencies are traded in ‘lots’, there are three different types of lots:
- Standard Lot: 100,000 units of the base currency
- Mini Lot: 10,000 units of the base currency
- Micro Lot: 1,000 units of the base currency
Indices, such as Nasdaq and DowJones, refer to the statistical changes in the value of a market segment. In this case, you can trade in the index instead of buying shares for one of the companies in the index.
With EuropeFX you can buy shares of companies, a share is proof of ownership for the percentage of your shares. For example, when you buy 100 shares of a company that holds 1000 shares, you are an owner for 10%. You are entitled to 10% of the profits/dividends of the company. EuropeFX offers CFDs on many stocks from global markets.
Commodities are assets produced by nature. The value of commodities is based on the supply and the demand for the goods.
There are two types of commodities
- Hard commodities: these are extracted from nature by drilling or mining, i.e. oil, gold or natural gas
- Soft commodities: these assets are grown and harvested, i.e. corn or coffee
EuropeFX offers trade-in cryptocurrencies CFDs on their MetaTrader. The risks of trading CFDs on Cryptocurrencies are communicated on their website. The values of virtual currencies can fluctuate much quicker than normal currencies.
More countries around the world are legalizing pharmaceutical cannabis. As the demand of the market is expected to keep growing, cannabis is an interesting market to invest in for many traders. EuropeFX allows its investors to trade in legal cannabis.
On EuropeFX website is a clear overview of what the leverage is per stock, indices, cryptocurrency, commodity or forex.
What are the trading conditions of EuropeFX?
The website and app offer daily blog articles on facts and changes in the investment world. On the website, you can follow English and German webinars on every weekday.
MirrorTrader allows investors to copy trading strategies from selected investors. MirrorTrader shares well-developed charting specifications, which allows you to adjust chart types to your requirements. It is easy to use the tool.
RoboX is an online system, after filling in a short questionnaire the system matches your preferences to investment strategies. The system makes an accurate selection out of a database with 1,000,000 investment strategies. This is using machine learning for our benefits: the future.
EuropeFX accepts deposits via bank transfer, Visa, MasterCard, Skrill, iDeal, GiroPay, SoFort, TrustPay, SafePay and Przelewy24. Trading is available from deposits of €200. When you sign up and start trading, you are allocated a ‘personal’ Relationship Manager. Your relationship manager is available for all your inquiries. EuropeFX also offers five other accounts, which gives you as trader more support and benefits:
- Bronze – €1,000
- Silver – €2,500
- Gold – €10,000
- Platinum – €25,000
- Premium – €50,000
EuropeFX offers the big investors a VIP Program; this includes many more interesting features when trading with big amounts. The VIP package includes several extras such as discounts on trading commissions and swaps, leverage options up to 1:300, daily private trading sessions, and access to the full off- and online education program and daily access to the EuropeFX Event Room. Additional benefits are available when contacting the relationship manager.
- Diamond – €200,000 to €500,000
- Elite – €500,000 to €1 million
- Prestige – €1 million or above
Mobile trading – the eFXGO! App
EuropeFX offers an app eFXGO! For both iOS and Android. The first step is to download the EuropeFX app, and then you can easily sign up for an account. On the email address, you provided you will receive three emails, one with your sign in details for the live app, and one email with sign-in details for the demo account and a welcome email. When you sign in to the app you can easily switch to the real account. You can choose to open a live account or a demo account. The app has a basic but yet basic and uncluttered design.
EuropeFX customer service
The website is translated into five languages: Dutch, English, German, Italian and Swedish. EuropeFX provides a lot of information and gives a professional impression, however not all the users are that impressed by the customer service. We noticed the main complains are from new investors who start with deposits of €200 – debating that the customer service gives investors with a portfolio of more than €1,000 a priority over smaller investors.
EuropeFX takes its customer service very seriously. One of the four main pages in the app is for customer service. You can also question it, do they get so many questions it needs to be this visible? Let’s assume this is a positive point and will help you while trading on their platform. They replied within a minute on my message. Customers receive usually an answer within 4 minutes, which is ideal.
EuropeFX broker review in a nutshell
We have come to the end of our EuropeFX broker review 2020. EuropeFX has an interesting business structure under MAXIFLEX Ltd. There is not much information available about the history and owners of both companies. That said EuropeFX has all regulated licenses and a big clientele. EuropeFX offers the modern investor the newest technology and information available. They have multiple modern trading tools such as RoboX and MirrorTrader, an education program with a daily blog and good customer support. Overall it has an image of a trustworthy brokerage. When researching the membership packages and all the reviews from their clients, it appears EuropeFX is mainly interested in the ‘big boys’ in the investment world. They also want to attract investors who have a portfolio of over €1 million. Our conclusion is this platform is suitable for new and experienced investors with a minimum investment of €1,000.
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