Minimum Deposit: $400
Maximum Leverage: 1:30
My Score: 4
Do you want to learn detailed information about Colmex Pro? I’ve prepared the best information available on the internet. Don’t open an account before reading this review.
Colmex Pro is Forex, CFD and equity trading broker. The broker headquartered in Limassol, Cyprus. Since the country provides some easiness to companies, many other forex brokers also operate in the biggest island of the Mediterranean Sea, Cyprus.
The broker founded in 2010. Despite that 8 years, it couldn’t grow to be a big broker. United States, Germany, Malta, Israel and Spain make up more than half of site’s visitors. It shows how international they are, in this competitive area.
The broker disclosed many risks with a PDF file uploaded to the site. The notice delivered to clients in accordance to European Union’s Markets in Financial Instruments Directive (MiFID). They declared clearly the risk of capital loss, volatility, timing risk, computer delays, uncertain prices, lack of liquidity there.
Well, is Colmex Pro scam or one of the good brokers which you can fund? What are account types offered by the broker and its trading conditions like minimum deposit limit, spreads and more? You can find comprehensive answers to all this questions in this Colmex Pro review!
Do you have any experience with the broker as a client? Positive or negative, any information is precious for me (and I assume for readers). Please comment below!
Regulation and Trader Protection
Colmex Pro is regulated by CySEC (Cyprus Securities and Exchange Commission) licensed as 123/10. If you search the license number from the watchdog’s website, you would realize that the broker got its license in 2010 which means they didn’t lose any time to get their license. Another positive sign of reliability if you ask me.
CySEC lays down as a condition that holding at least €1,000,000 to show they are financially capable of paying to their customers. I find this rule crucial because it ensures assurance to clients’ money.
Additionally, the watchdog has a compensation scheme which enables further guarantees to its customers. All the companies subject to CySEC are also a member of the Investor Compensation Fund. If the broker stops its trading activity, clients can get up to €20,000 as compensation by this membership.
To me, having a proper license is essential to keep your money safe. The watchdogs keep the brokers in line within the law. They do that with a couple of mechanisms including applying sanctions on brokers with fining them or even further canceling their licenses. So your money is safe only if the broker regulated regularly.
ICF (Investor Compensation Fund) plays the critical role since they are the ones who secure claims of customers against member brokers of the fund. Their primary goal to give compensation to clients which covered by the fund.
FICA (Financial Intelligence Centre Act) is South Africa’s act to combat money laundering and financing terrorism. Colmex Pro must report any suspicious activity.
See a List of CySEC Regulated and Reputable Forex Brokers
Colmex Pro Account Types, Spreads and Leverage
There are two main account types, i.e. Equities/CFD and Forex. However, these accounts are also divided in itself as Standard, Semi-Standard, VIP.
Minimum deposit requirement is $400 which is significantly higher than sector averages. I always want to open an account with the low amount of deposit at first. So this is one of significant disadvantage. However, you can register their demo Forex or demo Equities account for free.
0.9 pips on EUR/USD is average spread. I would consider this spread as low only if we ignore the commission fees. If we include commission fee, the spread ranges from 1.2 pips to maximum 2 pips, depending on whether you have VIP or basic account. I would consider this quite high if you consider getting a basic account.
Colmex Pro enables leverage up to 1:30. After the new ESMA (European Securities and Markets Authority) rules, the leverages of broker dropped from 1:400 to 1:30. But if you are an experienced trader, the broker may let you trade with high leverages.
|Account Types||Minimum Deposit||Minimum Trade Size||Maximum Leverage||Spreads & Commission Fee|
|CFD||$3,000 to $10,000||0.1||1:5||$1.5 to $4|
|Forex||$400||0.01||1:30||0.9 pips + $3 (for VIP), $15 (for Basic)|
You can also invest to CFD’s (Contracts for Difference). Investing to an asset without actually having the asset called CFD. Only an authorized finance foundation can provide CFDs, though FSB (Financial Stability Board) doesn’t presently regulate it. FSB is an international foundation which observes and give suggestions about global financial structure.
The forex broker let trading in 22 currencies internationally. But this is significantly low number if we consider that you can trade with many unpopular currencies in other brokers.
Platform Software for Trading
Trading in the largest market in the world requires advanced platforms. Colmex Pro has many platform options including the sector’s standard MetaTrader4.
In-house platforms exist like Colmex Pro Multitrader and Colmex Pro Trader. They allow you to make your trade operations in 11 languages. Also, they are capable of showing 7 years history of stock prices.
You can also use MT4 mobile application if you use iPhone or any android devices.
MT4 has many advantages besides being the most used platform. Abounding technical indicators are one the advantages. One can quickly realize that how useful the platform is. What is more, you can automate operations entirely by using EA (Expert Advisor). Believe me; it’s really joyful to watch to let software handle all the job.
You can also set up VPS (Virtual Private Service) and control your operations from your mobile phone.
Deposit/Withdrawal Methods of Colmex Pro
The broker offers many options. If you want to deposit/withdraw via e-wallet, you can use Skrill or WebMoney. Since not all forex brokers have e-wallet systems. I think it’s an important feature. Maybe you would like to use debit/credit cards, in that case, VISA and MasterCard are available. Bank wire service of Bank of America, Commerzbank, Citibank, Deutsche Bank is also supported.
Service in Other Languages
English is the only language of the website. Many of their customers are from the EU. So it could be nice if they add some other European languages. However, their in-house platform supports many different languages.
Live chat service exists, but it’s not functional. Their e-mail service isn’t fast either. However, If you want remote technical support, their employees can reach you using TeamViewer software. This feature might help you if you get confused or an error while using their platforms.
The Forex broker has an open complaints handling the procedure. They only accept complaint written in English. If necessary, customer support would send the compliance to the compliance department.
If your problem couldn’t be solved by the company, you can direct your compliance to Financial Ombudsman Service with paying €20 to some Cypriot Bank (Hellenic Bank, Bank of Cyprus, Cooperative Central Bank) in 3 months after the getting reply by the company. Also, you can send your compliance to CySEC.
Among all forex brokers I reviewed, this one was better than average. I think pros are stronger than cons. When it comes to depositing your money to a forex broker, trust is the most crucial factor. Colmex Pro is an accountable forex broker which pursues transparent business model.
Nonetheless, I advise customers to open a minimum deposit account firstly even though minimum deposit account requirement is high in this particular case. Spreads are quite high if you don’t get a VIP account, but the leverage is high when you consider when limitations of ESMA (European Securities and Markets Authority). They offer many in-house and popular trading platforms as well. Their deposit/withdrawal methods are nice too. All in all, Colmex Pro is among the brokers that I advise potential clients to give a try.