Minimum Deposit: $1
Maximum Leverage: 1:500
My Score: 1.5
I will write a ForexStart review today on request from my blog’s visitors. I got a lot of questions about ForexStart. Because the information on the official website is not enough and a little shady. So investors are wondering whether ForexStart is a scam or a reliable broker.
ForexStart’s official website can be available on the 7 languages. Most of these are languages of Asian countries like Chine or Indonesia. Therefore, this broker is targeting Asian investors.
Another point I should mention for the official website is that the website is very amateur and has a confused design. It looks like it was designed in the ’90s. Therefore, it is very difficult to obtain information frothe m official website for investors.
Now the most curious topic to come: ForexStart scam or reliable? What criteria should we look at in order to have an opinion on this issue? What are the trading conditions and account types offered by ForexStart?
You can find all these questions in this ForexStart review. If you have any further questions, you can write to me via the comments section below this page. I try to answer as soon as possible.
If you’re ready, let’s begin the review.
Regulation Problem of ForexStart
I have stated in my previous articles that it is very difficult for newly established brokers to obtain a license from reputable regulators. Because it is difficult to provide the conditions required by these regulators. Regulators such as FCA, ASIC, CySEC … But relatively less reputable regulators can be preferred for licensing. This is understandable, but serving as an unlicensed broker is unacceptable.
According to the “About Us” page on ForexStart’s official website, the broker was founded in 2007 and has won numerous awards since 2010. Therefore, we can not evaluate it as a newly established broker. Until now, all the licensing problems have to be done.
ForexStart is owned and operated by Tim Group Limited. This company is registered in Saint Vincent and the Grenadines.
This island country is a liberal zone for offshore companies and is often preferred by forex companies. Because there is no regulator in this country that regulates forex companies and there is no requirements for brokers. So I can clearly state that ForexStart is an unregulated and unlicensed broker.
The official web site states that the broker is allegedly protected by Global Unite Responsibility System- GURS. But I heard GURS for the first time. It is not a regulator and does not have any authority to regulate it. It is most likely a fake regulator that is created by the owners of ForexStart. Because according to the information on the website of GURS only 8 dealing centers are protected and their logos are very similar.
Trading in unregulated brokers is very risky. Because they can seize your money for a variety of reasons, which is a common occurrence in unregulated brokers. So I would recommend you to think again before opening an account with ForexStart.
Regulators such as FCA, CySEC, ASIC or VFSC are well known and have a reputation in the forex market. It would be useful to consider this when choosing brokers.
Account Types and Trading Conditions
ForexStart offers 3 different account types: Fixed, Standard and ECN. You can understand the features of each account by name. You can check out the other features of the account types at the table below.
|Account types||Minimum deposit||Max. leverage||Avg. Spread (& Commission)|
|Standard||N/A||1:500||0.5 pips + commission of 0.3 pips|
|ECN||N/A||1:500||0.2 + commission of 0.6 pips|
The minimum deposit amount for a fixed account type is $ 1. In addition, fixed spreads are offered at this account type. Thus, you do not encounter some chronic problems during trading like spread widening. I can say that the average spread is normal for fixed spread accounts around 2 pips.The maximum leverage is 1: 500.
Payment Methods Offered by ForexStart
ForexStart offers a wide variety of deposit and withdrawal methods. I think the broker that offers the most variety of payment methods among the brokers I have examined so far. You can use wire transfer or credit / debit cards as a payment method In addition, you can find most of the popular e-wallet systems. Skrill, Perfect Money, Yandex, WebMoney, Moneta, Boleto are available. Cryptos such as bitcoin, bitcoin cash, dash and litecoin are also accepted by the broker.