I reviewed StarFX based on the following criteria.
- MT4 supported
- Spreads are low
- Unregulated broker probably scam
- No information minimum deposite
- Payment methods are not competitive
- Only one account type offered
Today I will introduce you to StarFX. StarFX is a forex and CFD broker which includes MetaTrader4 platform. Do not invest before read this review with StarFX.
StarFX was launched in 2018. The broker offers online trading services.
After this short information let’s see what we will learn about this broker;
What are StarFX account types? Is StarFX scam or reliable ? Does StarFX have a license ? What kind of deposit/withdrawal methods they offer ?
I will give all answers that you wondering in this StarFX review.
Regulation and Investor Protection
Regulation and Investor Protection
I think the most important feature of a broker is its reliability. Some of brokers have regulations but some of doesn’t.
Unfortunately, StarFX doesn’t have any regulation. They are saying this on their website: ”Starfx is NOT subject to the regulatory oversight that governs other Trading Bulls Ltd entities.”
I think this is a big disadvantage for StarFX. Even if StarFX is registered by the local FSA (Financial Services Authority) on the Seychelles, it is not enough for me. Because you can take such a license online you don’t even visit the Seychelles. You just deposit 50,000 USD in a bank account there to take this license.
On the other hand offshore regulators such as FSA in the Seychelles or the Vanuatu Financial Services Commission don’t offer enough protection to potential investors. There are some reputable financial watchdogs such as the CySEC in Cyprus, Financial Conduct Authority (FCA) in the UK or the Australian Securities and Investments Commission (ASIC). They required to keep a minimum net capital.
These are 1,000,000 AUD for ASIC. 730 000 EUR for FCA and CySEC. They required this to protect all traders’ capital and in some cases even to insure trader’s money.
With the FCA backed Financial Services Compensation Scheme for example, in case the broker goes bankrupted, traders can receive back up to 50 000 GBP of their capital. Similar compensation scheme with the CySEC in Cyprus guarantees traders up to 20 000 EUR of their investment.
I always say that when you work with unlicensed forex brokers, remember that you may encounter problems. In order not to encounter such problems, we recommend that you open an account with reputable forex brokers. You can see a list of FCA Regulated and Reputable Forex Brokers below link.
Account Types, Leverage and Spreads
StarFX Account Types, Leverage and Spreads
According to their website, there is only Standard account type at StarFX. I wanted to know if there are any other account types but I couldn’t reach online customer services. StarFX gives $50 Bonus Credit promotion for all new accounts but I strongly recommend you to read Bonus Terms and Conditions. You can reach a list of brokers with low minimum deposit through the button below.
There is no information about minimum deposit amount on the website for Standard account and maximum leverage ratio they are offering is 1:400. Don’t forget! The leverage may give you a high profit with small deposits but you may face the risk of depleting your money.
Let’s talk about spreads. I tested with a Demo account the EUR/USD spread fluctuated between 0,4 pips and 0,5 pips. There is no commission also. You should test Demo Account if you are a new investor. These spreads are pretty low. However, I must say that an unlicensed broker should offer such spreads to attract an investor.
|Account type||Min. deposit||Max. leverage||Spreads|
|Standard Account||n/a||1:400||0,5 pips|
Deposit/Withdrawal Methods of StarFX
As I said above there is no info about the minimum deposit on StarFX website. We don’t know what is the minimum deposit requirement to start trading with them. This is a disadvantage for StarFX.
StarFX offers some deposit/withdrawal options like major credit or debit cards, bank wire, popular e-wallets like Neteller and Skrill. Unfortunately, they don’t have PayPal and crypto coins (Bitcoin etc.) fund options. When I compare with other brokers, StarFX doesn’t have enough fund options.
And also StarFX offers its investors 46 forex pairs which include Singapore Dollar, Swedish Krona, Polish Zloty, Norwegian Krone, Mexican Peso, Hungarian Forint, Turkish Lira, Chinese Yuan etc. The broker also offers CFDs on precious metals like gold and silver, oil and several indices. This is a very important feature to be traded in so much currency.
You can choose English, Spanish, Colombian and Mexican languages on StarFX website.MetaTrade4 is available for StarFX. These are advantages for them.
I think StarFX has some advantages but the broker doesn’t have any license. Because of that you should be careful during the trading. To trade with unregulated brokers has some risks. You may lose your money to scammers.