Forex.ee is an Estonian broker that has been in trading for over 10 years. It offers attractive trading conditions on the popular MT4 platform and operates under the STP / ECN scheme.
About company. Fund security
The project was launched in 2004. But his story began several years earlier. Its origins date back to 1998, when the company began offering brokerage services targeted at the local Estonian market. Forex.ee claims to be registered in the EU, but in fact it is only present in the online register of the Estonian Ministry of Economy and is not entitled to provide investment services in the country. The Estonian Financial Supervision Authority (EFSA) even warned NetStock Ltd. (the company that owns and operates the Forex.ee brand and website) in 2014.
Today Forex.ee operates under the jurisdiction of Saint Vincent and the Grenadines (SVG 23783 IBC 2016). Offshore registered business companies provide financial services under the local financial regulatory regime, which is one of the most liberal in the world. Thus, customer funds are not protected by any service compensation scheme.
Let's summarize. The company is not regulated. Trading with unregulated offshore registered brokers is risky business. Therefore, if you are planning to invest a large amount of money, we advise you to choose among brokers licensed by the supervisory authorities of the EU or another jurisdiction, where you can be guaranteed the return of all invested investment or any part of it in the event of a broker's bankruptcy.
Trading conditions
The Estonian broker offers 45 currency pairs, gold and silver trading on MetaTrader 4. The website states that all transactions are processed directly on the market using ECN / STP technology without any intervention from the broker. This model has been implemented since 2014.
Forex.ee offers its clients a choice of five accounts: STP, ECN Basic, ECN Advance, ECN Premium, Crypto. There is no commission on STP account, and the lowest spreads are available on ECN accounts, starting from 0 pips. Micro-lot trading is available on all accounts.
For traders who already have significant experience and are ready to make a solid investment, an Advanced ECN account is provided. Reduced spreads and a minimum commission (2.5 units of the base currency per 1 lot) allow to increase profits. To open this account, you will need to deposit at least $ 1,000.
For professionals with a large deposit, a Premium ECN account is suitable, where it is possible to modify trading conditions.
In addition, this broker offers a dedicated Crypto account (where you can trade 13 pairs of different cryptocurrencies). For accounts with the main currency Litecoin, all values are indicated in 1 LTC (Litecoin), and for Bitcoin - in mBTC (milibitcoin). PAMM account services are also available.
The deposit varies depending on the account, but you can get started with $ 50.
Spreads
In fact, the spreads available on ECN average 0.4 pips per EUR / USD. If we add the commission that is charged on Basic ECN, the trading cost is 1.4 pips per lot. This is the average supply in the industry. Commissions on other ECN accounts are lower, however, to trade, you need to make an initial deposit, the amount of which is many times higher.
Leverage
The available leverage is quite high and reaches 1: 500. However, remember, before using such leverage, you need to learn how to manage your risks.
Trading platforms
Forex.ee supports MetaTrader 4 (MT4), the most popular platform among Forex brokers and traders. The terminal is available on PC and via mobile applications.
The MT4 platform is a well-equipped trading software that provides all the necessary tools and resources to analyze the price dynamics of financial instruments, execute transactions, create and use automated trading strategies (advisors).
What's more, MT4 provides direct access to a wide variety of trading signals.
affiliate program
Traders can also earn extra money by attracting new clients. The three-level affiliate program will allow you to receive income from attracted customers, as well as from their referrals.
The amount of remuneration directly depends on the trading volume of the attracted traders and their account type.
Support service
Forex.ee supports several ways to contact support. The company has a department for general inquiries, support directly related to trade, a sales department, and a department for partners. Although everyone has a different email address, the phone number is the same for all departments.
Chat is available for quick communication. The site is available in Russian. Does not accept US customers.
Ways of payment
FOREX.EE offers its clients the following deposit / withdrawal methods: by credit / debit card, bank transfer or electronic wallets Neteller, Skrill, WebMoney, Payza, FasaPay, Perfect Money and Bitcoin.
The broker takes an additional fee for depositing and withdrawing funds.
Pros:
competitive spreads; MT4; STP / ECN broker.
Minuses:
not regulated; does not offer CFDs for trading.
FOREXEE is a brokerage company, meaning a professional participant in the Forex market. Such organizations have the right to conduct transactions on behalf of their clients, that is, to provide intermediary services between sellers and buyers.
What services brokerage companies provide
Most traders use the opportunities provided for trading currency pairs. The essence is roughly the same as when buying currency in a bank - buy cheaper, wait for the price to rise, and sell at a higher price. But trading through a broker has a number of undeniable advantages:
- the rates are much more favorable, and the costs are significantly lower;
- there is an opportunity to trade not only on the rise but also on the fall of currency rates;
- dozens, and in some companies up to a hundred currency pairs are available for selection;
- there are many auxiliary tools.
In addition, with the help of FOREXEE, a client can conduct transactions with precious metals, indices, bonds, company stocks, cryptocurrencies, raw materials, and other goods. Without resorting to the services of a broker, it would be quite problematic for an ordinary person to buy, for example, a barrel of oil. But on a special trading platform, an order is opened with one click.
Stocks can also be purchased without the services of intermediaries. But this will be a much more complex process. It will be necessary to visit the websites of a large number of companies, compare data from them, and make a purchase directly from one of the firms. Difficulties will also arise because companies from different countries of the world maintain pages on the internet in their own languages, requiring translation. A broker provides a ready list of stocks, usually of the most profitable global brands with an abundance of information about them. After making a choice, again, it only takes one click.
The client can also receive a kind of loan from the broker, which in professional trading language is called leverage. That is, a person has the opportunity to operate with amounts that are many times, tens, or hundreds of times greater than their own funds. The size of the leverage is determined in each individual case by agreement between the client and the organization.
In addition to all this, brokerage companies are ready to assist clients in making decisions at their request. There are several options for this:
- auxiliary tools, technical indicators that automatically provide the necessary data for analysis;
- trading signals that suggest whether to buy or sell an asset at the current moment based on data from special programs analyzing market processes;
- access to analytics, news, event calendars published on the official website and social media pages;
- individual consulting by company specialists, which is usually available to those with substantial deposits.
Thus, trading through a brokerage company allows anyone to make a profit, limited only by their own level of knowledge and preparation.
What benefit does the broker receive?
The brokerage company FOREXEE is interested in having more clients who conduct numerous transactions for significant amounts. The organization's profit directly depends on this. It is derived in the following main ways.
The broker FOREXEE may charge a fixed commission for each transaction made. For example, 1 dollar. This type of cooperation is suitable for clients who open a small number of orders, aiming to make significant profits from each of them.
Another option is a bit more complicated but more popular. The broker receives a spread, which is the difference between the best buying and selling prices at the current moment. This form of payment for the company's services is suitable for traders who open many orders. The spread can be either fixed in size or variable depending on the situation.
The same broker can offer traders different payment options for their work on several types of trading accounts.
Brokers - Scammers
The Forex market is extremely attractive to people from all over the world who want to earn money. Unfortunately, where there is money, there are always deceivers and scammers. Among the organizations calling themselves brokerage companies, there are many firms operating illegally or officially registered but still using schemes to deceive clients.
In many ways, this is possible due to the vast size of the global financial markets. Regulation of activities in different countries varies, in some matters there are no unified standards, and the internet space, meanwhile, is unified. Finding various loopholes, scammers often evade responsibility.
There are countless fraudulent websites. They easily close after money is collected from deceived clients and refund demands start coming in. And immediately their organizers create new pages offering even more favorable conditions.
Such firms are called kitchens in trader slang. What do you think, is FOREXEE a kitchen or not? Share your experience in the reviews.
How Dishonest Brokers Deceive
Primitive scammers simply collect money and then block the user's personal page. And the user can no longer even contact the company by any means. Before that, the scammers are in constant contact with the client. Their task is to convince the person to top up the trading account with as much money as possible, for this they sometimes urge selling property, taking loans from banks. The blocking occurs at the moment when it becomes clear that there is nothing more to take from the victim. As a rule, such sites close quickly after managing to deceive several wealthy clients.
But there are also such schemes that work much more subtly and manage to exist for years with a huge queue of people wanting to get their money back. Often they manage to officially cover up their actual scams. The user agreement includes clauses whose meanings a novice in trading simply does not understand or does not notice at all due to inattention and low level of financial literacy. Later, when claims arise, the company refers to the document, and there is nothing to counter this.
Another way of withdrawing money from clients' deposits is called quote manipulation. On its website, the scheme shows the user quotes that differ from the real ones. And the client does not actually trade on the market, but only within the same scheme. The charts and images are drawn in such a way that the trader ends up at a loss. One by one, the trades gradually zero out the deposit.
Even the generosity of a company, which is of course illusory, can pose a danger. For example, a client may be given bonuses expressed in real money for registering on the site, for replenishing an account, and others. Bonus currency units are mixed in the deposit with the client's personal funds, and the income received from them can no longer be separated. And when a trader tries to request a withdrawal, they learn about additional bonus usage conditions that will be impossible for them to fulfill. And all this was stated in the bonus program, written in small print in the farthest corner of the site. The fact that the client did not read the terms in advance is only their problem.
Places of registration of brokerage companies
Deceiving people from one country, fraudsters often hide in the territory of another, skillfully using discrepancies in the laws of states.
For these purposes, companies are often registered in offshore zones. These are either separate countries or parts of their territories with a registration regime loyal to any business and a low level of control. Simply put, to attract foreign capital to their territory, some small island in the ocean is ready to register a company with just an application and a minimal set of documents and does not interfere with an audit in its internal affairs.
The most popular offshore zones among brokerage companies are Saint Vincent and the Grenadines, Cyprus, Mauritius, Belize, the Marshall Islands, and the British Virgin Islands.
Official proceedings, for example with the broker FOREXEE, will have to be conducted by traders in accordance with the laws of the specified states. And it is practically impossible to do this independently. It is also extremely difficult to find lawyers who know foreign laws. In some cases, presence at court hearings at the place of company registration may be required. All this makes the proceedings not only complicated but also expensive.
However, the mere fact of the broker FOREXEE being registered in an offshore zone does not necessarily indicate dishonest intentions. Many reputable companies that have proven their high level over decades also have offshore registrations. The goal is to reduce tax expenses. In the 21st century, many strive for this. Therefore, the largest global banks and manufacturers, whose reputations are unquestionable, conduct business through offshore zones.
Moreover, not all countries attracting foreign capital can be called exotic. Cyprus is part of the European Union and adheres to its rules. The Virgin Islands belong to the United Kingdom.
How to Choose an Honest Broker
When choosing a brokerage company, many parameters need to be considered. The place of registration is one of them. But it is more important to assess who regulates the organization's activities and how. Local government regulatory bodies do this based on the location. You need to find their websites online and check the information about the issued permits. There are also supranational structures, membership in which obliges brokers worldwide to adhere to established internal norms and rules. Major Forex market participants often represent financial groups whose subsidiaries are regulated in multiple jurisdictions. In any case, brokers' official websites should provide information about the issued licenses. It is better for the client to verify its authenticity in the manner described above.
It is important to study what is written about the company on external resources. If there are no mentions of it at all, that's a negative. If its experts appear on leading thematic platforms, that's a positive.
Don't forget to read customer reviews on as many sites as possible. But approach them critically. Especially if one place writes exclusively good things and another exclusively bad. Look for reviews with specific examples, facts, and mentions of pros and cons, rather than unfounded praise or criticism.
The company's website should be detailed, and the information on trading conditions should be thorough, specific, and clear. It's not enough to say 'We have low spreads!'; exact sizes in points are needed.
By following all these rules, you will be able to choose a solid brokerage company, cooperation with which will help you enter the intriguing world of Forex, which has made many people on the planet millionaires.
