FXOpen Broker Review by Omar
[In this review, one of our members, Omar, shares his experience with the broker FXOpen. Omar runs the Forex Robot Tests section of our website.]
Another broker I have used in the past was FXOpen and I will share my review here.
I used FXOpen for almost two years and had a great experience with them. There was only one really bad part about the brokerage and that was live customer support. I will get to that later. I chose them because they seemed to offer a good ECN setup and extremely low spreads. They truly delivered what they promised when it came to spreads. On the Eur/Usd, I would regularly get as low as 0.1-0.6 during higher volume times. I’ll get to all that in a little bit.
Who are FXOpen?
Location: Cyprus although you will be sending your money to a bank in Latvia if you send a wire
US Clients: No, I was booted from there for being a US client
Account Types: 6. They have a micro, a standard, retail ECN, PAMM (managed account) Standard, PAMM ECN, FASS (mirror trading) Standard, and FASS ECN. The micro, standard, PAMM standard and regular FASS accounts are market-maker accounts meaning the broker takes the counter-position for all trades you make and are essentially done “in-house”. The 3 ECN versions use FXOpen merely as an access to a liquidity provider and they pass through the orders to the open market. The standard FXOpen ECN account is the one I used and will be discussing for the remainder of this review
ECN Conditions: FXOpen offer razor-sharp spreads that I honestly have never gotten with any other broker I’ve tried (5 altogether). Spreads are almost always less than 1 on the Eur and usually less than 2 on the GBP. There are no restrictions to where you can place orders as they allow you to place a limit or a stop order 0 pips away from market price (excellent for some EAs and for very small time-frame trading).
The execution is fast (1500ms to open an order & 500ms to modify) but not mind-blowing by any stretch. Many brokers promise less than 500ms (my current one quoted me 300ms when I opened account and it actually is 1700ms to open an order). But fast enough to run just about any commercial EA with excellent success.
The commission payable to FXOpen when I was there was $7.00 USD per round-turn standard lot of 1.00 which equals 100k of base currency on the Eur/Usd. If you plan on using an EA that trades large lots, these commissions rack up pretty quick (I was paying twice my mortgage payment a month in commissions on an account under 10k). I just went back to their site and they seem to have gone down to $5.00 per round-turn standard lot which is way more competitive in my opinion.
The FXOpen ECN uses Metatrader 4 and also gives you a program to look at level II market depth which I thought was pretty cool. You will find that EAs function well in the FXOpen environment. Spreads are very low, nothing weird happens to them around news (although they can open a bit, but that is normal with ANY broker unless you have a fixed spread which they will probably lock you out of the market during wild volatility). Very consistent trading environment. My favorite part of the experience.
Money Handling: FXOpen has an AWESOME back office where you start with a “main” account, then you can create “sub-accounts” to trade with. You send money in and out of your own bank to the “main” account and then from the “main” account, fund any of your trading accounts or remove money from them. It’s very handy if you want to segregate different strategies and most money transfers between internal accounts is handled in less than one hour with my average experience being around 20 minutes! FXOpen lets you withdraw and deposit money in a variety of ways, from Moneybookers, to bank wire, to actually sending you an FXOpen debit card linked to your account! I found this impressive and unique to my experiences with brokers.
Support: A HUGE black eye to FXOpen in an otherwise wonderful operation. This part STUNK!!! The FXOpen live chat is hosted by people that don’t greet you. I cannot tell you how many times on live chat the first line was me saying “Hello???????” Then after minutes of waiting for someone to respond, you get to speak to someone who either: Cannot speak the language you do AT ALL, and types like a child when you are discussing very technical and important financial matter.
OR, they take sometimes 30 minutes to respond back and their responses MANY times are very defensive or they just try to brush you off by referring you to a link on their website which does not answer your question. When, they informed me that I would have to withdraw my funds from my account because of Dodd-Frank compliance, I used their live chat to initiate a bank wire and get the procedure (it would be cheaper getting a lump sum this way).
THEIR SUPPORT DID NOT KNOW HOW I COULD WITHDRAW MY OWN MONEY. After an hour of frustratingly trying to explain I was making a withdrawal and NOT a deposit, they simply told me they couldn’t help me anymore because I’m a US client and they couldn’t talk to me and said goodbye!!! I was sickened to my stomach. What was going to happen to my money?? They can’t even help me with a withdrawal!!
When I looked for a phone number to call………there was none!! The closest thing was a “partner” in Russia. Literally if you go to their “contact us” part of their website, the “call us” section literally has nothing in it. It just goes to “fax us” (FAX US?? Really?? Still faxing away there people???). There are a ton of email addresses though to various support and that was my only recourse.
Luckily FXOpen handled everything perfectly through the email process. The people on the other end of the emails cannot be the same incompetent people doing live chat. ALL my emails were handled promptly, courteously with knowledgeable responses. My money transfer took a matter of days and all I paid was a Moneybookers fee to receive it (they couldn’t do the bank wire for some reason!) Still support is a scary thing to deal with at FXOpen.
My Overall Experience with FXOpen
I truly enjoyed trading at FXOpen and would still have an account there if not for regulations in the US prohibiting that. If they fixed their customer support operations, they would have a very top-notch brokerage. My advice to others is that the trading conditions are great there but be prepared to take a risk on support. I wouldn’t put a ton of money there until they fixed that.
If you are not based in the US, we are able to assist you with Broker Rebates for FXOpen and other Forex Brokers. Just click the image below to find out more.
If you are interested in finding out about other Forex Brokers, please see our Broker Reviews section to find more independent reviews by our members.
We hope you enjoyed this review of FXOpen
Want more of this? See these posts:
Filed under: - Broker Reviews
Like this post? Subscribe to my RSS feed and get loads more!