Independent Review - Fundiza
Introduction and Comments
The Fundiza website is wholly owned and operated by FUNDIZA Ltd. and was created to provide financial trading activities to a global client base. The company operates out of St. Vincent & The Grenadines under the registration number 25770BC2020.
The broker is a very new addition to the online trading ecosystem, having been launched in 2019. They have been rapidly adding to their client base since their launch, as traders have really taken to the transparency of the company. Reviews of the broker from clients have been largely positive and cast Fundiza in a good light.
It’s this transparency that has made Fundiza so popular in such a short span of time. Clients have greatly appreciated the open approach of the broker which contrasts with the opposite approach some brokers take in hiding as much information as possible regarding their policies and procedures. Fundiza has been able to leverage this approach into a bond of client trust.
While traders definitely appreciate the transparency to be found here, there are other characteristics and features that recommend this broker to prospective clients and we’ll touch on those things in more detail throughout this review.
A Quick Look at Fundiza
Normally part of the review process includes the creation of a demo account at the broker to test their platform. This wasn’t possible at Fundiza due to the lack of a demo account facility. It was also not possible to test a real money account as Fundiza’s minimum deposit amount is $5,000.
We did find the Fundiza site itself very informative. It includes all the information we would typically look for at a broker all laid out in very clear and easy to access ways.
We do know that the broker offers the Metatrader 5 platform and being familiar with the platform lets us know that trading with them would be on a technologically advanced platform. Past trials with the MT5 platform let us know that the experience here is likely to be excellent as well.
One thing we would note at the start is that due to the high minimum deposit required this might not be the best broker for new traders, unless they have prepared extremely well for their entry into the trading universe. Throughout the remainder of the review we will see if this is true, or if beginners could see benefits that would make it worth their while to find the capital needed to meet the fairly large minimum requirement.
Regulations & Licenses
Fundiza holds registration number 25770BC2020 from the Financial Services Authority (FSA) in St. Vincent & The Grenadines. That registration also serves as licensing for the broker. It should be noted that the license does not permit Fundiza to offer its services to residents of the USA, North Korea, Syria, or Iran. And the website clearly indicates that residents of any other jurisdiction will need to check themselves to be sure their jurisdiction allows the trading activities offered. In cases where the trading activity is not permitted by the laws of a jurisdiction Fundiza is not responsible for any resulting actions.
Fundiza differs from other brokers in another way by offering its website and support only in English. That’s strange for a broker offering global trading, but understandable for a new broker who may not yet be well capitalized enough to provide its platform and support in multiple languages.
One exception to this is the trading platform since Metatrader 5 comes with support for all the languages of the world. The MetaTrader 5 MultiLanguage Pack (available here) utility allows anyone to translate client components of the MetaTrader 5 platform into any language of the world.
Like most brokers Fundiza offers various account types, or levels, based on a minimum deposit amount. There are six such account levels and benefits for the account types increase along with the minimum deposit. Below are more detailed descriptions of each account type/level:
This is the base level account and it comes with a minimum deposit of $5,000. For that clients receive 24-hour support and an account manager. Minimum trade size for this account level is 0.01 lots, and the clients are provided with the Metatrader 5 platform, from which they can choose the desktop version, web version, or mobile versions.
The minimum deposit required for this account level is $25,000. Based on the website information there are no additional benefits to this account level other than access to a greater number of assets to trade.
The next level of accounts takes the minimum deposit to $50,000. It includes all the prior features while also adding an economic news feed. The website doesn’t specify what’s included in the news feed, or if it is proprietary or from a third-party provider. It would be nice to see what is included in the news feed to determine how valuable it is.
The Elite account doubles the minimum deposit another time to $100,000. That’s as high as we’ve seen from online brokers. At this level clients receive all the previous benefits and in addition fixed spreads are added. There is also technical analysis of markets available at this level and as mentioned for the economic news feed it would be interesting to see if this technical analysis is proprietary or provided by a third-party.
Elite Plus Account:
Provides all the same benefits as the Elite Account. The only “Plus” we could see was the minimum deposit, which is increased to $250,000 at this level.
The VIP account is for the wealthy traders out there, or professionals, as it comes with a $1 million minimum deposit. All the prior benefits are included at this level as well as a personal account manager and any help you might need from the broker.
As mentioned earlier in this review there is no demo account provision at Fundiza.
Fees, Costs & Spreads
Fundiza has very fair costs and spreads, and with the fixed spreads they are some of the best in the industry, with major forex pairs seeing spreads as low as 0.1 pips. That’s the best you can expect, but, the average spreads for major pairs is more like 0.3 pips, which is still quite competitive.
Costs are also kept minimal, and while spreads remain variable for the first three account tiers, once deposits surpass $100,000 the fixed spreads make Fundiza extremely competitive.
Based on the information in the Terms & Conditions there are no fees for deposits and no fees for withdrawals, which is an excellent policy. T&Cs indicates some fees and commission charges is certain situations. The items are as follows:
- “The Client acknowledges and agrees to pay commissions to third parties that help initiate and maintain a business relationship between the Company and its constituents. This includes rebates, commissions, spreads, and profit sharing. The Company may also impose a 4% annual interest rate excluding daily interest rate as determined according to the status of the trading account.”
- “For inactivity, there will be some fees to be paid. The Client will be reminded of the inactivity and will be informed of the fee via email prior to the actual deadline.”
Note that an inactive account is one in which the balance falls below $100. In that case the account is frozen, and fees will be assessed unless the client deposits additional capital to bring the account balance back above $100.
Deposits & Withdrawals
Fundiza has no charges for either deposits or withdrawals, but there may be fees imposed by the bank, credit card company, or electronic payment company.
The broker will accept a variety of deposit and withdrawal methods, which includes bank transfers, credit/debit cards, and several electronic payment methods.
As is true at any broker bank transfers are the slowest means of deposit and withdrawal. Deposits will take 1 business day to process and funds become available, while withdrawals might take as long as 5 days to process. Those time frames do not include any delays caused by the client’s bank. And there is a list of Fundiza approved banks, with the broker only accepting deposits from the banks which are on that list. The list can be requested after opening an account.
Credit or debit cards are as always, the fastest method, with deposits available to trade immediately, and withdrawals processed within 1 business day.
Electronic payment methods vary depending on the company. In most cases both deposits and withdrawals are processed very quickly.
In all cases you can only deposit from and withdraw to an account that is in your name.
The only trading platform offered by Fundiza is MetaTrader 5. Clients are able to choose from the desktop, mobile, or web-based version of the award-winning trading platform.
Clients will enjoy the capabilities of the Metatrader 5 desktop version, which allows for trading most asset classes. Plus, it is one of the best platforms on the market for charting price action, and for performing technical analysis. Clients can use these abilities for examining currencies, stock and indices, and commodities.
With the power of MT5 behind them clients will be able to unlock new understandings of market movements. The platform comes with in-depth price history, making it easier to perform back testing of potential trading strategies. All of this is possible thanks to the strong technical analysis capabilities of MT5.
In addition to all the above the platform also provides market depth data, which can be very useful in analyzing possible future price movement.
MT5 Mobile App
The MT5 mobile app is available for both iOS and Android devices, and it allows active traders to monitor their positions even if they leave the house. While there are some limitations in the technical analysis capabilities of the mobile version it is still a powerful trading platform and provides an extreme level of flexibility for traders.
Thanks to the capabilities of the MT5 platform clients can have access to the markets anywhere and at any time.
Fundiza is very generous with the range of assets being made available to clients, especially once they pass the Rookie level and reach the Basic tier.
Traders looking for a solid forex broker will appreciate the wide variety on forex pairs made available on the Metatrader 5 platform at this broker. They not only have all the major forex pairs, but also many minor pairs, and even exotic pairs.
Forex isn’t all they have either. Clients can get access to precious metals, crude oil, and other commodities like wheat, corn, and sugar. In addition to that there are more than 300 popular global stocks, and over 40 different equity indices available.
Those who embrace risk can also add leverage up to 400:1 to their trading arsenal here, although using such massive leverage isn’t typically recommended.
There are four basic order types for clients. These are the market and limit orders, as well as stop orders and trailing stop orders. Clients can make changes to orders or cancel them at any time before they’ve been filled.
Notification and Alerts
All clients have access to the notification system that’s built right into the Metatrader 5 platform. This helps to avoid missing good trade setups, so long as the trader takes the time to input the conditions they need for a trade. And with SMS push notifications any alerts can be sent directly to a client’s smartphone, where they can then use the MT5 mobile application to place their trade.
Risk Management Tools
While there are no specific risk management lessons or tools being made available, clients will still have plenty of opportunity to practice risk management simply through the basic tools that are available. One of the most powerful of these are the stop loss orders, and trailing stop orders. Both can be used to protect a trade from losses. And the trade alerts can also be used to give a trader advance notice of market moves.
Trading Tools and Analysis
Traders will have access to all the technical analysis tools that come as a part of the award winning Metatrader 5 platform. That provides technical analysis based on the trader’s own knowledge. Those who like to use technical analysis provided by experts can get additional news from the included news feed once the Premier level is reached. And the broker also provides actual technical analysis for those who reach the Elite level account and above.
Education and Training
There are no educational materials available. No guides, no webinars, no videos, no education or training at all. It is possible that some training is available to registered clients, but there’s no mention of it on the website. So, traders at Fundiza will need to find another source for training and education.
Support can be contacted throughout the week on a 24-hour basis, but there is no weekend support, because there is no weekend trading. Fundiza makes their support team available via online chat from the website, through email, or by telephone. According to the broker they have the best support in the industry. While that seems impossible to prove, we did find the support team to be professional, efficient, and knowledgeable about the policies and trading platform.
Independent Opinion & Rating
It’s true that Fundiza is just getting started, but it seems they are off to a good start. They have a positive reputation and clients appreciate the open and transparent position being taken in the sometimes-opaque world of financial brokers. Our review of the services offered has largely been a positive one because the broker is doing the right thing in the right ways.
To note there’s a large minimum deposit required, even for the most basic account. It could be that Fundiza knows what they’re doing in this though. Perhaps they aren’t looking to serve the community of beginning traders. Perhaps they are targeting experienced traders who appreciate their transparency, and who don’t need hand holding.
That theory is partially borne out by the large number of assets available for trade. Whether a trader is coming from the stock exchanges, commodity pits, or currency desks there is something available for everyone. And the low spreads can help improve profitability too.
Choosing Metatrader 5 puts the broker at the cutting edge of trading platform technology, although some might argue that the Metatrader 4 platform is superior. In any case, whether MT5 or MT4, it’s an excellent charting package and analysis tool.
With reliability, transparency, low spreads, and an increasingly positive reputation it could be worth giving them a try.