Independent Review - HonorFX
HonorFX is a Mauritius based CFD broker that wants to provide its clients with a safe trading platform. They are also believers in building relationships with their clients, which could make them a solid long-term choice if you are looking for a CFD broker. They claim to have fund safety, fast trade executions, extensive financial markets experience, and ethical trading conditions. We will see if they really do live up to these claims or if you should avoid them and move on to a different broker.
HonorFX was originally launched in St. Vincent and the Grenadines, but more recently has moved to the nearby island of Mauritius. It is a broker brand under the parent company of Honor Capital Markets Limited and is registered and licensed in the Republic of Mauritius as an Investment Dealer. As a CFD broker they are able to offer a number of assets to their clients, including equities, indices, commodities, cryptocurrencies, and forex.
That is all well and good and covers what you would expect from an online CFD broker. They also have both MetaTrader 4 and MetaTrader 5 as potential trading platforms, which is also increasingly common practice for the online CFD brokers.
Clients can choose between three different account types, namely Standard, ECN and Islamic. Each comes with some slightly different conditions. Enterprising individuals can also take advantage of the introducing broker or white label programs offered.
Overall, everything is pretty basic, and the broker is well regulated, so does that mean they are a good broker to choose for your trading needs? That is what we will be exploring through the rest of this review.
HonorFX is a brand name of Honor Capital Markets Limited. They are regulated by Financial Services Commission of the Republic of Mauritius with an Investment Dealer license. The license number is GB200225826. They are also currently in the process of obtaining a license from the Labuan Financial Services Authority in Malaysia.
While some might complain it is not the best regulatory body, it does provide the protection traders look for when choosing a broker based on regulation only.
There are three account types offered by HonorFX and each is quite specific to the type of trader who might choose them.
Standard Account: The standard account is the entry-level account with HonorFX, it requires a minimum deposit of $100 and has spread starting from 1.2 pips, it does not have any added commission. It uses the MetaTrader 4 and MetaTrader 5 trading platform. There is a margin call level set to 50% and the stop out level is set to 30%. There is also a minimum trade size of 0.01 lots and a maximum trade size of 20 lots. Leverage can be set between 1:10 and 1:500.
ECN Account: The ECN account requires a minimum deposit of $10,000 and it uses the MetaTrader 5 platform exclusively. It can have a leverage of between 1:10 and 1:500 and it uses the raw spreads. The margin call and stop out level remain at 50% and 30% respectively. The minimum trade size is 0.01 lots with the maximum trade size is 20 lots.
Islamic Account: The Islamic account is for those whose religious beliefs do not allow for interest payments. It requires a minimum deposit of $100 and has spreads starting from 1.5 pips, it does not have any added commission. It uses the MetaTrader 5 trading platform only. There is a margin call level set to 50% and the stop out level is set to 30%. There is also a minimum trade size of 0.01 lots and a maximum trade size of 20 lots. Leverage can be set between 1:10 and 1:500.
In addition to the three actual trading accounts, there is also a demo account available for testing the platform or your trading strategies without risking any real money. We really like that they do include this feature.
The available assets at HonorFX are broad based and cover all the major financial markets. Traders will be able to choose between forex pairs, cryptocurrencies, major global stocks and indices, and futures on a range of commodities. All of these are available as CFDs, which makes trading far more efficient. Traders should appreciate the wide range of assets and will find something for everyone. Plus, HonorFX is always adding new assets to their offerings.
HonorFX offers both the MetaTrader 4 and the MetaTrader 5 platforms, which is an excellent decision in my opinion. The combination of features from the two award-winning Metatrader platforms brings the functionality and features that will serve nearly any trader, from rank beginners to seasoned professionals.
Both MT4 and MT5 are available as desktop programs, a web-based application, and mobile apps for both Android and iOS. Any experienced trader has likely had some experience with either MT4 or MT5, and in the main the two versions are identical. The primary difference is that MT5 has been developed to adhere to U.S. hedging rules, which basically means that hedging is not possible with MT5. Traders also agree that MT4 is best for forex trading, while MT5 excels for CFD stock and commodity trading.
You do get an expanded selection of time frames and tools with MT5, but not so much that it makes a huge difference. In fact, the reason MT4 is still around is that many traders prefer it to the newer MT5 platform. Try them both and make your own decision.
Banking is not something mentioned on the HonorFX website, so we can only presume that this information becomes available once you are registered for an account. On the website itself there is a section where the broker claims to accept Neteller, Skrill, Paypal, Bitpay, Fasapay, and Perfect Money.
We would think that they also accept the commonly used bank transfers and credit/debit cards but cannot confirm that. More troubling for us is the lack of information regarding deposit and withdrawal fees and time frames. Hopefully, the broker will add this missing information to their website in the future.
HonorFX provides customer support on Monday through Friday only from 10am to 7pm GMT. Support can be contacted using email, via online chat from the broker website, as well as by telephone. We would be happier if HonorFX expanded its customer service hours considering the 24-hour nature of the forex markets and the 24/7 nature of the cryptocurrency markets.
Overall, it appears that HonorFX is a good broker to work with, however we would like to see them include information regarding banking with them and expand their customer service hours.
That aside it is good to see that the broker is regulated, and we do like that they offer both MetaTrader 4 and MetaTrader 5 as the trading platforms. The leverage is excellent, and the spreads are also quite good, particularly if you can afford the $10,000 minimum deposit for the ECN account. If not the $100 minimum for the Standard account is quite attractive.
Ultimately, we do believe trading with HonorFX would be a good experience. You could always give it a try on their demo platform and see for yourself about the trading conditions.
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