Independent Review - LONGHORNFX
LonghornFX is a new online broker that launched in July 2020. They are offering a variety of assets – 183 according to their website – and that includes many currencies, cryptocurrencies, and stocks. Probably the most interesting aspect of the broker is that they use Bitcoin for all their deposits and withdrawals. That is definitely something new, but we are not sure how well it will catch on as Bitcoin usage remains somewhat low in the grand scheme of things.
The broker says they are a true ECN/STP broker, offering transparent, fast, and accurate order execution for FX and CFD products.
The following review will take a closer look at the practices of LonghornFX, including the trading platform, regulation, fund security, account types, and much more.
As we mentioned above, LonghornFX is a pretty new broker, having launched in July 2020. The broker uses an ECN/STP model for order execution, which gives its clients direct access to the world’s largest liquidity markets. This provides some of the most rapid execution available, along with tight spreads. Orders are basically sent directly to the interbank market, and there’s no dealing desk involved in any part of the transaction.
One of the goals of LonghornFX is to provide traders with a new and innovative trading experience. They do this through their broad cryptocurrency offerings, and by offering banking via Bitcoin. In addition, they are strong in forex and stock offerings, providing more than ample opportunity to profit from daily market moves.
Trading outside the forex offerings is conducted via CFD products, which many prefer since there is no actual ownership involved. That means market liquidity is less important since the contracts are speculating on price movements. The broker also offers leverage of up to 1:500 on many assets, and even as high as 1:100 on cryptocurrencies.
Trading is done via the Metatrader 4 platform, which has long been our favorite. It gives traders plenty of tools and indicators for analyzing market activity. And those interested in auto-trading are free to take advantage of the Expert Advisors included with Metatrader 4.
One possible downside for some is the location of the broker, which is St. Vincent and the Grenadines. We say this is a potential downside because brokers located in SVG are not regulated, and there are some traders who will only trust a regulated broker.
As mentioned above LonghornFX is not regulated in St. Vincent and the Grenadine’s nor is it regulated anywhere else. Because regulation is a process that takes some time, and considering that LonghornFX only launched in July 2020, it is possible that they are working on becoming regulated.
Ultimately the broker’s reputation is more important than any regulation, and thus far LonghornFX maintains a solid reputation in the investing community.
While other brokers are confusing you with eight different account tiers LonghornFX likes to keep things simple by avoiding all that. Instead they have trimmed it down to just one account. That is right, there’s only one account level, and the minimum deposit is $10. That gets you the same tools and tight spreads no matter if you’re a beginner trader or a more advanced trader.
While there are other brokers with larger product offerings, we found what LonghornFX has to offer to be very good. There are nearly three dozen cryptocurrency pairs, and more than 55 forex pairs. Currency traders will be more than happy. There are also more than 60 stocks, almost a dozen indices, and a handful of commodities.
LonghornFX only has one platform available for traders, it’s Metatrader4. Considering the wide forex offerings of the broker that makes complete sense since MT4 is acknowledged by many as the best platform for trading currencies. It is the complete package; with all the indicators and analysis tools anyone could need. Plus it comes in versions for desktop, smartphone, or web.
Some of the great features available on the MT4 platform include its advanced charting capabilities, a live news feed, the highly rated Expert Advisors, and many technical analysis indicators. And there are many additional tools and plugins that can be easily downloaded and installed to further enhance the usefulness of the platform.
One of the best features is the ability to create new trading strategies and to back test them to see how they might work in real market conditions. Of course, back testing isn’t perfect, but it does help in creating workable strategies that can then be brought to real market conditions to see how well they work. Creating trading strategies as an Expert Advisor can also unlock the potential of auto-trading, which can be huge if you can make it work.
Banking at LonghornFX is interesting as they are one of a handful of new brokers that have decided to fully embrace cryptocurrencies. As such they accept Bitcoin deposits only. Of course, you can also use a debit or credit card to deposit, but when you do so it directs you to Instacoins to purchase Bitcoin, which can then be deposited. One note regarding the use of debit/credit cards and Instacoins is that the minimum deposit increases to $50 in this scenario since Instacoins requires a minimum $50 purchase. Because the Bitcoin transfer needs 6 network confirmations it can take up to an hour for funds to be available, or even longer during times of network congestion.
Withdrawals are also done exclusively with Bitcoin, and there is no stated minimum. Withdrawals are processed the same day they are received, but again you do need to wait for the six network confirmations before the Bitcoin is available in your wallet. There are no withdrawal fees, but the Bitcoin network charges a mining fee of 0.0005 BTC.
One of the great things about the customer service team at LonghornFX is that unlike so many broker support desks these days, the team is available to help with questions, concerns, or problems at any time. That’s right, they are available 24 hours a day and 7 days a week. That sure beats the limited five-day availability at so many other brokers these days.
Live chat is the easiest way to contact the support team, and they are extremely responsive when contacted in this way. It’s also possible to email the team for help, and those who like to hold a phone conversation can submit a request for a callback. There’s no phone number listed as a contact method, so you can’t call them directly.
From my experience, issues and questions are resolved immediately, and you also get to leave feedback on the quality of service received.
Webform: Callback Form
While LonghornFX may be a relatively new broker, which comes with its own problems and challenges, they have been able to incorporate features that makes them a valuable alternative to other brokers. The use of Bitcoin as a deposit and withdrawal currency is something new, and while I think it could take some time to catch on, it is also unique and innovative. Clients get to enjoy fee-free deposits and withdrawals, and while they are not instantaneous, they are quick as long as the Bitcoin network isn’t congested.
The use of the ECN/STP trading method gives clients access to rapid execution and tight spreads, which is always something to look for in a broker. I also appreciate that customer service is available 24/7, rather than 24/5 or worse.
Offering Metatrader 4 as the operative platform was also an excellent choice in my opinion. It remains the best platform available for forex and technical analysis. And including a demo account from day 1 was also a smart move as it allows traders to test strategies and to become comfortable with the platform and the broker before risking any capital.
Of course, there are areas for improvement. That includes becoming regulated for the peace of mind of the prospective clients. We think it also includes making more banking options available. Of course more assets is always a positive with a broker as well. We think the broker could also work to improve its education and research offerings, which are quite slim as of late 2020.
For those who want to bank with Bitcoin LonghornFX is an excellent choice.
SVG: Saint Vincent and the Grenadines
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Instruments / Contracts