HXFX Global Review – is hxfxglobal.com scam or good forex broker?

HXFX Global presents itself as a global forex brokerage holding licenses with three financial institutions. It offers its clients access to the popular MetaTrader4 platform, and a choice of three account types, however we couldn‘t register a demo one for the purposes of this review. What is worse, our investigation on the regulatory status of the entities within the HXFX Global group revealed that the broker doesn’t actually hold a credible license of its own.

HXFX Global Advantages

Registered as an AR of an ASIC-licensed firm. Licensed in Vanuatu

One of the companies within the HXFX Global group, Rhino Smart Pty Ltd., is indeed registered as an authorized representative (AR) of a brokerage licensed by the Australian Securities and Investment Commission (ASIC). Although HXFX Global doesnt hold a license of its own, such registration allows it to operate legally in Australia.

Furthermore, another entity with the group, HXFX Global Investments Limited, is licensed by the Vanuatu Financial Services Commission (VFSC) as a dealer in securities. The VFSC requires licensed entities to keep clients‘ funds in segregated accounts, separate from the company’s money. Also, all regulated brokers should maintain a physical presence on the island, have a local director, and to maintain a certain minimum capital requirement ($50 000).

Yet, keep in mind that a VFSC license does not mean a lot in the trading world, because of the lax regulations in offshore zones.

MT4 available, spreads not bad

As we mentioned already, HXFX Global supports the ever popular MetaTrader 4 (MT4), and that is another plus. This trading software provides great charting capabilities, an astonishing environment for the development of custom tools (MQL) and automated trading systems (Expert Advisors) which the so called “marketplace” has to offer. Besides, the platform is available in all forms and shapes – desktop download, web-based version and mobile apps for iOS and Android.

We should also note that the spreads announced on HXFX Globals website are not bad – 1.5 pips pn EUR/USdDfor the most basic account type. That said, a lot of brokers, including reliable and well-regulated ones offer better pricing.

Up to 1:500 in leverage

Another possible benefit of HXFX Global is the fact that it offers leverage ratios up to 1:500. This level is high enough and suitable for almost most trading styles. That being said, leverage ratios that high can also lead to relatively quick losses, so be sure to learn about the risks involved and how to manage your risk.

HXFX Global Disadvantages

No credible forex broker license

As was mentioned above, HXFX Global acts as an Authorised Representative (AR) of a company that is regulated by the Australian Securities and Investments Commission (ASIC) – Boutique Capital, which is actually an investment fund.

While the licensee itself is responsible for the conduct of the authorised representative, if the latter is acting outside their powers, the ASIC-regulated company will not be liable for any such actions. So, things might get a bit complicated with an AR who does not hold a license of its own.

As regards the license issued to the broker by the Financial Services Authority in Saint Vincent and the Grenadines, we should not that companies in this offshore zone are not regulated, as the FSA itself explicitly stated.

The situation with HXFX Globals VSFC license is similar. Although the regulatory framework for financial services providers in Vanuatu is better than those in most offshore zones, it is still loose. The VFSC has very lax requirements to dealers in securities and practically does not exercise any oversight. This means that clients of 6iTrade and other offshore brokers have no guarantee that their money is safe, nor that they will receive any protection if something goes wrong.

No free testing service

Although HXFX Global‘s MT4 is freely downloadable on the broker’s website, we couldn‘t test it for free. When we tried to register a demo account on the broker’s website, it turns out that such accounts are only available to residents of Malaysia and Vietnam.

Not offering free testing service is always a worrisome sign, as it shows lack of transparency on the part of the forex broker.

Conclusion

A broker that seems to target mainly Asian clients, HXFX Global offers trading on the popular MT4 platform, and the trading conditions actually seem good. Yet, the fact that the broker is not properly regulated, nor transparent about its services inclines us to believe that there are far better trading partners than HXFX Global. Below, you may check out our list of recommended forex brokers that are licensed in Australia:

To sum up our review of HXFX Global: