FlowBank Broker Review: Regulated or Self-Claimed?

Introduction

In the world of online forex trading, it's crucial to ensure that you're entrusting your hard-earned money to a reputable and regulated broker. FlowBank, headquartered in Geneva, Switzerland, claims to be a regulated forex trading broker. In this comprehensive review, we will delve into FlowBank's history, regulatory status, trading instruments, platforms, and pricing, and examine the negative feedback circulating in the online trading community. By the end of this article, you'll be equipped with the knowledge to judge whether FlowBank is indeed a regulated broker or just making claims.

Who is FlowBank？

FlowBank's story dates back to 1991 when Charles Henri Sabet began managing funds for a small circle of friends in the foreign exchange market. This venture eventually led to the acquisition of a banking license in 1999. However, it was in 2004 that a significant shift occurred when Charles Henri Sabet decided to reorient his bank toward online trading. Renamed Synthesis, it became the first bank to offer online foreign exchange trading to retail clients. Synthesis Bank's success culminated in its acquisition by Saxo Bank in 2007.

Trading Instruments Offered

FlowBank offers a diverse range of trading instruments to its clients, including:

- Forex

- CFDs (Contract for Difference)

- Cryptocurrencies

- Stocks

- ETFs (Exchange-Traded Funds)

- Funds

Trading Platforms

FlowBank provides multiple trading platforms to cater to the varied needs of traders. These platforms include:

- FlowBank

- FlowBank Pro

- MetaTrader 4

- MetaTrader 5

Pricing

FlowBank takes pride in its best execution policy for order execution, ensuring transparency and competitive pricing for CFDs, Forex, and a wide array of financial assets. The broker offers three types of trading fees based on your initial fees:

1. Classic: This is the standard trading fee structure.

2. Platinum: A popular choice among traders, offering lower fees compared to the Classic plan.

3. CFD Rebates: FlowBank provides rebates based on your monthly trade volume, offering the potential for savings on trading costs.

Is FlowBank a Regulated Forex Trading Broker？

According to FlowBank's official website, it is registered and authorized as a bank by FINMA (Swiss Financial Market Supervisory Authority), a renowned financial regulatory body in Switzerland. This suggests a level of credibility and adherence to financial regulations.

FAQ: Is it enough for a trading broker to offer online trading service that are authorized as a bank？

Being authorized as a bank by a regulator is an important step, but it may not be sufficient on its own to offer online trading services. Online trading services typically require additional regulatory approvals and licenses beyond basic banking authorization. The specific requirements may vary depending on the jurisdiction and the type of online trading services you want to offer.

Here are some common regulatory considerations for offering online trading services:

1. Securities Licenses: If your online trading services involve the buying and selling of stocks, bonds, or other securities, you may need to obtain specific licenses from the relevant securities regulator in your jurisdiction. This often includes registration as a broker-dealer or investment adviser.

2. Compliance with Financial Regulations: Online trading platforms must comply with a range of financial regulations, including anti-money laundering (AML) and know-your-customer (KYC) requirements. These regulations help prevent illegal activities such as money laundering and fraud.

3. Technology and Cybersecurity Standards: Online trading platforms need to adhere to strict technology and cybersecurity standards to protect customer data and ensure the integrity of trading systems.

4. Customer Protection Rules: Regulators may require you to establish procedures for handling customer funds and provide investor protection mechanisms, such as insurance coverage or segregated accounts.

5. Market Access and Exchange Agreements: If your platform offers access to financial markets or exchanges, you may need to negotiate agreements and meet specific requirements set by those marketplaces.

6. Capital Requirements: Regulators often set minimum capital requirements for financial institutions and trading platforms to ensure their financial stability and ability to meet obligations to customers.

7. Ongoing Reporting and Compliance: You'll likely need to submit regular reports and adhere to ongoing compliance requirements set by the regulator.

It's important to consult with legal and regulatory experts who specialize in financial services to ensure that you meet all the necessary requirements to offer online trading services in your jurisdiction. Failure to comply with these regulations can result in legal and financial consequences, including fines and loss of authorization to operate.

Negative Feedback

Despite FlowBank's claims of being a regulated forex broker, there have been concerning negative feedback and complaints circulating in online trading communities. A visit to reputable review sites reveals a flood of grievances against FlowBank. Even WikiFX, a platform that supports traders in verifying the credibility of forex brokers, has received complaints against FlowBank.

Characteristics of a Trustworthy Regulated Forex Broker

Before concluding whether FlowBank is a reliable and regulated broker, it's essential to consider the characteristics that define a trustworthy broker:

1. Regulation: A regulated broker should be authorized by a recognized financial regulatory authority, like FINMA in Switzerland.

2. Transparency: A reputable broker maintains transparency in pricing, fees, and execution policies.

3. Positive Reputation: A trustworthy broker should have a positive reputation among traders, with minimal or no negative feedback.

4. Security: Clients' funds should be held in segregated accounts to ensure their safety.

5. Customer Support: A reliable broker offers responsive and helpful customer support.

6. Range of Instruments: Offering a wide range of trading instruments indicates a broker's commitment to meeting diverse trading needs.

Before making any decisions, we recommend conducting further due diligence and verifying FlowBank's regulatory status independently. Your financial security is of utmost importance in the world of online trading.

Check out for more of FlowBank's details.

https://www.wikifx.com/en/dealer/1037223850.html

Conclusion

In conclusion, FlowBank's regulatory status as claimed on its official website is registered and authorized as a bank by FINMA. However, the presence of negative feedback and complaints raises concerns about its reliability. As a trader, it is essential to exercise caution and conduct thorough research before entrusting your capital to any broker. Judge for yourself whether FlowBank is indeed a regulated broker or simply making claims based on the information presented in this review.

For a convenient and comprehensive list of forex brokers regulated by FINMA, visit the WikiFX regulators page through the link below. Ensure your peace of mind by trading with regulated brokers authorized by the Swiss financial regulatory authority.

Link: https://www.wikifx.com/en/search.html