Formax Prime Capital (UK) Limited is regulated by the Financial Conduct Authority (FCA) in the United Kingdom. It is subsidiary of Formax Group Limited.
The broker offers for online trading more than 70 currency pairs, commodities and indices.
Formax provides its services through the well-known MetaTrader 4 (MT4) platform, as a desktop version and as a mobile application for iOS and Android devices. This platform offers a range of features such as advanced charting, automated trading, 1-click trading, hedging and using expert advisors.
There are two account types:
- ECN Commission Free requires a minimum deposit of USD1,000, maximum leverage of 1:200, spreads starting from 0.6 pips and zero commission;
- ECN Raw + Commission account requires a minimum deposit of USD5,000, maximum leverage of 1:200, spreads starting from 0.2 pips and a commission of GBP3 per lot.
Both accounts allow scalping, expert advisors and mobile trading.
The company claims to be a No-Dealing Desk (NDD), ‘pure Straight-through-processing (STP)’ broker providing ECN technology that gives access to ‘deep liquidity with no-requotes’ and eliminates any dealer’s intervention. However, the company best execution policy shows that in ‘rare circumstances, price slippage may occur’.В That means the client’s orders could be executed at a different than expected price. The broker doesn’t guarantee client’s stop loss orders and its risk disclosure claims that if slippage occurs, ‘stops and limits will be converted to market orders’, which means they will be executed at a first available market price and the realized losses could be greater than projected.
Higher leverage leads to the greater risk of loss. Moreover, there is no negative balance protection and clients could owe money to the broker.