www.fxoro.com is operated by MCA Intelifunds LTD, which is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). In addition, www.global.fxoro.com is operated by ORO Fintech Limited, which is authorized by the Financial Services Authority (FSA) in Seychelles. We are going to review the CySEC regulated company. FxORO was founded in 2012 and now it offers a solution for all traders who require a more effective and direct trading environment, the company says. Clients can trade a wide range of financial instruments including currency pairs, commodities, indices, shares, and cryptocurrencies, with fixed and variable spreads through the popular terminal MetaTrader 4 (MT4).
One of the most important things you need to know about the company is whether and where it is regulated. MCA INTELIFUNDS LTD, trading as “FXORO”, is a financial services company, which is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 126/10. Additionally, the global site is operated by ORO Fintech Limited, which is authorized by the Financial Services Authority (FSA) in Seychelles under license number SD046. The main difference in where you will choose to open an account is that according to the new ESMA requirements that CySEC-regulated companies must adhere to, you will not be able to trade with leverage above 1:30 for major currency pairs. The FSA regulation has no restrictions on leverage and the company offers up to 1: 400. However, the higher the leverage the greater the risk of large losses.
There are three types of live trading accounts available that differ mainly in the spread offered.
Fixed spread account – The spreads of currency pairs are fixed and do not change regardless of the market volatility. The spread for the EUR/USD pair is fixed at 2 pips. Trading is commission free. The company recommends it if you will trade during the important news or you will trade with exotic pairs, whose spread will remain the same even in periods of high market volatility.
Floating spread account – The spread for the major currency pairs starts from 0.3 pips and its average value is 1.2 pips. Trading is commission free. This account is suitable for traders who make a lot of trades a day as variable spread is cheaper than the fixed one during most of the time.
ECN account – Spreads are close to zero at the expense of the commission of USD6 per lot. This account is intended for advanced traders who operate with high volumes. You have access to an automated system that matches your orders with the ones of the liquidity providers.
Market Maker or STP Broker?
The Order Execution Policy document shows that FXORO acts as the main execution venue, principal and/or the sole counterparty in all clients’ orders. For mitigation purposes, the company has the right to use several liquidity providers, with whom may hedge some or all of its exposures, thus, to transfer the market risk to another counterparty. The liquidity providers of the company are LMAX Professional and Interactive Brokers (UK). This means that MCA Intelifunds Ltd can act as a market maker on its sole discretion. When customer orders are transmitted for execution, there is no major conflict of interest, through the Straight Through Processing (STP) model, but when the company executes orders, it keeps the risk to itself. In this case, the conflict of interest exists and any loss to customers is a gain for the company.
The same document also warns that the company cannot guarantee the execution price of orders. Due to the price movements in the underlying financial instruments, the prices may move rapidly from one level to another, especially in cases where there is high volatility in the market (corporate events, release of economic data, etc.). It is noted that upon triggering, the stop loss order becomes a market order and can be fulfilled at the declared, better, or worse price. This means that all types of orders are subject to slippage and stop loss orders are not guaranteed. Orders can be executed at the next available market price.
In addition, the company provides all retail clients with Negative Balance Protection. This provides an overall guaranteed limit on retail client losses; therefore, their account balance will never be allowed to go below zero, regardless of market conditions.
In addition to usual fees there also is an inactivity fee. After three consecutive months of non-use (“Inactivity Period”) of the trading account, an inactivity fee will be deducted from it, by the end of the inactivity period. The fee will be taken from customers without open positions who did not trade for 3 months (3 months from the time they closed their last position). For the first three consecutive inactivity periods, the company will charge a fee of EUR25, per inactivity period. For the fourth consecutive inactivity period, the fee will rise to EUR100. The deductions will be executed until the account balance is zero. There will be no charge if the free balance is zero. Accounts with a zero free balance may also be closed.
Deposits and Withdrawals
Customers can use several deposit methods such as wire transfer (it can take up to 5 days), credit/debit cards (instant payment), Skrill, Neteller, and Wire2Pay. The company does not charge any additional commission on deposits.
Withdrawals should be made using the same method used by the customer to fund his trading account and to the same remitter. They can be made via bank wire, credit/debit cards and e-wallets such as Skrill, Neteller, PayPal, etc. Please note that each method involves different fees. For example, credit cards withdrawals are charged with a EUR5 commission. Bank wire fees depend on the withdrawal amount, starting from EUR5 to EUR140.
You can trade via one of the most used terminals worldwide – MetaTrader 4 (MT4). It is the most popular charting and analysis package used by traders of all levels. MT4 combines an intuitive user interface with a customizable environment. It provides the most of the trader’s needs to analyze charts, place orders and manage positions. MT4 offered by FxORO is available as a desktop version for Windows OS and as a mobile app for Android and iOS devices. This provides full mobility, regardless of the device you would like to use.
Forex – You have access to more than 60 popular major, minor, and exotic currency pairs. The spread for the EUR/USD pair depends on the account type and is 2 pips for the fixed spread account. It starts from 0.3 pips and its average value is 1.2 pips. Trading is commission free.
Indices – You can trade 15 of the major indices globally, such as DAX30, DJIA and US500. The average spread for the DAX30 is 3 points and the one for the DJIA is 6 points.
Commodities – 15 of the most traded commodities are available for trading, including Gold, Silver, Crude Oil, Brent Oil, and some cereals traded. The average spread for the Gold is USD0.50 and the one for the Crude Oil is USD0.04.
Shares – Nearly 80 of major companies such as Apple, Tesla, Daimler, etc. The minimum spread for Apple shares is USD0.28.
Cryptocurrencies – Bitcoin, Litecoin and Ethereum. The spread for Bitcoin is USD100.
There is a dedicated educational section called Education, which can be selected from the Trading Center menu. There are some courses for beginners and experienced traders. You can read about some of the trading strategies and CFDs trading. An economic calendar, news and signals are available into the Tools section.
FxORO has two regulations – by the CySEC and by the FSA. They allow it to provide financial services across European Union (CySEC) and globally (FSA). It acts as a market maker and has two liquidity providers where it may hedge the risk. The company provides a wide range of trading instruments via the popular MT4 platform. There are two types of live accounts that differ in the spreads – fixed or variable. If you would like to trade with higher leverage, you must choose the global site with the FSA (Seychelles) regulation.