TenkoFX is the trade name of Tenko Systems Limited, which is incorporated in Nevis. The company was founded in 2012 and claims to be authorized and regulated by the International Financial Services Commission (IFSC) in Belize. The business focus of TenkoFX is to provide customers with access to online trading of CFDs on currency pairs, commodities, indices, and cryptocurrencies via the well-known MetaTrader 4 (MT4) terminal.
According to the provided legal documents on the website, Tenko Systems Limited, operating under the trading name TenkoFX is authorized and regulated by the International Financial Services Commission (IFSC) of Belize under license number IFSC/60/349/TS/15. The company claims that its authorization to provide financial services is issued by the International Financial Services Commission of Belize. However, when we checked the regulator’s official website, there was a warning notice about the TenkoFX trading services. This notice informed that the company is using a fraudulent license number IFSC/60/349/TS/15. This means that the company is not authorized and regulated by any financial authority. On the contrary, TenkoFX uses a deceptive message that misleads its potential customers. You need to be careful when working with offshore companies, as they do not have any regulatory requirements. Moreover, TenkoFX clearly aims to attract customers through fraud.
There are three types of live accounts, which differ in the required initial deposit, the offered spreads and the stop out levels. All accounts use the market execution model, so orders can be subject to slippage.
STP Account – The minimum deposit amount is USD10 and the maximum leverage is up to 1:500 depending on the account balance. Customers can trade currency pairs and metals. The spreads are variable and the value for the EUR/USD pair starts at 0.3 pips. The stop out level is 30% and trading is commission free. All fees are included in the spread.
ECN Account – The minimum deposit amount is USD100 and the maximum leverage is up to 1:200 depending on the account balance. Customers can trade currency pairs, indices, and metals. The spreads are variable, close to zero at the expense of the commission of 4 units of base currency per lot. The stop out level is 50%.
Crypto Account – The minimum deposit amount is USD10 and the maximum leverage is up to 1:3. Customers can trade 29 pairs of crypto currencies. The spreads are variable and there is a commission of 0.5% for opening and closing a position. The stop out level is 15%.
The company claims that scalping, news trading and hedging are allowed.
Market Maker or STP Brokerage?
The company has provided the Client Agreement document where you can be informed how the company acts against the client. It is written that the company executes client orders as a principal (counterparty) and ensures that all its positions towards the clients are hedged properly to the extent the company deems necessary. In other words, TenkoFX is the sole execution venue for fulfillment of client’s orders, acting as a market maker. It generally makes its money from the spreads that are embedded in the price of the instruments and from the commission charged. However, a client’s loss accumulated as a result of his/her transactions may result in the profit for the company and vice versa. Moreover, the company may execute at the same time orders served by different clients that are opposite to one another. Being a market maker involves a conflict of interest because when the company executes orders, it keeps the risk to itself. Despite the claim that TenkoFX uses a straight through processing (STP) model, this document shows that the company may transmit customer orders to hedge the risk, but it may not do so. When an order is not hedged, any loss to customers is a profit for the company.
The same document explains that under some conditions, prices may fluctuate rapidly to reflect unforeseeable events that cannot be controlled either by the company or the client. As a result, TenkoFX may be unable to execute the client orders at the declared price and the stop loss orders would not necessarily limit the client’s loss. This means that market orders are subject to slippage and will be filled at the first available market price. In addition, stop loss orders are not guaranteed.
The Risk Disclosure document informs that triggering the stop out level may not prevent full loss of the client equity or that his account will become negative after closing of all exposures, depending on market conditions or for any other reason. In the latter case, the client will be liable for covering such negative balance by transferring additional funds to TenkoFX. This means that there is no Negative balance protection available and you may owe money to this company.
In addition to the usual fees such as spread, swap, etc., there is also an inactivity fee. If a client’s account is inactive (e.g., no trading or non-trading transactions take place) for at least one calendar year, TenkoFX reserves the right to charge a monthly account maintenance fee of USD10 to maintain any account open. The company will notify the client accordingly.
Deposits and Withdrawals
TenkoFX offers a variety of ways to deposit funds to your account including bank transfer, credit or debit cards, e-Wallets such as Neteller, Skrill, Fasapay, and by cryptocurrencies. The company does not charge any deposit fees, but you have to cover any fees charged by payment providers. Processing times depend on the payment method and for example bank transfers will be processed within 24 hours.
Withdrawals must be made by the same payment method with which the customer’s trading account is credited. There are withdrawal fees for each payment method. If a customer deposits by credit or debit card, the applicable fee is 1.5% of the deposit amount and the minimum withdrawal amount is USD1. If a bank transfer is used as the method of payment, the withdrawal fee is EUR30. The applicable fee for deposits/withdrawals via Skrill and Neteller is 1.5%. Processing times depend on the payment method.
Customers can trade via one of the most trustworthy platforms for online trading – MetaTrader 4 (MT4). MT4 is the industry standard and its value has been consistently proven over time. It integrates multiple trading indicators and analytical tools and allows you to automate a lot of trading strategies. It is a highly flexible tool, which can be adapted to your specific needs by the addition of your own MQL-based scripts and advisors. MT4 is available as a desktop version for PC and MAC machines, and as well as a mobile app for Android and iOS smartphones.
Currency Pairs – more than 50 major, minor, and exotic currency pairs can be traded. The spread for the EUR/USD pair depends on the trading account and can be floating from 0.3 pips or floating from 0 pips (commission will be charged).
Indices – Clients can trade CFDs on 9 indices, such as AUS200, CAC40, Euro Stoxx 50 etc.
Metals – CFDs on Gold and Silver are available for trading.
Cryptocurrencies – 29 cryptocurrencies such as Bitcoin, Litecoin, Ethereum, Dash, Ripple, etc. are available as CFDs for online trading in the Crypto account. There is a commission of 0.5% of the trading amount for opening and closing a position.
TenkoFX is the trade name of Tenko Systems Limited, which unfortunately is not authorized and regulated by the International Financial Services Commission (IFSC) in Belize, as it claims. The IFSC has issued a warning notice of using a fraudulent license number IFSC/60/349/TS/15. The documents show that the company acts as a market maker, which leads to some conflict of interest. You can trade through the popular terminal MT4 but the range of offered instruments is not so wide – mostly currency pairs. You can open a real account with just USD10.