Tier1FX was founded in 2013 and since then the company has been developing techniques to deliver Direct Market Access (DMA) to the retail forex industry. It is authorized and regulated by the Malta Financial Services Authority (MFSA). Customers can trade through a set of platforms that suit their trading needs including the well-known MetaTrader 4, Fortex 6 terminal, JForex, etc. The Tier1FX main advantage is eliminating the conflict of interest, typical for many broker-client relationships. Tier1FX defines itself as a DMA, ECN, STP, NDD brokerage company.
When you turn to an online trading brokerage company, the first thing you need to check is whether and where it is regulated. Tier1FX is the brand name of the financial company Hogg Capital Investments Ltd, which is authorized and regulated by the Malta Financial Services Authority (MFSA) under register number C 18954. It can provide brokerage services in Europe under MiFID II (EU Markets in Financial Instruments Directive). Client’s funds are fully segregated, held at reputable banks.
There is only one type of live account, so trading conditions are equal for all categories of traders. You receive fast, fully automated direct-to-market execution within milliseconds without any delays, requotes or dealer interventions, the company says. It partners with industry leaders to offer low latency trading in the STP-DMA execution environment. The minimum initial deposit amount is EUR1,000 and the base currencies can be EUR, USD, GBP, CHF. Retail clients are covered by Negative Balance Protection. Tier1FX welcomes scalpers and news traders.
Tier1FX also offers Swap-Free accounts and so-called Managed Accounts.
Keep in mind that all profits and losses here are real.
Market Maker or STP Broker?
We have found in the Best Execution Policy document that the company transmits all client’s orders for execution to a third party, so called execution venues. This confirms the company statement that it uses the Straight Through Processing (STP) model to execute client’s orders and there is no conflict of interest as there is if the company is a market maker.
The company does not mention anything about the type of stop loss orders it provides in the legal files but in the FAQ section it is written that as an STP broker, Tier1FX offers Market Execution. This guarantees that your orders are always filled at a fair and transparent market price, with no dealer intervention, re-quotes, and delays. As all orders, including Stop Loss, are filled at the current market price, it is possible for your trade to be closed at a level other than your pre-set stop value. This is known as “gapping”: in fast moving markets, prices may gap straight through your pre-set order price. As a result, while execution on your SL is guaranteed, the actual close price may differ from the one you have specified; therefore, stop loss orders are not guaranteed.
The FAQ section also explains that the market execution model guarantees that your order will be executed at the market price available, with no re-quotes. This means however that the price at which your order is filled may be different from the one you specified (i.e. slippage may occur), as the entry rate depends entirely on the current market movement.
All retail clients are covered by the Negative balance protection and they cannot lose more than the total amount of their account.
In addition to usual fees, there are commissions that depend on the account currency. If your account is in EUR then the commission will be EUR2.50 for currency pairs, EUR3.00 for commodities, EUR0.25 for CFDs on indices and 0.1% of the value for CFDs on cryptocurrencies. Commissions on currency pairs and commodities are quoted per standard lot per side. There is a fixed fee of USD20 when you withdraw funds.
Deposits and Withdrawals
Tier1FX usually processes deposits and withdrawals within one business day. However, it may take up to 3-5 business days for international transfers to reach the company accounts. The minimum initial deposit amount is EUR1,000 but there is no minimum amount for each subsequent deposit.
Clients can fund their accounts via bank transfer or credit/debit card directly from their Client Portal. The company claims it has a longstanding business relationship with several respectable banks in Europe. The company does not charge processing fees on deposits.
Withdrawals will be sent back to the bank account /card from which you funded your account. Profits can be only withdrawn via bank wire. There is not a minimum and maximum withdrawal amount. All withdrawal requests are processed within the same business day or on the following business day. However, it may take up to 3-5 business days for international bank transfers to be completed and up to 10 business days for funds to be on your card statement. A fixed fee of USD20 / EUR15/ GBP15 applies per withdrawal.
The company offers trading terminals regardless of what type of trader you are – a manual trader or the one who uses complex trading algorithms. In addition, the company says that you take an advantage due to the modern technology that routes your trades within milliseconds to one of the largest liquidity pools in the industry.
The first one is the well-known MetaTrader 4 (MT4) platform, improved with the latest technology and trading conditions. You receive interbank spreads and fast DMA/STP execution of your orders. There are above 100 assets available and nearly 90 preinstalled technical indicators.
The second one is the cloud based Fortex 6 terminal. It is intended for use by web browsers and mobile devices. It has a simple and intuitive interface and you can place different order types by a single click. Advanced charting and technical indicators are built in. The platform runs on Windows, Linux and MacOS with any HTML5 browser. Fortex 6 includes AlgoX, an algorithmic trading engine that allows you to script your own automated trading strategies.
The third one is the Dukascopy Bank’s platform JForex, which is additionally improved by the Tier1FX technology standards. This is a professional ECN trading terminal, which provides full market depth, integrated in charts technical analysis tools and over 180 trading indicators. You take advantage of the Virtual JForex tool, which helps you build quickly automated strategies. The platform is also available as a web-based version and as a mobile app.
Forex – More than 50 popular major, minor, and exotic currency pairs can be traded. The spread for the EUR/USD pair is 0.1 pips. Keep in mind there is a commission of EUR2.5 per traded lot per side.
Indices – You can trade 10 of the most popular major and minor indices globally, such as DJIA, US500, FTSE100, IBEX35 etc. There is a commission of EUR0.25 per contract.
Commodities – 7 of the most traded commodities are available such as Gold, Silver, Oil and Natural Gas. The average spread for Gold is 20 cents. There is a commission of EUR3.00 per standard lot per side.
Cryptocurrencies – 5 of most traded cryptocurrencies such as Bitcoin, Ripple, Ethereum etc. The average spread for Bitcoin is USD6.
Tier1FX provides you with exclusive programs that allow you to get the important things of your business. There are the Referral agent program and the Asset Managers solutions.
Tier1FX is a European brokerage company, which has a MFSA regulation. It uses the STP/NDD model when executing orders and provides customers with direct market access (DMA). You can trade currency pairs, cryptocurrencies, commodities, and indices through a set of trading terminals. Deposits and withdrawals are limited to two methods only but if you use a common credit or debit card, that will not be a problem. Keep in mind that narrow spreads are at the expense of commissions.