Discover if NordFX is a legitimate Forex broker in this NordFX review. Explore its withdrawal methods, regulations, pros, and cons.
In our ongoing efforts to protect investors and traders, we decided to write this NordFX review to examine their trading platform and help you make an informed decision about using the broker.
This review will help you determine whether NordFX is a reliable Forex broker or if it poses the risk of being a potential scam that could ensnare unsuspecting investors.
NordFX Overview
NordFX is a forex and CFD broker that has been in operation since 2008, functioning under various legal entities across different jurisdictions.
Earlier records and archived websites indicate that NordFX was previously managed by the CySEC-regulated NFX Capital CY Ltd, operating under the domain NordFXeu.com.
However, in 2022, the legal entity changed its name to Inveza Capital Ltd and also operated under the name Inveza (www.inveza.com) until voluntarily relinquishing its CySEC license in the same year.
In September 2022, Inveza announced that it was stopping its operations. Although the Inveza website is no longer accessible, Inveza Capital Ltd continues to function as a payment agent for NordFX.
Presently, NordFX is a broker based in Vanuatu and operates as an offshore entity. It manages multiple websites, primarily in Asia, and provides leverage of up to 1:1,000.
NordFX boasts a significant user base, with nearly 500,000 monthly visitors. Most of these visitors, over 60%, are from Asian countries such as Vietnam, Thailand, and the Philippines.
The NordFX platform claims to have over 2 million clients and 29,000 affiliates, showcasing notable growth and success.
Types of Accounts that NordFX Offers
NordFX offers four different types of accounts, each providing access to varying spreads, markets, and platforms.
The MT4 platform is used for the 3 forex accounts that NordFX offers. On the other hand, the cryptocurrency account is used on the MT5 platform.
Although all accounts include cryptocurrency trading, the crypto-specific account on MT5 offers unique benefits, such as different leverage limits and two additional crypto assets.
In addition, exclusive crypto indexes are accessible only on the MT5 platform with the crypto account, not on the MT4 platform used for forex accounts.
When it comes to order execution, the Fix account ensures immediate execution, while other accounts operate with market (ECN) execution.
Choosing the right account ultimately depends on your preferences. If you prefer cryptocurrency trading and are accustomed to the MT5 platform, the crypto account might be your preference.
For those engaging in high Forex volumes, the Zero account is worth considering, though it’s essential to be mindful of associated lot commissions.
Commissions and Fees
NordFX Security Practices
NordFX implements different security practices to safeguard traders’ and investors’ funds. These include:
Dedicated segregated accounts
NordFX keeps client funds in separate accounts, different from NordFX’s operational accounts. This separation ensures that client money is safeguarded and not used for the broker’s purposes. This protects clients’ funds in case of insolvency.
Multi-level authentication (MFA)
NordFX uses MFA for all account logins and withdrawals. This involves a combination of username, password, and additional security measures like SMS verification or biometric authentication, adding an extra layer of protection.
Data encryption
NordFX uses industry-standard encryption protocols to secure sensitive client data, including personally identifiable information and trading account details. This encryption ensures that data remains confidential and protected from unauthorized access.
Vulnerability management
NordFX conducts regular vulnerability assessments and penetration testing to identify and address potential security gaps in its systems. This proactive approach helps prevent cyberattacks and data breaches, enhancing overall system security.
NordFX Trading Options
NordFX offers a wide range of trading instruments that comprise different types of assets, meeting the diverse preferences and strategies of traders: These instruments include:
Forex trading
You can trade over 45 currency pairs, comprising major, minor, and exotic pairs. The platform provides competitive spreads and tight spreads on the ECN account.
Commodity trading
Clients can seize opportunities in the volatile commodity market by trading assets like gold, silver, oil, and natural gas, potentially leading to profitable outcomes.
Cryptocurrency trading
NordFX allows users to explore the cryptocurrency market by trading leading cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Ripple.
Indices trading
Participate in the equity market by trading indices like the S&P 500, DAX, and Nikkei 225, providing exposure to broader stock market movements.
Stock trading
Access global stocks from various exchanges, including the US, UK, and Europe, facilitating targeted trading in stock markets worldwide.
NordFX Platforms
As a trader, one of the crucial aspects to consider is the trading platforms that a broker provides. NordFX uses the widely recognized “MetaTrader” platforms, developed by the MetaQuotes Company and used by numerous traders and brokers throughout the world.
There are two main MetaTrader platforms: MT4 and MT5.
NordFX provides the MetaTrader MultiTerminal for traders managing multiple accounts. This platform shares the trading interface of MT4 but allows users to place orders across numerous accounts.
It is useful for brokers handling multiple client accounts simultaneously, offering manual or automatic distribution of the required trade volume for each account.
Payment Methods
The different payment methods that NordFX uses include:
WebMoney
WebMoney is a widely used online wallet service that facilitates global money transfers. Just like other contemporary online payment platforms, WebMoney offers mobile applications to enhance transaction efficiency.
Wire transfer
Wire Transfer stands out as the most commonly used payment method across the globe. Virtually all brokers incorporate this method in their services due to its traditional nature involving direct bank transfers worldwide.
This method is preferred for its inherent safety, making it an ideal choice for traders who prefer avoiding third-party payments or lacking credit cards.
Skrill
Skrill is an online payment service that is offered by most forex brokers. Traders prefer it for its speed, ease of use, and secure transaction features. Skrill allows users to fund their trading accounts using payment cards, bank wire transfers, or directly from a Skrill e-wallet account.
Neteller
Neteller, much like PayPal, is another popular online payment service that NordFX uses. Given its widespread use, almost all forex brokers accept Neteller for client fund deposits and withdrawals. While Neteller is available globally, it remains popular in Europe.
Apart from the payment methods described above, NordFX also provides payment services via:
- Perfect Money
- Dragonpay, and
- Credit/ debit cards.
Withdrawal Challenges at NordFX
Clients are currently having issues with fund withdrawals at NordFX, and this situation can be attributed to the involvement of multiple entities and a regulatory warning.
NordFX operates in various locations, including Cyprus, Vanuatu, and reportedly India and Mauritius, according to some client reports.
The complexity arises from the broker’s presence in multiple countries, each governed by different regulatory bodies, and the existence of numerous support teams. This complexity provides ample opportunities for issues to arise in the processing of withdrawal requests and handling of client funds.
Based on feedback from NordFX reviews, investors express frustration with the broker’s sluggish withdrawal processing. In addition, clients are required to submit documents to all relevant entities, only to discover that their funds may not be transferred to their bank accounts as expected.
Warnings Against NordFX
In early 2023, FinTelegram raised concerns about NordFX, a retail broker operating without proper authorization. The broker, once regulated by CySEC, currently lacks any known license and is primarily involved in activities in Asia and South America.
The platform that was previously regulated by CySEC now serves as a payment agent. Also, NordFX has gained attention due to its involvement in the “Mega Super Lottery.”
Furthermore, the prominent EU regulator CMVM in Portugal has cautioned users regarding NordFX. According to the regulator, NordFX is involved in a questionable operation within Portugal, and individuals who have fallen prey to this scheme are encouraged to promptly report the broker.
Users are, therefore, advised to exercise caution if they are planning to use the broker.
Pros and Cons of NordFX
Pros
- NordFX offers a wide array of trading instruments, including forex, commodities, cryptocurrencies, indices, and stocks.
- The platform offers competitive spreads and low commissions, especially on the ECN account.
- Orders are executed rapidly and reliably, thanks to direct market access (DMA).
- NordFX maintains a secure trading environment with dedicated segregated accounts and robust security measures.
- The platform gives traders access to several educational resources and training materials to support their learning.
- The trading platforms, MT4 and MT5, are user-friendly and equipped with advanced features and tools.
Cons
- Spreads on some accounts are wider compared to certain competitors.
- Margin requirements may be higher than those of some other brokers for specific instruments.
- The time it takes to process withdrawals may vary depending on the chosen payment method.
- Customer support could be more responsive and proactive in addressing inquiries.
- There is no known regulation at the moment.
Conclusion: Is NordFX a Scam?
Our NordFX review reveals that NordF is a well-established global broker with a proven track record. Traders benefit from low spreads on various assets due to their ECN liquidity. The use of established trading technology in MetaTrader MT4 and MT5 is a significant advantage.
However, some areas need to be improved, most especially in the regulatory aspect.
Considering NordFX as your broker? We recommend conducting your own research so that you can make an informed decision.
If you have any information regarding NordFX, its administrators, or facilitators, please reach out to us.
