RATING: 1 / 1
REVIEWSBUDSFX IS AN OFFSHORE BROKER.
YOUR MONEY IS NOT SAFE.
Trading Accounts and Conditions
|Trading account||Min. deposit||Max. leverage||Spread|
In the present review, we will highlight everything you need to know about forex broker BudsFX: its trading conditions, accounts, platforms, and most importantly – the company behind it. So, read it carefully and decide for yourself whether investing with this broker is safe.
BudsFX says to be a trading name of Cubic Services Ltd., a company with a registered address in Seychelles. This offshore zone is a popular forex broker destination for providers looking for low registration fees and taxes, as well as freedom from all kinds of regulatory requirements and oversight.
In other words, forex brokers registered on Seychelles are not subjected to strict oversight on the part of a governmental agency, nor have to follow any stringent rules, such as keeping clients’ funds in segregated accounts, providing insurance in case of bankruptcy, etc.
This means that clients of such brokers have no assurance for the security of the funds invested, and no authority to turn to in case they have legitimate complaints. That is why we advise investors to avoid offshore brokers as a general rule.
Company blacklisted by the CNMV
We found out that the company behind BudsFX also operates another brokerage brand – Global Markets.
Although offshore brokers are not authorized to operate on regulated financial markets, many of them illegally target investors in the USA or the EU. Cubic Services Ltd. is no exception for that – we found out that the firm was blacklisted as a potential scammer by Spain’s financial regulator, the CNMV.
MT4 not available
Although Sirix is not a bad platform, many investors prefer the industry-leading MetaTrader4 (MT4). The MT4 is user-friendly, easily customizable, has great charting options, and is especially popular for its automated trading bots (Expert Advisors). This is the reason why most traders know well and enjoy using this trading terminal.
Although we believe that the cost of trading is not as important as the security of your investment, a forex broker’s spreads are still essential. That said, the spreads announced on BudsFX’s website don’t seem attractive at all, at least those on the most basic account type – Bronze.
High transfer fees
Last but not least, the transfer fees BudsFX charges appear quite high – EUR 25 – 50 for wire transfers. On top of that, the broker reserves the right to introduce additional charges and fees.
Click on the image to zoom in.
As we mentioned earlier, BudsFX supports Sirix trading platform. Developed by Leverate, this platform is an all-in-one Forex and social trading terminal. It has a user-friendly interface and is equipped with intuitive charts and graphs. Its most outstanding feature, however, is the “Social Stream”, which includes live trades by other traders (as well as other information, such as how many people copied the particular trade), which you can directly copy.
Good selection of assets, up to 1:200 in leverage
A possible advantage the broker’s rich product portfolio, comprising many currency pairs, and various CFDs – on commodities, precious metals, indices, some stocks and even major cryptocurrencies.
Furthermore, BudsFX is among the forex brokers offering quite high leverage ratios, reaching 1:200. While the risk-takers among you will probably enjoy this option, we would advise newbies to educate themselves about the risks involved in margin trading before using high leverage levels.
BudsFX is an offshore forex broker, which is not overseen by any financial regulatory agency. On top of that, the company operating the brand was blacklisted by the CNMV, which inclines us to suspect that it might be one of the many fraudsters on the forex market.
As usual, our best advice to investors is to deal only with brokers licensed by reputable financial agencies like CySEC in Cyprus or ASIC in Australia. These companies are subjected to a number of requirements and strict supervision, which provide significant assurance and guarantees to their clients.
And finally, here are the highlights of the present review of BudsFX:
|Trading on Sirix platform||Registered offshore|
|Generous leverage, a solid selection of assets||Company blacklisted by the CNMV|
|MT4 not available|
|High transfer fees|