UFX is a forex broker offering services in currency trading and CFDs trading in the range of ETFs, Cryptocurrency CFDs, and Single-Stocks. It was founded in 2007 as UFX Markets and was only rebranded as UFX in 2014.
UFX Security and Licenses
UFX is regulated by the Cyprus Securities and Exchange Commission under the license issued to Reliantco Investments Limited in Europe. It also operates in Vanuatu under the brand UFX Global under the regulation of the Vanuatu Financial Services Commission.
UFX is not a publicly-listed company. This broker does not operate a bank nor is it authorized by any tier-1 independent regulatory bodies. Due to the high trading costs of UFX and the fixed spreads constant in all of its account types, it is considered a high risk-broker. Because of this, it has a moderate trust score across professional traders in the market.
UFX offers two platforms: the widely-trusted MetaTrader4 and its own proprietary web trading platform, ParagonEx.
- MetaTrader4: the MT4 platform is the most used and trusted platform across markets. It has efficient tools that allow traders to explore different strategies as well as execute complex trades. It has a user-friendly interface that works well with beginning traders as it lets them delve into various charts and tools.
- ParagonEx: UFX’s own platform has a very simple user interface design that expands into various tools and indicators once you explore its capabilities. It includes a toolbar that shows all open trades and sorts all six asset classes on the platform. ParagonEx comes with more than 50 indicators and over 20 drawing tools the trader can maximize in a dozen time frames.
While both platforms are equally good as options, each has its own edge when used in trading. MT4 has an all-around functionality and ParagonEx boasts its flexibility.
UFX Trading Conditions
As stated above, UFX has relatively higher costs in trading, especially with its fixed spreads. These fixed spreads are found in all five UFX accounts, with varying degrees. Its Micro and Mini accounts come with fixed spreads that begin at 4 pips, the Standard account begins at 3 pips, and the Gold and Platinum accounts begin at 2 pips.
While UFX offers an Islamic account that complies with Sharia law, its trading costs remain expensive compared to other forex brokers. Its fixed spreads are higher compared to the conditions provided by other brokers. Even if UFX’s offers low spreads in its Gold and Platinum accounts, this still does not make up for the high costs of trading with it. If only UFX could add lower fixed spreads or offer variable spreads, it could break away from being labeled as expensive and high-risk.
UFX Trading Instruments
There are over 500 trading instruments offered by UFX, most of which are CFDs. These range from cryptocurrency CFDs, ETFs, and Single-Stocks, making up at least 461 of the 500 assets offered.
UFX provides Spot Trading for foreign exchange as well as 49 currency pairs to trade. These range from major, minor, and exotic pairs. It also offers Social Trading or Copy Trading to let clients replicate the trades of their peers.
Among the 461 CFDs offered by UFX, 30 of these are cryptocurrency CFDs. The biggest share would be single stocks, which are at 373, while ETFs or Exchange Traded Funds are at 45. There are also 8 indices and 5 commodity contracts. Additionally, UFX also offers 10 expirable futures contracts.
UFX Research Materials
UFX has a fairly good range of research and educational materials on its website. It has basic tools such as an economic calendar and forex news updates. UFX also studies the sentiment of its clients through its MassInsights technology to keep track of its clients’ trading activity as a collective. This allows UFX to check in on activity changes in trading, including sudden shifts in sentiment, surges in volatility, and unusual open positions on a particular asset.
UFX also uploads videos on daily market analysis, alongside a daily market commentary portion that focuses on the highlights of the day’s trading session. The forex news featured on the UFX official website is also credited from well-trusted and credible trading and economic news platforms.
Despite all these good research features, UFX lacks materials in a few aspects such as an Autochartist, Trading Central, and forex webinars.
UFX Final Review
It has been said above that UFX has a reputation for being high-risk and expensive due to its relatively high trading costs. Its fixed spreads across all of its accounts, 2 pips being the lowest, prompt potential clients to steer clear of it. That on top of its weak regulatory status, having only registered under tier-2 regulatory agencies.
While all of these trading conditions are important in choosing a broker, UFX also shines in other aspects. One of these is its trading platforms, which are MetaTrader4 and its own ParagonEx. Both platforms boast high functionality and user-friendly interface. Both are also equipped with a wide range of tools and indicators that allow traders to explore different strategies of varying complexity. Its MT4 platform is also available in mobile to let clients trade conveniently anywhere.
Another aspect that UFX boasts is its wide offering of CFDs. It offers over 300 single-stocks, as well as cryptocurrency CFDs. However, it does not support cryptocurrency trading. UFX also has a great charting feature in its web platform, as well as a competitive range of currency pairs.