forexchief.com in short
Forex Chief is a trading name of ForexChief Ltd, which was founded in 2014 and is authorized and regulated by the Vanuatu Financial Services Commission (VFSC). The company claims to use the STP/NDD model when processing customer orders. In this way, the main conflict of interests between the company and the client is avoided and the quality of the service is increased by narrowing the spreads and increasing the speed of order execution, according to ForexChief Ltd. Customers can trade more than 60 CFDs on currency pairs, indices, commodities, shares, and cryptocurrencies through the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. The leverage can be up to 1:1,000 and you can start trading by investing USD10.
One of the important things to check before anything else is the regulation of the company. ForexChief Ltd is authorized and regulated by the Vanuatu Financial Services Commission (VFSC) holding a Securities Dealer license (Principal’s License) number 14777 issued by VFSC. The company claims that client money is segregated from its own funds and under no circumstances ForexChief Ltd can use client’s funds (kept at special bank accounts) for its operating activities. In addition, ForexChief does not transfer clients’ funds to liquidity providers’ accounts and uses its own funds to carry out counterparties’ margin requirements, when placing clients’ orders to the market, it claims.
There are two types of live accounts depending on the selected platform – MT4 accounts and MT5 accounts. In addition, there are four types of accounts for each platform. They differ in the spread of the instruments and whether a commission is applied. The minimum required deposit is USD10, and the maximum leverage is 1:1,000.
MT4.DirectFX Account – Spreads are close to zero at the expense of a commission of USD15 per million traded units. CFDs on shares and cryptocurrencies are charged a commission of 0.1%. There is a welcome bonus of USD500. The maximum order size is 100 lots.
MT4.Classic+ Account – Spreads are floating from 0.3 pips. Trading CFDs on currency pairs, commodities, and indices is commission free. CFDs on shares and cryptocurrencies are charged a commission of 0.1%. There is a welcome bonus of USD500. The maximum order size is 100 lots.
Cent-MT4.DirectFX Account – Spreads are close to zero at the expense of a commission of USD15 per million traded units. The maximum order size is 1,000 lots. You can trade only CFDs on currency pairs and metals.
Cent-MT4.Classic+ Account – Spreads are floating from 0.3 pips. Trading CFDs on currency pairs and commodities is commission free. The maximum order size is 1,000 lots.
Similar accounts are available under the MT5 platform, but with fewer trading instruments.
How the Company Executes Client Orders
The FAQ section informs that the company is an A-Book broker, which means that it makes money only from the spread or commissions on the volume of transactions. It is explained how the company aggregates liquidity using the STP/NDD model with a high level of decentralization, ForexChief Ltd claims. The company also warns that only client orders with the size above 1,000 units (0.01 lots) will be transmitted to its counterparties. For all orders below 1,000 units the company will act as a dealer (counterparty of the transaction). This means that it really uses the Straight Through Processing (STP) execution model and is not a market maker. The company transmits the orders of each customer to its liquidity providers, and this eliminates the main conflict of interest related to the customer’s losses. However, the list of its liquidity providers is not specified. It is written that servers are located in Frankfurt, London, Ireland, Bahrain, Singapore, which improves the quality of the client’s trading terminal connection.
The “Order Execution Policy” document warns about the slippage explaining that a stop order is a condition, which when executed, sends a market order. That means that it is impossible to execute a stop order according to the price set by the client if there are no such prices in the market (i.e., nobody is willing to buy or sell at this price). This way, in case of a gap (price gap), a stop order can be executed only in accordance with the gap price i.e., at the first available price. Therefore, when placing a stop order on a trading account, the trader must be aware of the possibility of a negative slippage. This means that stop loss orders are not guaranteed and will be filled at the next available market price.
The Risk Disclosure section of the “Client Agreement” document shows that you can lose all your funds. It is not clearly stated if the company applies a negative balance protection policy, so be careful.
In addition, the company provides the possibility of using all trading strategies, including scalping, and any tools, as well as Arbitrage.
Only the usual fees, such as spreads and rollovers, are applicable here. There is no inactivity fee, so you can trade on a schedule convenient for you.
Deposits and Withdrawals
Deposits can be accomplished by credit or debit cards, bank transfers, and e-wallets such as Skrill, Neteller, Advanced Cash, Fasa Pay, etc. The company claims not to charge any fees on deposits. However, the third-party payment provider fees may be applied, and they will be covered by the customer.
Withdrawals can be made in the same ways as deposits – bank transfer, credit/debit cards and electronic wallets. All funds will be returned to the same account, or source, from which they were originally deposited. Withdrawals are processed in one business day and the transaction time is within 1-5 business days.
The company provides two of the trendiest trading platforms in the industry – MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
MetaTrader 4 is one of the most popular trading platforms in the world. It is convenient and functional allowing the trader not only to make transactions but also analyze market dynamics, and program trading robots by means of MQL4 language, as well. The functionality of MetaTrader4 terminal allows the trader to implement any trading strategy using various types of orders that can be sent directly from the chart, which significantly simplifies making a transaction. The One-Click Trading function allows the trader to send orders with one click of the mouse. The platform is available as a downloadable version for Windows and as a mobile application for Android and iOS devices.
MetaTrader 5 (MT5) develops and supplements the functionality of the previous version with a large volume of financial and news information, modern analytical and technical means, additional services, and customization options. The effective difference between MT5 and its previous version will be especially appreciated by enthusiasts of automated trading – the terminal integrates MQL5 IDE’s own development environment. The strategy tester will allow you to evaluate effectiveness and choose optimal parameters for indicator, script, or advisor.
Currency pairs – 40 major and minor currency pairs can be traded. Spreads depend on the account type and the minimum value for the EUR/USD is 0.3 pips in the Classic+ account and close to zero in the DirectFX account. The leverage depends on the deposited sum and can be up to 1:1,000 for sum up to USD2,999.
Indices – You can trade 10 of the major indices across North America, Europe, and Asia, such as DAX40, Nikkei225, UK100, etc. The minimum value of the spread for DAX40 is 5 points.
Commodities – CFDs on Gold, Silver, Crude Oil, Brent Oil, and Natural Gas are available for trading. The minimum value of the spread for Crude Oil is USD0.05.
Shares – Nearly 100 CFDs on US Shares are available for trading. The minimum value of the spread for Apple shares is USD0.05, while the average one is USD0.50.
Cryptocurrencies – CFDs on Bitcoin, Ethereum, Litecoin, and Ripple are available for trading. The minimum value of the spread for Bitcoin is USD10, while the average one is USD30.
Forex Chief is a VFSC-regulated company, which most probably uses the STP model to execute customer orders. This eliminates the main conflict of interest that exists in market makers. Customers can trade currency pairs, commodities, indices, shares, and cryptocurrencies through the MT4 and MT5 terminals, which can be downloaded for PC or as a mobile app. Clients can top up their accounts by bank transfers, debit, or credit cards, and some e-wallets. Live trading can be started by investing USD10. Scalpers are welcome.