SMFX Review 2024
Website: www.smfx.com
Min. Deposit: US$ 100
Leverage: 1:30 | 1:500
Trading Platforms: MT4
Regulation: CySEC
Headquarters: Cyprus
Founded: 1997
Regulatory Licenses:
- SM CAPITAL MARKETS Ltd - authorized by CySEC (Cyprus) registration no. 339/17 - SMFX trading name is not active
- Scope Markets Ltd. authorized by IFSC (Belize) registration IFSC/60/373/TS/19.
Updated on March 26, 2024
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SMFX operates under the trading name of a company that has established itself in two distinct locations. One is an offshore entity known as Scope Markets Ltd, based in Belize, and the other is SM Capital Markets Ltd, a licensed brokerage in Cyprus. The Cyprus entity manages several domains, including scopemarkets.com/eu and sminvest.com/eu, all of which offer similar trading services. In this review, we will delve into the general offerings of SMFX, though it's important to note that the conditions may vary depending on the specific offering of the company and your residency. Since its inception in 1997, SMFX has been providing and enhancing valuable trading conditions, demonstrating a deep understanding of traders' needs. SMFX employs a No Dealing Desk or STP execution model, creating a simple, yet sophisticated trading environment that caters to both novice and professional traders.
Pros
Forex and CFDs offered
STP execution
Uses MT4 trading platform
Fast account opening and free Demo account
No commission on deposits and withdrawals
Cons
Phone support not available 24/7
SMFX operates through two locations, including an offshore entity in Belize and a regulated brokerage in Cyprus. While the Belize registration may not provide stringent conditions for a secure trading environment, the Cyprus Securities and Exchange Commission (CySEC), a European authority, enforces numerous standards. This ensures a level of safety for traders, as SMFX is a constantly overseen broker that has structured its business model alongside verified safety measures by the Markets in Financial Instruments Directive (MiFID).
Pros
CySEC regulated international broker
Operates offshore entity in Belize
Global coverage and years of operation
Negative Balance Protection applied
Cons
Operates offshore entity in Belize
Compliance with EU ESMA regulations guarantees a secure trading environment at SMFX, with stringent measures on order management and fund handling. SMFX's customer support is dedicated to ensuring the highest level of safety measures. As a CySEC regulated broker, SMFX guarantees that funds are segregated at all times and covered by compensation funds in the event of company insolvency. This dual level of protection, through both professional service and regulatory compliance, offers traders peace of mind regarding the security of their investments.
Trading with SMFX allows you to utilize leverage, a powerful tool that can significantly increase your trading size. As a broker operating in Europe, SMFX must adhere to ESMA restrictions on leverage, limiting traders to a maximum of 1:30 for major currency pairs and even lower for other instruments. However, for international clients who open an account under the offshore jurisdiction, higher leverage options are available. It is crucial to approach leverage with caution, as its ability to amplify both potential profits and risks should not be underestimated.
SMFX integrates trading capabilities with a broad array of products and competitive pricing. It presents a choice among three distinct account types, each catering to different trader needs.
Pros
Fast digital account opening
Three Account types
Demo Account
Option between trading fee models
Account Base currencies including USD, EUR, and GBP
Cons
Account types
SMFX provides Standard, VIP, and ECN account options, each offering increasingly favorable conditions and cost benefits for higher-tier accounts. The ECN account adopts a different pricing model, featuring interbank raw spreads with a commission charged per transaction.
SMFX boasts competitive fees with options for spread-only or commission-based billing, appealing to a range of trading strategies and budgets.
Pros
Low to average Forex fees
Options between spread only or commission fee basis
$0 Withdrawal fee
Micro Lot trading available
Cons
Inactivity fee
Our find on CFD fees
Depending on the account type, SMFX offers varying spread rates: Standard accounts start from 1.8 pips, VIP accounts reduce to 1.3 pips, and ECN accounts feature spreads from 0 pips with a $3.5 commission per side. When compared with over 1000 brokers, SMFX's fees are found to be low to average, indicating a competitive position in the market.
SMFX delivers a high-performance trading environment with low latency, providing tight spreads across a range of assets including FX, Metals, Energy, and Indices. Traders have access to a substantial selection of currency pairs, including major, minor, and exotic options, along with leading shares and commodities. Binary options are also available in the international offerings. However, it is important to note that ECN trading accounts do not support Indices trading, so verification with the support center is recommended.
Depositing and withdrawing funds with this forex broker is designed to be both convenient and secure, utilizing tried-and-tested methods. When it comes to depositing funds, clients have several options at their disposal, including credit/debit cards and bank transfers. It's important to note that the availability of these options, along with alternative methods, may vary depending on the client's region or country of residence. Particularly for clients under the Cyprus entity, there could be more deposit methods available, so it's advisable to consult with customer support for specific details. Additionally, the conditions and available payment options can differ based on which entity of the broker you're dealing with.
The minimum deposit required to open an account with SMFX is $100, which applies to the initial grade account where costs are included within the spread. This is comparatively lower than the average minimum deposit requirement of $500 among other brokers.
When it comes to withdrawals, SMFX stands out by not charging any funding fees. However, third-party payment providers like banks and credit card companies may impose their own fees, which can vary by jurisdiction or international rules. It's recommended to verify any potential fees with these providers directly. SMFX generously allows for two withdrawal requests per month without any charges, but any additional requests within the same month incur a fee of $35 or its equivalent.
To initiate a withdrawal, clients must log into their account, select the 'Withdraw Funds' option, complete the withdrawal form including the amount and payment method, agree to the terms, and submit the details. SMFX typically confirms withdrawals within 1-2 business days, though it's wise to account for additional processing time that may be required by the payment provider.
SMFX utilizes the MetaTrader4 (MT4) platform, which is highly regarded across the forex trading industry for its user-friendly interface, powerful capabilities, and comprehensive charting packages. The platform caters to both novice and experienced traders, offering a wide range of features such as price alerts, push notifications, and a fee report, available in various languages. It supports web, mobile, and desktop versions, providing flexibility and convenience for traders.
The MetaTrader Web Trading platform offers all of MT4's powerful capabilities without the need for any software download. Accessible through any internet browser, the web version is praised for its flexibility and includes basic tools essential for daily trading activities.
For more advanced traders, the desktop version of MT4 is preferred due to its greater customization options and a wider array of tools. Compatible with both iOS and Windows operating systems, the desktop version also supports automatic trading systems, known as EAs (Expert Advisors), allowing for enhanced strategy control.
The mobile trading app maintains simplicity while still offering a robust range of tools for analysis and trading on the go. Its adjustable charting features and solid support make MT4 mobile a preferred choice for traders who need to stay connected to the markets from anywhere.
When evaluating a broker, it's crucial to consider the quality of customer support they offer. In our review of SMFX, we observed that the broker places significant emphasis on providing helpful and responsive support to its clients. You can reach out to SMFX's customer service team at your convenience, and you can expect to receive relevant and appropriate responses to your inquiries or concerns.
It's important to note, however, that SMFX does not offer 24/7 customer support. Instead, their support services are accessible during standard working days and hours. While this may not cater to those who prefer round-the-clock assistance, the availability during regular business hours should suffice for most traders' needs.
The commitment of SMFX to offering supportive and efficient customer service is a positive aspect of their brokerage services. Being able to rely on prompt and accurate support when needed can significantly enhance the trading experience, especially for new traders or in situations where quick assistance is required. This focus on customer support demonstrates SMFX's dedication to their clients' trading success and overall satisfaction.
SMFX enriches its clients' trading experience by providing access to market updates, an economic calendar, and other valuable tools. These resources are available for free use, supporting traders in making informed decisions based on the latest market insights.
In summary, SMFX presents a flexible trading environment, with a variety of account types and execution models to suit different trading preferences. The broker's competitive spreads and adherence to European standards for forex business operations, under its CySEC license, further enhance its appeal. While the broker's trading name and website are currently inactive, its registered company in Cyprus continues operations under two other trading brands, ScopeMarkets and SMcapitalmarkets. It's advisable for prospective clients to conduct thorough research and consult trading reviews to make an informed decision.
