Banxso Review 2024

Trust

Banxso Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the entities operating under the Banxso trade name:

• Banxso (Pty) Limited is licensed and regulated as a Financial Services Provider by the Financial Sector Conduct Authority (FSCA) in South Africa under license number 37699. We rate the FSCA as a Tier-2 regulator.
• Banxso Wealth Management (PTY) Ltd is licensed and regulated as a Category II Financial Services Provider by the FSCA in South Africa under license number 41690.
• Éclat Technologies Limited is licensed and regulated by the Financial Services Commission (FSC) of Mauritius under license number GB23201707. We rate the FSC as a Tier-3 regulator.
• Banxso VU (a brand name owned and operated by VT Markets Global Limited) is licensed and regulated by the Vanuatu Financial Services Commission (VFSC). We rate the VFSC as a Tier-3 regulator.
• Banque de Banxso (LTD) is licensed and regulated by the Mwali International Services Authority (MISA) under license number T2023163. We rate MISA as a Tier-3 regulator.
• XF Services (LTD) is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 413/22. We rank CySEC as a Tier-1 regulator.

Banxso (Pty) Ltd’s licensing info on fsca.co.za

We have summarized the most essential aspects of Banxso in terms of regulation and safety in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account with beforehand.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All of Banxso’s entities comply with this requirement.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. Almost all of Banxso’s entities offer negative balance protection, except for the one regulated by MISA.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. Clients of XF Services (Ltd) are protected by up to EUR 20,000 under the Investor Compensation Fund (ICF). No other entity operating under the Banxso trade name participates in such a scheme.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum retail leverage is 1:1000 with Banxso’s entities regulated by FSC Mauritius and VFSC.

Is Banxso Safe to Trade With?

As regards the Banxso (Pty) Ltd entity, I found it a legit and sufficiently safe option to trade with. This entity ensures segregated funds and negative balance protection, and it operates under a ‘best execution policy’. Most importantly, it is regulated locally by the FSCA, meaning that traders from South Africa are protected under the country’s national regulatory framework. However, the entity does not offer a compensation scheme, so traders must exercise caution and be aware of the potential risks involved in trading without this additional layer of protection.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, how big the company is, and how transparent it is in terms of readily available information.

I found Banxso as a whole to be sufficiently transparent. Its legal documents are easily accessible and written in an easy-to-understand way. However, while I was setting up my account with the broker, I discovered that the broker does not ask about your trading experience or financial information. This is a common practice in the industry used by brokers to assess the risk factors of their clients.

I found that Banxso sometimes employs misleading terminology. For example, they use ‘Invest’ to describe order execution, blurring the distinction between trading and investing.

Banxso’s misleading communication extends to their website, suggesting that trading is almost cost-free. Although they offer commission-free trading and low swaps, this overlooks their spreads, which I found are often significantly higher than the industry average.

In summary, my research indicates that Banxso can be regarded as having a sufficient level of trust and stability due to the following factors:

• Regulated locally by the FSCA
• Has issued a ‘best execution policy’
• Adheres to most safety requirements
• Has easily accessible legal documents

Fees

Banxso’s Trading Fees

Banxso’s Spreads

I tested Banxso’s spreads during the most actively traded times – the London open at 8:00 a.m. GMT and just after the U.S. open at 2:45 p.m. GMT. The test was conducted on 6 December 2023. The results are shown in the table below:

Broken down by asset class and compared to the industry average, Banxso offers low spreads on share CFDs, average spreads on indices, and high spreads on currency pairs, commodities, and cryptocurrencies. The recorded gold spread exceeds the industry average about 20 times, whereas the crude oil spread is more than 10 times higher than the benchmark.

My research indicates that the broker’s most favorable conditions are on share CFDs. This is also because trading such instruments is done commission-free.

Banxso’s Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

Based on my findings, I determined that Banxso’s swap charges are quite suitable for long-term day and position trading. However, it is important to keep in mind that swap rates tend to change over time as the underlying volatility levels fluctuate.

Banxso’s Non-Trading Fees

The broker does not charge a handling fee on deposits and withdrawals, though third-party banking fees may apply. Banxso charges dormant accounts on which no activity (deposits/ executed orders/ withdrawals) has been registered for a given period. I have broken down the inactivity fee rates below:

The inactivity fee is charged every month until activity on the account is resumed or the account balance drops to zero.

Are Banxso’s Fees Competitive?

Banxso’s trading and non-trading fees are widely divergent. On the one hand, the broker affords commission-free trading and exceptionally low swaps, and this combination is ideal for implementing longer-term trading strategies. On the other, its spreads on instruments from most asset classes, baring share CFDs and indices, are significantly elevated.

Accounts Comparison

The table below illustrates the spreads and commissions I have recorded on the EUR/USD pair on Banxso’s Intro Trading account, contrasted against the typical values I observe on classic STP and ECN accounts in other brokers. It shows how much you have to pay to trade 1 full lot (100,000 units) on the EUR/USD with a pip value of $10.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My tests indicate that except for share CFDs and indices, Banxso’s trading costs for most asset classes can be more than two times higher than the industry average.

Platforms and Tools

After testing the Banxso X platform thoroughly, I was left with mixed feelings about it. On the one hand, price action behavior is represented clearly, and one can easily scale it up and down. This is ideal for chart artists interested in conducting thorough technical analysis. On the other hand, the platform lacks essential features, such as one-click trading, an alerts-setting option, and a depth of market tool. This makes it unsuitable for implementing high-frequency trading strategies such as scalping.

Nevertheless, Banxso clients are not completely denied these features, as they are available on the MetaTrader 5 platform. Additionally, MT5 has a superior Expert Advisors (EAs) feature for automated trading, whereas Banxso X is the better choice for copy trading. It also has a more user-friendly mobile app version.

Web-Based Banxso X Platform

General Ease of Use

The Banxso X platform has a very lean and intuitive design. There is a watch list of selected instruments on the left side of the screen, an order-placing window in the middle, and a chart screen on the right-hand side. Performance info is displayed at the bottom, while account info can be found at the top. There is also a button with which traders can switch between the regular version of the platform and the copy trading area.

Charts

I consider the chart screen of a platform its most important feature. It aids technical analysis by providing an overview of price action behavior. The charts screen also allows traders access to many analytical tools and chart configuration possibilities. A good chart should afford easy scaling up and down of price action.

As shown above, price action is represented clearly in an attractive widescreen. This makes it possible to examine even minute changes in the market’s direction. The list of available technical indicators is available from the top of the panel, whereas the available drawing tools can be accessed from the left-hand side.

I have broken down the available analytical tools and chart configurations below:

• 24 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next.
• 16 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. The Banxso X platform notably lacks the Elliott Waves tool, which makes it more difficult to examine the cyclical nature of price action behavior.
• 9 timeframes. The platform affords multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term. While the range of available timeframes on the Banxso X platform is sufficiently wide, the lowest timeframe is 1 minute. The absence of any lower timeframes means the platform is unsuitable for scalping.
• 7 chart types. The Banxso X platform offers several chart-type configurations. This diversity makes it possible to examine potential trading opportunities from multiple angles.

Orders

I have broken down the available order types with the Banxso X platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the Banxso X Platform

My experience with Banxso’s platform is a blend of positives and negatives. I found its appealing design and expansive chart display to make analyzing price action enjoyable. The platform excels in ease and speed of order execution. However, it falls short by lacking crucial features like one-click trading and market depth analysis. This limitation hinders its suitability for high-frequency trading strategies.

Banxso X Mobile App

Banxso’s mobile app has most of the features that are available on the web version of the Banxso X platform. It has the same number of technical indicators and drawing tools. Unlike the web trader, the app displays the spread rate (between the bid and ask prices of instruments).

My Key Takeaways After Testing Banxso X Mobile App

Banxso’s mobile app has two major benefits over the web trader. Firstly, it affords easy access to global markets, even on the go. With the app, you are always just a few clicks away from your trading account, which could be crucial in case you have to make urgent adjustments to your open trades. Additionally, the fact that spread rates are displayed on the app means that traders can be easily informed before opening a specific position.

Tradable Instruments

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the price of the underlying asset without physical delivery. For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With Banxso?

I have broken down the available instruments with Banxso below:

• 80 Currency Pairs
  Major, Minor, Exotic
• 22 Commodities
  Metals, Energy, Agriculture
• 1000+ Share CFDs
  U.S., UK, EU
• 32 Indices
  U.S., EU, Asia
• 13 Cryptocurrencies
  Major and Minor

Compared to the broader industry, Banxso offers a high amount of currency pairs, commodities, share CFDs, and indices, and an average amount of cryptocurrencies. This variety is one of Banxso’s greatest advantages.

My Key Takeaways after Exploring Banxso’s Tradable Instruments

I was impressed by Banxso’s extensive amount of currency pairs – one of the best assortments I have ever seen. Traders can benefit from access to some quite exotic markets that are unavailable with most other brokers. I also found it quite useful that there are over 1000 share CFDs, given that the broker’s trading fees are lowest on instruments from this particular asset class.

Customer Support

The easiest way to get in touch with Banxso is by phone. Alternatively, you can send them an email, but it may take several business days before you receive a reply. Visitors of the website can also enter into a chat session with Banxso’s support team via WhatsApp. Active traders also have access to the built-in chat screen from the Banxso X platform.

Customer Support Test

When we test a broker’s customer support team, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on the 7 December 2023. I submitted an email at around 10:10 a.m. CET, requesting additional information about Banxso’s execution method and average execution speed. I received the response only two days later which was not helpful.

Deposit and Withdrawal

Banxso’s Deposit Methods

Banxso’s Withdrawal Methods

All deposits and withdrawals must be processed from the client’s ZAR account, meaning that various conversion fees may apply. Also, withdrawals must be processed using the same method used for deposit.

Account Types and Terms

Why is Choosing the Right Account Type Important?

Your account should reflect your goals, needs, and ambitions on the market. You should take into consideration several factors, such as whether the account type has a minimum deposit requirement, its spreads and commissions, the execution method, and more.

What Account Types Does Banxso Offer?

I have broken down the features of Banxso’s account types below.

Banxso’s accounts seem better suited for day and position trading. That is so because of the combination of commission-free trading and above-average floating spreads. Still, traders should be careful because Banxso’s spreads vary greatly across instruments from different asset classes.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger-sized positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Banxso’s Execution Model

Banxso utilizes market execution. The broker operates on a Straight-Through-Processing (STP) basis without a dealing desk. Order requests are transmitted to the interbank level, where Banxso’s liquidity providers fill them. As long as there is enough liquidity in the market, all order requests will be filled, though at varying speeds.

Banxso’s Account Opening Process

The account creation process with Banxso is straightforward and quick. You can go at your own pace, though realistically, you will be done with everything within an hour. I have summarized the step-by-step process below:

• Step 1. Click ‘Register’ at the top-right corner of the main page.
• Step 2. Fill in your name, email address, and phone number.
• Step 3. Choose a password and agree to the T&Cs.
• Step 4. Upload proof of ID and residence to verify your account.

Why is a Demo Account Important?

Banxso offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

Banxso’s Restricted Countries

Banxso does not offer its services to residents of the United States, Canada, Iran, North Korea, and other jurisdictions where trading with leveraged products may be prohibited.

Research

Research Tools

I have broken down the several types of research content below:

• Economic Calendar. The economic calendar is an essential tool in a trader’s arsenal. It informs traders of upcoming market events and releases that have the potential to stir price action, thereby creating viable trading opportunities. Banxso’s calendar is incorporated from Investing.com.
• TradingCentral. TradingCentral is a renowned service for its top-quality market breakdowns and trading signals. It offers traders comprehensive technical and fundamental analysis. To qualify for TradingCentral content, clients of Banxso must have invested at least $25,000 in their trading account.
• TipRanks. Banxso also provides access to content from TipRanks – another industry leader in research content. It offers analysts ratings and news sentiment breakdowns on share CFDs.

My Key Takeaways After Exploring Banxso’s Research Content

Banxso incorporates professional-grade analyses from some of the most trusted third-party providers in the industry. However, to have access to content from TradingCentral, you have to have deposited quite a large some of money into your trading account. The broker does not produce proprietary market breakdowns or written articles. I noticed it used to publish research videos on its YouTube channel, but no new content has been uploaded for over a year.

Education

There are 120 educational videos covering a wide range of topics – from technical analysis to the psychology of trading. Videos typically last between 1-3 minutes and focus on the ABCs of the topic at hand. Where applicable, the videos are supported by charts. I determined that this format can only present the reader with a rudimentary understanding of the subject.

The Bottom Line

Banxso, a South African forex and CFD broker, is licensed by the country’s Financial Sector Conduct Authority (FSCA). Established in 2021, the broker has rapidly expanded its offerings. Presently, it provides access to over 100 instruments across various markets, catering to both novice and experienced traders.

What I consider Banxso’s biggest advantage is its diverse offering of volatile instruments across several asset classes. This presents traders with a choice of various trading opportunities. The broker has also developed a good proprietary platform, which is equipped for copy and automated trading. It also allows for the execution of basic technical analysis.

On the other hand, Banxso charges rather high trading fees and lacks comprehensive educational content. The broker does provide professional-grade research content, but most of it is only available to traders with over $25,000 in their accounts.

Banxso is suitable for beginners and caters to f those interested in copy trading. Strategy followers can subscribe to a number of strategies that match their criteria. They can also easily gauge the underlying market sentiment via content made available from Banxso’s third-party providers.

FAQ