Forex4you Review 2024

Trust

Forex4you Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare each entity’s 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.

Forex4you is a trademark of E-Global Trade & Finance Group, Inc. Here is what we found out concerning the entity:

• E-Global Trade & Finance Group, Inc. is authorized and regulated by the British Virgin Islands Financial Services Commission (BVI FSC), under licensing number SIBA/L/12/1027. BVI FSC ranks as a Tier-3 regulator on our system.

We have summarised the most essential aspects of E-Global Trade & Finance Group, Inc. in terms of regulation and safety in the table below:

* There could be discrepancies during times of extreme market volatility

A broker is mandated to comply with the financial directives of the country where its regulator is based. This naturally leads to regional discrepancies in legal requirements. That is why traders need to be aware of the specific protections they are entitled to under their broker’s regulation.

We have listed some of the most important safety features traders need to look out for in a broker:

• Segregation of client funds. In order to decrease the risk of accounting errors, most brokers are required to keep their clients’ funds in separate bank accounts from the ones they use for their corporate capital. Forex4you complies with this requirement.
• Negative balance protection. This policy essentially removes the risk of a trader’s losses exceeding his or her balance. Forex4you operates on an account protection basis via its relatively low stop-out levels (between 10-20%). This means that when the account’s margin drops to the stop-out level, all running positions are automatically closed to prevent further losses. However, there could be discrepancies during times of extreme market volatility.
• Compensation scheme. A compensation scheme protects the client against the company’s liabilities. Some brokers that are not mandated to have such a policy may decide, at their own discretion, to obtain civil liabilities insurance instead. The BVI FSC does not require Forex4you to have a compensation scheme, and it has not issued civil liabilities insurance either.
• Maximum leverage. Leverage is one of the main factors impacting a trader’s performance. It multiplies the profits generated and losses incurred, which is why it is frequently referred to as a “double-edged sword.” Some regulators cap the maximum leverage (usually between 1:30 and 1:100) brokers are allowed to extend to retail traders in order to limit their maximum market exposure. With a maximum leverage of up to 1:2000, Forex4you’s clients have to decide on their own how much of it to use.

Is Forex4you Safe to Trade With?

Despite the lack of a compensation scheme, Forex4You adheres to most of the bigger safety requirements in the industry, which is why I found it to be overall safe.

Having operated for 16 years, Forex4you has already established itself as a trustworthy derivatives broker that gives its clients the tools they need to succeed. By applying rigid risk management and using Forex4you’s tight stop-out levels, traders can effectively decrease their trading risk.

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.

The first impression one gets after visiting forex4you.com is that the broker lists the average order execution times per account type, which is quite rare. This signifies high-grade transparency and accountability. These results are achieved because of Forex4you’s liquidity aggregator, MarketPlace, which matches the optimal bid and ask prices from the broker’s pool of liquidity providers.

In summary, our findings indicate that Forex4you can be regarded as having a good level of trust and stability due to the following factors:

• Forex4you’s clients’ funds are kept in segregated accounts.
• The company has established its reputation as a trustworthy broker in the past 16 years.
• It has very narrow stop-out levels, which mitigate the risk of an account’s losses exceeding its balance. The risk is not completely removed, though.

Fees

The broker’s Cent and Classic account types – the ones that afford commission-free trading – have quite high spreads. Accordingly, the Cent Pro and Classic Pro account types have much lower spreads, but their fixed costs decrease their overall competitiveness. With regard to non-trading fees, Forex4you charges dormant accounts an inactivity fee of $10 after a period of 12 months or more. This is a pretty standard rate.

Forex4you Trading Fees

Forex4you’s Spreads

We tested the spreads of Forex4you during the most actively traded times – during the London open at 8 a.m. GMT and just after the U.S. open at 2.45 p.m. GMT. The test was conducted on the 15 September 2022.

As shown in the table above, the spreads on a Classic Pro account are very low. This applies to instruments from all asset classes. One peculiar thing to notice is the difference between the morning and afternoon spreads on the Dow Jones 30. Spreads on some assets tend to rise when liquidity drops (before the U.S. open in this case), which is why traders need to monitor the underlying traded volume.

Forex4you’s Swap Rates

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.

Forex4you charges widely varied swaps owing to heightened market volatility. Traders wanting to avoid such unpredictable costs should consider setting up a swap-free account.

Forex4you’s Commissions

Forex4you’s Cent Pro account has a commission of $8 per lot, while the Classic Pro account has a commission of 10 cents per lot. But while 1 lot on a Classic Pro account equals 100,000 units, 1 lot on a Cent Pro is set at 1000 units (micro lot). Consequently, trading 100,000 units on a Cent Pro account will entail a commission of $10.

This means that the commission per traded unit on a Cent Pro account is actually higher than on a Classic Pro account, contrary to what may seem at first glance. It is also worth pointing out that the commission on a Classic Pro account is already higher than the industry average. The same applies to the fixed spreads on the Cent and Classic account types.

Forex4you’s Non-Trading Fees

An inactivity fee is charged when no trades have been executed on an account for a period exceeding 12 months. The company deducts from the balance of a dormant account (including Share4you accounts) a monthly fee of 10 USD/ 10 EUR/ 75 RUB or the equivalent of a different currency, depending on the underlying base currency. After a period of 24 months, the inactivity fee increases to 20 USD/ 20 EUR/ 1500 RUB. The fee will be charged until activity resumes or the account balance drops to zero.

Are Forex4you’s Fees Competitive?

The competitiveness of Forex4You’s fees depends mainly on the frequency and quantity of trading. Arguably, the broker’s most favorable trading fees are on the Classic Pro account type. Despite its considerably lower spreads, however, the account type has above-average commissions compared to the broader industry.

Platforms and Tools

With regard to MT4, the platform consists of multiple indicators, drawing and charting tools, and other secondary features, which have helped it become a benchmark among retail traders over the years. The platform’s practical design makes it very easy to use and navigate, and even newbies can get used to it relatively quickly.

The mobile app lacks the general ease of use of MT4’s desktop version because it runs on smaller-screened devices. Smartphones generally do not afford an in-depth insight into price action behavior. Instead, the app’s primary function is to allow traders to adjust their underlying positions on the go.

Traders who do not wish to analyze the market on their own can make use of MT4’s in-built Expert Advisors (EA) feature for automated trading. Alternatively, they can sign up for Forex4You’s social trading option, also known as copy trading, called Share4you. It allows less experienced traders to learn from the strategies of seasoned traders and copy their performance.

Forex4you’s Desktop MT4 Platform

General Ease of Use

The platform layout follows a very familiar pattern, enhancing its overall ease of use. The watch list of selected instruments and a list of available trading indicators are placed on the left-hand side of the screen. The banner at the top contains additional trading and non-trading options, while information about the performance of the account can be found at the bottom. The middle section includes the charts.

Almost all important features can be accessed with just a few clicks, which is essential in a fast-paced environment like the market.

Charts

The chart is the most important component of every platform. The way in which price action behavior is represented on the chart is instrumental for every trading decision. An effective chart needs to incorporate a sufficient number of supporting tools that the trader can use to study and understand the underlying market sentiment.

Here is a list of the available tools on MT4’s charts:

• Trading indicators. The chart consists of 30 different trading indicators that can be used to determine the direction of a trend, trading volume, and, most importantly, key support and resistance levels. Some of the more popular instruments include the MACD, Bollinger Bands, and the Ichimoku Cloud indicator.
• Drawing tools. There are 21 drawing tools, including lines, channels, and Fibonacci retracement levels. These objects can be drawn over the price action to study the underlying market sentiment and outline potential breakout or breakdown levels within an established trend.
• Timeframes. The chart has 9 different timeframes ranging from 1 minute to 1 month. This variety affords a multifaceted overview of price action behavior. Larger timeframes are usually used to discern the broader market sentiment. In comparison, smaller timeframes provide a more detailed overview of recent price developments, which can be used to determine potential entry and exit levels.
• Chart types. Price action can be represented in one of three ways – as a line, using bars or candlesticks.

Orders

Here is a breakdown of the available order types on MT4:

• 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 actually 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 loss 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.

Forex4you’s MT4 Mobile App

Even though the app feels more rugged compared to MT4’s desktop version owing to the above-mentioned problem, it has its own benefits. The app allows traders to stay connected to the market at all times, which is indispensable when urgent corrections to open positions have to be made. Moreover, the app has an excellent feed section screening the latest news that drives the market. Traders can always stay informed, which is imperative in the ever-changing market environment.

General Ease of Use

The app has several main components, including a charts window where price action can be observed; a quotes window representing a watch list of selected instruments; and the trade window where orders can be placed. There is also the news feed section.

A lack of space underpins the problem inherent to most trading apps. Having to cramp so much information on a low-resolution device inevitably diminishes the overall ease of use. But in so far as the app’s primary function is to afford quick access to a trader’s account, MT4’s app successfully fulfills this requirement.

Charts

Here is a list of the chart tools available on the app:

• Trading indicators. The app consists of 30 trading indicators, the same as MT4’s desktop version. These include trend-based, range-based, volume-based, and other types of indicators.
• Drawing tools. There are 21 drawing tools, such as trend lines and channels. These can be applied in order to make sense of price action behavior and determine potential trend-reversal or trend-continuation zones.
• Timeframes. Once again, there are 9 different timeframes, ranging from 1 minute to 1 month. This variety is important since trading apps are mostly used to monitor market developments.
• Chart types. MT4’s app has three chart settings. Price action can be represented as a line, using bars and candlesticks.

Orders

Here is a breakdown of the different order types that can be executed through the app:

• 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 actually 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 loss 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.

Tradable Instruments

The broker has a reasonable amount of FX pairs and CFD shares but only a handful of commodities on all account types. Forex4you has no complex instruments such as ETFs, bonds, or options. Despite this unbalanced assortment of tradable instruments, however, there are enough of them for the successful implementation of most types of trading strategies.

What are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the price of the underlying without physical delivery. For example, a long position on gold would generate a profit as the price rises or incur a loss as it falls. This is achieved without having to purchase actual bars of gold. 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 Forex4you?

Here is a list of the available instruments on a Classic Pro account, broken down by asset class:

• 40 Currency Pairs
  • Majors and Exotic
• 6 Commodities
  • Energy and Spot Metals
• 93 CFD Shares
  • Tech, Financial, Retail, and others.
• 14 Indices
  • U.S., Europe, Asia
• 18 Cryptocurrencies
  • Major and Minor

With 93 instruments, CFD Shares are Forex4you’s most diverse type of asset. It is worth pointing out that there is a fixed 0.05% commission on shares, which is medium to high compared to the broader industry. The 40 currency pairs represent the second most common type of instrument on the platform, but this diversity is somewhat offset by the above-mentioned $8 commission, which is quite high.

Arguably, the 14 available indices strike the best combination between variety and competitive costs because the 0.02% commission on instruments from this asset class is lower than the industry average. This means that Forex4you’s Classic Pro account type provides good overall trading conditions for traders preferring highly volatile instruments.

Forex	Commodities
EURUSD, GBPUSD, GBPJPY, AUDCAD	Gold, Crude Oil, Natural Gas, Silver

Shares	Indices
Apple, Microsoft, Caterpillar, Tesla, Citigroup	Nasdaq 100, S&P 500, FTSE 100, Germany 30, Dow Jones 30

Cryptocurrencies

Bitcoin, Ethereum, Litecoin, Solana, Polkadot

Customer Support

Answers to more general queries can be found in the FAQ section of the website. Alternatively, traders can call or request a call back from one of Forex4you’s customer support departments. They can also use the live chat feature. In both cases, the response time is very short, and the answers are generally well-informed.

Forex4you’s Customer Support Test

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

We conducted our customer support test on the 15th of September via the live chat option, which can be found at the bottom-right corner of the page. Upon requesting an explanation of how Forex4You’s “Limit & stop levels” function, we were provided with a satisfactory answer fairly quickly.

Deposit and Withdrawal

Forex4you Deposit Methods

Forex4you Withdrawal Methods

Except for withdrawals via debit cards, all other transactions are processed instantaneously. The servicing fee may vary depending on your chosen payment method. You can find additional information about the broker’s payment methods here.

Account Types and Terms

Retail traders can choose from several main account types: Classic Fixed, Cent Pro, and Classic Pro. There is also another type – Classic Standard – which is an amalgamation of the four, and you can read more about it here. Each of the four main ones can be modified into an Islamic account to accommodate swap-free trading.

With regard to trading costs, the account types can be separated into two categories. Cent Fixed and Classic Fixed accounts have fixed spreads and no commissions, whereas Cent Pro and Classic Pro accounts have floating spreads starting from 0.1 pips and fixed commissions. When deciding which account type to choose, traders should consider several other factors, such as execution types and speed, standard contract size, and limit and stop levels.

Why is Choosing the Right Account Type Important?

Some traders are more aggressive on the market, while others have a much more conservative approach to trading. They can have different styles, goals, and needs, so there is no uniform account type that caters to everybody. Instead, it is up to each trader to pick the one account type that best matches their aspirations and means. The right account type would naturally enhance the strong aspects of a trader’s strategy and minimize the adverse impact of its drawbacks.

What Account Types Does Forex4you Offer?

*On FX Majors

The biggest advantage of Cent Fixed and Classic Fixed account types is that they offer commission-free trading and instant execution. If the requested execution price for an order has changed before the broker could fill it, the trader will be sent a requoted price which they can either accept or decline. Instant execution is suitable for precise entries and exits in and out of a position.

However, Cent Fixed and Classic Fixed accounts have high fixed spreads and low order execution speeds. The high limit & stop levels starting from one spread represent another drawback. If a trader wishes to place a supporting stop loss order to a primary position, it cannot be opened less than 2.0 pips away from the man position. By limiting a trader’s capacity to control their market exposure, effective risk management becomes more difficult.

Cent Pro and Classic Pro accounts have much faster order execution, especially the latter, and much lower spreads. However, their commissions exceed the industry average. Moreover, the fixed commission on a Cent Pro account per 100,000 units (amounting to $10) is higher than the $8 commission on a Classic Pro account. These two account types have market execution meaning that orders are filled at the best possible price without sending any requotes to the trader. And while the Cent Pro has limit & stop levels starting from 2.0 pips, underscoring the same problem mentioned above, the Classic Pro account type has no such constraints.

All things considered, Forex4you’s Classic Pro account type strikes the best balance between competitive fees, fast order execution, and the possibility to control one’s market exposure.

What is CFD Leverage?

Leverage is the biggest determinant of a trader’s 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 and losses incurred from failed trades.

Forex4you Account Opening Process

We have summarised the essential steps necessary to open an account with Forex4you below:

• Step 1. Click the ‘Open Account’ button in the top-right corner of the main page. You will then be asked to provide your phone number, first and last name, email, password, and country of residence.
• Step 2. Once you fill in these personal details, you have to confirm that you agree to the terms and conditions. The phone number you provide will be used as your username.
• Step 3. Afterward, you will be sent a verification code as a text message. You will see a confirmation form on the website where you need to fill in that code.
• Step 4. You will then be relocated to the Client Portal, which is where an account type can be selected. This includes choosing a base currency (EUR or USD), leverage (from 1:10 to 1:1000), and whether to have a regular or swap-free account.
• Step 5. You will be assigned your login credentials for MT4 or MT5 automatically. Before you can fund your account, you must verify it by sending the appropriate documents.

Why is a Demo Account Important?

Demo accounts serve a twofold purpose. Firstly, they function as a sort of broker’s business card. Traders can use them to check out its services in a safe environment before they decide whether to fund a real account. Secondly, demo accounts provide a risk-free simulation of real market conditions, which allows traders to update their strategies regularly. Even the best strategies must be updated periodically in order to function well under the ever-changing market sentiment.

Forex4you Supported Countries

Forex4You’s service is unavailable for residents of the U.S., Japan, Canada, Australia, Singapore, and EEA.

Research

What we found particularly useful is that all research content available on the website and the through the client portal is ostensibly trading-oriented. Emphasis is always placed on news that is most likely to impact the market, thereby being of key interest to day and intraday traders. Forex4you’s supporting materials are thus comprehensive enough to help traders make informed decisions in a fast-paced market environment.

Research Tools

Here is an outline of Forex4You’s different types of research tools:

• An economic calendar. Available from the website, the economic calendar outlines the main trading events each week. Traders can use it to learn more about the market consensus surrounding such top-tier market movers. More conservative traders can use the calendar to determine when the market is likely to become volatile and possibly unpredictable so that they can limit their exposure at such times.
• Market news. The news feed is available from the “Trading signals” section in the client portal. It filters trading-oriented news on a set of instruments – EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, and the dollar index. Each article briefly outlines a trading setup supported by a chart and one or two trading indicators. There is also a news feed available from the mobile app.
• Trading Central. Trading Central is one of the most renowned and widely used providers of trading analyses in the industry, and clients of Forex4You can access its content from their client portals. Each analysis contains a chart outlining a possible trading setup, a list of the major support and resistance levels, and the next likely direction for the market.
• Autochartist. Autochartist is another service that provides trading signals and analyses. Its content is structured similarly to Trading Central’s materials. Forex4You’s decision to incorporate two similar services offers its clients the opportunity to read about the trading opportunities on their preferred instruments from different perspectives. Hence, they can make informed decisions.

Education

Currently, there are 51 entries in the articles section on the website that cover rudimentary trading topics, such as “Five reasons to keep a trading journal” and “5 common forex trading myths that every trader needs to know”. Almost all articles are written in the format of “the top 5…” or “8 reasons why…”. These usually spark quite a lot of interest among newbie traders but rarely delve deep into the complexities of trading.

Forex4You’s ‘Trading School’ is another interesting source of information, representing an attempt by the broker at a comprehensive trading course. It consists mostly of articles on technical analysis with varying levels of complexity. Little attention is paid to fundamental analysis or the psychology of trading.

We found the broker’s educational content suitable for first-time traders beginning their trading careers from scratch. However, it is not ideal for more experienced traders looking to improve their knowledge as there is no examination of complex trading concepts.

The Bottom Line

Forex4you is a very transparent OTC derivatives broker that provides trading solutions to clients. Its award-winning service boasts more than 12.6 million trading accounts with $70 million in total client balances. One of the strongest aspects of its service is the very fast order execution speed complemented by diverse account types and trading platforms.

This wide selection of trading solutions caters to the needs and styles of different types of traders. Forex4you’s Classic Pro account type arguably has the most competitive fees and optimal trading conditions. Traders can also enjoy excellent customer support, available 24/7 in multiple languages.

The broker’s single entity – E-Global Trade & Finance Group, Inc. – is authorized and regulated by the regulator FSC of the BVI, which does not guarantee compliance with the strictest industry regulations. We also found Forex4you’s educational content rather superficial, not exploring complex trading topics.

Forex4you is suitable for both beginner and advanced traders, though for different reasons. The former can take advantage of Forex4you’s educational articles, while the latter can benefit from the incorporated research content provided by industry leaders such as Trading Central and Autochartist.

FAQ