Orbex Review 2022

Trust

Orbex Regulations

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

This is what we found concerning Orbex’s company structure and the licences and regulations of its two entities:

• Orbex Group Limited is the holding company of Orbex Global Limited, which is affiliated with Orbex Limited. Orbex.com is owned by Orbex Group Limited.
• Orbex Global Limited is authorised and regulated by the Mauritius Financial Services Commission “FSC”. The FSC is ranked as a tier-3 regulator on our system.
• Orbex Limited is licenced by the Cyprus Securities and Exchange Commission (CySEC) with licence number 124/10 under the Markets in Financial Instruments Directive (MiFID II). CySEC is a tier-1 regulator.

We have summarised the most essential aspects of Orbex’s two entities in terms of regulation and safety in the table below:

Why Is It Important To Know Where Your Broker Is Regulated?

In order to provide derivatives trading services to international clients, brokers need to be authorised by the appropriate regulatory bodies. Traders need to be vigilant because having a licence alone does not automatically mean that their preferred broker is allowed to operate in their region. Moreover, traders should remember that offshore regulators typically entail somewhat looser oversight.

A good example of how discrepancies in regional legislation affect brokers’ operations is the case with Orbex Limited. The FCA had previously authorised the entity in the UK, but this no longer applies since the entity is now headquartered in Limassol.

Orbex Limited still hasn’t removed the FCA from its list of regulators, which is a bit problematic for the overall transparency level of the entity.

Here is what traders need to be looking for in a trustworthy broker:

• Segregation of client funds. In order to negate the risk of accounting errors, brokers are required to keep their clients’ funds in separate accounts from their corporate banking accounts. Both entities of Orbex ensure segregation of client funds.
• Negative balance protection. Retail traders with both entities are liable for negative balance protection, meaning that their losses cannot exceed their initial investments.
• Compensation scheme. In the unlikely event of the broker becoming insolvent, a compensation scheme protects traders from the credit risk of the broker. By virtue of operating within MiFID II, Orbex Limited is also a member of the Investor Compensation Fund (ICF). Under the ICF, clients of the entity may be liable for compensation of up to 20,000 euros. Orbex Global Limited does not have a client compensation scheme.
• Maximum leverage. Leveraged products like derivatives are risky because the underlying leverage increases a trader’s total market exposure. The profits generated by winning trades and losses incurred by failed trades are thus multiplied. That is why most regulators cap the maximum leverage offered by brokers. Professional traders with Orbex Limited may be given maximum leverage of up to 1:500, provided they meet certain criteria. In contrast, retail traders may obtain a 1:500 leverage with Orbex Global Limited right away. This makes the latter somewhat riskier.

Is Orbex Safe To Trade With?

Orbex’s two entities have varying degrees of protection. In terms of licencing, Orbex Limited is safer because it is authorised by a tier-1 regulator (CySEC). This means lower leverage, leaving traders less exposed to adverse market fluctuations and participation in the Investor Compensation Fund. Orbex Global Limited, in contrast, is licenced by an offshore entity, signifying much looser regulation.

Stability And Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focused on how long the broker has been in business, the size of the company, and how transparent they are in terms of information being readily available.

Orbex Global was registered in 2011 and has opened offices in Kuwait and Jordan. The entity also employs over 100 persons. In terms of clarity, we found the broker to have a very high general transparency. However, there are certain issues concerning its trading costs.

Similarly to Orbex Limited’s above-mentioned issue regarding its former FCA licencing, we found that Orbex Global’s information on the website concerning its fees is not fully clear. In one place, it says that the Starter Account involves commission-free trading. At the same time, in another, it is stated that there is a 0.16 per cent commission for trading U.S. shares and a 0.5 per cent commission on cryptocurrencies. This may confuse some potential clients, especially traders with little to no experience who do not know how to calculate their trading costs.

On the other hand, Orbex can be quite transparent regarding its technical, fundamental analyses and market breakdowns. An entire section of the website is dedicated to the team of analysts who analyse markets for Orbex, so traders can check out their profiles. This is crucially important for the trustworthiness of Orbex’s research content.

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

• One of its entities is authorised by a top-tier regulator.
• The legal information on the website, for the most part, is clear and concise.
• Has negative balance protection and segregated client funds.

Fees

Orbex’s spreads vary greatly on instruments from different asset classes. This type of trading cost concerns retail CFD traders most directly, meaning that the competitiveness of Orbex’s fees depends greatly on the preferred trading instruments.

Orbex Trading Fees

Orbex Spreads

We tested the spreads on an Orbex Starter Account during the London open at 8am UK time and just after the U.S. open at 2.45pm UK time. These are the most actively traded times. The test was conducted on the 15th of June 2022.

Based on our measurements, the spreads on some of the most popular FX majors are on par with the broader industry. Most beginners usually start to trade with FX pairs, meaning that Orbex’s spreads on instruments from this asset class can be competitive for those with little to no experience. Spreads on most commodities and indices are low to medium, while spreads on shares are quite low.

Given that Orbex offers more than 250 CFD shares on its platform, traders can take advantage of this diversity and the quite competitive spreads on instruments from this asset class.

Orbex’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.

Orbex’s Commissions

For CFD trades with shares and cryptocurrencies, a commission fee is charged on the opening and closing of a position. We found Orbex’s commission rate to exceed the industry average slightly.

There is an $8 commission per round-turn contract on an Orbex Premium account and a $5 commission per round-turn contract on an Orbex Ultimate account. However, spread rates on the two start from 0.0 pips. You can find additional information here.

Orbex Non-Trading Fees

Orbex charges a 20 (EUR, USD, GBP, PLN) inactivity fee for dormant accounts on which no activity has been registered for 6 months or more. This fee is charged monthly until trading activity resumes or the account balance drops to zero.

Are Orbex’s Fees Competitive?

The competitiveness of Orbex’s fees depends mainly on personal preference. Traders who execute positions on FX pairs, shares, and some commodities will enjoy lower spreads on average compared to traders who prefer indices. Traders who also avoid placing orders on instruments from asset classes liable for commissions will pay even lower trading costs.

Traders can also avoid Orbex’s dormancy fee by simply being active on the market. Finally, the competitiveness of the broker’s fees is bolstered by the fact that there are no charges for deposits and withdrawals.

Platforms and Tools

Orbex’s MT4 platform affords copy trading, also known as social trading. It is a great option for beginners looking to replicate the successful strategies with a proven track record of other more experienced traders. Automated trading is also available. This is why we found the platform to be suitable for beginners and advanced traders alike.

The broker also allows traders to implement more sophisticated strategies on the platform, such as scalping and hedging.

The mobile version of the MT4 platform retains most of the features available on the desktop version. This allows traders to stay engaged and make necessary adjustments to their running positions no matter the device they use.

Orbex’s Desktop Platform

General Ease of Use

Regarding the feasibility of trading platforms, MT4 pretty much sets the benchmark for the essential components that need to be present on every platform. Despite its usability, however, there are minor issues with it, which other platforms manage to avoid. The chart layout is a bit cumbersome, making it difficult for traders to navigate the historical price action. Chiefly, scaling the price action up or down is not as straightforward as on other platforms.

Beyond that, traders can easily scroll through the watch list containing their favourite tradable instruments, which can be found on the left-hand side of the platform. The indicators and drawing tools lists are positioned at the panel’s top, while account information such as balance and free margin is situated at the bottom. The charts menu is placed on the right-hand side of the platform..

Charts

Despite the somewhat rugged outlook of the chart, which makes the price action appear more static than it is, MT4’s charts are nonetheless practical. Traders can populate them with multiple indicators and drawing tools, allowing them to compartmentalise different portions of the price action and examine the underlying market sentiment.

Here is a list of the most important features of the chart:

• Trading indicators. Orbex’s desktop MT4 platform currently has 30 different trading indicators. There are trend and volume-based indicators, and oscillators. Traders can use combinations of indicators from the different types to conduct a multifaceted analysis of the price action depending on the underlying market sentiment.
• Drawing tools. The chart also consists of 24 drawing tools, such as trend lines, channels, wedges, and Fibonacci corrections. These allow traders to spot repeatable patterns and determine key support and resistance levels. A rich assortment of drawing tools can help traders forecast potential breakouts, breakdowns, or consolidations in the price action.
• Timeframes. Traders can choose from 9 different timeframes, the lowest one being 1-minute. This is a bit problematic because even though Orbex permits scalping, the chart does not have lower timeframes. It is therefore impossible for traders to examine the subtlest changes in price action.
• Chart types. Price action can be represented in 3 different ways – as a line, individual bars, or candlesticks. While incorporating the most widely used chart types, the MT4 platform does not afford more unconventional ones. This lack of diversity may not be to the liking of seasoned traders with more intricate trading strategies.

Orders

Orbex’s MT4 platform has some of the industry’s most widely used order types.

• Market orders. They are used for immediate entry at the best possible price. Market orders guarantee volume filling though there could be a discrepancy between the requested price and the price where the order actually gets filled.
• Limit orders. They are placed at a price level different from the current spot price. Limit orders guarantee exact price execution, though there is no guarantee of volume filling.
• Stop orders. Stop orders are usually used in support of a primary position. For instance, stop-loss orders are placed at a distance from the initial entry of a primary position in order to cap the potential loss that would be incurred if the price action goes against the primary position. Once the price action reaches the execution price level of a stop order, it gets transformed into a market order and then gets filled at the best possible price.
• Expiry orders. Traders can use expiry orders to set a date on which the underlying trade is to be closed automatically if it already hasn’t been filled or cancelled by that date. Expiry orders are typically used by day traders and position traders who want to have an active position for longer than a single day but not indefinitely. One of the perks of expiry orders is that they can be used to cap the swap charges that a position might incur over time.

Orbex’s Mobile App

The mobile version of the MT4 affords traders quick and easy access to their accounts while on the go. The app is thus an indispensable tool in a trader’s arsenal, as it can be used to make quick adjustments to open positions. A trader may use the app to monitor the development of a position and possibly terminate it if, for instance, the market turns and losses start accumulating.

The app retains, for the most part, the feasibility of the platform’s desktop version, even though it is intended to serve a different purpose. While the desktop version is better suited for carrying out probing technical analyses, the app has to be run on small-screened devices. That is why the app serves more of a supporting role.

General Ease of Use

The app has several different categories. The first is a watch list of a trader’s preferred instruments. He can use it to quickly observe the bid and ask prices and the corresponding spreads. There is also the charts section where traders can analyse the latest price action and the account section where information pertaining to the performance of the account can be accessed.

Charts

These are the essential tools and features of the MT4 mobile app, which can also be found on the desktop version:

• Indicators. The app has 30 different indicators, such as trend and volume-based ones, and oscillators. The problem is that when viewed on low-resolution devices, charts can be crowded with indicators a lot faster than on desktop platforms. That is why the mobile app is unsuitable for conducting complex technical analyses.
• Drawing tools. Orbex’s app incorporates 24 drawing tools, like channels, wedges, and Fibonacci retracement levels. This variety is again partially offset by the above-mentioned problem inherent to most mobile apps.
• Timeframes. There are 9 different timeframes, ranging from 1-minute to 1-month.
• Chart types. Traders can also choose how to represent price action – as a line, bars, or candlesticks.

Orders

Here is a list of the most popular order types available on Orbex’s mobile app:

• Market orders. Market orders are used for immediate entry at the best possible price. 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. They are placed at a price level different from the current spot price. Limit orders guarantee exact price execution, though there is no guarantee of volume filling.
• Stop orders. Stop orders are usually used in support of a primary position. For instance, stop-loss orders are placed at a distance from the initial entry of a primary position in order to cap the potential loss that would be incurred if the price action goes against the primary position. Once the price action reaches the execution price level of a stop order, it gets transformed into a market order. It then gets filled at the best possible price.
• Expiry orders. Traders can use expiry orders to set a date on which the underlying trade is to be closed automatically if it already hasn’t been filled or cancelled by that date.

Tradable Instruments

Traders may choose from more than 250 CFD shares, 50 FX pairs, commodities, indices, and cryptocurrencies. This variety affords retail traders exposure to different markets. Depending on their level of risk-aversion, traders may choose between highly volatile instruments, like cryptocurrencies and lower-risk securities.

What Are CFDs?

Traders use contracts for difference (CFDs) to speculate on the price of the underlying without physical delivery. For example, you can trade gold and profit as the price rises or falls without having to buy or sell 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 Orbex?

Here is a rundown of Orbex’s instruments by categories and sub-categories:

• 69 Currency Pairs
  • Majors, Minors, and Exotics
• 12 Commodities
  • Metals, Energy, Futures
• 280 Stocks
  • UK, EU, U.S.
• 15 Indices
  • Cash, Futures
• 11 Cryptocurrencies
  • Majors, Minors

The number of indices and commodities offered by Orbex is higher than the industry average, while the number of FX pairs and stocks is average. By far, the most numerous instruments on the platform are CFD shares, which is complemented by Orbex’s relatively low spreads on instruments from this asset class.

Customer Support

Orbex 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.

The test was conducted on the 13th of June at around 3pm via Orbex’s live chat option. We decided to enquire more about Orbex’s commissions on a Starter Account, given that relevant information seems to be diverging at different sections of the website.

It took the agent more than 3 minutes to respond, and he immediately proceeded to offer to get us in touch with an account manager. The agent’s answers were short and uninformative. He sent a couple of links, which we had referred to in the first place.

Traders wanting to get in touch with Orbex can find a complete list of the available channels here.

Deposit and Withdrawal

Orbex Deposit Methods

Orbex Withdrawal Methods

International traders can choose from Orbex’s multiple transaction methods and use 9 different currencies to fund their accounts. Transactions are processed quickly and are not charged by the broker, though third-party costs like banking fees may apply. Orbex should also be praised for showing which transaction methods are regulated so that traders may choose the one they feel most comfortable with.

Additional information regarding Orbex’s deposit and withdrawal methods can be accessed here.

Account Types and Terms

Orbex has three main account types – a Starter, Premium, and Ultimate. The first one has the lowest minimum deposit requirement – $100 – making it the most accessible of the three. Its spreads are variable, while the spreads on the other two account types start from 0.0 pips. On the other hand, the Starter account type is commission-free. Additional information concerning these retail account types is available here.

Clients of the broker needing swap-free trading can negotiate the conditions of their Islamic accounts with Orbex, while those wanting to have other professionals trading on their behalf may opt for the PAMM feature or corporate/joint accounts. Traders who wish to learn more about these options can read about them here.

Why is Choosing the Right Account Type Important?

Trading with derivatives entails a very high degree of risk, so traders need to pick an account type that best matches their goals and needs. Traders should also consider whether the features of their preferred account type match their trading styles.

For instance, if you prefer low spreads and fixed costs to gauge the ever-changing market volatility, an Orbex Premium or Orbex Ultimate account may suit your needs. In contrast, an Orbex Starter account may be a better solution if you prefer commission-free trading.

What Account Types Does Orbex Offer?

*Commission per round-turn contract

There is an apparent trade-off between the three retail account types. The Starter account has the lowest barrier to entry, making it accessible even to traders with moderate means. However, they should consider two things before they move on with it. Firstly, the Starter account has the highest trading costs in terms of spreads.

Secondly, the possibility of using spreads as high as 1:500 is a double-edged sword. The bigger the leverage, the bigger the reflection on the account balance from even minute changes in the price action. In other words, traders with smaller balances face a correspondingly bigger risk of wiping out their accounts because of volatility.

Unsurprisingly, the Ultimate account type offers the best conditions, but its $25,000 minimum deposit requirement makes it less accessible to traders. The Premium account is thus, on balance, the most practical of the bunch.

What is CFD Leverage?

In a nutshell, the leverage determines a trader’s overall market exposure. When trading Contracts for Difference or 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.

Тhе leverage can be a trader’s best friend or worst enemy, depending on how cautiously and responsibly one uses it. Traders should always beware that the bigger the leverage, the bigger the impact of even small changes in the underlying price action on their account balances.

Orbex Account Opening Process

We have broken down the steps necessary to open an account with Orbex:

• Step 1 – To begin the account opening process, click on the “Register” button that can be found on the top-right corner of Orbex’s main page. First, you will be asked to fill in personal information, such as your name, email, and country of residence.
• Step 2 – Secondly, you will have to verify your email address by clicking on the activation link that has been sent to the address you provided. Then, you can select your password before you are taken to Orbex’s Member Area. This is where you can access the various features of your account.
• Step 3 – Next, you will have to choose your account type, preferred leverage (from 1:30 to 1:500), and base currency before filling in the remainder of your personal details. You will also have to state your trading strategy (scalping, hedging, or day/intraday trading).
• Step 4 – Before you can place your first trade, you will have to verify your identity. The process is entirely digital; you have to submit a photo of your national id card, passport, or driver’s licence.

Why Is A Demo Account Important?

A trader uses a demo account to test the services of a broker, such as the speed of order execution, spreads, and usability of the platform, in a safe environment. Additionally, traders can use this simulated version of the market to tweak and improve the parameters of their strategies.

Orbex’s Supported Countries

Orbex Global Limited provides financial services to international traders, except for residents of the following countries: the U.S., Cuba, Sudan, Syria, and North Korea.

Orbex Limited serves traders who are residents of countries that are members of the European Economic Area (EEA).

Research

We found Orbex’s research materials very practical with a sharp focus on current market developments. They are intended to help the reader understand presently unfolding trading opportunities. This is achieved by paying equal attention to each opportunity’s technical and fundamental aspects. Traders can access these materials from Orbex’s Research Overview.

We did not award Orbex a perfect score in this category because of the lack of a proper news section. Raw economic data, such as unemployment and inflation rate changes, is not covered independently. Even still, Orbex’s research content is equally well suited to cater to beginners’ and advanced traders’ needs.

Research Tools

Orbex’s research content falls into several categories:

• Video breakdowns – Orbex’s video content is the most accessible of the bunch. Each video focuses on a major economic event (for instance, ECB’s latest policy decision) and studies its likely impact on the price action of a given instrument or set of instruments.
• Technical analyses – In a paragraph or two, each separate analysis breaks down a trading set-up currently emerging on a given instrument by outlining key support and resistance levels and potential target levels. Orbex’s technical analyses should be read in conjunction with its fundamental analyses.
• Fundamental analyses – The fundamental analyses examine in length the underlying driving forces that shape the trading set-ups underpinned by Orbex’s technical content. In short, they strive to explain the macroeconomic reasoning behind an anticipated upsurge or downsurge in the price action of a given instrument.

Education

A brief glance at Orbex’s Educational Hub reveals a diverse collection of different types of educational materials and supporting content. There are multiple educational videos, including on how to use the platform, articles, webinars, and an extensive glossary, that are intended to help traders with varying levels of experience.

Orbex’s webinars fall into three categories: beginner, intermediate, and advanced. Some of those are in different languages (Italian, Spanish), making them more accessible to a broader audience. Additionally, there are 11 written courses for traders wanting an even more detailed outlook on the basics of trading.

What we found particularly useful are the 4 quizzes, which traders can use to test their knowledge. This is made easier by including a currency calculator and a pip value calculator.

The Bottom Line

Orbex Global Limited is a retail broker that provides a wide range of solutions to traders with different experience levels. It offers multiple account types that accommodate scalpers, hedgers, day and intraday traders, and a rich collection of educational and research materials. On the other hand, the broker does not have very competitive fees, and it’s offshore licencing is rather loose.

The biggest advantage of Orbex is the extensive supporting materials it affords traders with different experience levels. These allow them to gain a nuanced understanding of trading basics while staying on top of current market developments. Orbex’s multi-layered content is also complemented by its diverse account types, allowing traders to take advantage of different kinds of opportunities.

Where the broker can improve its service is in regards to its licencing, fees, and trading platform. So far, Orbex Global Limited is authorised solely by the Mauritius Financial Services Commission “FSC,” which is a tier-3 offshore regulator. Its fees, though affordable in some respects, are nonetheless not the most competitive ones in the industry. Finally, the inclusion of a second platform type would afford traders a greater degree of flexibility.

FAQ