RoboForex Review

Trust

RoboForex 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. This is what we found concerning RoboForex’s single entity:

RoboForex Ltd. is licensed by the Financial Services Commission (FSC) of Belize under number 000138/437. The FSC ranks as a tier-3 regulator on our system.

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

Why is it Important to Know Where Your Broker is Regulated?

Most entities are naturally licensed by the financial regulator of the country they are registered in. Regulators tend to mandate the same general requirements for brokers, though there could be some significant discrepancies in the small print due to differences in national legislation—that’s why traders need to be aware of how this could affect them.

Here is a list of the essential legal requirements traders need to be looking for in a trustworthy broker:

• Segregation of client funds. To negate the risk of accounting errors and fraud, brokers need to keep their clients’ funds in separate bank accounts from the ones they use for their own corporate capital. RoboForex complies with this requirement.
• Negative balance protection. In short, negative balance protection ensures traders cannot lose more than what they have in their account balance. RoboForex has negative balance protection in place.
• Compensation scheme. Some of the strictest regulators in the industry mandate brokers to have compensation schemes to protect their clients against their corporate risk and liabilities. RoboForex does not participate in any compensation funds directly mandated by the FSC, however, it has issued civil liability insurance on its own accord. The broker is also a member of The Financial Commission, whose Compensation Fund provides protection of up to EUR 20,000 per trader.
• Max. leverage. The leverage is the biggest determinant of market exposure, making it the most significant cause of success and failure for retail traders in the industry. It is for this reason that, for instance, European regulators under the MiFID II directive mandate a maximum leverage of 1:30 for retail traders. In comparison, RoboForex offers up to 1:2000 under the FSC. Accordingly, it is up to the trader to determine their leverage and not up to the broker, which underscores FSC’s looser regulatory oversight.

Is RoboForex Safe to Trade With?

Even though RoboForex is not authorized by a top-tier regulator, it offers multilayered protection which makes it a very safe broker. This is elucidated by its participation in The Financial Commission, and its civil liability insurance. The broker also complies with other standard industry requirements, such as having negative balance protection and segregation of client funds.

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 company’s size, and how transparent they are in terms of readily available information.

RoboForex has operated for over 12 years, is serving over 1 million clients, and has received over 30 awards, demonstrating its corporate stability. The broker is also very transparent, making all relevant information easily accessible and understandable.

Another example of this is the fact that European traders have to sign a full disclosure document during registration in order to acknowledge they recognize the aforementioned discrepancies in legislation between European regulators and regulators from third-world countries.

RoboForex’s fee structure is also quite clear, and traders can quickly observe the differences between RoboForex’s various account types from the contract specifications section.

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

• Has issued civil liabilities insurance and is also a member of The Financial Commission.
• Has negative balance protection and segregated client funds.
• Has a very transparent website.

Fees

RoboForex’s trading costs vary on instruments from different asset classes and several account types. We found its spreads on FX pairs and commodities, except for crude oil, to be quite competitive, while the spreads on CFD shares and indices tend to be low to medium on a Prime account.

As a whole, RoboForex’s account types fall into two categories in relation to its trading costs—those with lower spreads but higher commissions and those with no commissions but higher spreads. Further information can be accessed here.

RoboForex Trading Fees

RoboForex’s Spreads

We tested RoboForex’s spreads 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 1st of August 2022.

RoboForex’s spreads on a Prime account are generally low, with some exceptions. The most obvious example is the quite high spread of crude oil. This, however, can be explained partly due to strained geopolitical tensions at the time of our review, which led to tribulations in the energy market. The resulting heightened volatility also explains the high spread on Tesla shares.

RoboForex’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.

Despite the above-mentioned geopolitical conditions at the time of the review, we found RoboForex’s swap rates to be medium to low compared to the broader industry.

Overnight charges can be avoided with RoboForex’s swap-free Islamic accounts. You can learn more about the underlying conditions here.

RoboForex’s Commissions

The broker also charges commissions per traded lot on instruments from different asset classes on a Prime account. The commissions on currency pairs and gold are mostly low compared to the broader industry; on crude oil and CFD shares they are high, while the commissions on indices are average.

Once again, you can read more about the underlying commissions on various instruments and different account types from RoboForex’s contract specifications section here.

RoboForex’s Non-Trading Fees

The broker does not charge a maintenance fee on dormant accounts that have been inactive for a period longer than six months. It also does not charge anything for deposits, though withdrawals may be liable for third-party fees by RoboForex’s payment processors. Additional information is available here.

Are RoboForex’s Fees Competitive?

The competitiveness of RoboForex’s fees depends on the preferred account type. The broker’s available accounts can be roughly separated into two categories—those involving a combination of low spreads and a commission payable and those affording commission-free trading but with higher underlying spreads.

The former combination might be better suited for high-frequency traders who do not execute huge orders, while the latter is a better fit for high-volume traders who do not place many individual orders.

Platforms and Tools

RoboForex’s MT5 platform is very functional and can be used by all kinds of traders regardless of their experience, with plenty of indicators, drawing tools, and other supporting features. Its design is also very practical and easy to use. One-click trading, social trading, and algorithmic trading are also permitted.

MT5’s mobile app version partly retains the usability of the desktop version, though it contains fewer trading indicators and drawing tools. It is, therefore, less fitted for conducting probing technical analyses and more suitable for monitoring one’s account performance while on the go.

RoboForex’s Desktop MT5 Platform

General Ease of Use

The layout of the MT5 platform is very flexible, making it quite easy to navigate. Two standout features warrant closer attention. The first is the ‘Fundamental Data’ tool, which can be accessed by right-clicking on the chart. It allows traders access to the latest fundamental data for a given instrument on major news terminals like Bloomberg. For instance, if you want to trade Tesla shares, you can use the tool to read up on the company’s key statistics and its latest performance on the stock market.

The second prominent feature of RoboForex’s MT5 platform is the ‘Strategy Tester’, which can be found at the bottom part of the window. As the name suggests, traders can use it to tune the parameters of their strategies and make them more precise in an ever-changing market.

Charts

The chart is undoubtedly the most important component of a platform. Traders use the chart to read the price action of a given instrument, allowing them to make informed decisions about where to enter the market and where to exit. This is why the functionality of a platform’s chart is of such great importance.

Here is a breakdown of the most important components of MT5’s charts:

• Trading indicators. RoboForex’s MT5 platform has 38 trading indicators, above the industry average. They fall into several categories, including trend-based indicators, oscillators, volume-based indicators, and others. These can be used to examine various aspects of price action under different conditions on the market. For instance, the MACD can be utilized whenever the underlying volatility is high, whereas the Stochastic RSI may be more suitable whenever the market is ranging.
• Drawing tools. Drawing tools, such as Fibonacci retracement levels, channels, and trend lines, are used to contextualize the behavior of price action by outlining crucial support and resistance levels and potential breakout and breakdown levels. MT5 has 29 of them, which is also above the industry average.
• Timeframes. Arguably the most important of the four, the available chart timeframes allow traders to have a multifaceted overview of the market. The behavior of price action in the short term can be materially different from its behavior in the long term, which is why traders need multiple timeframes to gain a well-balanced overview of market behavior as a whole. There are 23 different timeframes on MT5, well above the industry average. This variety makes RoboForex’s service suitable for scalpers, intraday, day, and position traders.
• Chart types. There are only 3 chart types available on MT5, which is below the industry average. Price action can be represented as a—line, using bars and candlesticks.

Orders

Here is a list of the available order types on RoboForex’s MT5 platform:

• Market orders. The most popular order type in the industry, 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 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 it. Once the price action reaches a stop order’s execution price level, it transforms into a market order and then gets filled at the best possible price.

RoboForex’s Mobile App

Unlike MT5’s desktop version, which represents a notable improvement from MT4, its mobile app is essentially the same as MT5’s predecessor. Its layout is noticeably more rugged, and the number of available instruments is comparatively lower than the desktop version.

Despite these shortcomings, the mobile app achieves its primary purpose – affording traders access to the market while on the go. They may not be able to carry out comprehensive technical analyses on small-screened devices, but they can monitor the performance of their running trades and make corrections if necessary. The app, therefore, can be said to serve a supporting role.

General Ease of Use

The mobile app version of MT5 has several components, the main ones being the ‘Charts’ and ‘Orders’ sections and the watch list of available instruments. It is very easy to navigate since everything is one or two clicks away, which is especially important since the app’s main purpose is to allow quick access to the market and order execution. On the other hand, the app’s charts are very rugged, and price action is quite difficult to discern.

Charts

Here is a breakdown of the chart features on MT5’s mobile app:

• Trading indicators. The app has 30 indicators, 8 fewer than the desktop version. This, however, is not a major problem since the app is not intended to accommodate comprehensive technical analyses in the first place. Still, the app contains some of the more popular trading indicators, such as trend-based, volume-based indicators and oscillators.
• Drawing tools. There are only 6 drawing tools, compared to the desktop version’s 29. Traders are afforded only the most basic trend lines and channels.
• Timeframes. The app’s charts have 9 timeframes, which is enough given its primary function.
• Chart types. Similarly to the desktop version, the mobile app has 3 chart types and price action can be represented as—a line, as bars, and using candlesticks.

Orders

And here is a list of the available trading orders on MT5’s mobile 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 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 it. Once the price action reaches a stop order’s execution price level, it transforms into a market order and then gets filled at the best possible price.

Tradable Instruments

Regarding the Prime account type, RoboForex’s most popular account, we found it has an average amount of currency pairs and indices compared to the broader industry; the number of its CFD stocks and commodities is low.

More than half of the available instruments – CFD shares and indices – are considered high-yield/high-risk assets unsuitable for risk-averse traders; moreover, RoboForex’s spreads on those types of instruments are above average.

Really conservative traders are thus more likely to lean towards the remaining currency pairs and commodities, which also have a lot more competitive spreads. Hence, while the assortment of available instruments is not very diverse, traders certainly have enough options to pick from to make optimal trading decisions.

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 RoboForex?

Here is a list of the available instruments on a Prime RoboForex account broken down by asset class. The information was extracted from the Contract Specifications section on the website:

• 28 Currency Pairs
  • Majors, Crosses, Exotic
• 4 Commodities
  • Metals and Energy
• 50 CFD Shares
  • Tech, Retail, Financial
• 5 Indices
  • Europe and U.S.

The available assortment of instruments on RoboForex’s other account types is more or less the same with some minor differences. The one major exception is the R StocksTrader account, which has over 8400 instruments: there are more than 3000 real stocks, CFD shares, and others.

Customer Support

RoboForex has multiple channels via which traders can contact the customer support team. You can open a live chat on the website or write them on Telegram, Facebook, or WhatsApp. Alternatively, you can request a call back from the support team by leaving your number. You can read more about RoboForex’s contact details here.

Support is available in English, Spanish, Vietnamese.

RoboForex’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 test on the 31st of July via the live chat option, available at the bottom-right corner of the webpage. We requested further clarification regarding the commission structure on a Prime account and were provided with a satisfactory answer shortly afterwards. What we found especially satisfactory was that the agent’s answer was supported with practical examples. This means that RoboForex’s team can explain complex issues even to beginners..

Deposit and Withdrawal

RoboForex Deposit Methods

RoboForex Withdrawal Methods

Clients of RoboForex can choose from multiple payment methods. Most transactions are usually processed within the same day, though some can take up to three business days. The broker compensates clients for all deposit commissions by third parties, while twice a month, traders can withdraw funds for free. You can access the complete list of payment methods and all relevant information here.

Account Types and Terms

The five primary account types differ in the number of instruments they afford, the maximum leverage, and the underlying trading costs. Prime and ECN accounts have commissions, but spreads start from 0 pips, while the other accounts afford commission-free trading but with higher spreads. A detailed comparison between the five can be accessed here.

The minimum initial deposit is 10 USD on all accounts except on the ECN, where the minimum is 100 USD. Traders can also choose from 4 account base currencies. It is worth pointing out that MT4 and MT5 accounts allow hedging (as opposed to netting), meaning that traders can open multiple positions on a single instrument at the same time. As regards RoboForex’s Islamic accounts, additional information is available here.

Why is Choosing the Right Account Type Important?

The preferred account type should match a trader’s style, goals, and aspirations. The underlying conditions of the account should complement the trader’s strong sides and help them achieve consistent results. Some account types are a better fit for traders who have an affinity for high-risk/high-return strategies, while others are tailored to cater to more conservative traders.

In RoboForex’s case, the ECN and Prime accounts, for instance, are better suited for high-frequency traders who, by placing multiple low-volume trades, can take advantage of the low spreads and lessen the impact of the higher commissions. In turn, the R StocksTrader, Pro, and ProCent accounts are a better fit for high-volume traders who execute fewer trades. They can benefit from commission-free trading and minimise the charges incurred from the higher spreads.

What Account Types Does RoboForex Offer?

The difference between Prime and ECN accounts essentially boils down to the maximum leverage permitted. The R StocksTrader has the greatest variety of instruments, but it also has varied commissions and the highest minimum deposit requirement, while the Pro and ProCent accounts have the highest leverage available, higher spreads, and fewer available instruments. According to RoboForex’s own admission, the ProCent account is most suitable for algorithmic testing.

You can read more about the differences between the broker’s account types here.

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 and losses incurred from failed trades.

RoboForex’s Account Opening Process

We have summed up the steps of account creation with RoboForex below:

• Step 1 – Click on the ‘Open an account’ button on the main page’s top-right corner. First, you need to register to the Members Area; you will be asked to state your name, email address, and mobile phone. If you are a European resident registering with the entity, you need to confirm that you are doing this at your own discretion and that you understand the potential limitations of offshore regulations, highlighted in the full disclosure.
• Step 2 – You need to verify your email address. After you click the confirmation link that has been sent to you, you will be taken back to the website to the verification page, where you need to complete the process. You will have to verify your address and ID.
• Step 3 – Even though you are automatically assigned an MT4 Standard & ECN Account upon registration, you can opt to open a new account with different conditions. You can do so after logging into the Members Area.

Why is a Demo Account Important?

Practice accounts serve a twofold purpose. Firstly, potential clients of a broker can use them to test out its service without any risk to their funds before deciding whether to register a real account. Secondly, demo accounts are essential supporting tools for novice and experienced traders alike. They are used to monitor, test, and improve one’s strategies in a safe environment.

RoboForex Supported Countries

RoboForex Ltd and its affiliates don’t work on the territory of the USA, Canada, Japan, Australia, Bonaire, Curacao, East Timor, Liberia, Saipan, Russia, Saint Eustatius, Tahiti, Turkey, Guinea-Bissau, Micronesia, Northern Mariana Islands, Svalbard and Jan Mayen, South Sudan, and other restricted countries.

Research

RoboForex’s probing analyses appear to be mostly focused on studying price action behaviour, which is likely to appeal more to technical traders and chart artists. The stock analyses, in particular, warrant praise for being supported by charts. This is quite uncommon as other brokers usually pay more attention to the fundamental aspect when analyzing the stock market.

The biggest reason why the broker was not awarded a higher mark in this category is that the news section in the blog hasn’t been updated since November 2021. There is a feed section, but it’s less market-oriented, while the news section in the analytics center functions more like an economic calendar. There are no webinars or third-party tools.

Research Tools

RoboForex’s research content falls into the following categories:

• Forex analyses and forecasts. RoboForex provides daily breakdowns of some of the most heavily traded currency pairs. What we found particularly useful is that the forecasts are comprised of a multilayered examination of price action behaviour. Some of the most sophisticated methods, such as the Japanese candlesticks analysis, the Fibonacci retracement levels, the Elliott Wave Theory, and the Ichimoku cloud analysis, are employed.
• Blog articles. Additional analyses are available in the blog section of the website. There, traders can read more about the ‘Week Ahead’ in the Forex market and obtain a more general overview of the current state of the stock market.
• The analytics centre. Accessed via the Members Area, the analytics centre is where clients of RoboForex can read more about current trading set-ups, including in video format. The videos section is particularly useful because it analyses the same set of currency pairs each week. This affords traders an intricate insight into price action behaviour.

Education

RoboForex has an excellent trading e-book called ‘Claws & Horns’, which contains five chapters – Introduction to the Forex Market; The Basics of Forex; Fundamental Analysis; Technical Analysis; and Tying It All Together. The book is exhaustive and rich in detail, and it is perfect for beginners.

There are several educational videos on widely diverging trading topics, also available from the analytics centre. The videos are quite useful because they are short and concise, answering questions that newcomers might pose. They are, therefore, a perfect match for RoboForex’s extensive glossary. There are also more than 350 articles available on RoboForex’s blog, representing an in-depth overview of essential trading topics.

We also found the ‘Knowledge Base’ section of the blog especially useful since it contains very practical information. Traders can learn how to implement specific indicators or well-established trading strategies.

The Bottom Line

RoboForex is a renowned broker that excels both in the diversity and sophistication of its services. It offers OTC derivatives trading to retail and professional traders, as well as investment opportunities to those looking to build portfolios. Having operated for over a decade, RoboForex has established itself as a trustworthy partner with quite a few perks.

Despite being licensed by a tier-3 offshore regulator (FSC), RoboForex goes above and beyond to ensure the protection of its clients’ funds. The broker has issued civil liabilities insurance and is also a member of the Financial Commission. And there are additional advantages to working with RoboForex, such as its wide range of available account types and trading platforms.

As regards its drawbacks, more could have been done to diversify RoboForex’s research materials and include additional trading instruments, especially on the Prime and ECN account types.

Overall, RoboForex is a very good broker that caters to the needs of beginners and advanced traders alike. The former can take advantage of its extensive educational materials, while the latter can benefit from its excellent trading platforms, varied account types, and the possibility to implement complex trading strategies at more or less competitive trading fees.

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