Woxa Review 2023

Trust

Woxa 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 Woxa’s entity:

• WOXA LTD is licensed and authorized by the Financial Services Commission (FSC) of Mauritius under license number GB22200605. We rank the FSC as a Tier-3 regulator on our system.

We have summarized the most essential aspects of Woxa 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. Woxa complies 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. Even though Woxa’s customer service maintains that the broker provides negative balance protection, I could not confirm this in its legal documents.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. Clients of Woxa are not protected under such a scheme.
• Maximum leverage. Capping the maximum leverage limits the maximum market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. Woxa’s maximum leverage is 1:400. Notably, you can adjust your leverage for each trade you plan to open.

Is Woxa Safe to Trade With?

Woxa’s license from the Financial Services Commission in Mauritius, a Tier-3 regulator, is the broker’s strongest proof of safety. The license was obtained several months before this review, so I expect Woxa to make inroads toward improving its overall safety. At present, however, the broker does not ensure some vital safety mechanisms, such as negative balance protection.

Woxa does not have a ‘best execution policy,’ meaning that it does not guarantee the delivery of the most favorable price feeds at all times. Traders should consider the risk of negative slippage.

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.

There are some discrepancies on the Woxa’s website. For instance, I was able to find the assertion that Woxa incorporates the renowned MetaTrader 5 platform, however, at the time of my test, it wasn’t available. There is also the claim that Woxa offers over 2000 share CFDs and ETFs. In reality, the number is less than 300. Additionally, Woxa’s LinkedIn says the company is headquartered in Limassol, Cyprus, but the WOXA LTD entity is based in Port Louis, Mauritius.

My biggest issue is with Woxa’s insistence on providing negative balance protection, as shown below. I could not find any written confirmation of this in the Terms & Conditions document or any other of the legal documents on the website.

Usually, the FSC (Mauritius) does not mandate from brokers the inclusion of negative balance protection, which is why I did not expect Woxa to provide it. But I was curious to see how their customer support would respond if asked about it. I spoke with a couple of agents and was referred to the T&Cs several times, even though I told them that I could not find any reference to NBP there. Then, I was simply asked to “rest assured” that this mechanism is indeed ensured by Woxa.

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

• Licensed by a single Tier-3 regulator
• Lack of clarity on the website
• The customer support is not sufficiently informed

Fees

Woxa’s Trading Fees

Woxa’s Spreads

I tested Woxa’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 10 August 2023.

Broken down by asset class and compared to the industry average, Woxa charges low spreads on cryptocurrencies, average spreads on CFD shares, average-to-high spreads on commodities, and high spreads on FX pairs.

What made a strong impression on me is that Woxa charges an extremely low spread on Bitcoin at around $4. In comparison, the industry average is around $20.

Woxa’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.

Based on my findings, I determined that Woxa charges below-average swaps.

Woxa’s Commissions

Woxa’s only account type affords commission-free trading, meaning that there is no fixed fee per traded volume. However, such a commission may be imposed in some cases, as shown below:

Woxa’s Non-Trading Fees

There does not seem to be an inactivity fee for dormant accounts. Also, Woxa’s customer support said that there is no handling fee for deposits and withdrawals, but I was not able to confirm this. There is barely any information on the website concerning payments to and from the broker.

Are Woxa’s Fees Competitive?

Except for its rather high spreads, I found Woxa’s other fees mostly competitive. Fundamentally, it boils down to what instruments you decide to trade and when. To illustrate that I will use a real-world example:

Consider opening one full-sized (100,000 units) EURUSD position. To estimate the value of trade you have to multiply the recorded spread rate (2.2 pips) by the pip value ($10) and add the commission. Since Woxa does not have a volume-based commission, you are left with 2.2 x 10 = $22 per traded lot. This is twice higher than the industry average.

Platforms and Tools

It’s difficult to call Woxa’s web trader a proprietary platform because its charts are powered by the seamless TradingView, which is also its best feature. TradingView is an industry leader when it comes to the ease with which you can study price action behavior. However, despite the over 100 analytical tools that are also incorporated from TradingView, Woxa’s platform lacks other essential features, such as the ability to execute pending orders.

Woxa seems determined to develop a strong social trading community, but automated trading via Expert Advisors (EAs) is not permitted. What I found practical is Woxa’s proprietary stocks calendar tool and the biggest (stocks) gainers and losers per sector tool.

Woxa’s Web Trader Platform

General Ease of Use

After I gave the platform a trial run, I found it very simple to grasp. Its easy learning curve is due to the fact that the platform is not particularly feature-rich. It consists of a feed section, not unlike a social media page, where financial news and trader ideas are reposted.

Woxa’s watch list has an intuitive design and I liked that there is plenty of information for individual instruments. You can get a general sense of where the market is headed and place trading orders from there. The platform doesn’t have a desktop version.

Charts

The charts screen is easily the best feature of the platform because it is powered by TradingView. Price action is easily discernable on the chart, and it is extremely easy to scale it up and down, which I consider essential for executing complex technical analysis. However, trading from the chart is unavailable, and there is no possibility to set alarms.

My impression of Woxa’s charts is that they are very versatile, thanks to the industry-leading trading solutions provided by TradingView. Traders can choose from a vast array of analytical and visual tools, which I have broken down by type:

• 104 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and Bill Williams indicators. 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.
• 31 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.
• 9 timeframes. The platform affords multi-timeframe analysis of price action behavior, though its assortment of timeframes is relatively constrained. In comparison, MetaTrader 5 consists of 21 different timeframes. The greater the number, the more intricate examinations that can be carried out across the short-term and long-term.
• 9 chart types. Price action can be represented in multiple ways, affording traders the opportunity to study it from different perspectives.

Orders

The biggest disadvantage of Woxa’s platform is that it does not support the execution of limit orders (they are used to enter the market at a specific price level). I was surprised by this as while browsing the platform, I noticed a pending orders option. It, however, did not work, as you can see in the bottom-left corner of the image above. I suppose this is an issue that needs to be resolved. I have broken down the available order types 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 actually gets filled.
• 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.

Woxa’s Mobile App

The mobile app affords traders quick and easy access to the market on the go. It is indispensable when you must swiftly adjust your open positions. While evaluating the time required to open a position, I quickly logged into my account, navigated to my open orders, and effortlessly adjusted the trade parameters, such as moving the stop-loss, all within a matter of seconds.

On the other hand, the app is not suitable for much else. It is even more cumbersome than the web trader version, and carrying out sophisticated technical analyses on a small-screened device is virtually impossible. However, this issue is inherent to almost all trading apps.

Tradable Instruments

I was positively impressed by the diversity of instruments afforded by Woxa, though there are some notable exceptions. For instance, Germany’s DAX 40 index is unavailable.

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 Woxa?

I have broken down the available instruments by asset class:

• 29 Currency Pairs
  • Major and Minor
• 8 Commodities
  • Metals and Energy
• 246 CFD Shares
  • Retail, Tech, Financial, and Other
• 11 Indices
  • U.S., Europe, Asia
• 40 ETFs
  • Retail and Financial
• 10 Cryptocurrencies
  • Major and Minor

Compared to the industry average, Woxa offers a low amount of FX pairs, an average amount of commodities, cryptocurrencies, and stocks, and an above-average number of indices.

Customer Support

Woxa’s agents are polite and respond fairly quickly to queries, but they seem to struggle when asked harder questions.

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 10 August at 11:48 a.m. GMT via live chat. An agent connected almost instantaneously. I inquired about their negative balance policy and their trading commissions. I wanted to see if Woxa charges any volume-based commissions, as I could not find any information on the website.

The agent responded fairly quickly and confirmed that Woxa does indeed offer commission-free trading. He also referred me to the T&Cs document, though he failed to elaborate on what is written there – that Woxa may indeed charge a commission per traded volume in some cases.

Deposit and Withdrawal

I discovered that, at present, payments to and from Woxa are only available via local bank transfers (Vietnam, Indonesia, and Malaysia). The broker does not charge deposit and withdrawal fees, though third-party banking fees may apply.

Woxa’s Deposit Methods

Woxa’s Withdrawal Methods

I could not find any information about the usual processing times with Woxa. Once withdrawal requests have been cleared by the broker, standard transaction times apply depending on the bank (3-5 business days).

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 things, such as whether the account type has a minimum deposit requirement, what its spreads and commissions are, what the execution method is, and more.

What Account Types Does Woxa Offer?

I have broken down the most important features of Woxa’s only account type below:

With floating spreads starting from 1.8 pips, which is above the industry average, and commission-free trading available, I assessed that Woxa’s Standard account is better suited for longer-term day trading strategies. Scalping and intraday trading are not advisable since Woxa’s platform does not support limit orders, and the lack of a ‘best execution policy’ means that precise order filling cannot be guaranteed.

Woxa’s Order Execution Model

Though there is no official information on the website, I was able to ascertain that Woxa provides market execution. It guarantees volume filling at the best possible price, though not necessarily at the requested price. To understand the functioning of market execution, consider the following example:

Suppose you wish to go long 100,000 units (1 lot) on the EUR/USD at 1.07650. You place your buy order, but there is not enough liquidity in the market at that price level, not enough to fill your order. Hence, no trade is opened. The price then climbs to 1.07700, where there is enough liquidity to fill that volume, and your trade is finally executed. If the value of 1 pip is $10, then you would have missed a chance to generate a $50 profit due to this discrepancy (5 pips).

The clear advantage of this model of execution is that with it, you are guaranteed entry, in that your order request will eventually be filled once there is enough liquidity. However, the corresponding disadvantage is that you are exposed to price discrepancies in the form of negative slippage.

In my experience, market execution is better suited for day trading and position trading strategies where volume-filling is important. But it is less so for intraday trading strategies, such as scalping, where precise order filling is more important.

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.

Woxa Account Opening Process

I have organized the account creation process with Woxa in the following easy steps:

• Step 1. Click the ‘Register’ button in blue at the top-right corner of the main page.
• Step 2. Fill in your name, address, and other personal information.
• Step 3. Confirm your registration by opening the email you are sent and following the instructions.
• Step 4. Upload proof of ID and address to verify your account.

Why is a Demo Account Important?

Woxa offers demo accounts that introduce traders to the broker’s services and allows 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.

Woxa Allowed Countries

At present, Woxa accepts clients only from Vietnam, Indonesia, and Malaysia.

Research

There is no economic calendar, though Woxa has developed a pretty decent ‘Stocks Calendar’ tool, which informs traders about upcoming stock market events. Woxa has also started posting ‘Market Insight’ videos on its YouTube channel as of late. In terms of value, they are informative and easy to grasp, though they seem focused predominantly on stocks. Other markets were not covered in the several videos that were posted when I was collecting data. I expect Woxa to continue posting more videos in the future.

Education

To access the Academy section of the website, click ‘Tools & Help’ from the main menu. I have broken down the available content by type:

Educational Articles

There are also 163 Written articles on the following topics: Forex (26), Cryptocurrency (8), Stocks (66), Commodities (7), ETFs (13), and Investing (43). The content is written in a simplistic way and only covers rudimentary topics without delving deeper. Each article comprises no more than several sentences, usually devoid of supporting tools like charts and graphs.

Educational Videos

Woxa has published 40 educational videos. These cover basic trading topics but do not delve deeper into complex subjects, such as technical analysis, fundamental analysis, trading psychology, and others. The videos are in support of written articles. Each video lasts several minutes and briefly outlines the subject matter. The videos are also available from the YouTube channel.

Other Content

By clicking ‘About’ which is the last section of Woxa’s educational page, there is no information available. The ‘Trading’ section directs the user to Awonar’s website, where, unfortunately, the content is also unavailable. This shows me that Woxa’s educational portion of the website is still not fully operational and is under construction.

The Bottom Line

Woxa is a relative newcomer to the financial industry, having been founded in 2019, and its service still has lots of room for improvement in the future. Woxa is licensed by the FSC of Mauritius and at present only accepts clients from Vietnam, Indonesia, and Malaysia.

What I liked about the broker is that it has a fairly decent range of over 300 tradable instruments. With zero commissions and below-average spreads on instruments from some asset classes, Woxa’s fees can be quite favorable in some cases. Additionally, I found the ability to adjust your leverage for each position you execute unique and potentially very practical. I rated Woxa’s service as mostly suitable for longer-term day and position trading.

However, Woxa is currently in the process of developing its service and defining its niche, and this transitional stage may contribute to some areas where more transparency could be beneficial. The broker offers one retail account type and features a single platform enhanced by its integration with TradingView. Also, Woxa’s research and educational materials have a quite limited scope.

FAQ