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Banxso, a broker originating from South Africa, proudly positions itself as a decent intermediary for traders worldwide engaging in forex and other derivatives trading. Banxso's official website shines intriguing features, such as access to popular markets through their proprietary trading platform and MT5 trading platform, advanced trading tools, competitive trading fees, and a variety of account choices. However, the question comes: Is it real？Let's uncover the truth.
Overview
What is Banxso？
Founded in 2020 by a team of financial experts, Banxso aimed to create a user-friendly brokerage. Based in Cape Town, South Africa, they expanded into cryptocurrency trading in 2022 and introduced an educational platform in 2023. Banxso offers traders a variety of financial instruments, including Forex, Stocks, Indices, Commodities, and Cryptocurrencies. Their platforms, Banxso X and MetaTrader5, come with flexible leverage up to 600:1 and zero commissions. They also provide a choice of four live account types to suit different trader preferences.
Pros & Cons
Banxso shines in offering over 8,000 trading instruments and generous leverage up to 600:1, which can be great for diverse trading strategies. It offers multiple account types with easy Banxso login process , supports both proprietary and MT5 platforms. On the flip side, the $250 minimum deposit may not be beginner-friendly, and spreads are a bit wider than some competitors.
Is Banxso Legit？
When it comes to regulation, Banxso, holding only two licenses - the CYSEC regulatory license and the FSCA regulatory license, doesn't particularly stand out among other reputable brokers. Notably, however, that the latter license, limited to financial service corporations, exceeds its service purview.
Banxso's first entity, XF Services Ltd, is regulated by CYSEC in Cyprus, holding a license of STP (Straight Through Processing) under license number 413/22. CYSEC is a tier-two regulator and a member of the European Securities and Markets Authority (ESMA).
Banxso's other entity is regulated by FSCA in South Africa, holding a license to Financial Service Corporate.
A financial services corporate license permits a company to offer a wide array of financial services, including securities trading, investment management, insurance underwriting, and more. The license allows for various financial services, but forex trading activities are not part of it. This is why it's labeled as “Exceeded.”
WikiFX's field investigators journeyed to Banxso's registered address at 2nd Floor, 117 on Strand, De Waterkant, Cape Town ealier this year. At the location, they confirmed the broker's physical presence in an official and legitimate environment, solidifying the fact that Banxso has a real physical address at the location. Here are the featured photos taken then:
Market Instruments
Banxso boasts that it offers over 8000 market instruments across 5 asset classes, including forex, stocks, indices, commodities, and cryptocurrencies.However, when compared to other brokers, it doesn't offer access to various popular trading options like options, energy products, ETFs, and more.
Account Types
Banxso offers a range of account types designed to accommodate traders with different experience levels and trading preferences. Traders have the option to start with a free demo account, allowing them to practice their trading strategies and familiarize themselves with the platform without risking real money.
For those ready to trade live, Banxso offers four distinct account types: Intro, Plus, Advanced, and Premium. Each account type has its own minimum deposit requirement, starting from $250 for the Intro account up to $100,000 for the Premium account.
The minimum deposit of $250, completely honest, does come across as significantly higher when you compare it to the requirements set by other brokers like TMGM, Axi, etc, in the market.
Leverage
Banxso offers varying leverage options for different account types and trading instruments, allowing traders to amplify their trading positions. Specifically focusing on currency trading, Banxso provides leverage of 1:200 for the Intro account, 1:400 for the Plus and Advanced accounts, and 1:600 for the Premium account. Leverage can significantly increase the potential returns on investments, but it also amplifies the risks involved.
Spreads & Commissions
Banxso offers competitive spreads on different account types and trading instruments, catering to the diverse needs of traders. Specifically focusing on major currency pairs, the spread ranges vary depending on the account type.
For the Intro account, the spread for major currencies can range from 1.5 to 5 pips, while the Plus account offers a narrower range of 1.2 to 4 pips. The Advanced account further reduces the spread to a range of 1 to 3.5 pips, and the Premium account provides the tightest spread range of 0.8 to 3 pips.
Notably, Banxso states that it charges no commissions, which can be beneficial for traders as they can trade without incurring additional costs beyond the spreads. The absence of commissions allows traders to focus on their trading strategies and potentially improve their overall trading performance.
Below is a comparison table about spreads and commissions charged by different brokers:
Trading Platforms
Banxso provides a range of versatile and user-friendly trading platforms to cater to the needs of different traders. These platforms include Banxso X, Banxso X Mobile, MetaTrader5, and MetaTrader5 Mobile.
Banxso X is a proprietary trading platform developed by Banxso, offering a comprehensive suite of trading tools and features. It provides an intuitive and customizable interface, allowing traders to analyze market data, place trades, and manage their portfolios efficiently. Banxso X Mobile is the mobile version of the platform, enabling traders to access their accounts and trade on the go using their smartphones or tablets.
Additionally, Banxso supports MetaTrader5, a widely recognized and popular trading platform in the industry. MetaTrader5 offers advanced charting capabilities, a wide range of technical indicators, and automated trading features through expert advisors (EAs). Traders can access MetaTrader5 on desktop and also stay connected to the markets through MetaTrader5 Mobile.
Tools
Banxso provides a comprehensive set of tools and resources to assist traders in their trading journey. Traders can benefit from educational videos that cover a wide range of topics, helping them enhance their trading knowledge and skills. The inclusion of Trading Central and TipRanks offers valuable insights and analysis from renowned financial experts, empowering traders to make informed trading decisions. The Morning Gazette provides daily market updates and news, keeping traders informed about the latest market trends and events.
Banxso also offers an Economic Calendar, which highlights key economic indicators and events that may impact the financial markets. Additionally, the availability of Success Managers ensures that traders receive personalized guidance and support tailored to their individual trading goals and needs. Furthermore, Banxso's presence on social media platforms allows traders to stay connected and updated on the latest market developments and company news. With these tools and resources, Banxso aims to empower traders with the necessary information and support to make informed trading decisions and navigate the dynamic financial markets more effectively.
Deposits & Withdrawals
Traders can fund their accounts using major credit cards such as Visa and MasterCard, providing a quick and hassle-free way to deposit funds. In addition, Bank Wire transfers are also accepted, offering a reliable and traditional method for transferring larger amounts. Banxso also supports OZOW and AstroPay, providing alternative payment options that cater to different regions and preferences.
One notable advantage is that Banxso does not charge any deposit or withdrawal fees, allowing traders to efficiently manage their funds without incurring additional costs. When it comes to withdrawals, Banxso ensures a prompt processing time, with all withdrawal requests typically processed within 3 working days. This efficient withdrawal process allows traders to access their funds in a timely manner.
See the deposit and withdrawal fee comparison table below:
Banxso Money Withdrawal
To withdraw funds from your Banxso account, you need to follow these steps:
Step 1: Click on the Client Area Button.
Step 2: Click on your Profile.
Step 3: Select “Withdraw”.
Step 4: Select the account to withdraw from.
Step 5: Enter the desired amount.
Step 6: Click on “Withdraw Funds” to complete the transaction.
Customer Support
Banxso prioritizes providing responsive and accessible customer service to assist its clients. With service hours from 8:00 am to 7:00 pm, five days a week, traders have a wide window to reach out for support. Banxso offers various channels for communication, including live chat, WhatsApp, phone, and email, ensuring multiple options to connect with their dedicated customer support team.
Additionally, Banxso maintains an active presence on popular social media platforms like Twitter, Facebook, Instagram, YouTube, and LinkedIn, providing additional avenues for traders to stay updated and engage with the broker. For quick assistance, an FAQ section is available, where traders can find answers to commonly asked questions. Importantly, Banxso openly shares its company address, demonstrating transparency and accountability.
User Exposure on WikiFX
However, despite the broker's impressive array of features, there are reports on the wikiFX website indicating issues with withdrawal. Many brokers may face such challenges, underscoring the inherent risks associated with online trading.
Conclusion
In conclusion, Banxso provides a huge selection of trading options, and educational resources, but the $250 deposit and wider spreads might not suit everyone. Being a new player in the industry, Banxso appears to have a long way to establish itself.
Frequently Asked Questions (FAQs)
Q 1: Is Banxso regulated？
A 1: No. Banxso Financial Sector Conduct Authority (FSCA, No. 37699) license is exceeded.
Q 2: Does Banxso offer demo accounts？
A 2: Yes, demo accounts are available on Banxso platform.
Q 3: Does Banxso offer the industry leading MT4 & MT5？
A 3: Yes. It supports Banxso X, Banxso X Mobile, MetaTrader5, and MetaTrader5 Mobile.
Q 4: What is the minimum deposit for Banxso？
A 4: The minimum initial deposit to open an account is $250.
Q 5: Is Banxso a good broker for beginners？
A 5: No. It is not a good choice for beginners. Not only because of its unregulated condition, but also because of its high initial deposit requirement.
Q 6: Is Banxso a market maker？
A 6: Yes, Banxso is a market maker.
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