4XC

4XC Full Review

4XC Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker, allowing 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 the single entity operating under the 4XC trade name:

• 4xCube Ltd is licensed and regulated by the Financial Supervisory Commission (FSC) of the Cook Islands under license number MC03/2018. We rate the FSC as a Tier-3 regulator.

Understanding the Regulatory Protections of Your Account

Brokers operate multiple entities globally, but regulatory protections vary. Some regulators enforce stricter financial standards than others, so traders should understand the safety measures of the entity they choose to open an account with.

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. 4XC holds client funds separately from the company’s corporate capital in segregated accounts.
• 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. 4XC guarantees negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. 4XC does not provide a compensation scheme to its clients.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum retail leverage with 4XC is 1:500.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and information transparency.

I found that 4XC is externally audited and also has a rigorous Client Categorization policy implemented during account creation with the broker. I also reviewed the broker’s legal documents and policies, including its Client Agreement. Important information is readily available, easy to comprehend, and written with straightforward language, ensuring traders can understand the terms and conditions. Overall, I concluded that 4XC is a fairly transparent broker.

Is 4XC Safe to Trade With?

I determined that 4XC is quite safe to trade with due to the following factors:

• Regulated by the FSC
• Externally audited
• Provides transparent legal documents

4XC Trading Fees

4XC Spreads

I tested 4XC’s spreads on 19 December 2024 during the London and New York opens. The results are shown in the table below:

My live tests indicate that broken down by asset class and compared to the industry average, 4XC charges low spreads on cryptocurrencies, low-to-average spreads on currency pairs and indices, and average-to-high spreads on commodities.

4XC Commissions

In addition to spread, 4XC imposes a commission for cryptocurrency trading on its Standard account.

4XC Swaps

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 base currency contract (100,000 units).

I assessed that 4XC’s swaps were average to high compared to the benchmark. However, it is important to also point out that swaps change over time.

4XC Non-Trading Fees

Deposits with 4XC are free of charge. However, the broker imposes a handling fee for withdrawals, depending on the chosen method. According to 4XC, there is no inactivity fee for dormant accounts.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees with 4XC’s three account types and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) in EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My live testing indicates that 4XC’s Standard account features marginally better spreads than the industry average. I also assessed that the most cost-effective account with 4XC is the Pro account, which combines more favorable fees than the Standard account and markedly lower minimum deposit requirement than the VIP account.

Are 4XC’s Fees Competitive?

Overall, 4XC provides average spreads, with competitiveness varying based on the traded instrument and chosen account type. Additionally, the broker imposes high swaps but maintains reasonable non-trading fees.

Platforms and Tools

4XC MT5 Desktop

The desktop version of the MetaTrader 5 platform features multiple essential tools, such as one-click trading, an alarm setting option, and a market depth tool. These allow traders to examine various market developments from different angles and exploit the underlying trading opportunities in multiple ways.

MT5 is arguably best suited for automated trading via its Expert Advisors (EAs). The platform also has an intuitive strategy tester, allowing experienced algo traders to tweak the parameters of their strategies so that they can be used under different market conditions.

General Ease of Use

The MetaTrader platform is easy to navigate and has an intuitive design. However, its cumbersome charts make it somewhat difficult to use.

4XC’s MT5 platform is available on both Windows and Mac and supports 52 different languages, including English, French, Spanish, German, Arabic, Chinese, and more.

In addition to the above-mentioned depth of markets tool, MT5 also features:

• Alerts: Traders can set alerts for following when the price of a given instrument falls or rises to a predetermined level, which could potentially signal a viable entry opportunity.
• Watchlist: Traders can populate watchlists with their favorite instruments and track market changes more easily.
• One-click Trading: This feature enables instant market entries at the spot price and is invaluable for high-precision traders, such as scalpers.
• Trading from the Chart: Traders can place conventional trading orders directly from the chart, specifying the entry price, volume level, stop and take-profit levels, and more.

Charts

I consider the charts screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

As shown above, a common issue with MetaTrader is that charts can quickly become cluttered, even with just two indicators. This can obscure price action and make it harder to perform detailed technical analysis.

I have broken down the available analytical tools and chart configurations below:

• 38 technical indicators: These include trend-based and volume-based indicators, along with oscillators to analyze price action and assess market sentiment, helping predict market movements.
• 24 drawing tools: Tools like Fibonacci retracement levels and Elliott waves help identify price patterns, support/resistance levels, and breakout points. However, MT5’s design can make price action harder to interpret.
• 21 timeframes: For multi-timeframe analysis, enabling detailed price action analysis.
• 3 chart types: Price action can be displayed as line, bars, or candlesticks, offering diverse perspectives on trading opportunities.

Orders

MetaTrader 5 features three types of order execution: market, pending, and one-click trading (top-left corner). One-click trading allows immediate entries at the spot price.

I have broken down the available order types on the MetaTrader 5 platform below:

• Market Orders: Used for immediate entry at the best available price. They guarantee volume filling, though the entry price may differ from the requested price.
• Limit Orders: Guarantee exact price entries but won’t be filled if the price doesn’t reach the trigger level.
• 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.

MT5 Desktop: My Key Takeaways

MetaTrader 5 is a good option for fast and simple order execution. However, its dated and rugged design falls short compared to newer, sleeker platforms. As a trader who prioritizes flexible charts that are easily scalable, I find MT5’s charting capability too rigid and less effective.

4XC MT5 App

The MT5 mobile app affords quick and easy access to the market on the go. It is very useful for opening, terminating, and adjusting open positions. The app is available for both IOS and Android.

The market is continually evolving, marked by periodic surges and declines in volatility. For this reason, staying on top of the latest market developments is crucial, a task made simpler through the mobile app version of MT5.

You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

MT5 App: My Key Takeaways

The MetaTrader app stands out for its convenience, making it an indispensable tool for adjusting trades, especially during periods of heightened volatility. However, I find the app less intuitive and not particularly ideal for analyzing price action.

4XC Execution Model

4XC operates as a Straight-Through-Processing (STP) broker without a dealing desk. Client orders are routed to the broker’s pool of liquidity providers where they are filled at the best possible price.

4XC VPS Hosting

The broker provides Virtual Private Server (VPS) hosting to high-volume traders interested in achieving ultra-fast order execution speeds and securing stable internet connectivity. The service is free to trading accounts funded with at least $5000 and achieving a monthly traded volume of at least 4 lots.

Tradable Instruments

Compared to the industry average, 4XC offers a low number of commodities and cryptocurrencies, an average number of currency pairs, and a high number of indices.

What Are CFDs?

Contracts for difference (CFDs) are derivatives that speculate on the underlying asset’s price without physical ownership.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

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 4XC?

4XC Instruments: My Key Takeaways

I appreciated the availability of two forward contracts on the Standard account. These present an alternative to CFD contracts and allow traders to manage market volatility differently. On the other hand, the 4XC range of instruments is quite narrow, and it does not provide any share CFDs, lower-risk securities (ETFs, bonds), futures contracts, or vanilla options.

Customer Support

Customer Support Channels

Customer Support Test

When we test a broker’s customer support, 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 23 December at around 9:03 a.m. CET via live chat. I asked a series of questions and received fast and comprehensive answers. I also appreciated the sophistication of 4XC’s chatbot, which, in my estimation, performed better than the average support agent.

Deposit and Withdrawal

4XC Deposit Methods

4XC Withdrawal Methods

Account Types and Terms

4XC Account Opening Process

To create an account with 4XC, follow these simple steps:

1. Click ‘Live Account’ at the top-right corner of the main page.
2. Fill in your personal details.
3. Check your email for your login credentials.
4. Agree to the terms and conditions.
5. Provide the rest of your personal details.
6. Upload proof of ID and proof of address to verify your account.

4XC Account Types

4XC’s Standard account offers a very low barrier to entry with a $50 minimum deposit requirement. However, the Pro account stands out as the most cost-effective option, thanks to its reasonable deposit requirement and more competitive pricing. Furthermore, the broker’s 100% margin call and 50% stop-out levels provide an added layer of protection, helping traders mitigate the risk of complete account blowouts in volatile market conditions.

Demo Accounts

4XC offers a demo account that introduces 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 prior to or alongside your live CFD account.

Islamic Accounts

4XC provides Islamic accounts for swap-free trading, as mandated under Shariah law. This option is available only for Standard accounts. You can contact customer support to request additional information.

What is CFD Leverage?

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 leverage. Essentially, the broker lends the trader money so that they can open bigger positions. Leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Maximum Leverage By Asset Class

In the table below, I have listed the maximum retail leverage available with 4XC for instruments from different asset classes:

4XC Restricted Countries

4XC does not accept as clients residents of the following countries: the United States, Iraq, Iran, Myanmar, North Korea, Portugal, and Ukraine.

Research