IUX

Trust

IUX 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 the two entities operating under the IUX trade name:

• IUX Markets Ltd is licensed and regulated by the Comoros International Services Authority (ISA) of MWALI under license number T2023172. We rate the ISA as a Tier 3 regulator.
• IUX Markets ZA (Pty) Ltd is licensed and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa under license number 53103. We rate the FSCA as a Tier 2 regulator.
• IUX Markets (MU) LTD is licensed and regulated by The Financial Services Commission (FSC) of Mauritius. We rate the FSC Mauritius as a Tier 3 regulator.
• IUX Markets AU Pty is licensed and regulated by the Australian Securities and Investments Commission (ASIC) under license number 529610. We rate ASIC as a Tier 1 regulator.

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 must familiarize themselves with the safety mechanisms ensured by the entity they want to open an account.

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. All IUX entities ensure segregated client funds.
• 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. Negative balance protection is available for three IUX entities, except for the Mauritius entity.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. IUX’s entities do not participate in any compensation schemes.
• 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 leverage with IUX is 1:3000, which is available with the IUX Markets Ltd entity.

Stability and Transparency

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

IUX is still a relative newcomer to the trading industry, which means it is still building up its operations. Nevertheless, I did not see any major discrepancies with its services.

I reviewed IUX’s client agreement and other legal documents and assessed that everything was in order. The only minor issue I had was with the broker’s swap-free trading conditions.

When you create a new trading account, it is automatically set up for swap-free trading. The broker points out that this is only true for day trading, which is correct (by definition, overnight charges are only applied to trades that last longer than a single day). However, the broker should have done more to explain – especially to less experienced traders – how this changes for positions held open multiple days.

Is IUX Safe to Trade With?

I determined that IUX is reasonably safe to trade with due to the following factors:

• Licenced by four regulators, including top-tier ASIC
• Provides legal documents with abundant information and easy access
• Ensures negative balance protection

Fees

IUX Trading Fees

IUX Spreads

I tested IUX’ spreads on 25 March 2024 during the London and the New York open. The results are shown in the table below:

Broken down by asset class and compared to the industry average, IUX charges low spreads on commodities and share CFDs, low-to-average spreads on forex pairs, average spreads on cryptocurrencies, and high spreads on indices.

IUX 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).

My tests indicate that the broker charges low-to-average swaps compared to the broader industry. This combination is good for the purposes of longer-term trading. I assessed that the broker’s overnight charges are suitable for swing trading and position trading.

IUX Non-Trading Fees

The broker does not charge a handling fee for deposits or withdrawals, though third-party fees may apply. Furthermore, dormant accounts are not charged with an inactivity fee. The only potential consequence of inactivity could be that the trading account gets archived (following 30 calendar days of inactivity).

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of IUX’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) on the 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 findings show that IUX’s trading fees are lower than the industry average for most account types. Another advantage is that the broker has quite low minimum deposit requirements. Its services are thus geared towards high-frequency trading and high-volume trading.

Are IUX’s Fees Competitive?

IUX’s fees are competitive across the board. I appreciated the fact that the broker does not charge non-trading fees. Furthermore, its trading fees (spreads, commissions, and swaps) are also quite low. The combination of commission-free trading, low floating spreads, and swap-free trading accommodates the needs of high-frequency and longer-term traders alike.

Platforms and Tools

IUX Platform Walkthrough

The Desktop Version of IUX’s MT5 Platform

In this review, I tested the MetaTrader 5 platform, which 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 to exploit the underlying trading opportunities in multiple ways.

MT5 is arguably best suited for automated trading via its Expert Advisors (EAs) feature. 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.

Additionally, MetaTrader 5 has an intuitive mobile app, which helps traders stay connected to the global capital markets even on the go.

General Ease of Use

MT5’s layout is pretty straightforward. Account info is displayed at the bottom of the screen; charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window; and a panel with various settings and configurations can be found at the top of the window.

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, the problem with MetaTrader is that the charts can be crowded quite easily, even when we add no more than 2 indicators. This obscures price action behavior and makes it more difficult to conduct probing technical analysis.

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

• 38 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. 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.
• 24 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. Despite the rather big collection of drawing tools, the ruggedness of MT5 makes it difficult to discern price action behavior.
• 21 timeframes. One of the standout features of MetaTrader 5 is its vast array of timeframes. MT5 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

Orders

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

My Key Takeaways After Testing the MetaTrader 5 Platform

In my opinion, MT5 is a good option for fast and simple order execution. On the other hand, its dated and rugged design falls short compared to newer, sleeker platforms. As a trader who prioritizes flexible chart scaling, I find MT5’s charting capability too rigid and less effective.

The Desktop Version of IUX’s Proprietary Platform

IUX’s web trader platform is sleek and beginner-friendly because of its clean and straightforward design. Ìts charts are fluid and quite detailed, made possible by the fact that they are powered by the seamless Trading View, arguably the best charting tool in the industry.

The platform is stripped down of any secondary features, which makes it very easy to navigate, and even beginners can make their way around it. Placing and canceling orders is fast and easy. The platform supports one-click and two-clicks trading regimes of trading.

But above all else, I appreciated the high detail of the IUX platform’s charts. Price action is easy to discern and scale up or down, which affords chart artists the freedom to study a wide variety of trading setups.

IUX’s proprietary platform is available to fully verified accounts.

IUX’s MT5 Mobile App

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

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.

My Key Takeaways After Testing MT5’s Mobile App

MT5’s mobile app suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor the development of your open positions and make changes if needed.

Tradable Instruments

Compared to the industry average, IUX offers a low amount of share CFDs, an average amount of currency pairs, commodities, and cryptocurrencies, and a high number of indices.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery.

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 IUX?

My Key Takeaways After Exploring IUX’s Instruments Offering

IUX offers a decent amount of higher-yield/risk assets, such as stocks and cryptocurrencies, that can be used for speculative trading. However, the broker does not provide any lower-risk securities, such as ETFs and bonds. This lack of diversity makes it more difficult for traders to diversify their market exposure and lessen their trading risk.

Customer Support

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 customer support test on 25 March at around 15:17 CET via live chat. I raised several questions pertaining to IUX’s fees, execution model, and account configurations.

I greatly appreciated the instantaneous connection with an agent. The first thing she did was introduce herself, a gesture that set a welcoming tone for the conversation. Moreover, the agent demonstrated a thorough understanding of how to locate relevant information on the website.

Despite the agent initially struggling to grasp what I meant by ‘an account-based currency’ and ‘inactivity fee,’ overall, I assess IUX’s customer support as suitable for straightforward questions.

Deposit and Withdrawal

IUX Deposit Methods

IUX Withdrawal Methods

Account Types and Terms

IUX Account Opening Process

To create an account with IUX, follow these simple steps:

• Step 1. Click ‘Open Account’ at the top-right corner of the main page.
• Step 2. Choose your country of residence, and enter an email and a password.
• Step 3. Verify your email address.
• Step 4. Choose an account type and configure its settings.
• Step 5. Upload proof of ID and address to verify your account.

IUX’s Account Types

While it is true that IUX’s accounts have generally low trading fees, I would like to point out the associated risks on two of those – the Standard and Standard+ accounts. The former allows a fairly large maximum retail leverage (1:3000), while the latter caps it at 1:1000, which is still pretty high.

The other difference is that the Standard account has pretty lax safety nets (margin call at 0% and stop-out at 30%). This means that unless traders exercise caution, they risk losing a significant portion of their accounts before the system starts to close their positions automatically.

The same applies to the Standard+ account, though to a lesser degree. Fundamentally, it is the trader’s responsibility to make sure his or her positions are managed carefully.

Demo Account

IUX offers demo accounts that introduce traders to the broker’s services and allow 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.

Islamic Account

The broker also offers Islamic accounts for swap-free trading, as mandated under Shariah law. Traders who want to open an Islamic account need to contact IUX’s customer support and request the service from there.

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 positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

IUX Restricted Countries

IUX does not accept clients from the following countries: Iran, North Korea, Syria, Cuba, Venezuela, and Russia.

Research

Traders can take advantage of the built-in economic calendar, an essential tool that keeps them informed of upcoming market events and releases that may influence price action, potentially creating valuable trading opportunities.

IUX also includes several market sentiment tools from TradingView, which help traders assess shifting buying and selling dynamics. I found the Heat Map tool particularly useful, as it displays changes in buying pressure across different time frames. This feature allows both contrarian traders and trend followers to identify potential trading opportunities suited to their preferred style.

Education

IUX covers basic trading concepts, such as ‘what is a pip,’ ‘what is the role of forex brokers,’ ‘how to use stop-loss orders,’ and the like. Users can also find some articles about stories of success and strategies of famous investors and market experts.

Another prominent educational section of the website is the ‘Academy’, containing two courses on investing. They comprise 15 individual lessons and trace the basics of value investing.

While I appreciated the diversity of content, I would have liked it if the broker had paid more attention to more complex topics such as trading psychology, risk management, etc.

The Bottom Line

IUX is an up-and-coming derivatives broker that offers below-average trading fees and the popular MetaTrader 5 platform. It also distinguishes itself with relatively fast order execution speeds, which I clocked at around 62 milliseconds.

Additionally, I found that IUX’s low overnight charges make it suitable for longer-term trading strategies, particularly for swing and position traders.

Founded in 2016 and headquartered in Cyprus, IUX operates under four entities authorized by the ISA in MWALI, the FSCA in South Africa, the FSC in Mauritius, and ASIC in Australia. The broker ensures the implementation of most essential safety mechanisms, though its margin call and stop-out policies appear to be somewhat lax.

IUX has developed a beginner-friendly web trader platform featuring fluid charts powered by TradingView and a proprietary app available to verified clients.

The broker provides several highly practical market sentiment tools that can be used to identify viable trading opportunities. However, it lacks educational materials, which makes IUX not the best choice for beginners.