TopFX

Trust

TopFX 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 several entities operating under the TopFX trade name:

• TopFX Ltd is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 138/11. We rate CySEC as a Tier-1 regulator.
• TopFX Global Ltd is licensed and regulated by the Financial Services Authority (FSA) of Seychelles under license number SD037. We rate the FSA as a Tier-3 regulator.

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities to serve clients worldwide. However, licenses obtained from regulators in different jurisdictions do not always entail the same degree of protection.

Some regulators mandate compliance with the strictest financial frameworks, while 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. Both TopFX entities ensure the segregation of 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. Both TopFX entities guarantee negative balance protection.
• Compensation Scheme: A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. Clients of TopFX Ltd are protected by up to EUR 20,000 under the Investor Compensation Scheme (ICF).
• 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 TopFX is 1:1000*.

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 reviewed TopFX’s legal documents and found their overall transparency to be commendable. The information is thorough and easily accessible, with all key policies clearly explained in straightforward language. There are no hidden commissions or ambiguous terms.

The only minor issue is that TopFX does not provide live spread data on its website. This information is important as it allows prospective clients to assess the broker’s fees before opening a live account.

Is TopFX Safe to Trade With?

I concluded that TopFX is safe to trade with because of the following factors:

• Is regulated by CySEC and the FSA
• Operates on a ‘best execution’ basis
• Client funds are kept in segregated accounts
• Guarantees negative balance protection

Fees

TopFX Trading Fees

TopFX Spreads

I tested TopFX’s spreads on 28 August 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, I discovered that TopFX charges low spreads on currency pairs and crude oil, low-to-average spreads on indices, average spreads on share CFDs and cryptocurrencies, and high spreads on gold.

TopFX 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 TopFX charges average-to-high swaps compared to the benchmark, though it is important to keep in mind that swap rates change over time.

TopFX Non-Trading Fees

TopFX charges dormant accounts an inactivity fee of 5 USD/EUR/GBP/CHF or 600 JPY (depending on the base currency) per month until trading activity resumes or the account balance reaches zero. An account is considered dormant when there has been no trading activity on it for a period of 90 calendar days.

There are no handling fees for deposits. Additionally, the first two withdrawals are free of handling fees, but subsequent withdrawals may incur fees depending on the payment method used.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees with TopFX’s two retail 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

According to my findings, conditions at both TopFX retail accounts beat the industry averages. However, the Raw account has a comparatively high minimum deposit requirement of $5,000.

Are TopFX’s Fees Competitive?

I assessed that TopFX’s fees are fair and competitive, except for extreme cases such as the crude oil spread on the Zero account. The broker’s spreads are generally low to average compared to the industry average. Moreover, TopFX supports cost-free deposits and withdrawals.

Platforms and Tools

The Desktop Version of TopFX’s cTrader Platform

I tested the desktop version of the cTrader platform, which is among the most feature-rich and versatile trading stations in the industry. cTrader features multiple essential tools, such as one-click trading, an alarm setting option, and a market depth tool. These tools allow traders to analyze market developments from different perspectives and take advantage of various trading opportunities in multiple ways.

As shown above, traders can easily apply essential tools like DoM and access content from Autochartist and Trading Central on the cTrader platform. This allows them not only to identify unfolding trading setups – such as developing price patterns, target levels, and ideal stop-loss placements – but also to capitalize on these opportunities in various ways.

cTrader is also an excellent choice for those interested in copy trading and automated trading. The platform features several built-in bots, as well as an enhanced regime for automated trading where traders can program their own algorithms. It also has a copy trading feature, allowing signal providers and signal followers to interact with each other.

General Ease of Use

On the left-hand side of the main panel, you can see the three modes of the platform: ‘Trade,’ ‘Copy,’ and ‘Automate’. The chart window occupies the middle section of the platform, with all technical indicators, drawing tools, trading bots, and other chart configurations being situated at the top. The order placing window, Trading Central, Autochartist, DoM, and other tools are available from the right-hand side of the main window.

Charts

I consider the chart screen to be the most important feature of a trading platform. It plays a key role in technical analysis by offering a clear view of price action behavior. Chart analysts use a variety of tools and configurations to explore different perspectives. In my experience, the crucial aspect of a chart is how easily you can scale the price action up and down for detailed analysis.

One of the standout features of cTrader’s charts is the ability to open them in a separate window, allowing for focused and in-depth technical analysis without distractions. The charts are fluid, highly detailed, and perfect for thorough examination.

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

• 67 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.
• 26 timeframes. Multiple timeframes – from 1 second to 1 month – are available for traders. The more timeframes available, the more detailed analyses traders can conduct, covering both short-term and long-term market trends.
• 6 chart types. Price action can be represented as a line, bars, candlesticks, and more. This diversity allows traders to examine potential trading opportunities from different angles.

Orders

cTrader features three types of order execution: market, pending, and one-click trading that allows immediate entries at the spot price.

I have broken down the available order types on the cTrader 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 cTrader Platform

In my opinion, cTrader is the most well-balanced trading station available for retail trading. Its charts are fluid and extremely versatile, accommodating the execution of in-depth technical analyses. The platform is also easily customizable and incorporates various trading tools and features, such as Autochartist and Trading Central. cTrader also offers professional-grade copy and automated trading capabilities.

TopFX’s Execution Model

TopFX operates on a hybrid STP/ECN execution model. Depending on the underlying market conditions, it can also serve as a principal to client orders. The broker operates without a dealing desk. At the time of my review, the broker was achieving an average execution speed of around 75 milliseconds, which is slightly slower than the industry average of 60 milliseconds.

cTrader’s Mobile App Version

cTrader’s mobile app retains the functionality of its desktop counterpart. The app is great for account management, as traders can place and adjust their positions on the go. The app also incorporates content from Autochartist and Trading Central so that traders can access actionable trading signals on various trading instruments at all times.

My Key Takeaways After Testing cTrader’s Mobile App

In my opinion, the cTrader mobile app is as good as a trading app can be. It offers the same range of technical indicators and drawing tools as its desktop counterpart. However, like all trading apps, it faces the inherent challenge of limited price action visibility on small screens.

Despite this, the cTrader app remains an indispensable tool for traders, providing quick and easy access to the market.

Tradable Instruments

Compared to the industry average, TopFX offers an average amount of currency pairs, commodities, and cryptocurrencies, and a high amount of share CFDs and 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 TopFX?

My Key Takeaways After Exploring TopFX’s Instruments Offering

TopFX’s instrument offering is wide and diverse. I appreciated the availability of lower-risk securities, such as ETFs, and higher-yield/risk assets, such as cryptocurrencies. This diversity allows traders to exploit a wide range of trading opportunities and hedge their market exposure in the mid-and long-term.

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 contacted TopFX on August 29 at around 12:52 p.m. CET via live chat. After providing my name and email, I was directed to a chatbot. Upon requesting to speak with an agent, I was connected within seconds.

I asked two questions – one about TopFX’s commission policy and another about its execution model. The agent responded quickly to the first question but seemed to struggle with the second. Nonetheless, they remained polite and generally helpful throughout the conversation.

Deposit and Withdrawal

TopFX Deposit Methods

TopFX Withdrawal Methods