Principal Forex offers currency trading on MetaTrader4.
Principal Forex Inc., which owns the broker, is licensed by the Financial Services Authority (FSA) of Saint Vincent and the Grenadines (No. 22707 IBC 2015).
The FSA is the only regulatory body on the island. The FSA, however, also deals with the resolution of conflicts and disagreements that arise between clients and companies. In case of default by the broker, the regulator has the right to revoke his license or oblige him to pay a fine. At the same time, companies also undergo a government audit every 12-18 months.
As we have already said, this regulator is the only one on the island, and, given that it operates in an offshore zone, it is rather difficult to speak of it as a serious regulator of Forex companies and binary options brokers. Because do not forget that in an offshore zone it is much easier and cheaper to obtain a license for financial activities. In this regard, the level of trust in brokers controlled by the FSA is low.
The broker has one type of account, standard. Apparently, Principal Forex does not offer demo, PAMM and MAM accounts, or swap-free.
The minimum deposit to get started is $ 1000! This is an incredibly high deposit for an offshore broker! Many brokers who are CySEC licensed offer trading from $ 1. We would advise the broker to lower the minimum deposit, and traders to think carefully before depositing $ 1000!
Spreads and commissions
Spreads start from 1.5 pips, as indicated on the broker's website. However, since the spreads are floating, they can increase depending on market conditions. But a spread from 1.5 is not the best deal in the industry. Usually brokers offer their clients with a deposit of $ 1000 spreads from 0.1 pips.
The maximum leverage that a trader can use is up to 1: 1000.
Principal Forex was no exception and offered traders the MetaTrader4 platform. Well, this is an excellent choice, since the terminal is the most popular all over the world due to its intuitive interface, charts, advisors, analytical tools. By the way, it is very convenient that you can use ready-made algorithms for trading or create your own. The broker allows scalping and hedging.
MT4 developer MetaQuotes is now encouraging traders to migrate to the next generation MT5 terminal and in this regard has announced that it will no longer release updates for MT4.
We advise you to pay attention to those brokers that offer trading on both terminals.
Principal Forex does not offer any significant services, except for an affiliate program, and the company also offers to become a client relations manager.
You can contact the broker using the feedback form or by email. The site is available in English, Chinese and Korean.
It is alarming that the broker does not offer an online chat or telephone for communication.
Ways of payment
You can deposit money into your account using bank transfers, NETELER e-wallet, UnionPay, fasapay. All types of transfers, except bank transfers and fasapay, are charged by the broker.
Bank transfer takes up to 1 day after the application has been approved.
You can deposit money in the following currencies: USD, EUR, CNY, IDR, but all these currencies will be converted into USD.
You can only withdraw money by bank transfer in USD. It will take 1-4 days. The minimum withdrawal is $ 500.
Criticism of traders
It is impossible to find reviews on the broker's work on the Internet. But we advise traders to bypass Principal Forex for several reasons.
a broker with a dubious history; works in an offshore zone; high minimum deposit; high spreads; contacting support via form or email; does not offer MAM or PAMM accounts.
PRINCIPALFOREX_INC is a brokerage company whose task is to provide intermediary services to traders. Brokers provide access to currency trading in the first place. Many of them also provide an opportunity to transact with company stocks, bonds, commodities, precious metals, indices, cryptocurrencies and other assets. A private person can make transactions with all these instruments only on the trading platform, which the broker provides access to.
In addition, thanks to the brokerage company, an individual can operate on the market with amounts that significantly exceed the size of their own funds. This is called providing leverage. For example, having a deposit of 1,000 USD with a 1: 400 leverage, a trader can make deals for 400,000 USD.
The broker also opens access to analytics, auxiliary tools, and trading signals. Modern trading is impossible without all this.
The broker PRINCIPALFOREX_INC makes profit from traders' transactions, as a rule, in two main ways.
The first is the most common. Using spreads. This word refers to the difference between the best prices for buying and selling a particular asset at a particular moment. Moreover, in a transaction between a trader and a broker, the price is one, and between a broker and users of the Forex market - another. The mediator takes the difference for himself.
The second way is easier to understand. This is the collection of a commission for each transaction performed. Most often it has a standard value, but it can be measured as a percentage.
Thus, the brokerage company is interested in attracting as many clients as possible and for them to conduct active trading.
We have found out how honest brokers should work and how they work. Now let's look at how scammers operate, they are also called the kitchen.
The most common way to cheat is to tweak quotes. The broker provides the trader with quotes that differ from the real market ones. Data substitution occurs in order to make operations unprofitable. The deposit is reduced, and then completely zeroed out. At the same time, the trader thinks that his operations were carried out in the market, but in fact - only on the site of scammers.
Bonuses are traps. They are generously distributed for anything: for registration, account replenishment, etc. Only after that, in order for the client to withdraw his own money, mixed with bonus money, it will be necessary to fulfill a number of virtually impossible conditions. For example, conduct trading operations for an amount tens of times greater than the size of the deposit.
In the User Agreement, a clause can also be disguised that allows the broker to manage the client's money. Inattention when reading such an agreement most often turns into a complete loss of the deposit.
One of the key points is the place of registration and regulation of the company's activities.
Let's talk about registration first. As a rule, brokers from either their own country or from an economically developed country, for example, a member of the European Union, are more credible to traders. Of course, compliance with UK legislation is reassuring, and compliance with the legislation of an unknown island in the Indian Ocean does not mean anything to most.
However, most brokerage companies are registered offshore. And it's not only about small offices, but also about world leaders. Saint Vincent and the Grenadines, Belize, Marshall Islands, Mauritius are offshore zones popular among brokers. By registering there, companies pay significantly less taxes than in the place of actual location, which is sometimes carefully hidden.
If a trader has any claims against such a company, then it is likely that he will have to deal with it in accordance with the legislation of that very conditional Belize. It is possible to be physically present there at the court sessions. And this is extremely expensive and difficult.
But is it worth running like fire from just the word "offshore"? As an answer, we will give the names of companies that are not related to brokerage, but with an impeccable reputation and also save on taxes through offshore registration: Apple, Pfizer, Microsoft, General Electric, Intel.
And here we come to the second important point - this is the regulation of the broker's activities. First of all, it is carried out at the level of the state where the company is registered. Each country has its own regulatory body for brokerage activities. So, in Russia it is the Central Bank of the Russian Federation. A trader can find permissive documentation on the websites of such bodies. But there are also supranational structures. For example, the International Financial Commission (The Financial Commission), which is an independent self-regulatory organization, considering disputes between its members - brokers and their clients.
If the broker's website does not contain information about the regulation of its activities, then these are almost certainly scammers. Or the site contains information about a certain license issued to him, but this information is not confirmed anywhere else. Most likely, these are also scammers.
When choosing a brokerage company, study its history. Check out the links to her experts. If one of the leading TV channels in economic news for 5 years in a row refers to the opinion of the analyst of the broker in question, this is good. If a broker claims to have been working for 15 years, but there is no information about him on the Internet at all, this is bad.
It's important to pay attention to company reviews. And read them not only on the website of the broker itself. In the kitchen, they will probably only be laudatory. It is best to browse as many sites as possible.
Pay attention exclusively to the specifics in the offers on the brokers' websites. Honest companies openly write about interest, spread size, minimum deposit, etc. Fraudsters lure with loud, streamlined phrases about a rich tomorrow, stable income, misleading with incomprehensible terms about multi-sites, super functions, and so on.
Find out the company's connection with well-known brands, financial institutions, public organizations. For example, it can be sponsored. Large brokers sometimes hold social promotions. Fraudsters will definitely not do this.
Thus, the process of choosing a broker is complex. But if you approach it carefully, it will allow you to enter the world of trading, which has made millions of people rich all over the world.
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Before any trade and choosing a broker You must always read reviews on this site and on other sites. Brokers who are honest, have a rating of above 3.8. Also there is always the risk of loss when trading CFDs. Be careful and read the disclosure on the website of the broker. PRINCIPALFOREX_INC received a score of 1 of 5 on our resource.