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Principal Forex offers currency trading on MetaTrader4.
Fund security
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.
Trading conditions
The broker has one type of account, standard. Apparently, Principal Forex does not offer demo, PAMM and MAM accounts, or swap-free.
Minimum deposit
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.
Leverage
The maximum leverage that a trader can use is up to 1: 1000.
Trading platforms
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.
Significant services
Principal Forex does not offer any significant services, except for an affiliate program, and the company also offers to become a client relations manager.
Support service
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.
Minuses:
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.
Pros:
MT4.
PRINCIPALFOREX_INC is a company whose task is to provide intermediary services to traders. Brokers / Crypto exchanges provide access to currency / cryptocurrency trading, first of all. Also, many of them, if we are talking about brokers, give the opportunity to make transactions with company shares, bonds, commodities, precious metals, indices, cryptocurrency and other assets. A private person can make transactions with all these instruments only on a trading platform, access to which is provided by a broker or a crypto exchange.
In addition, thanks to such companies, an individual can operate in the market with amounts significantly exceeding the amount of his own funds. This is called the provision of leverage. For example, having a deposit of 1,000 USD with a leverage of 1:400, a trader can make transactions for 400,000 USD.
As well, the broker / crypto exchange opens access to analytics, auxiliary tools, trading signals. Without all this, modern trading is impossible.
PRINCIPALFOREX_INC profits from traders' trades, usually in two main ways
.
First – most common. Using spreads. This word refers to the difference between the best prices for buying and selling a certain asset at a particular moment. Moreover, in a transaction between a trader and a broker, the price is one, and between the broker and market users - another. The mediator takes the difference.
The second method is easier to understand. This is a fee for each operation performed. Most often it has a standard value, but can also be measured as a percentage.
Therefore, the company is interested in attracting as many clients as possible and that they conduct active trading.
How honest brokers / crypto exchanges should work and how they work, we found out. And now let's look at how scammers act, they are also called kitchens.
The most common way to cheat – is to twist quotes. Broker / crypto exchange gives the trader quotes that differ from the real market. There is a substitution of data in order to make operations unprofitable. The deposit is reduced, and then completely reset. At the same time, the trader thinks that his operations were made on the market, but in fact – just on the site of scammers.
Bonus – traps. They are generously distributed for anything: 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 actually impossible conditions. For example, to conduct trading operations in the amount of ten times more than the size of the deposit.
The User Agreement may also mask a clause that allows the broker / crypto exchange to dispose of 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 – it is the place of registration and regulation of the company's activities.
First let's talk about registration. As a rule, traders are more trusted by companies either from their own country or from an economically developed country, for example, a member of the European Union. Of course, compliance with UK law is reassuring, and compliance with the laws of an unknown island in the Indian Ocean does not mean anything to most at all.
On fact, most brokerage companies are registered offshore, and we are talking not only about small offices, but also about world leaders. Saint Vincent and the Grenadines, Belize, Marshall Islands, Mauritius are popular offshore zones among companies. Registering there, companies pay significantly less taxes than in the place of actual location, which is sometimes carefully hidden.
If a trader has claims against such a company, then it is likely that he will have to deal with it in accordance with the laws of the same conditional Belize. It is possible to be physically present there at court hearings. And this is extremely expensive and difficult.
No is it worth running like fire from just the word «offshore»? As an answer, we will cite the names of companies that are not related to brokerage, but with an impeccable reputation and also save on taxes with the help of offshore registration: Apple, Pfizer, Microsoft, General Electric, Intel.
And here we come to the second important point – this is the regulation of the broker / crypto exchange. 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 brokering. So, in Russia it is the Central Bank of the Russian Federation. The trader can find permits on the websites of such authorities. But there are also supranational structures. For example, the International Financial Commission, which is an independent self-regulatory organization, specifies disputes between its members – brokers and their clients.
If there is no information on the broker's website / crypto exchange about the regulation of its activities or license, then it is almost certainly a scammer. Or on the site there is data on some license issued by him, but this information is not confirmed anywhere else. Most likely, these are also scammers.
When choosing a brokerage company, or crypto exchanges, study its history. Look at the links to its experts. If one of the leading TV channels in the economic news for 5 years in a row refers to the opinion of the analyst of the broker in question – this is good. If the broker / crypto exchange assures that it has been working for 15 years, but there is no information about it on the Internet at all – this is bad.
It is important to pay attention to reviews about the company. And read them not only on the website of the broker itself / crypto exchange. In the kitchen, they will certainly be only praiseworthy. It is better to view as many sites as possible.
Pay attention solely to the specifics in the offers on the websites of brokers / crypto exchanges. Honest companies openly write about interest, spread size, minimum deposit, etc. Scammers lure loud streamlined phrases about a rich tomorrow, a stable income, mislead with incomprehensible terms about multi-sites, superfunctions and so on.
Specify the company's connection with well-known brands, financial institutions, public organizations. For example, it can be sponsored. Large brokers / crypto exchanges sometimes hold social promotions. Scammers will definitely not do this.
Therefore, the process of choosing a broker / crypto exchange is complicated. But if you approach it carefully, it will allow you to enter the world of trading, which has made millions of people rich around 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. Companies 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 company you chose. PRINCIPALFOREX_INC received a score of 1 of 5 on our resource.