Is Forex4you Safe? Exploring the Security of Forex Trading

Many rush into Forex investment, cryptocurrencies, dreaming of wealth, but countless have suffered losses encountering fraudulent trading platforms. Recently, a slew of forex platforms have been accused of manipulating orders, deceiving investors, and Forex4you is embroiled in these allegations. This article will evaluate Forex4you and furnish you with pertinent information, compiled by Mytour, to afford you a clearer perspective on this forex trading platform.

Forex4you Broker Review

I - What is Forex4you?

Forex4you is a forex trading platform established in 2007, under the company E-Global Trade & Finance Group, Inc. Forex4you has registered offices in the British Virgin Islands. Over the past 13 years, Forex4you has garnered numerous industry awards with over 2 million trading accounts opened. In 2013, the company introduced the social trading service Share4you, and in 2016, the company launched its own liquidity aggregation and order matching software called MarketPlace.

Latest Review of Forex4you in 2021

According to Forex4you review, the platform offers over 150 tradable instruments including currencies, indices, stocks, commodities, and cryptocurrencies. Forex4you is not popular in the European market but is quite renowned in Russia and has expanded its operations to China, India, and Southeast Asia, including Vietnam.

II - Pros and Cons of Forex4you

Mytour finds that Forex4you has many strengths, but also has quite a few weaknesses that have made investors hesitant to fully trust this Forex platform. Readers can assess Forex4you through its pros and cons listed below.

1. Pros of Forex4you

- The trading product range is quite diverse: currencies, indices, stocks, commodities, cryptocurrencies...
- Low minimum deposit.
- High leverage ratio up to 1:2000.
- Low or no commission fees.
- Good copy trading platform.
- Exclusive Share4you social trading platform.
- Has offices in Vietnam.

2. Cons of Forex4you

- Not regulated by reputable regulatory bodies like many other brokers.
- Limited trading tools.
- Account registration process sometimes encounters errors.

How would you evaluate Forex4you based on the information above?

III - Types of Forex4you Accounts

Forex4you offers a Demo account and 4 different types of accounts. Here's the information about these accounts:

- Demo Account: Allows traders to explore Forex4you's platforms, trading tools, and practice trading in a risk-free environment with 10,000 USD virtual money in the account.
- Cent Account: Designed for new investors. The Cent account has a real execution time of about 1.26 seconds, no minimum deposit requirement, leverage ranging from 1:10 to 1:1000 and even up to 1:2000, no commission fees, and a fixed spread of 2 pips.
- Classic Account: This is the standard account for traders. The Classic account has a real execution time of about 0.84 seconds, no minimum deposit requirement, leverage ranging from 1:10 to 1:1000 and even up to 1:2000, no commission fees, and a fixed spread of 2 pips.
- Cent NDD Account: This account has a real execution time of about 0.80 seconds, no minimum deposit requirement, leverage ranging from 1:10 to 1:1000 and even up to 1:2000, commission fee of 10 cents per lot, and a floating spread starting from 0.1 pips.
- Pro STP Account: This account has the fastest execution time among all account types, about 0.55 seconds, no minimum deposit requirement, leverage ranging from 1:10 to 1:1000 and even up to 1:2000, commission fee of 8 cents per lot, and a floating spread starting from 0.1 pips.

Opening a Forex4you account is quite simple. Traders need to provide their name, email, phone number, and a copy of their identification document for identity verification.

IV - Trading Fees of Forex4you

Most of Forex4you's revenue comes from spreads and commissions. Both Cent and Classic accounts have a minimum spread of 2.0 pips with no commission. With this spread applied over time, the costs traders incur to the platform are significant. The Cent NDD and Pro STP accounts have a floating spread starting from 0.1 pip with corresponding commission fees of 0.10 USD and 0.8 USD, respectively. With floating spreads, traders may find it challenging to control risks during market volatility.

Traders will face an inactivity fee of 10 USD per month after 12 months of inactivity. Mytour evaluates that Forex4you's inactivity fee is comparable to many other brokers.

V - Deposits and Withdrawals

Forex4you offers various deposit and withdrawal methods including Neteller, Skrill, WebMoney, and credit/debit cards. All deposit and withdrawal methods are processed instantly, except for credit/debit card withdrawals, which take 1 to 6 business days.

Investors incur no deposit fees, but withdrawal fees range from 0.8% to 2% for electronic payment systems, while credit/debit cards incur a fee of 2.5% + 2.5% (EUR or USD). Minimum deposit and withdrawal limits start from 1 USD.

VI - Supported Trading Platforms on Forex4you

Currently, Forex4you supports its clients in trading on 2 platforms: MT4 software and Forex4you web, desktop, and mobile. Forex4you has also started experimenting with MetaTrader 5, and this platform is currently being tested on Demo accounts. In this review of the Forex4you broker, we will explore some information about the trading platforms supported by this broker.

1. Forex4you Trading Platform

This platform offers a user-friendly trading experience developed by Forex4you for forex and CFD trading. It's available on web, mobile, and desktop. Here are some key features:

- Real-time buying and selling prices across all trading instruments.
- Various order types including 'Buy Stop', 'Sell Stop' orders to eliminate price slippage.
- Equity stop loss can be used to define risk limits, forcing closure of positions at a specified price.
- Charts for all tradable assets across multiple timeframes...
- Traders can view prices from different liquidity providers...

2. MetaTrader 4 Platform

MetaTrader 4 (MT4) stands as one of the most widely used trading platforms, setting the standard for forex and CFD traders. According to Forex4you broker reviews, this broker offers MT4 in web, desktop, as well as iOS and Android apps. Here are some of MT4's features:

- 30 technical indicators and 24 analytical tools available.
- Dow Jones news and market alerts continuously updated.
- Direct currency quoting displayed on Market Watch can be customized to show traders' favorite assets.
- Real-time charts for all tradable assets and can be displayed in 9 timeframes from one minute to one month.|
- Platform features can be extended through plugins developed by the script language (MQL)...

VII - Is Forex4you a scam?

Is a long-standing broker like Forex4you safe to trade with? One of the surest standards to gauge a broker's safety is to determine which regulatory body oversees its actions.

Forex4you is licensed by the Financial Services Commission (FSC) of the British Virgin Islands. The company emphasizes the security of client funds, keeping all investor funds in separate bank accounts, distinct from the company's funds and therefore not used for any other purposes. To ensure the accuracy of records and compliance with legal regulations, Forex4you's financial records are audited annually by KPMG, a globally recognized auditing firm.

Is Forex4you broker reviews a scam?

Additionally, with over 13 years of operation, Forex4you has achieved numerous awards such as Broker of the Year for two consecutive years, 2018 and 2019, Best Forex Broker (IAIR Southeast Asia 2013), Best Affiliate Partnership Program (International Business Magazine 2020), Best Forex Broker in Russia and CIS, Best Forex Affiliate Program (AtoZ Markets 2020), and more. These accolades somewhat affirm the credibility of this forex broker.

However, Forex4you does not offer negative balance protection and does not participate in any compensation programs. This means that if the broker goes bankrupt, investors will not be compensated. Furthermore, unlike many other brokers licensed and regulated by leading regulatory bodies such as the FCA, CySEC, or ASIC, Forex4you is only regulated by the FSC in the British Virgin Islands as mentioned above.

Given that forex trading activities are conducted online, controlling fraudulent activities in this market is impossible. Therefore, reputable regulatory bodies will ensure the safety of traders' funds, as well as ensure transparent trading activities. Thus, your Forex4you account may still be safe, but not at the maximum level. Additionally, when researching and evaluating Forex4you broker reviews, Mytour found that this broker has been involved in some quite serious scandals. Specifically, Forex4you is accused of order manipulation, showing signs of investor fraud, and this incident has been warned by VTV. This has eroded the trust of many Vietnamese traders.

Many experts warn that traders should be cautious when depositing money into Forex4you, and Forex4you broker is only suitable for investing small amounts. However, if you want to invest large sums, you should look to forex brokers with more secure legal information. You can also consider checking out Forex.com for more details if you want to invest larger sums.

Read more: Forex.com Broker Review