Orbex Holding LTD is a Forex broker based in Cyprus, one of the most popular regulatory jurisdictions due to its European Union membership, which lends credibility to the jurisdiction while allowing for more lax enforcement of certain provisions than other regulators, such as the United Kingdom’s Financial Conduct Authority (FCA).
According to their website, the broker is now experiencing global development, and they take great pleasure in their client service.
Orbex promises to provide the cutting edge software in terms of Forex tools and resources. However, our Orbex research discovered that they only provide the established MT4 trading platform, which is well-regarded but not very creative.
They did collaborate with TradeWorks to provide a third-party automated trading platform that does not need any programming expertise, which may be particularly beneficial for novice traders. Additionally, the asset selection is very restricted, making it unsuitable for more seasoned traders.
Orbex has established a reputation for itself at the bottom end of the retail sector, with a $200 minimum deposit and zero spread accounts starting at $5,000. Due to the shortage of assets, traders with large deposits may consider trading on other exchanges until Orbex’s asset portfolio is expanded.
Orbex Regulation
As previously stated, Orbex Holding LTD has been regulated by the Cyprus Securities and Exchange Commission (License Number 124/10) from its inception in 2015. Orbex Global LTD, which is licenced and regulated by the Mauritius Financial Services Commission, owns and manages Orbex Holding LTD and the website orbex.com. It is legal in all EU member nations since Cyprus is a member of the European Union and is subject to the MiFID Directive.
Orbex is a member of the Cyprus Investor Compensation Fund (ICF) and segregates client money in accordance with Cyprus Securities and Exchange Commission rules. The fund’s maximum payment per customer is €20,000, which should be sufficient to compensate for the losses suffered by Orbex’s traders, despite their modest initial deposits.
Orbex Trading Conditions
Orbex has a very restricted asset selection, with just 36 currency pairings, two metals, one energy, and five cash indices available for trading. When the assets are readily quantifiable, the offer is considered less than extraordinary.
Orbex generates revenue not just via fees and exchange rates, but also from spreads, or the difference between bid and ask prices. The three most common revenue streams for most Forex brokers are as follows: According to the Orbex website, the average spread on the EUR/USD, the most liquid currency pair with the lowest spread, is 1.7 pips, which is at the upper end of the range and not very trader-friendly.
Given the large spread premium (the EUR/USD raw spread is 0.0 pips), it is possible that Orbex is operating under the market maker model, in which case it profits from its customers’ losses while acting as a counter-party.
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This is true for accounts with no commission, accounts with a commission and spreads that start at 0.0 pips and appear in-line with NDD execution, and accounts with no commission. Commissions start at $8 and drop to $5 when you sign up for the company’s premium account.
Additionally, an inactivity fee is imposed, which is an extra cost associated with collecting money from customers. Brokers involved in such activities should be avoided at all costs.
Account Types
Orbex provides four different kinds of accounts, as well as an Islamic account that is swap-free. Their Starter Account needs a minimum deposit of $200 and grows in value afterwards. On all accounts, the maximum leverage is 1:500, with a 20% stop-out level on all transactions.
Spreads begin at 0 pips in both accounts, and trading costs are calculated on a per-lot basis. While all account types are described as having NDD execution, those that do not charge fees but have wide spreads seem to be market maker accounts.
Commission-based accounts need a minimum deposit of $5,000 or $25,000, which, along with the restricted asset selection, makes it an unlikely destination for traders with such large balances.
To open a Fixed Spread Account, a $500 minimum deposit is needed, along with a 1.9 pip spread on the EUR/USD currency pair. This is very high, thus making this account type worthless to any trader who uses it.
When trading the EUR/USD pair, a minimum deposit of $200 is required for the Starter Account, and the EUR/USD spread begins at 1.7 pips. This is still too expensive, and as a result of the high trading expenses, this account type is rendered worthless.
Orbex Trading Interface
Orbex provides only the MetaTrader 4 trading platform, which is the industry standard for Forex brokers. MT4 is an inexpensive trading platform that is often offered as a White Label solution. It enables EAs, which enable automated trading, and third-party investors have made significant investments in this platform.
Due to the fact that almost every Forex broker provides it, it continues to be the most popular trading platform. Numerous Forex brokers rely heavily on the MT4 platform, which may be significantly improved when used in conjunction with third-party extensions.
Orbex supports the ability to trade on both the MT4 and ECN platforms, which is unachievable without the usage of a bridge. By default, MetaTrader 4 (MT4) does not allow ECN trading and is designed for market makers.
Orbex’s website makes no mention of the ECB bridge they utilise, implying that they do not use one at all. As a consequence, NDD orders are difficult to execute, and all account types may be created market maker accounts.
Customer Strategy Builder
Orbex clients may now access Strategizer as a result of a partnership between the trading platform and TradeWorks. This automated Forex trading system enables traders to design a Forex trading strategy that is then implemented on the MT4 trading platform. Strategizer does not need any programming expertise, and retail traders may build their own professional advisors.
Each month, businesses invest millions of dollars to provide cutting-edge trading solutions to their consumers. The development of fully automated trading systems is one of the fastest expanding segments of global finance, with companies spending millions of dollars each month to offer cutting-edge trading solutions to its clients.
While Strategizer will meet the fundamental requirements of retail traders, it should not be mistaken with the knowledge provided by fintech firms. Orbex is offering an excellent tool for attracting the customers they want.
Orbex Customer Support
Customer support representatives are available in a number of languages. We are available 24 hours a day, seven days a week. Clients may request assistance through email, live chat, or by calling the company directly. Orbex provides a call-back service, which is a convenient function.
Additionally, there is an Often Asked Concerns section that should cover the majority of the most frequently asked questions. While the overwhelming majority of traders will never need to contact customer support, given the trading atmosphere and circumstances at Orbex, having contact information on hand may be beneficial.
Deposit and Withdrawal
Orbex provides a decent selection of deposit and withdrawal methods, including credit and debit cards, wire transfers, and a broad number of online payment processors and e-wallets. Orbex, in contrast to other companies in the sector, does not collect fees for deposits, as is customary.
Withdrawing money is likewise free, which is a pleasant surprise given the broker’s fee-heavy trading environment. Although wire transfers include third-party costs, the vast majority of Forex traders choose to utilise online payment methods, negating the need for this charge.
Except for wire transfers, the processing time for deposits is specified as up to two hours; nevertheless, the vast majority of those transactions should be completed promptly, based on the information provided. With the exception of credit/debit cards and wire transfers, which may take up to three business days to complete, withdrawals will often be processed within 24 hours.
Conclusion
Orbex offers a fantastic training course to help novice traders in getting started, and their research staff is outstanding. Additionally, it provides its Forex traders with tools like Trading Central, Strategizer, and Free VPS Hosting, all of which are excellent resources for many retail traders. Orbex’s good fortune comes to an end at this point.
Regrettably, the trading environment is poor, with hefty transaction charges, a limited asset selection, and a slew of arbitrary fees. Due to this broker’s excessive costs, we suggest that you look for a broker with lower fees and a broader offering, as the overwhelming majority of other brokers do.
Orbex’s business practises may change in the future, but for the time being, it is prudent to avoid the company.
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