When you are ready to launch yourself into a trading career, you have to find the right broker who you can start your journey with. Unfortunately, there are just as many bad brokers in the market as there are good ones. You do not have to leave your choice to your luck. If you pay attention to some details, you can always recognize a bad broker. Among many online brokers, you will find IronFX, which does not seem to be the most favorite online broker for traders. Why is that so? Let’s get into the details of things.
Why IronFX Is Not the Best Broker
· Bonuses Seem Impossible to Get
When you sign up with a broker and are told about bonuses, you definitely start respecting the broker even more. You know the broker cares about you and wants you to make a career in trading by helping you in every possible way. However, some brokers are not offering you in the name of bonuses. Yes, when you read the captions of their bonuses, you will feel as though there is no other bonus in the world like it. But things will change quite fast when you read their details. You are going to have that same experience when you read about the bonuses from IronFX.
The broker has three or four amazing bonuses for its traders. However, every time you read about the bonus, you are reminded by the broker about the associated terms and conditions. And when you get into those terms and conditions, you are overwhelmed. Just so you know, there is a document consisting of thousands of words containing information only about the bonus from the broker. Yes, that’s not the terms and conditions section of the website. Instead, these are just terms and conditions that apply to you when you want to take advantage of the bonus.
· No Talk of Regulation
Modern traders understand pretty well the importance of regulation before they sign up with a broker. Yes, there are some good brokers that are not regulated, but you still have to practice safety in this domain. If you see that a broker is not regulated, it is best that you choose one that has proper regulation. There is no reason to sign up with an unregulated broker when you have hundreds of regulated ones available with convenience. While IronFX likes to brag a lot about its number of traders and awards, it is funny that the broker does not talk about regulation at all on its website.
Even if you go in the legal section, you get two different documents that only tell you about the terms and conditions, and the policies to follow when using the website of the broker.
· Spreads That Don’t Look So Good
After exploring the website only for a few seconds, you will land on statements like “the lowest spreads in the industry.” There is nothing wrong with making that claim if you are even close to what you are claiming. However, when you look at the spreads from this broker, you will realize that the spreads are not even close to that. Even with the basic account, you will see some really loose spreads that will prevent you from entering a trade. You have spreads of nearly 6.0 on some of the most stable currency pairs in the world.
The broker might call its spreads competitive or the lowest in the industry, but when you look at the website, that’s a completely different story.
· Over the Top Account Types
How IronFX has designed its account types is not going to make sense to you that easily. You will find yourself scratching your head when you look at the details of the account types. First of all, you have three main account types, namely Micro, Premium, and VIP. Right from their names, you would expect some huge differences in the features that come with them, right? Wrong! The leverage that you get with all three accounts is 1:1000. How is a trader who signs up with the VIP account feel any better than someone with a Micro account if they are getting the same leverage?
Not to mention, the leverage of 1:1000 is just over the top. Furthermore, when you open Micro or Premium account, you can use eight different currencies as your base currencies. On the other hand, if you go with the VIP account, the only base currency that you can use is the USD. How is it that someone who is depositing more money in the account initially getting less flexibility than someone who has started a trading account with just $100? Last but not least, there is a fourth account types, which is called the Zero Fixed account.
In this account, there are no spreads for you to deal with. The minimum deposit is a small one at $500. As you must have guessed by now, there is a commission for you to pay on every trade with this account. How much commission you may ask? Well, the information is not given in the “account types” page.
· The VPS Hosting
The broker is also providing its traders with VPS hosting, which means you can have your trading platform hosted on a private virtual server. However, the broker fails miserably to inform the interested parties what benefits they will enjoy if they go for the VPS option. There is very little information about this particular offer. Yes, the information about the server’s resources is there on the website. However, the broker has failed to sell this particular service and hence, failed to get any interest aroused in potential customers.
IronFX has to fix a lot in its strategy. First of all, the broker has to be less intimidating in its bonus offers. It has to make them appear pleasant and attractive to its traders rather than making people run away from them. Furthermore, there is a lot of work that the broker will have to do to make its account types sound natural and intelligent to the traders.