NessFX (formerly Rynki) claims to be an STP broker and offers to trade online on a wide variety of financial assets, including Forex, CFDs, stock indices, commodities, bonds, and stocks. Straight Through Process, or STP, brokers operate almost as well as ECN brokers. That is, they connect their client’s operations with the broker’s liquidity providers, usually large banks or other financial institutions. In this Forex broker review, we’ll provide many more details about this brokerage.
NessFX offers its customers 3 different account types, taking into account different types of traders. Its main features are as follows:
NessFX offers the MT4 platform, which is available in all versions, desktop version, for use on a computer, and web and mobile version for use on smartphones and tablets. NessFX customers who have a balance of $2,000 or more in their account can apply for free VPS hosting; it is a virtual computer that can be used to host their EAs. However, when we downloaded the MT4 from the broker, we noticed that it is provided by another company, called Belfx limited, a company registered in Belize.
NessFX differentiates between retail clients and professional clients, thus offering different leverages to each of them. Here is the summary:
- Retail Clients, 30:1 for major currency pairs
- 20:1 for non-major currency pairs, gold and major indices
- 10:1 for commodities other than gold and non-major equity indices
- 5:1 for individual equities and other reference values
- Professional Clients: 1:500
As we see, the maximum leverage offered by NessFX is 1:500, which is a very high rate, knowing the risks involved, and the fact that Cysec recommends brokers regulated by it, offering predetermined leverage of 1:50.
When using very high leverage levels, the trader can quickly lose or earn a lot of money with small market swings. That’s why in some jurisdictions, leverage is limited by law: in the U.S. and the United States. Until 1:50, in Japan up to 1:25, and in Poland up to 1:100. By the way, in the Polish version of NessFX’s website, the maximum leverage indicated is 1:100.
With this broker, we can start trading from only 0.01 lot (micro lot).
Spread, trading fees and swap determine trading costs. The spreads, we have considered, are slightly elevated. The VIP account seems to offer good spreads, but its initial investment requirements are too high. (25,000 USD). There are no commercial batch commissions on the Basic, and Pro accounts. There are commissions in the VIP account, but they are not reported on the broker’s website.
On the other hand, we have the Swap, a standard cost for all brokers. The Swap is any position held overnight, which will incur a maintenance cost (interest). This amount can be negative or positive depending on the instrument and the direction of the position, and its amount is fixed by the central banks of the base currency of the open position.
NessFX offers its customers quite a variety of assets to trade with. Below are just a few of what is available.
Spreads vary by account type. Below is an example of spreads and trading conditions on the Micro account:
The broker establishes a minimum deposit for each of the 3 accounts he offers, so in the basic account the minimum deposit is only USD 50, in the Pro account the minimum deposit is USD 10,000, and in the VIP account the minimum deposit is USD 25,000. The commercial conditions in the VIP account are indeed good, but a minimum deposit of 25,000 USD seems excessive.
DEPOSIT METHODS & COSTS
NessFX offers its customers different methods to make the initial deposit into your trading account. This is the summary of available methods and associated costs:
NessFX processes withdrawal requests within 24 hours. Below is a table of the estimated waiting times:
BONUSES & PROMOTIONS
NessFX does not currently have any bonuses or promotions. This broker does not have any broker introduction program either.
EDUCATIONAL & TRADING TOOLS
The broker has an economic calendar on his website. We have always commented that this tool is handy for any trader, because in it we can visualize the most important daily events, and that can affect the trading of the assets we are trading.
NessFX also has a Learning Center with several readings oriented to the beginner trader. The topics it deals with are: Introduction To Forex Trading, Learn Trading Terms and Technical Jargon, Understanding Forex Quote, How to Analyze the Market, Introduction to Trading Platform, Introduction to Forex Charts, Introduction to Candlestick Patterns, and Common Trading Mistakes and How to Avoid the Traps.
They also have a reasonably complete FAQ trading with questions regarding Forex / CFD Market & trading conditions.
NessFX offers its customers 3 main ways to contact their customer service, telephone, email, and a contact form that you will find on their website. The data are as follows:
To get the demo account offered by NessFX, just fill out a form with your personal data, and they will respond with the instructions for installation.
NessFX.com does not provide trading or any other services to residents of the following countries and regions: Belgium, Russia, Quebec, Japan, Turkey, Canada, British Columbia, Saskatchewan and the United States of America.
NessFX is one of the forex trademarks of Fxnet Ltd. This broker seems to be primarily aimed at Polish traders. The company behind NessFX is appropriately regulated in Cyprus, but on the other hand, its spreads are high and, besides, the MT4 it offers is provided by another company. The educational area and the tools for traders available on the web are more than acceptable.
To summarize the above, here are the advantages and disadvantages concerning this runner:
- Proper regulation (Cysec)
- MT4 available
- A relatively low minimum initial deposit is required
- Excellent educational and resource area for the client
- Spreads are relatively high
- MT4 provided by another company