Introduction of the broker iForex
iForex Broker, operated by eBrókerház Zrt. from Hungary, has been active in the market since 1996. Its headquarters are in Budapest, and it is regulated by the Hungarian National Bank (MNB). This broker often promotes itself through an advertising campaign that tells the story of a successful trader. According to this story, the trader earned 5000 euros in a few weeks thanks to a simple guide from iForex. At first glance, it seems like a perfect success story, but in reality, this story is deliberately fabricated.
Type of Broker and Asset Offering
iForex.cz is a CFD broker operating on a Market Maker (MM) model. This means that the broker creates its own market for its clients. This model has its advantages and disadvantages, which traders should be aware of before starting to trade. iForex.cz offers a wide range of assets - a total of 420, including stocks, commodities, indices, forex (currency pairs), cryptocurrencies, and ETFs.
Trading Conditions
For deposits and withdrawals, you can use bank transfers or Visa and MasterCard payment cards. A significant advantage is the account protection against a negative balance, meaning you cannot end up in debt through trading and can only lose as much money as you have deposited into the account.
The broker requires a minimum deposit of 100 USD and a minimum transaction of 0.025 lots, which is approximately 5 EUR. Spreads start from 2 pips, which is a mid-range level compared to the competition. For traders who want to use leverage, iForex.cz offers leverage up to 1:30. However, it is important to realize that higher leverage also means higher risk.
Platforms and Fees
iForex provides its services through the WebTrader and MobileTrader platforms, allowing trading from both computers and mobile devices. However, for advanced traders, a disadvantage might be that the broker does not allow API connections, automated trading systems (EAs), and scalping. The fees charged by the broker include spreads, inactivity fees, and rollover (swap).
Spreads and fees are average in the market. For beginner traders, the absence of a demo account, which would allow them to try the platform without risk, might be a disadvantage. iForex charges inactivity fees and fees for holding a trading position overnight (rollover/swap). The inactivity fee is 5 USD and is automatically deducted from any account on which no trading activity has occurred for twelve consecutive months. If your account balance is zero, this fee is not charged.
iForex User Reviews and Ratings
iForex has an average rating of 3.8 out of 5 on Trustpilot based on 71 reviews. Users particularly appreciate the available educational materials and customer support, but some express concerns about the broker's reliability and the withdrawal processes. On Sitejabber, iForex has a rating of 3.7 out of 5 based on 23 reviews, where customers praise the speed of customer support and the user-friendly platform, although some complain about complications with withdrawals. Forex Peace Army has mixed reviews, with some users labeling the broker as fraudulent due to issues with withdrawals and unresponsive customer support.
Is iForex a Scam or a Safe Broker?
iForex has mixed reviews and is an average broker that we cannot definitively classify. We cannot directly say that it is a scam, but we also cannot place it among the safest brokers. We recommend avoiding it for now.
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