Smart Prime FX – Are They Trustworthy?

Website URL: www.smartprimefx.com

Founded: 2018

Regulations: Unregulated

Languages: English

Deposit Methods: Bank Wire, Debit/Credit Cards, Skrill, Neteller, Perfect Money, WebMoney, FasaPay, Ok Pay

Minimum Deposit: $25,000

Free Demo Account: None Available

Number of Assets: N/A

Types of Assets: Stock Indices, Metals Commodities, Foreign Currencies

Trading Accounts and Conditions

According the Smart Prime FX’s website, you get to choose from the following trading accounts:

• Silver: The minimum deposit you need to make to use this broker’s Silver account is $25,000. The spreads start from 1.6 pips, and you are offered a leverage of 1:100.
• Gold: The minimum deposit you are asked to make is $50,000. You are given spreads that start at 1 pip and the leverage ratio is 1:100.
• Platinum: To use this broker’s Platinum account, you need to first deposit $100,000. You get spreads that start at 0 pips, and a leverage ratio of a maximum of 1:200.

This broker also offers you the chance to trade in micro lots (0.01 lots) and charges a commission of $8 for every $100,000 you trade.

Smart Prime FX – Advantages

Here is the list of advantages of trading with Smart Prime FX:

• MetaTrader 4 Offered

Smart Prime FX gives you the MetaTrader 4 platform on which to trade, which is always a plus for us. This is because this software is the most popular in the world. It is so easy to use that even beginners will not have a problem using it. And for the more experienced traders, you get charting as well as market and technical analysis tools. You also have the option for automatic trading using the software’s Expert Advisor trading robots.

We do need to warn our readers that we were unable to test the platform for ourselves since this broker does not offer a demo account.

• Solid Leverage

The maximum leverage that Smart Prime FX offers is 1:200 (on request), which is quite solid. This means that you can adopt a wider range of trading strategies. But we also have to warn all traders that high leverages bring with them much high risks of loss. So, while this factor may be an advantage, it should be used with great care and thought.

Smart Prime FX – Disadvantages

Here are all the disadvantages of trading with Smart Prime FX:

• Unregulated Broker

Smart Prime FX is owned and operated by Smart Prime Group, a company that is based in St. Vincent and the Grenadines (SVG). This means that this broker is an offshore entity. While being an offshore entity is not such an issue – as long they are properly regulated, it is an issue here.

This is because SVG’s financial regulator has publicly stated that they do not have regulations in place for forex brokers (which is what Smart Prime FX is). Since this broker is not licensed by any other financial authority, it means that Smart Prime FX is not regulated, and is therefore offering its services illegally.

Dealing with an offshore broker that is not regulated is the best way to lose money. Such brokers are usually scammers who operate outside the bounds of law. And this gives them the freedom to do what they want with your money without worry about accountability.

On the other hand, when you deal with a regulated broker (even an offshore one), you know that the only way you will lose money is while investing in the markets. Regulated brokers are required to ensure that they do everything on their part to ensure your funds are safe. They need to segregate accounts so that your money is safe. They also need to ensure that they have enough working capital to pay you the money you have made on the markets. And many of them also have to have insurance so that if they go bankrupt, you will be compensated for your losses.

You will get none of these benefits when you deal with an unregulated broker.

Plus500

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• Very High Trading Costs

Smart Prime FX is one of the most expensive brokers we have seen. Lets list out all the issues with their trading costs:

• Minimum Deposit: This broker requires you to make a minimum deposit of at least $25,000 to use their services. Considering the fact that the market average ranges from $100 – $250, this amount is just plain ridiculous.
• Spreads: The minimum spread on forex pairs is 1.6 pips. However, this broker also charges a commission of $8 per $100,000 traded. Which means you’re actually being charged a spread of 2.4 pips! Now, the market average on spreads stands at 0.5pips to 1.5 pips. So, the cost of trading that Smart Prime FX has is just too high.

• Cannot Download Demo Account

Smart Prime FX offers its customers a free demo account, which to us is another great positive. The problem is that when we tried to download this broker’s demo account, we were unable to access it – despite trying multiple times. So, we can only assume that they don’t really offer a demo account, and that this is just a ploy to attract more customers.

• Withdrawal Conditions on Bonuses

The fact that Smart Prime FX offers its clients bonus promotions is a red flag. When you check the withdrawal conditions on these promotions, you will understand why. You will be asked to meet a target in trading volumes before you can withdraw your funds. The problem is that those targets are so ridiculously high that you will find it almost impossible to meet them. So, you will not be able to withdraw your money!

Conclusion 

On the surface of it, Smart Prime FX looks like a broker you can deal with. But when you realize that this broker is unregulated and is extremely expensive, you will also understand why this broker is not one you should do business with. We do not recommend this broker.

Smart Prime FX

2.7

User Experience

3.5/10

Payment Options

2.4/10

Security

2.5/10

Support

2.3/10

Reputation

2.6/10

Pros

• MetaTrader 4 Offered
• Solid Leverage

Cons

• Unregulated Broker
• Very High Trading Costs
• Withdrawal Conditions on Bonuses
• Cannot Download Demo Account