UproFx is a CFDs and forex broker, founded in 2018, that has been getting some bad press recently. Here, we will try to look at UproFx objectively and try to present the good and the bad about the broker. Starting off from the origins of the company, it is based in Estonia In the EU. The company has four different types of accounts to offer. Also, the broker makes use of its own web based trading platform built by Panda, instead of the market norm Meta Trader 4. The company offers a base leverage of 1:100. Read the full UproFx review here.
Starting from the one red flag that pops out about UproFx. The broker, though based in Estonia doesn’t have any licenses to offer financial services. It manages to bypass the ESMA guidelines and offers some rather lucrative benefits. But it manages to do so, because it is unregulated. Now, we understand that this is the biggest red flag of them all, but in the spirit of evaluating the broker objectively, we’ll move on to other features of the broker, while keeping this red flag aside for a moment.
One of the good things that you notice about the trading platform and the website very soon, is the transparency of information, and the accessibility. Most of the information one would look for is easily available, and the website is easy to navigate, although it might seem to go overboard with flashiness. In a similar manner, their web based trading platform is easy to use, and can be glimpsed at via their educational resources. Furthermore, the broker has a wide selection of forex pairs on offer, that are over 50 in count. Some of the more exotic currencies you might find with UproFx might be Polish ZLoty, Indian Rupee, Mexican Peso, and Danish Krone. The broker also has a huge array of cryptocurrencies that include the popular ones like BitCoin, Ethereum, Lite coin and many more.
Since the broker doesn’t follow ESMA norms, their leverage isn’t capped at 1:30, and rather starts from 1:100, with brokers able to request and get 1:500 leverage as well. While the lower range might seem lucrative, the higher the leverage, the higher the risk. Also, the broker offers managed accounts, and is essentially a market maker. And the thing about market makers is that they have a direct conflict of interest with traders as they make money when the trader loses money. As such, most brokers avoid offering managed accounts. While the broker doesn’t advertise the average spread it offers on EUR/USD, but a watchdog organization found it to be at 3 pips, which is double the market average of 1.5 and seems like an easy pass.
The only other major problem we found was with their withdrawals. While there isn’t any huge withdrawal fee mentioned, the withdrawals are a long process. One has to file an application to request withdrawal. And the response could take hours and often up to days. Now this is obviously a very worrying thing for any trader after making a profit. Also the payment options only include credit cards or bank transfers which are very susceptible to security breaches, especially in unregulated companies. So it would have been better to have options like Bitcoin and other crypto.
We looked at the broker objectively, looking at one issue or feature at a time, while ignoring the fact that it is an unregulated company. But at the end of the day, the broker is unregulated, which is shady and cannot be denied. While the broker has some interesting CFDs to offer, it still remains to see if it is trustworthy with time.