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OFMX Review

 

 

 

 

OFMX is headquartered in Dubai, which has become a financial trading hub in its own right in recent years.

Finding a reputable OFMX review local or worldwide can be a difficult process, especially finding a complete list from a trustworthy reputable source.

Below is an in-depth review regarding OFMX to help you make an informed decision before opening your account or trading on their platform.

OFMX is a Dubai-based online forex broker which provides both regional and international traders with access to the forex market and several other tradable assets.

The broker functions as a division of the Options and Futures brand, which is licensed by the Government of Dubai in the UAE.

Under this brand operation, the broker is licensed to provide trading in Forex, metals, and energies, which it offers on the highly popular and reputable MetaTrader 4 platform. Very little information can be ascertained about the origins of OFMX, such as its founding year or the operational ethos on which it was developed.

The UAE has become particularly popular with online traders as the region does not charge tax for online trading on the financial market, with immense trading opportunities in the region.

One of these benefits is the fact that brokers in Dubai are still able to offer relatively high leverage, allowing traders to significantly increase their potential profits, though this does come with the correlative risk of severe losses.

The most popular form of forex trading in Dubai is spot trading, as it presents a simple means of buying currency almost immediately so that Dubai has become something of a hub for day traders.

 

Awards and Recognition

As the forex industry is a relatively volatile market, many awards schemes have been set up to provide for some level of industry-standard, allowing brokers to participate for the potential recognition of providing secure and profitable trading environments.

Many brokers, however, do not participate in awards schemes, while others have been broadly overlooked. Nonetheless, broker awards are a means of gauging a broker’s standing in the industry and determining the legitimacy of their offering.

OFMX does not list any awards on their website to date, even though Dubai is known for hosting very popular awards.

Whether this is due to the broker’s standing within the industry, or because they do not participate in awards schemes, is not clear, however, it is a factor to take into consideration before signing up with OFMFX.

 

OFMFX Markets Accounts

Prospective traders need to make an effective study of the various account types which a broker may offer, as often these accounts are designed to suit the specific needs of certain trader experience levels and strategies.

The forex industry is populated by a vast array of traders with various trading needs, which most brokers aim to meet through the provision of suitable accounts. These may include commission-free accounts, low spread accounts, and managed accounts.

On the other hand, some brokers will offer one standard account type which aims to target a certain group of clientele.

Traders should also seek out brokers who offer a free demo account, as this will allow them to conduct a test run of the broker’s features before deciding to sign up for a live trading account.

 

Types of Accounts and their Features

As a broker which operates out of the UAE, OFMFX offers several different accounts which are all Sharia-compliant.

A Sharia-compliant account is essentially a swap-free account, which means that interest is not charged on positions held after the trading day has closed.

Offering swap-free accounts, therefore, allows traders of the Muslim faith to trade forex legally.

OFMFX offers three different types of swap-free accounts, which are tailored to specific trading experience levels and strategy requirements. These account types consist of the following:

Lite Account

The Lite account has a minimum deposit of $1,000, a minimum trade size of 0.01 lots, leverage up to 1:100, and fixed spreads of 1 pip with a fixed commission of $8 per lot traded.

 

Classic Account

The Classic Account has a minimum deposit of $15,000, a minimum trade size of 0.01 lots, leverage up to 1:100, and variable spreads from 0.8 pips with a fixed commission of $7 per lot traded.

 

Elite Account

The Elite account has a minimum deposit of $200,000, a minimum trade size of 0.01 lots, leverage up to 1:100, raw and variable spreads along with commissions of $6 per lot traded.

As can be seen in the description of these accounts, OFMFX charges a relatively high minimum deposit of $ 1000 for the Lite Account, with the deposit going as high as $ 200 000 for the Elite Account.

Many other brokers have minimum deposit requirements of as little as $1, while the standard requirement is usually set a $ 100. This would make OFMFX more inaccessible to smaller retail traders.

 

Deposits and Withdrawals

OFMFX provides a range of popular deposit and withdrawal methods for all of its accounts, which include the following:

  • Bank Wire Transfer
  • Credit/Debit Cards
  • Skrill, and
  • Neteller

 

However, the broker does not provide any clear information on whether charges are made on deposits or withdrawals. This information is important for clients, as it can impact the profitability of their withdrawals over the long term.

Bank wire transfers typically take longer to process than e-wallet transfers such as Neteller and Skrill, and the processing time can also be impacted your area of residents, with withdrawals to international accounts often taking up to 10 days to reflect.

E-wallet transactions, on the other hand, are usually processed within minutes, making this a more popular method with traders today, and with day traders in particular.

OFMFX does not provide any information on the accepted deposit currencies either.

There is no indication about the deposit currencies that are endorsed when deposits or withdrawals are made, but it can generally be accepted that popular and common currencies such as USD, GBP, and EUR will be accepted.

This is also important information since traders who can fund their accounts with the same currency as their national bank will not have to pay a conversion fee. This also applies when trading assets in the same currency as your base currency.

As such, conversion fees can also significantly affect profits over the long term, particularly for those who trade frequently. Also, conversion fees are often not included in the free report, making them harder to keep track of.

OFMX does not accept third-party deposits and withdrawals, and withdrawals must be made through the same method as was used to make a deposit. However, this is fairly standard practice with most brokers in the industry.

 

Cost and Fees, Commissions and Spreads

OFMFX charges commission and also takes a fee from the spread, while many brokers offer commission-free trading.

The level of commission paid could end up being critical in determining how much profit or loss a trader may register on a particular trade. In all cases, the price of a currency pair will have to move above the spread/commission costs for the trader to post a profit on a trade.

Regarding spreads, traders will encounter various situations. For example, highly traded currency pairs will generally be offered at narrower spreads. On the other hand, less common currency pairs with so-called “exotic” currencies may be offered with wider spreads.

The amount of profit or loss that can be realized won’t depend on the spreads alone, however.

Currency pairs with low spreads, for example, may tend to show lower volatility, and thus offer fewer opportunities for large gains or losses. At the same time, currency pairs with large spreads could show high volatility, offering more opportunities for larger gains or losses

As for the percentage-based commission, it is a small percentage built into the wider spread. In this case, the broker takes the percentage that could amount to only a fraction of a pip.

He then leaves the remainder of the spread to a larger market maker with which he’s working. This type of commission can allow a trader in some cases to pay a lower cost of perhaps only one pip to make a trade on a given currency pair

OFMFX offers variable spreads which depend on the account type selected, and start from 1 pip on the Lite Account 0.8 on the Classic Account, while the Elite Account has raw and variable spreads which are linked to the instrument traded.

 

With regards to commissions, OFMFX charges fixed commissions which are also dependent on the selected account type. This commission structure is as follows:

  • Lite Account – $8 per lot traded.
  • Classic Account – $7 per lot traded.
  • Elite Account – $6 per lot traded.

 

As already noted, OFMFX offers swap-free, Sharia-compliant accounts, and therefore clients will not incur any overnight fees, which they would with many other brokers.

 

Leverage

OFMFX offers maximum leverage of 1:100 on all of its account types, which is relatively higher than that offered by many other brokers in the industry.

This leverage level is certainly higher than that offered by brokers operating out of the European Economic Area, who are authorized to offer a maximum leverage of 1:30.

This is because regulatory bodies in the EEA recently decided to cap the maximum leverage which broker operating within their jurisdiction could offer, due to the high risk associated with the mechanism.

Nonetheless, many traders would find this high leverage ratio a strong incentive to sign up with OFMFX, as it can also significantly increase the profit potential for those who know how to use leverage correctly.

 

Bonuses

OFMFX does not appear to be running any bonuses, promotions, or incentive schemes at this stage, although these might be made available in the future.

 

Trading Platforms, Software, and its Features

OFMFX offers the highly popular MetaTrader 4 platform, which has become the platform of choice for most traders due to its advanced range of charting tools and tradable assets delivered on a streamlined and user-friendly interface.

The MetaTrader 4 trading platform is designed for Forex and futures trading. With MetaTrader 4, traders can analyze financial markets, perform advanced trading operations, run trading robots (Expert Advisors) and copy deals of other traders.

The platform supports three trade execution modes, including Instant Execution, as well as 2 markets, 4 pending and 2 stop orders, and a trailing stop function.

Quick trading functions allow sending trading orders straight from the chart with one click. The built-in tick chart feature provides an accurate method for determining entry and exit points.

With the rich functionality of MetaTrader 4 users can implement various trading strategies in the Forex market.

The MetaTrader 4 platform provides wide analytical opportunities. Each symbol can be displayed in 9 time-frames, allowing traders to see the price dynamics in detail.

30 built-in technical indicators and 24 graphic objects are available for the most comprehensive analysis of price dynamics.

Users can combine these tools, identify trends, determine entry and exit points, and with the wide analytical capabilities of MetaTrader 4, can thoroughly analyze market movements to catch the best time to trade.

Lastly, the MetaTrader 4 platform meets the highest security standards. Data exchange between the client terminal and the platform servers is encrypted.

 

Markets, Products, and Instruments

OFMFX offers the trade in several financial instruments, including:

  • Forex
  • Metals
  • Energies (Futures and Spot)
  • Indices (Futures and Spot)

 

The full list of currency pairs and the details on other tradable assets can be found directly on the broker’s website.

 

 

Safety and Regulation

While OFMFX holds an investment license from the Government of Dubai in the UAE, very little other information is provided about the broker’s regulatory status are any independent protection measures which it might adopt.

As such, it is not clear whether the broker holds client funds in segregated accounts to protect them from potential financial mismanagement, or whether the broker participates in any compensation schemes to cover client losses in case of insolvency.

These are very important factors to keep in mind when considering a live trading account with OFMFX, as an adequate lack of client protection could lead to severe and irredeemable losses.

 

Customer Support

OFMFX offers decent customer support, which is available 24 hours five days a week and is open during trading hours.

The customer support team can be contacted via telephone or email, but there is no live chat function available for more pressing issues.

 

Research

OFMFX does not provide any independent research tools through its websites, such as a newsfeed, charts, market analysis, or an economic calendar.

Many other brokers offer independent research tools to supplement client trades and allow them to execute profitable trading strategies in line with market movements

That said, the MetaTrader 4 does come with an impressive suite of analytical and charting tools which will meet most of these trading needs.

 

Education and Training

The broker likewise does not offer any educational resources to help newbie traders become better acquainted with the aspects of trading on the forex market, such as webinars, tutorials, educational videos, or even a glossary.

This lack of adequate training material, coupled with the high minimum deposit, would make OFMFX an unsuitable option for most beginner traders.

 

Conclusion

All in all, OFMFX offers a decent trading environment, facilitated by the popular and advanced MetaTrader 4 platform with its suite of tools and trading capabilities. The broker offers a substantial amount of tradable assets, which come with relatively tight spreads, which are nonetheless not the most competitive on the market.

 

Disclaimer

Risk Warning: The Company also offers CFD products which are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with GCI Trading.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Cryptocurrencies are complex, high-risk, and volatile and may result in the loss of all invested capital over a short period of time; they are not appropriate for all investors.

Investors must understand and acknowledge these specific characteristics and risks and be warned that there is no EU regulatory framework governing trading in cryptocurrency products.

 

CFDs and Forex are not only complex instruments, but they also have a high level of risk which may result in loss of funds that exceed the trader’s initial deposit.

Traders need to evaluate their objective, level of risk exposure and willingness to be exposed to risks.

 

 

OFMFX at a Glance

Broker’s name OFMFX
Headquarters Dubai
Year founded Not indicated
Regulating authorities Government of Dubai
Countries not accepted for trade All countries accepted
Demo account No
Islamic account (swap-free) Yes
Institutional accounts No
Managed accounts No
Maximum leverage 1:100
Minimum deposit $ 1000
Deposit options Bank wire

Credit/Debit Card

E-Wallets

 

Withdrawal options Bank wire

Credit/Debit Card

E-Wallets

 

Platform(s) provided MetaTrader 4

 

OS compatibility Mac, Microsoft Windows, Mobile, Web, iPhone
Tradable assets Forex, metals, energies, and indices
Languages supported on the website English
Customer support languages English
Customer service hours 24 hours, 5 days a week

 

 

FAQ’s

 

Trading Environment

 

How many instruments can I trade with OFMFX?

You can trade the following financial instruments:

  • Forex
  • Metals
  • Energies (Futures and Spot)
  • Indices (Futures and Spot)

 

Which platforms are supported by OFMFX?

OFMFX only provides trade through MetaTrader 4.

 

Does OFMFX offer leverage?

Yes, OFMFX offers maximum leverage of 1:100 across all accounts and financial instruments.

 

What spreads can I expect with OFMFX?

OFMFX offers spreads according to the account types, which are:

  • Lite – fixed spreads from 1 pip.
  • Classic – variable spreads from 0.8 pips.
  • Elite – raw and variable spreads

 

Does OFMFX charge commission?

OFMFX charges fixed commissions according to the account types, which are:

  • Lite – $8 per lot traded.
  • Classic – $7 per lot traded.
  • Elite – $6 per lot traded.

 

Is OFMFX regulated?

No. OFMFX is not regulated and therefore traders are cautioned in using this broker to facilitate trades as client fund security cannot be guaranteed.

 

Is OFMFX a recommended forex trading broker for experts and beginners?

No. OFMFX is not recommended to traders at all based on the fact that it is not regulated.

 

What is the overall rating out of 10 for OFMFX?

2/10

 

Accounts

 

What is the difference between a demo and a live trading account?

A Demo Account is a risk-free account that is funded by virtual money and allows traders to either practice trading, explore the broker’s offering, or test trading strategies in a mimicked live trading environment.

 

Does OFMFX offer a demo account?

Not

 

For how long is the demo account valid?

OFMFX does not appear to offer a demo account

 

Which live trading accounts does OFMFX offer?

  • Lite – minimum deposit of $1,000, minimum trade size of 0.01 lots, leverage up to 1:100, and fixed spreads of 1 pip with a fixed commission of $8 per lot traded.
  • A classic – minimum deposit of $15,000, minimum trade size of 0.01 lots, leverage up to 1:100, and variable spreads from 0.8 pips with a fixed commission of $7 per lot traded.
  • Elite – minimum deposit of $200,000, minimum trade size of 0.01 lots, leverage up to 1:100, raw and variable spreads along with commissions of $6 per lot traded.

 

What are the available deposit currencies for a live trading account?

There is no indication about the deposit currencies that are supported when deposits or withdrawals are made, but it can generally be accepted that popular and common currencies such as USD, GBP, and EUR will be accepted.

 

Deposits and Withdrawals

 

What is the minimum deposit for OFMFX?

The minimum deposit to open a Lite Account is $1,000.

 

How do you make a deposit and withdrawal with OFMFX?

Deposits and withdrawals can be made through the following payment methods:

  • Bank Wire Transfer
  • Credit/Debit Cards
  • Skrill, and
  • Neteller

 

Does OFMFX charge withdrawal fees?

There is no existing information that suggests that either deposit or withdrawal fees are charged, although some payment methods may incur some fees, normally charged by banking institutions about transaction costs, for instance, in the case of Bank Wire.

 

How long does it take to make a withdrawal?

Depending on the withdrawal method used, processing times are between one business day and up to ten days.

 

 

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

Table of Contents

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