Broker Interview | Nord FX

Conversation with Brokers is an interview program organized by FOLLOWME for forex brokers all over the world. In this column, we will ask brokers about the current situation and prospects of the overall development of the foreign exchange industry, including technological progress, changes in regulatory policies, etc. Additionally, issues that traders care about, such as the hardware and software environment of brokers, customer services, and fund security also will be discussed in the interview.

Founded in 2008, #NordFX#  is a global online financial trading platform and multi-asset broker, providing financial services to clients in 188 countries/regions. Due to requests of our users, I’ve asked NordFX for an interview and asked some questions that our users are concerned about. Now you can read this interview and receive answers directly from NordFX.

1.NordFX was awarded the title of "Best Execution Broker Latin America 2022" in May 2022, which is a great honour for a broker. The NordFX official website claims that the execution time of trading orders is 0.5 seconds. How is it achieved?

It should probably be clarified that we received the first awards for the high quality of brokerage services back in 2010 and 2011 at China's Financial Championship HeXun and at the 7th Guangzhou International Investment & Finance Expo. NordFX has won many other prestigious professional awards since then, including Best Broker of Asia.

Regarding your question about order execution speed, it is indeed usually less than 0.5 seconds. This is achieved through the use of a large number of liquidity providers, modern software, powerful servers and other equipment.

Many factors influence the speed of order execution. Therefore, yes , usually the speed is less than 0.5 seconds. But not always. It can be much faster, and sometimes a little longer. It all depends on the situation on the market and the chosen trading instrument. For example, opening a position on some exotic currency pair, and even on holidays, in a thin market, may take longer. The speed of execution also depends on the speed of your Internet, which we, as a broker, cannot influence in any way.

2.NordFX provides a variety of trading account types, but when investors choose an account, it is inevitable that they don't know how to distinguish and choose. What are the differences between these accounts and how should different investors choose them?

For almost 15 years of work in the financial markets, we have been constantly studying the needs of our clients and trying to create the best trading conditions for them. This also applies to trading accounts. Now, in addition to the training demo account, we offer clients three types of trading accounts: Fix, Pro and Zero. One can trade currency and crypto pairs, gold, silver, oil, shares of the world's leading companies and stock indices on all of them. However, they differ in the type of order execution (Instant Execution and Market Execution), the size of the initial deposit (from $10 to $500), the size and type of spread (fixed or dynamic), and there are other differences.

It is impossible to say which of these accounts is better or worse. It all depends on the trader: their experience, financial capabilities, style and trading strategy. Therefore, it is best to study the detailed description of each of the accounts on the NordFX website, and if you have any questions, contact the company's Support Service.

For those who prefer passive investment, NordFX offers classic PAMM and CopyTrading services, as well as a unique Savings Account. This account is a know-how developed by the company's specialists based on DeFi technology and brings passive income up to 30% per annum. In addition, this account also allows you to get a loan at only 3%, and use these funds for self-trading.

3.The currency pair of NordFX has the lowest spread of 0.2-2, which has certain advantages in the industry. How does NordFX do it? Are there any other transaction costs?

Spreads for major pairs such as EUR/USD, USD/JPY or USD/CHF start at 0.0 on the Zero account. True, in this case there is still a fee, but it is minimal: 0.0035% per trade (each side). There are no fees on other account types, but the spreads are slightly higher. This applies to trades with currency pairs. Fees for trading, for example, stocks can be found in the specifications of these accounts.

4.At present, the leverage of opening a trading account with NordFX is as high as 1:1000. Although high leverage can bring higher returns, it carries greater risks. How does NordFX protect investors?

Of course, trading on financial risks is a very risky business. And leverage can be a boon for a trader and bring them a huge profit, or it can lead to a quick drain of their deposit. It all depends on their experience, greed and excitement. This applies not only to leverage, but also to margin trading. For example, a trader will only need $150 to carry out a 1 bitcoin trade at NordFX. And this is regardless of the price of BTC in the crypto market, be it $10,000, $20,000 or $65,000.  

The NordFX website offers a variety of useful educational materials, including money management, margin trading and leverage. We also strongly recommend that you test your strategies on a free demo account. Those clients who prefer algorithmic trading can test their robots in the trading platform tester.

But, of course, it is the trader who is the owner of their money. If the trader doubts their strengths and abilities, they can choose a small leverage or use the passive investment services mentioned above.

5.NordFX supports both MetaTrader 5 (MT5) and MetaTrader 4 (MT4) platforms. What do you think are the advantages of these two mainstream trading tools? Which trading tool will be more favoured by investors in the future?

As for MT4, I will not describe its many advantages and benefits. Suffice it to say that this platform has been the most popular in the world among online traders for many years. Its leadership is undeniable, despite the fact that the developer of both platforms, MetaQuotes, has been trying to promote its newer product, MT5, for many years.

We are not against MT5 at all. This platform has been in the arsenal of NordFX for several years. But the statistics are relentless: the volume of trades on MT4 has been many times higher than the same indicator on MT5. Our clients have preferred (and still prefer) to drive on the Earth in a familiar proven vehicle, rather than retraining for flights to Mars. Therefore, it has been decided to abandon the novelty and focus on improving trading conditions on the well-proven MT4.

6.Some investors reported that NordFX encountered abnormal withdrawal problems. How did NordFX deal with such feedback? What are the specific measures?

The key word here is "some". There are no problems only for those who do nothing. As for us, we work 24/7. Indeed, sometimes such questions arise, but they are usually of a purely technical nature. For example, a client wants to withdraw funds, forgetting to transfer them from a trading account to their account in their personal cabinet. Or, for example, they topped up the deposit in bitcoins, but want to withdraw in US dollars. This happens, but very rarely. And after contacting the Support Service, these problems are quickly resolved.

More often you can encounter black PR from some unscrupulous competitors or Internet resources. Such resources host fake negative reviews from alleged NordFX clients, after which they try to extort money from us in order to replace this negative with positive. By the way, this problem is faced not only by us, but also by many other brokers.

7.Some investors have questioned that NordFX's regulatory license is suspected to be a dummy. What do you think of it? How does NordFX ensure the safety of clients' funds?

As for the license, instead of doubting, it is easier to check it at the place of registration of the company. This official information is publicly available. As for the safety of clients' funds, our protection system fully complies with banking standards and we have extensive experience in repelling hacker attacks. More than 1,800,000 accounts have been opened with NordFX by clients from 188 countries. But in 15 years of operation, there has not been a single hack and not a single penny of client' funds has been lost.