Colmex Pro Review
Colmex Pro has been operating as a Forex (FX) broker since 2004. It’s fairly established in the Forex trading industry as a powerhouse for both FX and CFD trading. So, if you want to find out if Colmex Pro may be the perfect choice for you, continue reading our Colmex Pro Review.
Table of Contents
Review of Colmex Pro
Colmex Pro is a European regulated Forex broker that offers not only the traditional Forex and Contract For Difference (CFD) products but also access to the entire US and European stock exchanges. Hence, users have access to a diverse range of financial instruments right at their fingertips. It’s no surprise that is considered to be a very reputable broker. They have built their reputation as a trustworthy investment firm, delivering high quality, reliable trading services to all their clients.
I’m not going to list them all here but some include the Financial Conduct Authority (FCA) of the UK, the Federal Financial Supervisory Authority in Germany, the Commission Nacional del Mercado de Valores of Spain, and the Autorite de Controle Prudentiel et de Resolution of France, just to name a few. But I dug further and go figure, these agencies do not regulate Colmex Pro directly. In fact, Colmex Pro is regulated by the CySEC under the MiFID derivatives of the European Union.
What this means is that although Colmex Pro is technically regulated by these agencies, they are not directly supervised.
Don’t Run Just Yet
It’s not all doom and gloom in this Colmex pro review, however as the CySEC Colmex Pro regulation does carry its fair amount of weight. Specifically, they have a high minimum capital requirement of €730,000 for all brokers.
Further to that, they perform routine audits to ensure brokers are not committing any illegal activity that may compromise the integrity of the European financial markets.
Moreover, CySEC requires brokers to keep funds in segregated accounts which protects clients. In other words, if a broker suddenly goes bankrupt or insolvent, traders are compensated up to €20,000 from the Investor Compensation Fund (ICF).
What does all this mean to you? It mean’s you’re protected if Colmex Pro suddenly packs it in and the owners head to the beach. All in all, not so bad after all.
US Citizens Are Out of Luck
In short, Colmex Pro does NOT provide its services to US citizens. Primarily this is because the broker does not have an office in the US. Hence, they are not regulated by the CFTC and the NFA.
This can be confusing especially since they advertise trading access to the US financial markets.
In sort, Colmex Pro connects traders to the US financial markets through global liquidity providers. These global liquidity providers are allowed to operate in the US financial markets through SEC and other US regulatory licenses.
What Can I Trade?
- American Stocks
- European Stocks
Equities and FX Accounts
Opening an account with Colmex Pro is quite easy. And with one stop shopping for individually tailored equities and FX trading, life is simple.
A equity trading account primarily gives access to the US and EU stock markets, as well as CFDs. On the other hand, the Forex trading accounts understandably give access to Forex currency pairs and commodities.
With this broker, for a minimal investment of $250, traders can open either account. An added bonus, you will get maximum Colmex Pro leverage of 1:12 for equities and 1:200 for Forex.
Depending on the account type opened, the company has also chosen to offer different sub-categories of trading accounts. Keep in mind these subcategories of trading accounts are directly related to the minimum deposit requirements.
Think you need more than the Standard account? With this broker a minimum of $1000 and $3000 respectively, is needed for the Colmex Pro ECN account for Forex and Equities.
The company offers a healthy leverage of up to 30:1 for Forex trading and 5:1 for stocks. As you know, stock trading on leverage or margin is risky and I do not recommend it for new traders.
What Are Colmex Pro’s Fees and Commissions? (Pricing Review)
They offer six levels of account types which determine your commission rate structure.
Rates for CFD trading is from $1.50 – $9.95 per trade, and for stock trading it is from $4 – $9.95. Colmex Pro spreads for the VIP account start from 0.9 pips for the Electronic Communication Account (ECN). Traders will be set back $3 commission per lot.
The Standard account, however, has a slightly larger spread starting at 1.7 pips. What’s more, this can increase substantially based on the existing liquidity and other market conditions.
Shockingly, the commission for the Standard account can go as high as $8 per round lot. Quite frankly, this is incredibly higher than other ECN brokers. What’s important to know – ECN and SEC fees apply plus an overnight daily margin interest of 0.026%.
The Hidden Fees
Brokers have a sneaky way of slipping in hefty commissions when you want to make a payment.
For this reason, I recommend you be aware of the fees associated with deposits and withdrawals using the Colmex PRO user dashboard.
Reviews online claim that there’s a $15 USD deposit fee, a $40 USD withdrawal fee and a $55 usd non-activity fee/month.
I couldn’t find any information related to fees on their website. But, a user review online stated the fees are only mentioned in legal documents.
At any rate, read the fine print before you sign.
Colmex Pro Trading Platforms
- Variety is the spice of life and ColmexPro doesn’t fail to impress here. They offer clients access to 6 trading platforms and two demo accounts (CFD and equities)
- 1. Colmex Pro MT4
- 2. Colmex MT4 mobile
- 3. Colmex Pro Trader
- 4. Coolmex Pro Trader CFD
- 5. Live Forex
To make a long story short, the proprietary Colmex Pro Trader is the cream of the crop insofar as their trading platforms are concerned. In particular, it offers excellent market access, enhanced charting functionalities and a pleasant user interface.
You still have the choice to opt for the traditional MT4 terminal. Besides, it’s still sought by a majority of traders so no need to feel you’re missing out.
It’s hard to choose between the multiple platforms, and as a trader, you should demo trade the different platforms before making a choice.
You have the option of opening an unlimited Colmex Pro demo account, which will not only help you to evaluate the different platforms but can also assist you in understanding the basic Colmex Pro trading environment.
It is also important to remember that ColMex Pro delivers instant execution with no slippage. This ensures that your trades are made almost instantly.
Trading on the Fly
If you’re anything like me, I’m busy and often need to trade on the go. Enter the Colmex Pro mobile trading app. With it, tradings a breeze.
This is because all the proprietary Colmex Pro trading platforms and MT4 that’s available on desktop is available on your mobile devices.
Regardless of the broker you use, you will run in to issues some point in time.
I must admit, one of the weak points of Colmex Pro is their customer support. It does take a while for customers to get a response for their emails and the only way to get quick support is to call them directly.
Still, they just implemented a live chat feature on their website which is surprisingly good.
Should You Do?
The lack of US regulation is clearly a drawback for a broker that has been operating for so long in the industry. US traders will certainly miss out on enjoying the benefits of a Colmex Pro account.
At any rate, Colmex Pro is a genuine broker, but the minimum deposit requirements are a bit on the higher side.
Coupled with the hidden fees, you might be in for a surprise. Because of this it’s vital to browse through other brokers with far more attractive trading conditions.