Fondex is a trade name of TopFX Ltd, which is registered as a Cyprus Investment Firm (CIF) and authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 138/11. TopFX Ltd is governed by the European Markets in Financial Instruments Directive (MiFID). The company is obliged to follow the strict policy of keeping client’s funds fully segregated from its corporate funds. All funds, regardless of classification, are placed in Tier-1 bank accounts, the firm announces. The company is a member of the Investor Compensation Fund (ICF), which aims to provide protection and compensation for cash payments when a company member of the fund is unable to meet its obligations. Clients are protected by this fund up to EUR20,000 per person. In addition, Fondex Limited is a company registered under the Laws of Seychelles and is licensed by the Financial Services Authority (FSA) of Seychelles with a Securities Dealer License No: SD037. People who want higher leverage than the ESMA restricted values can use this company.
Fondex provides access to more than 1000 instruments distributed in 6 asset classes – currency pairs (67), indices (14), precious metals (6) energies (3), shares (over 900), and ETFs (18). The average spread for the EUR/USD pair is 0.3 pips, for DAX it is 0.9 points, for Gold it is USD0.3, for Crude Oil it is USD0.05, and for Apple it is USD0.3.
The company provides the well-known cTrader as a trading terminal. cTrader is a complete trading platform that is equipped with a full set of features and is designed for every type of client. It allows clients to see the exact details of each deal. Some other features are level II pricing (quotes and volumes directly from liquidity providers), advanced charting, chart trading (placing orders directly from charts using the click-and-drag function) and the ability to build your own indicators and expert advisors through the language C#. The company has split the platform into three – for manual trading, for copy trading and for automated trading.
There is one account for all traders. There is no minimum deposit required and you can start trading by depositing as much as you would like. Spreads start from 0.5 pips. Accounts can be funded by bank transfer, debit/credit card, Skrill, Neteller, PayPal, Sofort, etc. The company processes all deposits almost instantly, without any fees. However, you may be charged by some payment providers. You can withdraw funds from your account anytime you wish to. All withdrawals must be made via the same method you used to deposit. The company does not incur withdrawal fees, but some payment providers may do so. The minimum withdrawal via bank transfer is EUR50.
The “Order Execution Policy” document shows that the company acts as principal and not as agent on the client’s behalf; therefore, the company is the sole execution venue for the execution of the client’s orders. It is always the counterparty to every trade. This means that Fondex acts as a market maker and a conflict of interest arises because in addition to the spread, the company benefits when clients lose. The same document shows that all orders are subject to slippage and stop loss orders are not guaranteed. It is written that under abnormal market conditions, CFDs may fluctuate rapidly to reflect unforeseeable events that cannot be controlled either by the company or the client. As a result, Fondex may be unable to execute the client’s instructions at the declared price and a “stop loss” instruction cannot guarantee to limit the latter’s loss. They can be filled at the first available market price.
The “Terms and Conditions” document reveals that the company offers “Negative Balance Protection” to all retail clients thus a retail client may not lose more than its invested capital.
Overall, Fondex (TopFX Ltd) is a CySEC regulated company that acts as a market maker when it executes client’s orders. It provides negative balance protection for its retail clients who can trade through the popular cTrader terminal. There is one type of account for all customers and you can start trading by investing as much as you would like (no minimum deposit is required).