With the growth of cryptocurrency industry and hype, many financial companies took notice and jumped the train. SimpleFX dealt with only fiat currencies and equities in the past but has now included online coins as well on its platform. With several digital currencies, the exchange and stock trading provider entered the market with ambitious aims.
Hence, we review the company’s cryptocurrency platform in terms of verification requirements, deposit methods, trade fees, interface, and features. Stay put as we conclude the article with strengths and weaknesses of the exchange. We will also provide you with pros and cons that are comparable with platform’s rivals such as InstaForex and Plus500.
General Information about Exchange
The Forex exchange established its operations in 2014, as a brand from a company called SimpleFX Ltd. based in St. Vincent and the Grenadines. Since the opening, the platform offers a wide variety of assets for margin trade and exchange. These products are Equities, Precious Metals, Commodities, Indices, Fiat Currency Forex and Cryptocurrency exchange.
With different trading platforms available, the Forex exchange looks to establish itself as one of the largest financial institutions in the world. The services are available globally, so long as traders have either bank cards (credit or debit), e-payment system account (Neteller, Skrill, and others) and/or bank transfer.
Registration and Verification
To start trading cryptocurrencies at SimpleFX, you go through the usual registration procedure. With the account registered at the platform, all trading options are available for you, crypto included. The account creation process itself takes up to 2 minutes of your time and is completely free. You provide the email address that you verify immediately by clicking on the link, as you do with every other exchange out there. The registration widget is presented in the following picture.
You can also use social media profiles though they are not as private as a simple email address.
As for the verification, when trading cryptocurrencies there are not identity check demands from the SimpleFX’s side. All you have to do is to open an account and deposit either bitcoins or Litecoins and you are set to go trading.
Note that deposits using fiat currencies such as USD or EUR would require ID verification from your side. The reason is simple as you are then eligible to use other commodities within the SimpleFX’s market, which are regulated and follow regulative check rules.
Deposit/Withdrawal Methods and Fees
You have several options available to deposit and withdraw fiat money at SimpleFX. You can use bank transfers, which may take up to three business days. You can also use credit or debit cards if speed is what you need since the transfer takes up to 15 minutes to be completed. There are also Neteller, Skrill, fasapay, MegaTransfer and Local Payments as deposit options (picture below a graphical presentation).
All of these fiat currency deposits are carried out for free, while bank cards and accounts may come with charges made by your bank and VISA/MasterCard.
As for cryptocurrency, you can deposit bitcoins, Ethereum, DASH, Litecoins and Bitcoin Cash through your wallet address. There are no costs for transfers inside your SimpleFX balance.
Withdrawals are a different story, as you will be charged whether you use digital or fiat money. Bitcoins and DASH have 0.001 volume cost when sending them outside of your SimpleFX account. Ethereum and Bitcoin Cash would cost you 0.002 of the coins while you need to provide 0.01 LTCs when withdrawing.
As for fiat currencies, withdrawing funds using Skrill, Neteller and Local Payments would cost you 3% of the total value. Credit/debit cards and MegaTransfer have 4% fee while fasapay 1% (max $10). Bank transfers come with 0.2% fees with $10 being minimum costs.
SimpleFX’s trading instruments, markets, and functions work 24 hours a day and 7 days a week. No matter the time of the day or the time zone you live under, all tools are available to you.
The leverage system implements the rate according to each trading pair. The available leverage rates can use up to 500% of the margin value you possess. It means that you can borrow funds or coins and use them to capitalize on the market trends. You should use caution and avoid large leverage rates since you can also accumulate large losses if your market analysis turns out to be wrong.
The leverage level would demand a certain amount of your balance to be used, with smallest being 1:500 and largest being 1:100, as shown in the table below.
The margin and regular exchange functions are in place for you to use when trading cryptocurrencies. There are overall 13 trading pairs that you can use when investing your money in SimpeFX.
The same functions can be used in all other trading platforms, including fiat Forex, precious metals, equities and commodity markets. The exchange does not make a special case for any market but you should take into consideration that each industry requires its own set of analysis. They differ greatly, especially the precious metals, which are more stable in value than cryptocurrencies.
SimpleFX offers several platforms where you can trade cryptocurrencies and fiat money at. First, you have web browsing marketplace, access to by using the internet and no downloadable content. The website of the company holds all commodities and trade pairs, as well as trading functions and balances.
Next, you have Meta Trader 4 as a downloadable platform for desktop and mobile backgrounds. The desktop version serves as advanced trading space, where numerous interface and analysis tools would help you determine the current trade in coin’s value as you can see in the following snapshot.
Meta Trader is also available for mobile platforms, on both Android and iOS phones. The trade tools and the interface are much like in other available platforms, with real-time value updated on regular basis. These can be downloaded for free at Google Play or Apple Store, for example, the picture below.
Considering the web platform, the interface is pretty basic over there. All charts do have history options on the period you wish to observe, as well as the color and type of chart you wish to see. You can even download these at any time, meaning that time-series can be analyzed later on with different time periods. Numerous other sections of the web platform can be redesigned by using interface settings button, as picture down shows.
At Meta Trader 4, you have even bigger freedom. Here, you can redesign, move and download price charts and order books. The interface is quite flexible and can use different analysis tools for the chart to be colored with indicators like Accumulation, Bands, Bears, Bulls, Parabolic and many others.
You can also open several trade pairs at the same time, which is quite useful to determine the overall direction of the cryptocurrency industry. At the top of the program, you can also insert in the charts equidistant channel, Fibonacci retracement or even your own text, like in the print screen down.
When compared to other competitors, the interface does differ very little. The InstaForex uses the desktop’s InstraTrader program, which has the exact same interface and functions. The entire program is pretty much the same, with downloadable charts, colors, lines and analysis tools available for the trader at any time.
The Plus500 does provide different feel when it comes to the interface design but it too essentially offers similar features, tools products like SimpleFX’s Meta Trader 4. Both InstaForex and Plus500 offer platforms on the web, desktop, and phone, much like SimpleFX.
As for the trade functions, there are several margin trading tools that you should be aware of.
Firstly, you can exchange cryptos with USD using the simple and quick widget where you can buy or sell the coins. This is used when you wish to capitalize fast on the favorable wave in the market. The process is very simple – you check out the market value of the coin and click either buy or sell button, executing the order immediately, as you can see below.
If margin trading is more interesting for you, then you can use “Take Profit” and “Stop-Loss” functions when setting out your order. The “Take Profit” allows you to place a value at which the order would bring more profit than original price you have set. If the profit rate is reached through market trends, the order would be executed, allowing you to accumulate larger profit margin in the process.
“Stop-Loss” functions the same as “Take Profit” but in a different direction, as it specifies the price value at which you deem an acceptable loss. This is especially useful when the cryptocurrency market fluctuates greatly as it stops you from losing money while creating orders. If the limit were reached, the order would be immediately carried out, guaranteeing you minimal losses in the process.
At SimpleFX, you can choose what kind of order you wish to make at the time. The two options are a market and pending orders. Market orders are requests where original value uses the current market price of the coin. In pending order, you set the desired price and the request would commence once the coin price hits the mark you have set. If you are a beginner, we would recommend you to use market value if you cannot accurately predict the future value of the coin, since even experienced trader would have a hard time doing.
SimpleFX does have free educational tools for clients to use. These are mostly aimed at beginners that wish to trade currencies for the first time, teaching them by using a detailed explanation of what is available and how it should be used.
There are two different educational sets available for traders, them being web tutorials and videos. The tutorials are concerned with interface and important margin trading functions, showing their locations and proper usage.
Videos, on the other hand, provide step-by-step guides on how to make an order, what kind of analysis tools are available and when should they be used.
We deem these as valuable sources of knowledge and information for you to use. There is a lot to learn from them, as they cover almost all aspects of trade in SimpleFX. Since functions are the same for all commodities and currencies, these pages and videos provide you with a valuable source of information.
The platform offers various promotions depending on the time of the year, with most recent one being Black Friday promotion. The said marketing program, for example, offers all users a voucher where exchange spreads are cut in half, with only cryptocurrencies not being part of the deal.
Thus, you should carefully read the voucher’s or promotion program’s description, as it might not be applicable to the desired trading pair. The vouchers originate outside of the SimpleFX as different individuals and companies get them from the company by using their services. SimpleFX itself does not offer promotions directly to its clients.
There is also affiliation program, where people you bring in can also provide you with revenues. These revenues generated from trade orders they make at the platform, earning you passive income that can be used to invest in the crypto market.
SimpleFX does not offer any other special feature as of yet. Most of the functions are used in the financial industries, with InstaForex and Plus500 having very similar features.
SimpleFX provides instant communication channel where users can find others using the platform for trade. Here, you can communicate with other traders in real time, discussing market trends, asking for advice and generally keep the talks with the SimpleFX community.
You are able to change the languages according to your nationality and mother tongue, making the communication all the easier. There is also the ability to post attachments in the talk widget and share the charts with others.
This is to provide complete transparency for the community but also to help beginners learn their way around from more experienced players. The “Shoutboxes” act as a forum, as users may open different topics for discussion. The topics could be viewed directly above the instant messaging widget.
Other than an in-house forum, you can also reach other community members in external forums such as bitcointalk.org, cryptocompare.com, and many other sites.
The platform is not a regulated marketplace, which leaves the space for private trading activities with cryptocurrencies. All of the other commodities, currencies and training assets would require from you verification process as the company needs to know with whom they are working with.
Established in Caribbean region, the company faces very limited regulation rules by the government, meaning they are free to set the policies as they see fit. It is considered as an offshore company, meaning that lost funds due to the hacking attacks or from the company’s default are entirely your risk.
Thus, the platform is indeed deemed as slightly risky, even though the company operates for some time now, since the year 2014.
This is where SimpleFX has a major disadvantage when it comes to its attractiveness in the market. The platform has password codes available for login into the Meta Trader 4, web browser platform and different trading accounts that are expressed in currencies.
Apart from that, the two-factor authentication (2FA) is also available, being the standard in the industry.
There are no APIs nor withdrawal protection keys, making your balance at SimpleFX vulnerable to cybercrime attempts. We would strongly recommend not to keep a large number of funds and coins at the platform for the above-mentioned reasons. You should not put all your apples in one basket and the same rule is applicable at SimpleFX as well.
You can start live chat with customer representative on business days during working hours. The representatives are there to answer any of your questions regarding your balances, transfers, and trade.
In times when the support is not available, you have the option to leave the message, which employees pick up as soon as they are available again, as you can see below.
Apart from the chat, the extensive FAQ section provides all needed information about the trade rules. You should check it out as it pinpoints most problems and answers that concern these issues.
Pros and Cons
- Transferring and trading cryptocurrencies from a coin’s wallet does not require verification
- Several deposit/withdrawal methods available
- Deposits come with no fees
- Advanced design tools for trading interface
- Available platforms on desktop, mobile and web browsing
- Service is globally available
- Free yet extensive education materials available
- Large number of trade pairs and assets available
- All fiat deposits/withdrawals require verification process completed
- Low security of the platform due to limited number of safety functions and offshore setting of the company
Overall, we would recommend the SimpleFX for beginners that wish to learn how to trade different assets, cryptocurrencies especially, at the platform. The company is based in the region where little regulation is needed, thus small volumes of funds and coins should be deposited.
Expert traders might find narrow exchange rate cool but some of the more advanced functions are missing. Deposits do not cost a thing as exchange gains revenues from the exchange rate, making this platform one of the cheapest in the market.