Tier1FX is an online broker based in Malta that offers a transparent way of institutional trading on multiple trading platforms. Trading instruments, account types and funding options are limited compared to other online brokers.
Tier1FX Review, Pros & Cons
- MAM Accounts
- Multiple trading platforms; JForex, Fortex 6 & MT4
- Premium VPS service powered by Beeks Financial Cloud
- Inactivity fees are not charged
- Limited trading instruments
- Minimum €1,000 deposit
- Limited deposit options: No e-wallets and online payments
- Clients from USA, Iran, North Korea, Japan & Spain are not allowed to register
- No research, market news or analysis
- No trader educational materials
In this detailed Tier1FX review, our online broker research team have covered some of the most important aspects for you to consider when choosing the best broker for your online trading needs.
Tier1FX is an online forex and CFD brokerage firm based in Malta. It was founded in 2013 with a mission to support its clients online trading needs. Tier1FX is the brokerage arm of ‘Hogg Capital Investments Ltd’, a licensed Investment Services Company based in the Republic of Malta. Tier1FX operates on the values of fairness, caring, boldness and agility.
Tier1FX incorporate the direct market access (DMA) brokerage model. Client orders are executed within fractions of seconds with minimal requotes. The broker only acts as an agent and thus does not interfere in pricing or executions.
Tier1FX liquidity pool is made up of top banks like Bank of America, UBS, Barclays, Deutsche Bank, J.P. Morgan, NatWest, Citi, etc. The non-bank liquidity comes from XTX Markets, LMAX exchange and Dukascopy. With Tier1FX infrastructure, powered by Beeks Financial cloud, client orders are routed to the liquidity pool at a latency of 0.2 milliseconds. The trading servers are located at the Equinix NY4.
Tier1FX is a division of ‘Hogg Capital Investments Ltd’ which is a financial investment company with the registration number IS18954. It is authorised and regulated by the Malta Financial Service Authority (MFSA). The license number is C18954.
MFSA is the regulator of the financial services in Malta. The regulator requires a minimum capital base of €730,000 from brokers. There are also strict regulatory stipulations like regular reporting, risk management, account segregation, etc.
Tier1FX is compliant with Markets in Financial Instruments Directive (MiFID) and the European Securities and Markets Authority (ESMA) regulations. So the broker services are passported in Europe under MiFID II. Tier1FX is registered with the following regulators:
Tier1FX brokerage operators are part of the Investor Compensation Fund (ICF). This means that Tier1 clients can be eligible for compensation if the broker becomes insolvent. The maximum compensation payable to each client is €20,000.
All clients’ funds are held in segregated accounts. Tier1FX says that these funds are referred to as ‘ring fenced’ and cannot be mixed with the broker’s money.
Tier1FX does not accept clients from USA, Iran, North Korea, Spain and Japan. There are also some other countries that they are unable to allow clients from due to regulatory restrictions. Some Tier1FX broker features and products mentioned within this Tier1FX review may not be available to traders from specific countries due to legal restrictions.
MetaTrader 4 (MT4)
The MT4 platform is a robust and powerful platform widely used by forex and CFD traders all over the world. Tier1FX offers all the versions of the MT4:
- WebTrader: This is the browser-based version of the trading platform. It can be accessed via Tier1FX website. It runs on browsers across all devices and on all operating systems.
- Mobile: MT4 is mobile friendly as it has mobile apps which are available on Android and iOS devices. These apps can be downloaded and installed from their respective stores.
- Desktop: This is the main version of MT4 that is designed to be installed on computers running on Windows operating system. This version has the full features of the which includes support for the installation of plugin apps and extensions.
Here are some of the features of MT4:
- It is available in over 35 languages.
- Offers very fast STP executions.
- 30 preinstalled technical indicators and support for extra addition of thousands more.
- Customisable interface, colours and layouts.
- Charting in 3 chart styles; bar, line and candlesticks.
- Charts can be displayed on up to 9 timeframes from 1 minute to 1 month.
- Support for automated trading using software Expert Advisors (EAs).
- Alert notification via SMS, email and pop up alerts.
This is a powerful trading platform that has multiple features for trading and analysis. The platform is available as an html5 based web trader. It also runs on windows, Linux and MAC computers as downloadable desktop softwares. Fortex 6 mobile app is available on iOS and Android devices. Here are some of the features of Fortex 6:
- It has a simple and user friendly interface.
- Available in multiple languages.
- Supports one-click trading.
- Multiple order types such as market, limit, threshold, VWAP, trailing stop orders, etc.
- Advanced charting and technical analysis.
This is the proprietary platform designed by Dukascopy; a Swiss online bank and broker. It is designed for trading on the Swiss Forex Marketplace (SFXM) liquidity pool. JForex is a java-based platform that is available as desktop applications on windows, Linux and MAC operating systems.
JForex also runs on the web browser as WebTrader which requires no downloads. The platform is also mobile friendly as it has android and iOS apps. Here are some of its features:
- Over 180 technical indicators and analytical tools.
- Offers deep liquidity and transparent pricing.
- Advanced charting and multiple order features.
- Available in more than 20 languages.
- Integrates the visual JForex; a tool used to build automated strategies without knowledge of Java programming knowledge.
This is an electronic communication protocol used for financial information exchange. It gives Direct Market Access (DMA) to the Tier1FX liquidity pool. FIX API is very fast, very light and easy to setup and use for those with the programming knowledge and skills. EAs can be used via the FIX API to automate forex and CFD trading.
Tier1FX Trading Tools
Virtual Private Server (VPS)
Tier1FX has partnered with Beeks Financial cloud to bring VPS services to interested clients. Tier1FX clients are entitled to a 10% discount on any VPS subscription. Prices start from £27 per month. VPS is often needed by traders who need fast and reliable connections to the trading servers. Those online traders who use automated trading systems (EAs) often use a VPS as it can keep the trading platform running 24/7.
Tier1FX offer managed accounts for its clients. These are for clients who wish to invest their funds by choosing from a selection of managed accounts. The investor chooses a manager based on trading history and statistical data provided by Tier1FX. Investors can switch managers or stop the trades on their accounts. All the necessary software, tools and platforms needed are provided by Tier1FX. Equity Protection Management (EPM) is available for managed accounts. It is a trading solution that allows an investor to effectively manage his level of investment whilst the funds are being managed by another trader. Traders can leave the program or automatically close positions on reaching certain equity level.
Tier1FX does not provide any training package for its customers. No e-books, training videos or educational content is available on its website.
Tier1FX offers the following assets for trading on the platform:
- 60 Forex Currency Pairs.
- 10 Indices.
- 5 Cryptocurrencies.
Tier1FX Accounts & Fees
Tier1FX does not offer multiple account types for retail traders. The spreads, leverage and trading capital does not depend on the account type. Here are the account types.
- Individual Account
- Corporate Account
The minimum account opening balance is $1,000 or equivalent in account base currency. The maximum spread is 1:30 in compliance with the ESMA rules. Commissions on forex trading are as follows; $2.75 for forex, $3.25 for commodities, $0.3 for USD and 0.10% on Cryptos.
Demo accounts are freely available for practice purposes. It is preloaded with virtual funds but is only available for 60 days. This can allow traders to test the different platforms and tools before opening a real trading account.
Accounts can be opened in EUR, USD, GBP, CHF & JPY. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency.
As broker fees can vary and change, there may be additional fees that are not listed in this Tier1FX review. It is imperative to ensure that you check and understand all of the latest information on the official Tier1FX website before opening a brokerage account.
Tier1FX asserts that it has a fast and efficient customer support team that works 24/5 during the trading hours. The support desk can be reached on instant web chart, email and support phone lines. A ‘Contact us’ form on the website can also be used to reach the support team. Response is normally by email.
Tier1FX Deposit & Withdrawal
- Bank Wire transfers: All transfers must be made with the same name on the trading account. No third party transfers are allowed. Tier1FX does not charge commissions on deposits. Bank transfer can take 2-7 business days depending on the banks involved.
- Credit/Debit Cards: The only acceptable cards are 3D-secure enabled Mastercard and Visa cards. A maximum of €15,000 per transaction and €35,000 per month is allowed for each debit or credit card. A commission of 2.4% + €0.25 per transaction is charged. Clients are required to scan and send a copy of the card before using it. Card deposits are usually credited instantly to the trading account. For card withdrawals, only funds deposited from the card can be returned to it. Profits are withdrawn via bank transfers. The withdrawal fee is fixed at €15/$20/£15.
As fees can vary and change, there may be additional fees that are not listed here in this Tier1FX review. It is imperative to ensure that you check on the official Tier1FX website all of the latest fees and are completely clear about all of the charges before opening a trading account with any online broker.
Tier1FX Account Opening
To open a live account, visit the Tier1FX website. From any Webpage on the website, click on ‘Open Live’ button found on the right hand side of the menu bar. Click on “Let’s start” and then, select your country. If you are from a country that is not accepted, a message will be displayed and the registration cannot continue.
Select the type of account: individual, joint or corporate account and continue. For individual account registration, input your name and phone number, email, password and verify your email. After verification you will then select either trading or managed account, platform, and then, fill in personal details. After completion of all forms and phone verification, you are logged into the clients’ area where you can create accounts, make a deposit and verify your identity.
Tier1FX is an STP broker that uses modern infrastructure to provide prime liquidity and swift trade executions. It is regulated by the MFSA and registered in several European nations. The broker offers competitive spreads on cutting edge platforms.
The MT4, JForex, Fortex 6 and FIX API are the trading platforms available. Every trader can choose a platform based on individual preferences or features. Each of the platforms offer swift executions and many other essential features.
Unfortunately for beginners, there are no training resources to help introduce them to online trading. Even the demo account offered expires after 60 days. There are no in-house analysts that present daily insights, analysis or market news. Most online brokers will offer some form of frequently updated market analysis to assist traders.
The assets listing is very small compared to competitor brokers that offer hundreds to thousands of trading instruments. The payment options are limited because there are no electronic payment solutions allowed. The minimum trading capital of €1,000 is also very high when compared to other online brokerages who accept deposits as low as $5 to commence trading on live accounts.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage, 79.57% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.