Precise Forex is a CFD and forex broker which operates from Singapore. They offer many types of trading accounts and instruments. You can trade options with CFDs on many commodities and indices. However, they aren’t the kind of broker you’d want to do business with. And in my Precise Forex review, you’ll get to learn why that’s the case.
Before I begin sharing my opinion as to why this broker is not trustworthy, let me share all the details about them:
About Precise Forex – Who are they?
The first indicator that something fishy is going on with this trader is its ‘About Us’ page. They don’t share any information regarding when they started or where they are licensed.
I did a little digging and found that their parent company is ‘Rajoo Investments & Trading Co. Ltd.’
Their parent company is based in Singapore and has been operating for 14 years. They mainly deal in the trade of wholesale goods and Precise Forex is their secondary business. The address of their parent company is 49 Dunlop Street, Singapore.
Rajoo Investments & Trading Co. doesn’t have any prominent online presence. They simply have a facebook page and a GMB (Google My Business) page.
Their Facebook page is dormant and has no activity whatsoever. So you can get an idea what kind of activities they take part in.
Precise Forex offers its clients many trading instruments but has no license from any authority. They aren’t regulated so it’d be dangerous for you to trade with them.
They run many promotions to attract new customers. They give free reports and analyses to new customers.
They provide you with 48 currency pairs but with the Islamic and Micro accounts, they restrict you and you can only trade with 25 currency pairs.
Offered Account Types and Minimum Deposits
Now that we’ve discussed their presence and the fact that they lack any licenses, let me share their trading conditions which you must fulfil to avail their services.
And this is a pretty fishy area too.
They have multiple account types available on their platform.
Let’s discuss each one of the account types in detail:
To open a Micro Account, you’ll have to deposit at least $1,000. This is a high amount for any forex broker to ask for, especially for an account with minimum facilities. The average minimum deposit among forex brokers is $200.
Not only is the minimum deposit higher for their Micro account but their charges for this account are also higher. I guess they want to discourage traders from opening a Micro account, but still, it’s a great disservice. I’m aware that Mini accounts have generally a higher spread, but their charges are much higher than the industry standard. They charge you a fixed spread of 3 pips per standard lot. With their Micro account, you get the maximum leverage of 1:200.
The Mini account has a little more facilities than the Micro account. You’ll need to deposit $5,000 to open a Mini account with Precise Forex. They provide you with a leverage of 1:100, which is the industry average, and they charge you a fixed spread of 2.5 pips.
The minimum deposit to open a Premium account with them is $10,000. You have to pay 2.5 pips per lot and get a maximum leverage of 1:75.
The spread of the Institutional account starts from 1.5 pips and the minimum deposit for this account is $50,000. They offer a 1:50 leverage for this account.
A significant attraction at Precise Forex is their Islamic account. In this account, you’ll need to make a minimum deposit of $5,000 (again, that’s a lot higher) while you’ll enjoy a leverage of 1:100. There’s a fixed spread of 2.5 pips on a standard lot in this account, apart from that, they also charge a commission on this account. You can hold an open position with this account to 14 days maximum.
With their Institutional and Premium account, you also get to perform ECN trading, but their trading platform isn’t suitable for this purpose.
Now that I’ve discussed the account types and spreads in our Precise Forex review, I’ll now focus on their trading platform.
They use the Sirix trading platform, that you can use online or download in your system as well. Sirix has an easy to use interface and navigating it doesn’t require much effort. Sirix has social trading enabled and has charting as well as trading options. You also get access to technical indicators.
But it’s not a great platform for serious forex traders.
The most popular trading platform among forex brokers is MT4 and Precise Forex has avoided using it. Their trading platform doesn’t have any advanced features an experienced trader might need. And this makes Sirix a bad choice for anyone who knows a little about forex trading and is not a newcomer.
I’ve already mentioned in the previous section, that Sirix isn’t a good platform when it comes to ECN trading, and that facility is only available to their high-end customers, which is a major setback.
Available Payment Methods
They don’t offer many payment methods to their customers. You can only make transactions with credit/debit cards, bank wire transfers, and UKash.
They don’t have many payment facilities such as e-wallets and online banking, which can cause inconvenience to many customers. They don’t use Skrill and PayPal too.
Reasons why Precise Forex isn’t Right for you
Precise Forex is a major forex broker, but that doesn’t mean it’s a good one. Here are the main reasons, why you shouldn’t risk trading with these people:
Abnormally High Minimum Deposit
Precise Forex has extremely high deposit requirements for its customers. Even the smallest trading account (Micro account) requires you to deposit $1,000, which is many times higher than the industry average.
Most forex brokers require $200 or $300 as minimum deposit. The higher you deposit in your forex trading account, the higher is your risk.
This is the single most important reason why you shouldn’t do any business with Precise Forex. Precise Forex is an UNREGULATED broker.
Neither they nor their parent company has a license to operate as a forex broker. They are based in Singapore, and there is the Monetary Authority of Singapore (MAS) which handles the regulation and licensing of such organizations. Precise Forex isn’t under the regulation of the MAS.
The reason why it’s an important factor is that a regulated broker has to keep the funds of their clients separate from their own funds. This way, your funds remain safe in case the broker goes bankrupt.
Brokers under proper regulation also maintain a minimum capital such as the brokers regulated by the Australian Securities and Investment Commission (ASIC) have to maintain a minimum capital of 1 million AUD.
Regulation makes a broker credible and reliable. Precise Forex isn’t regulated by any authority so it is not a reliable broker.
Precise Forex has multiple spreads for its different accounts. The Micro account has the highest spread of 3 pips whereas the Institutional account has the lowest one of 1.5 pips.
Let me now tell you what the usual spread is among forex brokers; it is 1.5 pips. The fixed spread doesn’t go higher than 2 pips in most cases.
A high spread means you’re paying more for the services you avail. You can get much better spreads at much lower minimum deposits with other brokers. You don’t have to put up with such nonsensical rates.
The different account types available at Precise Forex have different leverages too. The Micro account has 1:200 maximum leverage, the Islamic and the Mini accounts have 1:100 max leverage, and the Premium account gets 1:75 max leverage.
If you get the institutional account, you’ll get leverage up to 1:50.
I know that high leverage leads to higher risk but their limits for maximum leverage are quite low. Most forex brokers offer leverage up to 1:500, which is 5 times higher than their upper limit.
Limited Modes of Payment
They only have a few payment methods available:
- Bank wire transfers
- Credit/debit cards
They don’t have many online payment methods available, which can cause delay in transactions and waste of time. They don’t have e-wallets and other modes available that might help customers in processing transactions faster.
I hope my Precise Forex review helped you understand why this broker is a bad choice for you. Even though they have many trading instruments and a unique trading platform, it doesn’t make up for their drawbacks.
They are an unregulated, expensive, and inconvenient broker. You’ll fare much better with some other broker.