AXI Review 2024

Trust

AXI Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker, allowing us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the several entities operating under the AXI trade name:

• AxiTrader Limited is incorporated in St Vincent and the Grenadines. The entity is not regulated, but it is a member of The Financial Commission, an international organization that resolves disputes within the industry.
• Solaris EMEA Ltd is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 433/23. We rate CySEC as a Tier-1 regulator.
• Axi Financial Services (UK) Limited is licensed and regulated by the Financial Conduct Authority (FCA) of the UK under license number 466201. We rate the FCA as a Tier-1 regulator.
• AxiCorp Financial Services Pty Ltd is licensed by the Australian Securities and Investments Commission (ASIC) under AFSL number 318232. We rate ASIC as a Tier-1 regulator.
• AxiCorp Financial Services Pty Ltd is also licensed and regulated by the Financial Market Authority (FMA) of New Zealand under FSP number 518226. We rate FMA as a Tier-1 regulator.
• AxiCorp Financial Services Pty Ltd (DIFC Branch) is licensed and regulated by the Dubai Financial Services Authority (DFSA) under reference number F003742. We rate the DFSA as a Tier-2 regulator. The entity is not authorized to hold client assets or client money.
• Solaris Services Ltd is licensed and regulated by the Vanuatu Financial Services Commission (VFSC). We rate the VFSC as a Tier-3 regulator.

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities to serve clients worldwide. However, licenses obtained from regulators in different jurisdictions do not always entail the same degree of protection.

Some regulators mandate compliance with the strictest financial frameworks, while others are less rigid. That is why traders must familiarize themselves with the safety mechanisms ensured by the entity they want to open an account.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All AXI’s entities, except for AxiTrader Limited, ensure the segregation of client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. Four AXI entities ensure negative protection, while three, including AxiTrader Limited, do not.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. Clients of Solaris EMEA Ltd are protected by up to EUR 20,000 under the Investor Compensation Fund (ICF); clients of AxiTrader Limited are protected by up to EUR 20,000 under The Financial Commission; clients of Axi Financial Services (UK) Ltd are protected by up to GBP 85,000 under the Financial Services Compensation Scheme (FSCS).
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum leverage with AXI is 1:500, available with AxiTrader Limited. and Solaris Services Limited entities.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and information transparency.

I reviewed AXI’s legal documents and found the information readily available and easy to understand. I also appreciated AXI’s strict Client Categorization policy, which is applied during account creation and used to determine the best services for each trader.

Additionally, I learned that the broker’s Australian entity previously had its license temporarily suspended by ASIC because of misconduct.

Is AXI Safe to Trade With?

I concluded that AXI is safe to trade with due to the following factors:

• Authorized by four Tier-1 regulators (CySEC, FCA, ASIC, and FMA)
• Member of The Financial Commission
• Has a strict Client Categorization Policy

Fees

AXI Trading Fees

AXI Spreads

I tested AXI’s spreads on 11 July 2024 during the London and the New York open. The results are shown in the table below:

Broken down by asset class, AXI charges low-to-average spreads on indices and commodities, average spreads on cryptocurrencies, and average-to-high spreads on currency pairs.

AXI Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full base currency contract (100,000 units).

My tests indicate that AXI has average-to-high swaps compared to the industry benchmark. This combination is not particularly suitable for long-term trading.

AXI Non-Trading Fees

AXI does not charge a handling fee for deposits and withdrawals, though third-party banking fees may apply depending on the chosen payment method.

The broker has an inactivity fee of 10 units (of the base currency) charged on dormant accounts after 12 months of inactivity. The fee is charged monthly until activity resumes or the account balance drops to zero.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of AXI’s two retail account types and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) in EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

According to my findings, AXI’s Standard account offers more competitive fees than the typical STP account. Accordingly, the conditions on its Pro account meet the industry average for most ECN accounts.

Are AXI’s Fees Competitive?

The competitiveness of AXI’s fees varies depending on the preferred account type and the traded instrument. Overall, its trading fees are slightly more competitive than the industry average and are mostly geared towards day traders who do not have to pay overnight charges.

Platforms and Tools

The Desktop Version of AXI’s MT4 Platform

In this review, I tested the MetaTrader 4 platform, which features multiple essential tools, such as one-click trading, an alarm setting option, and a market depth tool. These allow traders to examine various market developments from different angles and to exploit the underlying trading opportunities in multiple ways.

The MetaTrader 4 platform affords basic technical analysis, order execution, and automated trading. However, its rugged design and few analytical tools make it lag behind newer and sleeker platforms.

AXI offers subscription-based Virtual Private Server (VPS) hosting for low-latency trading, which decreases the risk of negative slippage in automated trading. The broker has also developed a proprietary copy trading app that allows strategy followers and strategy providers to interact with each other quickly and efficiently.

I appreciated the variety of calendars AXI provides, helping traders stay on top of the most important trading and investing events. The offering includes an economic calendar, upcoming exchange holidays calendar, dividend forecast schedule, and future CFD contracts rollover calendar.

AXI also offers PAMM/MAM accounts for managed trading, where market experts trade on behalf of their clients. All client funds are pooled in a single account on which the professional executes trades and generates profits. At the end of a period, the expert collects a servicing fee and the rest of the profits are divided between the clients, depending on each client’s invested equity.

Finally, AXI offers a mobile MT4 app for trading on the go.

General Ease of Use

MT4’s layout is pretty straightforward. Account info is displayed at the bottom of the screen; charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window; and a panel with various settings and configurations can be found at the top of the window.

Charts

I consider the charts screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

As shown above, the problem with MetaTrader is that the charts can be crowded quite easily, even when we add no more than 2 indicators. This obscures price action behavior and makes it more difficult to conduct probing technical analysis.

I have broken down the available analytical tools and chart configurations below:

• 30 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next.
• 20 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather big collection of drawing tools, the ruggedness of MT4 makes it difficult to discern price action behavior.
• 9 timeframes. MT4 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the MetaTrader 4 platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price at which the order is filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 4 Platform

MetaTrader 4 is a classic platform that sets the benchmark for what a retail trading platform must look like. However, compared to newer and sleeker platforms, I find it quite rugged and outdated. As a trader who prioritizes flexible chart scaling, I find MT4’s charting capability too rigid and less effective.

AXI’s Execution Model

AXI operates as a Straight-Through-Processing (STP) broker without a dealing desk. It routes client orders to its liquidity providers, where they are filled.

After tracking AXI’s order execution speed for several days, I discovered that it averages around 110 milliseconds, which is quite slow for the industry. While this is too high for high-precision trading, such as scalping, the broker is totally suitable for day trading.

AXI’s Mobile MetaTrader 4 App

The mobile app version of MT4 affords quick and easy access to the market on the go. It is very useful for opening, terminating, and adjusting open positions.

The market is continually evolving, marked by periodic surges and declines in volatility. For this reason, staying on top of the latest market developments is crucial, a task made simpler through the mobile app version of MT4.

You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

My Key Takeaways After Testing MT4’s Mobile App

MT4’s mobile app suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor the development of your open positions and make changes if needed.

ATP Trading App

Recently, AXI launched its proprietary app, which is more intuitive and easier to navigate than MetaTrader. It also has more options for market research.

The order-placing screen allows traders to manually set their leverage for each individual trade, thus affording them greater flexibility to manage their overall market exposure.

Additionally, AXI’s app features several educational videos, with more to be added shortly. This is great for inexperienced traders as they can learn even on the go.

Tradable Instruments

Compared to the broader industry, AXI offers an average number of currency pairs, commodities, and share CFDs and a high number of indices and cryptocurrencies.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With AXI?

My Key Takeaways After Exploring AXI’s Instruments Offering

AXI offers a variety of instruments, especially indices. What impressed me most about it was the availability of IPO trading opportunities, which are quite rare. This gives traders the opportunity to capitalize on fast price swings after a company’s initial listing.

Another notable aspect of AXI’s instruments offering is that metals like gold are available in different currency denominations (e.g., USD, EUR, AUD). This helps traders avoid having to pay conversion fees when trading the metal as denominated against their account’s base currency.

The one notable disadvantage is the absence of lower-risk securities, such as bonds, ETFs, and treasuries, for practicing low-risk strategies, such as hedging.

Customer Support

AXI Customer Support Channels

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I concluded my test on 12 July 2024 at around 10:42 a.m. CET via live chat. Initially, you have to navigate an automated bot, which lets you know that it may be a while before you get connected to a live person. I found the bot intuitive and quite helpful for more general queries.

I asked why share CFDs are not available on a demo Standard account. It took more than 15 minutes for the agent to connect to the chat. He sent me a document outlining the broker’s product offering but did not explain the discrepancy clearly.

Deposit and Withdrawal

AXI Deposit Methods

AXI Withdrawal Methods

Account Types and Terms

AXI Account Opening Process

To open an account with AXI, follow these easy steps:

1. Click ‘Open Account’ at the top-right corner of the main page.
2. Fill in your name, phone number, and email address.
3. Select an account type.
4. Fill in the rest of your personal details.
5. Provide your financial and employment information.
6. State your tax residency details.
7. Describe your trading experience and trading objectives.
8. State your risk tolerance.
9. Upload proof of ID and proof of address to verify your account.

AXI’s Account Types

AXI’s accounts are diverse and cater to traders’ different needs. I appreciated that the two retail accounts do not have a minimum deposit requirement, making them quite accessible. Additionally, their pricing mechanisms fall marginally below the industry average.

Demo Accounts

AXI offers a demo account that introduces traders to the broker’s services and allows them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account along with a live CFD account.

Islamic Account

AXI offers Islamic accounts for swap-free trading under Shariah law.

What is CFD Leverage?

Leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. Leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

AXI Select

AXI also offers a comprehensive capital allocation program, Axi Select*, which is aimed at helping traders transition into professional trading. The program offers funding of up to $1,000,000 and a profit-sharing model where traders can keep up to 90% of their profits.

Qualification and progression through the program are measured by the Edge Score, which assesses a trader’s performance in areas like skill and risk management. To qualify, traders need to place at least 20 unique closed trades and maintain a $500 deposit in their Axi Select account.

The program also provides traders with advanced tools, an exclusive trading room for idea-sharing, and live educational content from experienced professionals. Notably, there are no registration or membership fees, making it accessible to a broad range of traders.

AXI Restricted Countries

AXI does not accept residents of Cuba, Maldives, Saint Vincent and the Grenadines, Ukraine, Vanuatu, Afghanistan, Belarus, Myanmar, Palestine, Congo, Haiti, Iran, Israel, North Korea, Libya, Somalia, South Sudan, Syrian Arab Republic, the United States of America, and the Russian Federation.

Research

AXI offers a blend of proprietary and third-party research content, providing traders with a nuanced perspective into current market developments. There are multiple calendars and calculators helping traders time their market entries and exits and calculate their appropriate sizes.

The broker publishes extensive articles on its blog section covering market drivers in the mid and long-term. It also posts daily market breakdowns on its YouTube channel, informing traders of short-term market tendencies.

Additionally, AXI incorporates actionable trading signals and market reviews from Trading Central and Autochartist – two of the biggest and best signal providers in the industry. Both tools can be reached via plugins directly on the MetaTrader 4 platform.

My Key Takeaways After Exploring AXI’s Research Content

AXI’s research materials are diverse and penetrating. They cover viable trading opportunities, important support and resistance levels (associated with the underlying setup), suitable entries and exits, take-profit and stop-loss levels, and more. The content offers an intricate outlook into current market developments and can be particularly beneficial for day traders.

Education

AXI’s educational content is mostly geared towards studying the intricacies of technical analysis, such as how to spot viable trading setups, when and where to enter and exit the market, how to read price action and more.

AXI could improve its educational collection by adding some materials on fundamental analysis, psychology of trading, and risk management.

The Bottom Line

Founded in 2007, AXI is a Sydney-based broker that operates globally. The company is well-regulated, participates in The Financial Commission, and adheres to essential safety requirements.

AXI offers more than 280 tradable instruments and gives access to IPO trading, which entails a huge profit potential. The broker offers average fees and impresses with a variety of supporting content and tools, including seamless Trading Central and Autochartist.

AXI provides the well-known MetaTrader 4 platform via web and mobile, as well as a proprietary ATP app and copy trading app. Among the drawbacks I found were a rather slow execution speed of 110 milliseconds and a lack of alternative trading platforms.

In summary, I concluded that AXI is suitable for day traders but less optimal for high-paced trading.

FAQ