Finbok Review 2024

Trust

Finbok Regulations

Finbok operates under one entity:

• Vector Financial Services (Pty) Ltd is a juristic representative of Astrix Data. As a jurisdiction representative, Vector Financial Services acts as the intermediary between Astrix Data and clients. Astrix Data is regulated by the Financial Sector Conduct Authority (FSCA).

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

Each regulator has its own requirements for brokers, which may differ substantially. Such requirements cover aspects like leverage levels and specific protections for investors.

These protections may include negative balance protection, segregated accounts, and investor compensation funds. Traders should understand the differences between regulations to evaluate whether the broker suits their needs.

Finbok operates under one entity, Vector Financial Services (Pty) Ltd. This entity serves as the jurisdiction representative of Astrix Data, which is regulated by FSCA in South Africa.

The entity holds clients’ funds in segregated accounts, which means that clients’ money is separated from the broker’s money and cannot be used for the broker’s own business purposes.

Additionally, Finbok provides negative balance protection, ensuring clients that they can’t lose more money than they have in their accounts.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, the size of the company, and the transparency in terms of information being readily available.

Founded in 2018, Finbok is not publicly traded and does not have a bank parent, which is common for a broker.

Finbok notes that Vector Financial Services (Pty) Ltd is a juristic representative of another entity in the footnote of the website, but it does not discuss this clearly in the text of the dedicated regulatory section. Clients can find the regulatory details in the dedicated section of the website.

The Legal section includes Terms and Conditions, Privacy Policy, Complaints and Dispute Policy, Conflicts of Interest Policy, and Restrictions and Jurisdictions.

Account Types page provides information on the types of the accounts offered by Finbok.

Is Finbok Safe to Trade With?

My research indicated that Finbok can be regarded as having a moderate level of trust and stability due to the following factors:

• Finbok boasts more than six years of operational experience.
• The broker operates under one entity authorized by a Tier-2 regulator.
• Finbok provides segregated accounts and negative balance protection.

Fees

Finbok Trading Fees

For this review, I tested the Finbok Gold account, where the broker charges spreads and swap/rollover fees but does not charge any commissions.

Spreads are variable and depend on the liquidity situation for each instrument at a certain point in time.

Finbok Spreads

I tested the Finbok Gold Account spread during the London open at 8 a.m. UK time, and shortly after the U.S. open at 2:45 p.m. UK time. These are the most actively traded hours.

I summarized my findings in the table below:

My tests indicated that Finbok offered low spreads for Bitcoin. The spreads for EUR/USD, GBP/JPY, Gold, WTI oil, Dax, Dow Jones, Apple, and Tesla were high.

Swap Fees

My research showed that swap fees for EUR/USD and GBP/JPY were high compared to the industry average. Unlike most brokers who adjust their fees based on the current interest rates of the two currencies, this broker charges fees for both buying and selling positions. This means traders could pay more for holding positions overnight.

Non-Trading Fees

Finbok charges a monthly maintenance fee of ZAR 165 ($9) for inactive accounts. An account is deemed inactive if there has been no trading activity for six consecutive months.

Are Finbok Trading Fees Competitive?

Finbork provides attractive fees for Bitcoin, but the fees for all the other instruments I tested were significantly higher than the industry average. The swap fees have also exceeded the industry standards. In addition, the broker charges swap fees regardless of the direction of the trade and the current interest rates of the two currencies.

Platforms and Tools

Desktop and Web Platforms

In this review, I tested the Finbok platform analyzing charts, indicators, drawing tools, orders, and the general ease of use of the platform.

General Ease of Use

The Finbok trading platform is designed for simplicity, making it accessible to beginner traders. It features a straightforward layout that combines watchlists, charts, and order entry windows on a single screen.

Users have access to technical analysis tools for their selected instruments, including summaries of indicators, oscillators, and moving averages across time frames ranging from 1 minute to 1 month. Additionally, the platform integrates a timeline from TradingView and an economic calendar, enhancing the trading experience.

With its user-friendly interface, new traders can quickly make their initial trades shortly after familiarizing themselves with the platform.

Charts

Finbok uses charts from TradingView, a popular tool used by many traders around the world.

Readers have access to:

• 18 timeframes
• 104 indicators
• 17 chart types

It’s important to highlight that Finbok’s integration of TradingView charts does not include the full suite of features, notably lacking drawing tools. Despite this, the charts still provide enough functionality to cater to both novice and seasoned traders. However, the lack of drawing tools marks a notable gap in the platform’s capabilities.

Orders

Finbok offers the main order types, including:

• Market order. This order is used to buy or sell the instrument at the current market price. It is used when the trader needs to establish a position in the fastest possible way. The main downside of the market order is the necessity to pay a spread, which is a difference between the bid price and the ask price.
• Limit orders. This order is used to buy or sell the instrument at a pre-set price or better. A limit order is used when the trader wants to get a specific entry point and is unwilling to pay the current market prices.
• Stop-loss orders. Stop-loss orders are used to get you out of the position when the price is moving in the wrong way. The order is triggered when the price reaches a specified point.
• Stop limit orders. This is a stop-loss order which puts a limit order instead of a market order when it is triggered. This is a dangerous way to get out of the position and should be used only by experienced traders.

My Key Takeaways After Testing Web Platform

After testing the Finbok web platform, I concluded that it is extremely easy to use. The platform features watchlists, charts from TradingView, and order entry windows. Traders can also monitor their positions, open orders, and order history at the bottom of the screen. In my opinion, this design suits beginner traders who are just starting their trading journey but does not meet the requirements of advanced traders.

Finbok Order Execution Model

Finbok uses the STP execution model. The trades are conducted through a third-party liquidity provider, which is the sole execution party for the execution of client orders. According to the terms and conditions, Finbok may process the orders as broker (agent) or market maker (principal). Finbok notes that it may act both as principal and agent. Traders should note that when acting as a market maker, the broker takes the opposite side of the trade.

Tradable Instruments

The number of available commodities, indices, and cryptocurrencies is high, while the number of stocks and forex pairs is moderate compared to the industry standards.

What are CFDs?

CFDs (Contracts for Differences) are financial instruments that allow traders to bet on asset prices without actually holding the respective assets. The key advantage of CFDs is the access to significant leverage, which is typically not available when trading other instruments. Hence, CFDs are very popular in short-term trading.

What Can You Trade with Finbok?

Forex	Shares
EUR/USD | GBP/JPY | EUR/HUF	Apple | Tesla | NVIDIA

Indices	Cryptocurrencies
Dow Jones | DAX | DXY	BTC | ETH | FIL

Commodities

WTI Oil| Gold | Oats

Finbok provides a balanced offering of tradable instruments, which includes forex, indices, commodities, stocks, and cryptocurrencies. The total number of available instruments exceeds the industry average, boosted by the high number of commodities, indices, and cryptocurrencies.

My Key Takeaways After Exploring Finbok Tradable Instruments

After more than a week of testing Finbok’s offerings, I found that the broker provides a well-rounded range of instruments with a decent selection of options. The number of available commodities and indices exceeds the industry average, and traders focused on these segments will certainly find appealing options. Additionally, Finbok boasts a strong cryptocurrency offering.

Customer Support

Clients can access 24/5 customer support via online chat on the trading platform. However, phone support is exclusive to South African residents.

For more complex inquiries or specific requests, there’s a call-back option. To use this, clients need to send an email to the provided address requesting a callback.

Deposit and Withdrawal

Finbok Deposits

Finbok clients can deposit funds via credit cards, bank transfers, and electronic fund transfers. Processing times may take from 1 to 4 working days. The broker does not charge fees for any deposit methods.

Finbok Withdrawals

Finbok clients can withdraw funds via credit cards, bank transfers, and electronic fund transfers. Withdrawals are processed within 3-4 working days. The broker has no withdrawal fees.

First Deposit Bonus

Finbok offers a bonus of up to 30% of deposited capital. The broker’s clients should contact a dedicated Private Account Manager to claim their bonus.

Account Types and Terms

Finbok Account Opening Process

To open an account with Finbok, visit the broker’s website and click on “Register.” Provide your name, surname, email, phone number, address, country, and set up a password.

You’ll gain access to the trading platform when your account is opened. In the “Edit Profile” section, enter your Passport/ID and ZIP/Post Code. Then, proceed to the Documents section to upload your Proof of Identity and Proof of Residence.

What Account Types Does Finbok Offer?

 

Finbok offers five spread-based account types, with higher deposit levels unlocking access to more attractive conditions in terms of spreads and fees.

Notably, not all markets are accessible to traders unless they deposit R2,000,000. This approach is uncommon compared to industry standards, where most brokers allow access to all or nearly all tradable instruments they offer, regardless of account size.

Islamic Account

Finbok offers an Islamic Account option for its accounts. This option ensures that all trades are made without overnight interest charges to comply with the Sharia law.

Demo Account

Finbok offers a demo account that allows you to test the broker’s services and your trading skills without risking your money.

Please note that your trading experience will differ when you use a demo account compared to a real-money account due to psychological factors, as traders find themselves under pressure when real money is at stake.

It’s a good idea to use the demo account to practice and learn the trading platform, but do not spend too much time on the demo.

What is CFD leverage?

CFD Leverage allows traders to hold a position without paying the full value. Instead, you pay a deposit, which is called margin, while borrowing the rest.

In the Finbok case, traders have access to leverage of up to 1:200. This is a high level of leverage, so traders should use appropriate risk management techniques.

Maximum Leverage by Asset Class

Restricted Countries

Finbok does not provide its services in the following jurisdictions: Afghanistan, Central African Republic, Democratic Republic of the Congo, Guinea-Bissau, Haiti, Iran, Iraq, Democratic People’s Republic of Korea, Lebanon, Libya, Mali, Russian Federation, Somalia, South Sudan, Sudan, Syrian Arab Republic, and Yemen.

Research

On its website, Finbok releases daily news videos which discuss the most important events of the day. This format appears to focus more on delivering news than providing analysis.

Traders can access the economic calendar on the website and within the trading platform.

Within the platform, traders can consult the Technical Analysis tab, which displays a summary of oscillators and moving average indicators for the selected instrument. This tool is available across various timeframes, including 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 2 hours, 4 hours, 1 day, 1 week, and 1 month.

In addition, traders can check the Timeline from TradingView, which is available for some instruments.

Finbok also has a blog where it publishes articles discussing the main tradable instruments. The blog is updated regularly but not frequently.

Key Takeaways After Testing Research Tools

Finbok’s research offerings are limited to a brief daily news video, an economic calendar, and a technical analysis tool within the platform. The technical analysis tool, which summarizes signals from oscillators and moving averages across various timeframes, may be useful for some traders. However, the content lacks depth, as traders cannot access comprehensive analysis in either written or video formats.

Education

Finbok develops educational videos that are categorized for beginner, intermediate, and advanced traders, making it easy to find material suited to your level of experience.

The topics discussed in the videos range from basic subjects like “Types of Forex Orders” and “Support and Resistance in Forex” to more sophisticated themes such as the discussion of forex indicators or trading failure patterns.

The educational videos for advanced traders focus on stock market trading, providing detailed info on technical analysis and special situations that arise during the trading.

The Bottom Line

Founded in 2018 and headquartered in South Africa, Finbok provides access to popular instruments across various asset classes, including forex, commodities, indices, stocks, and cryptocurrencies.

The broker offers an in-house trading platform that is available exclusively as a web version, lacking mobile or desktop variants. The platform’s design is clean and user-friendly, potentially valuable for beginner traders. It features five types of accounts tailored to traders based on their deposit size.

During my live testing, I found that Finbok offered competitive spreads for Bitcoin. However, tests of other popular instruments indicated that Finbok’s spreads and swap/rollover fees were higher than the industry average.

FAQ