Compass FX Review – SA Shares

Compass FX Review South Africa




According to research in South Africa, Compass FX is an independent representative of brokerage companies, headquartered in Richardson, Texas.

Since its foundation in 1990 Compass FX prides itself on unbiased research, unrivalled customer service and the fact that it offers virtually every way possible to navigate the world of commodities and forex trading.

Compass FX acts mainly as an introducing broker for other forex brokers and is regulated by the National Futures Association (NFA – 0232832).

Compass FX (RTY Trading Group, Compass Inc) serves as an intermediary between the US traders and clearing houses and Compass Foreign Exchange, LLC, a non-registered member, serves as an intermediary between traders and clearing houses outside the United States.

Compass FX sees as its primary mission the creation of smarter and more successful investors, believing that a better informed individual has a greater probability of success in the markets.

Compass FX is formed of foreign exchange traders that understand other forex traders well and offer forex trading services with confidence and pride via the popular MetaTrader4 trading platform.

Compass FX places great importance on having the suitable resources and tools to enable trading, both for the novice and the expert.




One of the best benchmarks to measure the safety of a broker like Compass FX, is to establish which regulating authorities are watchdogs over its actions.

Compass FX is regulated by the National Futures Association, NFA registration number 0232832. Since it has a long operational history dating back to 1990, it is an experienced forex trading company which also only makes use of top tier liquidity providers.

Compass FX is also regulated and authorised by Australian Securities and Investment Commission (ASIC)

Compass FX offers good and reliable multiple trading tools, gives traders the opportunity to access ample market research and commentary and is ready to provide exceptional customer support whenever any client may need it.




1. Informative website 1. High spreads
2. Platform in 12 languages for global reach 2. No information about payment methods
3. Amazing liquidity
4. Popular Internet trading software
5. 2-3 pip spreads on EUR/USD and USD/JPY
6. 3-4 pip spreads on other major currencies
7. Fast and reliable trade execution
8. Trailing stops and hedging capability
9. Excellent customer service




Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.

Leverage is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you have to have funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

The leverage offered by Compass FX ranges from 1:50 to 1:200. Moreover, micro lots and IRA accounts are available.

With Compass FX spreads on EUR/USD and USD/JPY are from 2 to 3 points, while on other currency pairs spreads vary from 3 to 4 points. The company provides fast order execution. Added to this, hedging is allowed.




A Forex account at Compass FX is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulatory authorities under whose jurisdiction it falls.

In the case of Compass FX, they offer a Standard Account and Micro Account.

Compass FX does not have Islamic Trading Accounts but provides trading demo accounts through the forex brokers they introduce for.




The most popular market instruments available from most brokers for trading include:



Forex trading, currency trading, or FX trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.



Along with currency exchange markets, commodity markets offer many investment opportunities for traders.

Soft commodities have been traded for centuries and investors’ preference for these financial derivatives is credited to their major role in portfolio diversification and risk management.

Investing in contract-based tradable goods is a reliable way to mitigate risk during times of inflation or economic uncertainty.



Equity indices, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market, or they can represent a specific set of the largest companies of a nation.


Precious metals

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Apart from forex trading, long-term investing in gold and other precious metals is worldwide a popular way of portfolio risk management during times of inflation or economic or political uncertainty.



The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.  Such conditions can decrease or increase demand for consumer services related to these energies.

Since Compass FX has been in the trading industry for many years, they are known for offering trading with Forex.com, FXCM, DirectFX, FXDD Global, and Tier1FX.

The D.O.T.S. (Daily Open Trading System) method is an intraday price-based trading model that displays market entries, exits, and target levels at the open of each trading session. The D.O.T.S. Method can help traders know where to get in and out of the market.




Due to its global presence Compass FX may offer various account types that may differ according to the regulation entity to which it complies, therefore clients may experience different fee structures too, according to their country or place of residence.

Cost depends on different factors, like spread and margins.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move. One pip is 0.01 for currency pairs with JPY as the term currency and 0.0001 for all other pairs.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.





Compass FX deposits and withdrawals are made through the currency brokers they introduce for. A minimum account opening deposit of $250 dollars is required for the Micro Account and for the Standard Account a minimum of $2,500 is required.

The funding of an account can be done with the use of Wire Transfer or a credit card.




A forex trading platform is in essence the software provided by Compass FX to its clients to carry out their trades.

A multi-asset trading platform is one that allows clients to trade forex but other asset classes, including CFDs on stocks, stock indices, precious metals, and cryptocurrencies as well.

The decision about which platform to choose will always depend on what a client would like to trade.

Compass FX provides MetaTrader4 for trading. It is one of the most popular platforms, due to the fact that it is very innovative and powerful.

MT4 features a user-friendly multi-functional interface that enables traders to control their deals just as easy on mobile devices.

MetaTrader4 has many distinct advantages that can satisfy the needs of the most demanding users trading in the Forex, CFD, and Futures markets.

It combines a user-friendly and accessible interface with a wide range of powerful functions, making it highly flexible and enabling you to efficiently manage trades.


The platform allows:

  • Expert Advisors, which is automated programmes designed to analyse the market, make decisions based on programmed criteria, execute orders and manage open positions automatically online.
  • Custom Indicators, which is technical indicators that can analyse market conditions in many ways, while some custom indicators generate signals to notify of potential trading conditions.
  • Scripts designed for single execution of specific actions.




The Compass FX review process of opening a new account is fully digital, hassle-free and fast.

Similarly to a bank, if you want to register a forex trading account with Compass FX for the first time, you will be required to go through a basic “know your customer” process.

This will allow Compass FX to make sure that your submitted personal details are correct and the safety of your funds and your account details are ensured.

After the initial registration you will normally be emailed your login details that will correspond to a login on a trading platform matching your type of account.




Potential traders need to make sure the broker company they choose will offer support whenever they may need it, in order to help customers easily find the exact answers to their questions and offer them the best user experience.

In the case of Compass FX client support managers can be contacted by email, phone or fax. The customer support department is very courteous when handling customers, and is able to solve customer issues quickly and efficiently.




Before starting to trade, potential clients of Compass FX should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

If Compass FX’s website itself does not provide enough means, a trader should explore other informative websites and means to obtain that knowledge.

Compass FX provides a ‘learn forex’ education section where new traders can learn what is trading, and also how to trade currencies online from the training video tutorials.

Educational material includes educational videos, which include trading basics and fundamentals to more advanced techniques of technical analysis and risk control are explained. Compass FX also offers a free 7 day forex training course.




To be able to trade with confidence and success, potential traders should do as much possible research about this kind of speculative trading before commencing, but also preceding every daring deal.

This will ensure that they don’t lose money unnecessarily but are able to make their trade as profitable as possible.

Compass FX delivers signals by emails, Yahoo messenger and text messages. This gives traders fast access for timely executions.

Compass FX also offers trading calculators including Pip Value, Margin, Position Size calculators and Pivot Point and Fibonacci calculators.

A Forex Time Activity Chart assists traders in trading GMT as it relates to various time zones and economic Indicators are released on a scheduled monthly and quarterly basis. An economic calendar is also available.




Although being an awarded company instills extra confidence in traders, Compass FX gives no information about awards accumulated during its years in business on its website.




Compass FX can be summarily described as a worthwhile company for potential traders, as it is regulated and authorized by the NFA, provides an advanced platform and services in a simple structure that is accessible to novice traders and professional traders.

Compass FX is also regulated and authorised by the Australian Securities and Investment Commission (ASIC) and apart from the extra security, Compass FX is a company that prides itself in knowing what traders want in the world of Foreign Exchange.


You might also like: Compass FX Account Types Overview

You might also like: Compass FX Demo Account – Step by Step

You might also like: Compass FX Fees and Spreads

You might also like: Compass FX Minimum Deposit

You might also like: Compass FX Sign up Bonus




Compass FX warns all potential customers that Forex and CFDs trading always carries a high level of risk and may not be suitable for all investors.

Before deciding to trade the products offered by Compass FX, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

Compass FX warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable.

Therefore Compass FX cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.



Frequently Asked Questions



Is Compass FX a good and legit broker?


Our Review of Compass FX reveals that this broker is highly regulated by the NFA (United States of America) and ASIC (Australia) and therefore considered legit.


How many instruments can I trade with Compass FX?


Compass FX is an introducing broker, instruments depend on the relevant broker with which an account is opened, and include Forex, CFDs and gold and silver.


Which platforms are supported by Compass FX?


Compass FX provides the popular MetaTrader 4 trading platform.


Does Compass FX offer leverage?


Yes, Compass FX offers a maximum leverage of up to 1: 200 through FX Solutions Australia, Gain Capital U.K. and FXDD.


What spreads can I expect with Compass FX?


Compass FX offers the spreads applicable to the brokers it represents. More information should first be obtained from the customer support service to make an informed choice.



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