BKFX Review

Author By Chris Cammack
Updated: June 14, 2021
Overall Rating
3.69 3.69 / 5
Rated #52 of 68 Recommended Brokers
Min. Deposit
USD 5
Regulators
Trading Desk
Trading Cost
USD 18
Website Language
English
Support Language
English
AlertAccepts South African Clients. Average spread EUR/USD 1.5 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform supported. BKFX is regulated the FSCA.

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Summary

Founded in South Africa in 2017, BKFX is an FSCA-regulated broker offering trading on a range of financial instruments, including 40 Forex pairs, 7 indices, 5 commodities, 12 cryptocurrencies and 39 share CFDs. 

BKFX offers four live accounts with a range of minimum deposit requirements to suit traders of all experience levels. Trading costs are higher than other STP/ECN brokers, with spreads starting at 1.8 pips (EUR/USD) on its Cent Account but improve to 1 pip (EUR/USD) on the Premium Account, in exchange for a high minimum deposit of 1,000 USD. However, BKFX does not charge any deposit, withdrawal or inactivity fees and provides negative balance protection for all traders.

Unlike other brokers who offer several trading platforms, BKFX only offers support for MT4, but it does allow hedging, scalping and algorithmic trading. It also offers a VPS service at an additional cost and a PAMM Investor service for those interested in copy trading. BKFX’s educational and market analysis materials are relatively limited compared to other brokers, making it a poor choice for beginner traders

Reviews

Regulation
111003/ 5
Trading Conditions
111003/ 5
Trading Platforms
111104/ 5
Deposit & Withdrawal
111115/ 5
Education & Research
1110.503.5/ 5
Assets Available
11110.54.5/ 5
Customer Service
111104/ 5
Beginner Friendly
Standard
Bonuses
100% First Deposit Bonus up to $1000

Account Information

Base Currencies
EUR, USD
Number of FX Pairs
40
Copy Trading
Hedging Allowed
Scalping Allowed
Islamic Account

Trading Conditions

Min. Spread
1.50 pips
Commission
Fees Included in Spread
EUR/USD
1.5 pips
GBP/USD
1.7 pips
USD/JPY
1.6 pips
Max. Leverage
500:1

Company Details

Company Name
BKFX (Pty) Ltd
Founded
2017
Website
Office Locations
South Africa

Pros

  • Fast and free withdrawals
  • Wide range of assets
  • Good range of accounts

Cons

  • MT4 Only
  • Wide spreads
  • No ZAR Account

Is BKFX a Safe Broker?

Founded in 2017 and based in South Africa, BKFX is an online Forex and CFD broker that is regulated by the Financial Sector Conduct Authority (FSCA) in South Africa:

  • BKFX (Pty) Ltd (company number 2017/657344/07) is authorized and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa with License no. 49288.

The South African FSCA is well-respected, but is not considered one of the best international regulators.  Its rules are somewhat relaxed compared to those of the regulators in the EU and the UK.  For example, while the FSCA ensures that brokers hold client funds in segregated accounts, they do not force brokers to provide negative balance protection or to comply with any leverage restrictions. Additionally, the FSCA does not insure client funds through compensation schemes. 

While BKFX does not participate in a compensation schemes, it does segregate client money at top-tier banks in South Africa and offers negative balance protection to all clients. 

According to regulation, BKFX is also required to keep accurate records and accounts, clearly distinguishing client accounts from each other as well as the company accounts. The company is also regularly assessed by external auditors, and the auditor’s report is sent directly to the FSCA. 

One consideration is that BKFX is only regulated by a single authority (the FSCA), though this is not unusual for South African brokers. Most international brokers hold licenses from multiple top-tier regulators such as the Financial Conduct Authority (FCA) in the UK, or the Cyprus Securities and Exchange Commission (CySEC). Brokers with more than one regulator tend to have better client fund security processes and are less likely to have financial irregularities.  

Despite only holding a local licence from the FSCA, BKFX does offer negative balance protection and takes the security of its client’s funds seriously. We consider BKFX a safe broker for South Africans to trade with.   

BKFX Trading Fees

BKFX’s trading fees are higher than average. 

BKFX offers several account types that have different fees.  Unlike most ECN brokers, BKFX only uses a single liquidity provider, resulting in less competitive spreads. 

All BKFX’s account types were tested to compare the costs, and then these costs were compared to those of other brokers. 

The costs were evaluated based on the trading fees on one lot (100 000 USD) of EUR/USD, including the spreads and commissions. 

BKFX Account Table

As per the table above, the lowest cost account is the Premium Account, however, the minimum deposit requirement is 1,000 USD, making it inaccessible to most traders, and especially beginners. 

If you hold a position overnight with BKFX, a swap fee will also be charged, which is the interest paid on a leveraged position.  A leveraged position is the money borrowed from the broker to trade.  Interest is paid (or received) when a position is held overnight.  For example, at BKFX, clients will pay interest of 4.32 USD when holding a long position on one lot of EUR/USD overnight and will receive 0.85 USD in interest when holding a short position (one lot of EUR/USD) overnight.  

Based on the low minimum deposit requirement of the Cent Account, and the fact that traders can trade in micro-lots, this would probably be the best option for beginner traders who do not want to risk trading large amounts of money. 

Compared to other STP/ECN brokers, BKFX’s fees are high.  Most ECN brokers offer raw spread pricing and charge a commission per trade, which brings down the trading costs.  BKFX only offers raw spread pricing on its Tailor Made account, which has a minimum deposit requirement of 10,000 USD/EUR, making it inaccessible to most traders. For more detail on BKFX’s account types, click here.

BKFX Non-trading Fees

BKFX’s non-trading fees are low compared to other similar brokers.

BKFX does not charge any inactivity fees, nor does it charge any deposit or withdrawal fees. 

BKFX Account Opening

BKFX’s account opening process is hassle-free compared to other brokers

All South African residents are eligible to open an account at BKFX, but will need to meet all the minimum deposit requirements to open an account:

  • Cent Account: 5 USD
  • Standard account: 100 USD
  • Premium Account: 1,000 USD
  • Tailor Made account: 10,000 USD

Responsible brokers require a minimum deposit to reduce a trader’s risk of losing their entire account balance in a stop out following a margin call on a losing position. 

South Africans will also be required to go through BKFX’s Know Your Customer (KYC) process:

  1. BKFX’s intake form requires clients to fill in their email address, name, telephone number, country of residence, and date of birth. A confirmation pin will be sent to the listed email address.   
  2. BKFX requires individuals to submit a copy of their National ID or Passport with the signature page, and a copy of a recent utility bill or bank statement displaying the customer’s name and address that is not older than three months.
  3. For a client to deposit funds at BKFX via credit/debit card, a copy of the back and front of the credit/debit card used to make the deposit is required. For bank transfers, a copy of a bank statement will be needed.
  4. All documents should be submitted to BKFX within seven days of the first deposit to avoid delays in processing the transactions. Should BKFX not receive the required documents on file, a client’s pending withdrawals will be cancelled and credited back to the trading account.
  5. Documents can be scanned or sent through as a high-quality digital camera picture and uploaded into the relevant section of the Client Login Area.

According to customer service, once the documents have been received by BKFX, accounts will be ready within 1 business day.  Compared to other South African brokers, BKFX’s account opening process is fast, easy, and fully digital. 

BKFX Account Types

BKFX has more account types than most brokers but not all accounts are suitable for beginners

BKFX has four different account types suited to both beginner and experienced traders alike. We classify beginner traders as inexperienced traders who have never traded before, or who have been trading for less than a year.  Beginner traders often do not want to risk trading large sums of money and generally will not be able to trade full-time during the workweek.

Accounts with lower minimum deposits and which allow trading in micro-lots are generally more suited to beginner traders, as there is less financial risk involved due to the lower initial cost and smaller trading sizes.  However, spreads on these accounts are often wider than those with higher minimum deposits. 

Experienced traders tend to prefer accounts with higher minimum deposits and tighter spreads. Experienced traders are more comfortable with the financial risk that comes with larger trade volumes and are willing to accept higher initial costs in return for lower ongoing trading costs. 

BKFX offers four market execution accounts all with leverage of up to 500:1, and hedging, scalping and algorithmic trading are available. 

  • Cent Account: With a minimum deposit of 5 USD/EUR, clients can trade in micro-lots. Spreads start at 1.8 pips on the EUR/USD, which is wider than other similar brokers, but no commissions are charged.
  • Standard account: The minimum deposit is 100 USD on this account. Spreads are also wide, starting at 1.5 pips on the EUR/USD, with no commissions.
  • Premium Account: Spreads tighten to 1 pip on the EUR/USD on this account, in exchange for a minimum deposit of 1,000 USD. This spread is still relatively wide compared to other brokers with commission-free accounts. 
  • Tailor Made Account: Designed for more experienced traders, the Tailor Made Account requires a minimum deposit of 10,000 USD, raw spreads start at 0 pips on the EUR/USD, and a variable commission is charged.
Scroll for more detailsPreviousNext
Display Name
Min. Deposit
Max. Leverage
Min. Spread
Commission
Cent
USD 5
500:1
1.80
None
Account Details
Premium
USD 1000
500:1
1
None
Account Details
Standard
USD 100
500:1
1.50
None
Account Details
Tailor Made
USD 10000
500:1
0
Variable
Account Details

All accounts are available on the MT4 platform (click here for more details on BKFX’s trading platforms) and are available as Islamic swap-free options.

Overall, BKFX’s trading costs are higher than other similar brokers, especially considering the high minimum deposit requirements on the Premium and Tailor Made accounts.  While the Cent Account does cater to beginner traders, its spreads are wider and its costs are higher than the entry-level accounts at other brokers. 

BKFX Account Types

BKFX offers trading on multiple financial instruments, including Forex, cryptocurrencies, shares, commodities, and indices.  With only 40 forex pairs BKFX’s asset choice is limited compared to other large brokers.  Furthermore, although traders can trade on all instruments on the Standard, Premium and Tailor Made accounts, trading assets are limited on the Cent Account. For more detail on BKFX’s assets, click here.

BKFX’s Deposits and Withdrawals

BKFX’s deposit and withdrawal fees are low compared to other brokers.

An FSCA-regulated broker, BKFX ensures that all Anti-Money Laundering rules and regulations are followed, and as such, all non-profit withdrawals are returned to the deposit source. No matter your deposit method, the withdrawal of all profits must be made by bank transfer to a bank account in your name. BKFX does not charge a fee for deposits or withdrawals.  See the following list of payment options:

  • Credit/Debit Card
  • Local Bank Transfer
  • Neteller
  • Skrill
  • Sticpay
  • LetKnow
  • Zotapay
  • Dragonpay
  • Payguru

The deposit and withdrawal process at BKFX is fully automated, which means that deposits are processed instantly, and withdrawals take 30 minutes, which is much more efficient than other South African brokers.

Note that a bank transfer can take several days to be processed depending on the bank processing time. 

BKFX Trading Account Currencies (Base Currencies)

BKFX has a limited number of base currencies compared to other brokers and does not offer ZAR trading accounts

At BKFX, you can only choose from two base currencies: EUR and USD.  This is a disadvantage for most South African traders who will likely have bank accounts denominated in ZAR and will thus have to pay conversion fees. Some South African brokers also offer ZAR accounts, which means that traders do not have to pay conversion fees.

Conversion fees can make trading expensive, and are usually not presented on the fee report, but affect your profitability. However, it should be noted that for traders that trade in large volumes (more than 10 lots a month), it is better to open an account denominated in USD, especially for trading on assets such as the EUR/USD. This is because when trading a USD quoted currency pair with a ZAR account, there will be a small conversion fee for every trade made.

BKFX Trading Platforms

BKFX only offers trading on the Metatrader 4 (MT4) platform, whereas other brokers offer multiple platforms, including MT5, cTrader or a proprietary platform. 

Although MT4 is now showing its age, it is still considered one of the best CFD trading platforms in the world. It is especially prized for its algorithmic trading abilities, allowing traders to install automated trading robots and indicators downloaded from the MetaTrader Market.

MT4 is also widely recognised for its trade execution speeds, charting tools and customisability and it is available in many languages. The benefit of using a third-party platform such as MT4 is that traders can use the same platform should they choose to migrate to another broker. That said, many brokers offer support for several trading platforms, including their own proprietary platforms, MT5, or cTrader.  MT5, the newer version of Metatrader, offers additional functionality and a more sophisticated programming language than MT4.  cTrader is also frequently available at other ECN brokers and has a cleaner user interface, offers more advanced charting options, and is more user-friendly than MT4.

BKFX Metatrader 4 (MT4)

MT4 has great customisability, which means that the size and position of the tabs can be easily moved. Traders can also trade on a variety of CFDs, including Forex, metals, cryptocurrencies, and stock CFDs. Other features of MT4 include:

  • Four types of order execution, including Market, Limit, Stop, and Trailing Stop orders.
  • Superior charting tools in nine timeframes
  • 30 technical indicators
  • 23 analytical objects
  • Algorithmic trading, which allows any trading strategy to be formalised and implemented as an Expert Advisor. 
  • Backtesting capabilities
  • Dedicated customer support

BKFX MT4

BKFX Mobile Trading Platform

BKFX’s mobile trading platform is average compared to other similar brokers who offer MT4. 

BKFX offers MT4 on a mobile trading platform. It is available for both Android and iOS. As with the web trading platform, traders can choose from multiple languages. Although there is limited functionality compared to the desktop version of the platform, with reduced timeframes and fewer charting options, traders will still have access to analytics with technical indicators, graphical objects, and a full set of trading orders. 

BKFX Mobile Trading Platform

BKFX Trading Tools

BKFX’s range of trading tools are average compared to other South African brokers

BKFX offers a few additional trading tools, including an Economic Calendar, a VPS service, and PAMM Investor.  However, unlike other similar brokers, it does not offer any additional sentiment indicators or analytics services such Autochartist or Trading Central.  See below for more details on the various tools:

  • Economic Calendar: BKFX offers an economic calendar highlighting various events that will impact market movements. An economic calendar is also available through MT4.
  • VPS: The VPS service available at BKFX is offered by a third-party provider, TradingFXVPS. The VPS service ensures that trades are never affected by power cuts (such as load-shedding) and provides a secure low latency connection that is always stable.  TradeFXVPS’ servers are located in major financial cities around the world and connect seamlessly with the MT4 platform.  An annual subscription to the VPS service costs 250 USD but is also available with a monthly payment of 25 USD. 
  • PAMM Investor: PAMM stands for Percentage Allocation Management Module and is a form of trading whereby an investor’s money is managed by strategy providers who trade on their behalf in exchange for a portion of the profits generated. PAMM services are great for beginner traders who do not yet feel able to create a profitable trading strategy.

Overall, the tools on offer at BKFX are not as substantial as those offered by other brokers, and while it offers a VPS service, this comes at an extra cost to the trader. 

BKFX Financial Instruments

BKFX’s range of instruments to trade is limited compared to other brokers

BKFX offers a range of financial instruments for CFD trading, including Forex, cryptocurrencies, shares, commodities, and indices.  BKFX generally offers fewer instruments to trade compared to many international brokers, but it does offer a wider range of cryptocurrency pairs than is generally available at other South African brokers:

  • Forex: BKFX only has 40 currency pairs available for trading, including majors (EUR/USD, GBP/USD, and USD/JPY) and minors (NZD/CAD, EUR/JPY, and USD/ZAR), but lacks exotics. While this is standard for South African brokers, many international brokers will offer 60+ pairs to trade including a range of exotic pairs. The leverage on Forex pairs is up to 500:1.
  • Share CFDs: BKFX offers 39 share CFDs, which is limited compared to other brokers. However, the selection available includes some of the major US companies, including Apple, Tesla, Facebook, Netflix, and Pfizer, among others. Leverage on share CFDs is up to 20:1.
  • Commodities: Commodities are limited in scope compared to other South African brokers, with only five commodity CFDs available for trading. These include gold, silver, platinum, and both US and UK oil futures. Maximum leverage on commodities is 100:1.
  • Indices: Also limited compared to other brokers, there are only seven indices available at BKFX, but these include the likes of the S&P 500, the DAX30 and the FTSE100. Leverage is up to 100:1 on indices.
  • Cryptocurrencies: With 12 crypto pairs available for trading, BKFX offers a wider range than is available at most other brokers, including BTC/USD and ETH/USD. However, it does not offer crypto crosses. Leverage on cryptocurrency trading is up to 5:1.

BKFX Research and Market Analysis

BKFX’s market analysis is average compared to other South African brokers

Alongside a basic Economic Calendar, BKFX offers daily fundamental analysis written by its team of in-house analysts and a Weekly Analysis. The fundamental analysis materials are short but well-written and to the point, while the Weekly Analysis details the market movements of the previous week and provides a forecast of future movements.  However, traders may have to supplement this data by performing their own research using the materials provided on other larger broker sites or using independent third-party tools. 

Unlike other South African brokers, such as Blackstone Futures and Khwezi Trade, BKFX does not offer in-house training or webinars to help traders find their footing.

BKFX Research and Market Analysis

BKFX Education

Like the research section, education at BKFX is limited in scope compared to other brokers. 

BKFX offers a selection of video tutorials, audiobooks, ebooks, and a forex glossary.  These materials are neither in-depth nor comprehensive.  On a positive note, BKFX offers an unlimited demo account that is available for all account types.  See below for more details:

  • Video Tutorials: BKFX offers an Introduction to Forex comprised of 16 lessons, totaling 43 minutes, and a 36-minute introduction to the Metatrader platform.
  • Audiobooks: The same materials as available in the video section are available as audiobooks.
  • Ebooks: BKFX offers one downloadable ebook that covers the Metatrader platform.
  • Forex Glossary: BKFX offers a basic trading glossary covering all trading terms.
  • Demo Account: Unlike many other brokers, BKFX’s demo account is unlimited, which means it will never expire. The demo account is available for all account types on the MT4 platform and is a great way for traders to practice trading without risking real money.

Overall, the education section could be improved with a greater variety of materials in addition to providing sections for beginner and more experienced traders.  Beginner traders would also benefit greatly from being able to attend webinars on CFD trading basics and risk management. 

BKFX Education

BKFX Customer Service

Customer service at BKFX is available Monday to Friday 10am – 6pm SAST, but will be initiating a 24/5 support line in the near future which will bring it in line with most other brokers. Support is available via online chat, telephone, and email, and several languages, including English, Spanish, Portuguese, and Korean. 

We found the customer service responsive and polite, but unable to answer some basic questions, such as what commissions are charged on the Tailor Made Account and what restrictions are applied to the Cent Account. 

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the BKFX offering. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

BKFX Risk Statement

Trading Forex is risky, and each broker is required to detail how risky the trading of Forex CFDs is to clients. BKFX would like you to know that: Trading on margin involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities, and other aspects.

Overview

An FSCA-regulated STP/ECN broker, BKFX offers trading on a relatively limited selection of CFDs. With four live account options, trading costs are high on its entry-level accounts but improve significantly on accounts with higher minimum deposits. Exceptionally for the industry, it does not charge any non-trading fees, such as for withdrawals, deposits, or inactive accounts. Trading is only offered on MT4, but BKFX offers several useful trading tools, including a VPS service and a PAMM investor service. Lastly, its educational and market analysis materials are slightly worse than average compared to larger international brokers, making it a poor choice for beginner traders. 

AlertAccepts South African Clients. Average spread EUR/USD 1.5 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform supported. BKFX is regulated the FSCA.
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AlertMost retail CFD accounts lose money. Your capital is at risk.

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