Overall Rating: ★★☆☆☆ (2.4/5.0)

TeraFX is a London-based forex and CFD broker offering trading in currencies, indices, commodities, and precious metals. The firm is regulated by the UK’s Financial Conduct Authority (FCA), which gives it a significant trust advantage. However, despite this regulatory credibility, TeraFX’s platform offering, limited instruments, and outdated website infrastructure have left it trailing behind more advanced brokers. TeraFX primarily appeals to traders seeking basic trading services under robust regulatory supervision.

This review explores TeraFX’s platform features, regulation, fees, and whether it remains a competitive option for traders in 2025.

Key Features

TeraFX focuses on simplicity and compliance, with a standard offering targeted at conservative traders.

• Trading Platforms:
  • MetaTrader 4 (MT4) only
  • No MT5 or proprietary platform
• Markets Offered:
  • Forex, precious metals, commodities, indices
  • Fewer than 100 instruments
• Account Types:
  • Standard Account (fixed spreads)
  • VIP/Institutional Accounts (by request)
• Leverage:
  • Up to 1:30 for UK retail clients (FCA rules)
  • Up to 1:100 for professional clients (eligibility required)
• Minimum Deposit:
  • £100
• Funding Methods:
  • Bank transfer, debit/credit cards

Regulation and Security

TeraFX is authorised and regulated by the FCA, offering a high level of legal protection and oversight.

• FCA (UK) Regulated – [FRN: 563453]
• Segregated client funds held in UK banks
• Negative balance protection for retail traders
• Covered under the UK Financial Services Compensation Scheme (FSCS)
• Strong legal recourse and dispute resolution mechanisms

This makes TeraFX a safe choice from a compliance perspective, though operational offerings are limited.

Pricing and Costs

TeraFX offers fixed spreads, which remain stable during volatility but are generally wider than industry averages.

• Spreads:
  • Fixed spreads from 1.8 pips on EUR/USD
• Commissions:
  • No commissions on retail accounts
• Deposit/Withdrawal Fees:
  • No deposit fees
  • Withdrawal methods limited and processing times can be slow
• Inactivity Fee:
  • Not clearly disclosed

Educational Resources and Customer Support

TeraFX provides some basic trading education, but lacks the modern educational offerings seen in leading brokers.

• Education:
  • Platform usage guides
  • Basic market terminology
• Market Analysis:
  • Limited daily market insights
• Customer Support:
  • Support available via email and phone
  • No live chat
  • Support hours limited to business days only

Risk Management Tools

As an FCA-regulated broker, TeraFX meets the minimum standard for risk control, but lacks advanced tools.

• Stop-loss, take-profit, and trailing stops via MT4
• Negative balance protection
• No guaranteed stop-loss orders (GSLOs)
• Risk management entirely dependent on MT4 functionality

Pros and Cons

Pros

• FCA-regulated with FSCS protection
• Fixed spreads ideal for news-event traders
• Simple MT4-based trading setup
• Negative balance protection

Cons

• No MT5 or advanced trading platform
• Very limited tradable instruments
• Outdated website and lack of innovation
• No live chat or 24/7 support
• No crypto CFDs or equities

Conclusion: Is TeraFX the Right Choice?

TeraFX is a safe but basic broker, offering fixed spreads and FCA oversight, making it suitable for conservative traders prioritising regulatory safety over cutting-edge tools. However, the broker lags behind competitors in platform diversity, market coverage, and user experience. For traders looking for broader asset access and modern platforms, regulated alternatives like AvaTrade, Pepperstone, or ThinkMarkets offer significantly more value.