Finaxis Review- 5 things you should know about Finaxis.io

Finaxis Review- 5 things you should know about Finaxis.io

Beware! Finaxis is an offshore broker! Your investment may be at risk.

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Finaxis is a forex brokerage registered in Luxembourg. It provides the MetaTrader4 trading platform and a generous leverage. Traders are extended a leverage of up to 1:500. Furthermore, there is a wide range of trading products from which to choose and a spread of 2 pips on EUR/USD which is more than the industry average. The required minimum deposit  is the standard $250 in Forex trading.

Finaxis regulation & safety of funds

We could not find the name of the company on the website of the brokerage, it isn’t stated even in the terms and conditions of the brokerage. However, we do discern that the broker is presumably based in Luxembourg.

We remind readers that Luxembourg is a member-state of the European Union and online Forex trading is duly integrated within its regulatory framework which is modeled after the ESMA guidelines. However, after checking the online registry of the local regulatory authority we find no mention of the broker brand which leads us to conclude that the brokerage is not regulated. Furthermore, trading with an unregulated brokerage hides a lot of risk. There may be commingling which means that the brokerage may commingle together the finances of the firm and the finances of the clients.

Putting this aside, the brokerage provides the MetaTrader4 terminal which is the foremost platform in online trading at the moment and we were able to register for a demo account for the web version. Here is a screenshot:

We could see that the spread is 2 pips which is half a pip above the industry average and not very favorable for traders in our opinion. There is no information regarding the extended leverage and we always view the unavailability of information as a big disadvantage for Forex brokers. There isn’t much of a variety when it comes to the available trading products which also doesn’t speak much on behalf of the brokerage. The required minimum deposit is the standard $250 which is nothing out of the ordinary.

Putting this aside, the lack of regulation and the offshore location of the brokerage incline us to suspect that potential client’s funds may be at risk.

Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.

Finaxis deposit/withdrawal methods and fees

As is common for unregulated and anonymous brokerages – we find no information regarding the available payment methods. Usually in Forex trading potential clients of the brokerage may deposit or withdraw via VISA and MasterCard, Bank wire.

In the terms and conditions of the brokerage we did not find а provision that is worth noting, however, many brokers choose not to share such information. This is why we remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.

How does the scam work?

Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:

Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or The bitcoin miner where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.

After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.

Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing achargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.

It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.

What to do when scammed?

As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.

You may contact your bank or credit card provider and file a chargeback. 

If, however, you have provided the broker with your credit card details, immediately cancel your credit card.

If you have given information regarding your online banking pass – you should switch it asap!

Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!u

Rich Snippet Data
Review Date
Reviewed Broker
Finaxis
Broker Rating
1.21star1stargraygraygray

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1 Comment

  1. finaxis is a scam!!! they have stolen my money! Please help, how can i charge a law suit against them ? they have my personal data, access to my bank account. please contact me!

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