Beware! EagleFX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
EagleFX presents itself as “an investment firm that operates as a global broker”. They offer a number of trading instruments, including forex pairs and CFDs on indices, commodities, precious metals and popular crypto coins with leverage as high as 500:1 and the MetaTrader4 platform.
And when we opened a demo account the spreads looked good too – around 0,9 pips for the benchmark EURUSD pair, which, even if calculated with the trading commission of 6 USD per standard lot, is reasonable. A trading commission of 6 USD per lot basically adds another 0,6 pips to the spread, so basically here we end up with 1,5 pips.
And here is the list of the trading instruments as well – we counted 55 currency pairs, lots of which minor or exotic like USDZAR, USDTRY, USDSGD, USDSEK, USDRUB, USDPLN, USDNOK, USDMXN, USDILS, USDHUF, USDHKD, USDDKK, USDCZK and USDCNH, as well as various CFDs on silver, gold, platinum, 11 major indices, oil, natural gas and crypto coins like Ethereum, Ripple, Bitcoin, Bitcoin Cash, Dash, Eidoo, EOS, Metaverse, IOTA, Litecoin, NEO, OmiseGO, Santiment, Tron, Monero and Zcash.
So far so good and yet, we have some serious doubts about the credibility of EagleFX, so if you are about to deposit your funds with them be sure to read the following paragraphs.
EagleFX regulation & safety of funds
EagleFX is owned by EagleFX Ltd., which we are told is based in the Commonwealth of Dominica. And we are given an address – 8 Copthall, Roseau Valley 00152, but not a phone number. So we decided to check the address and we came across several rather intriguing facts about it.
First, by checking Google Maps it turned out that this is the address of a small backwater, country hotel – the Roseau Valley Hotel, which supposedly shelters several other offshore companies, among which Options Tech Limited, which trades under a number of names, including Unitedmarkets4you, United & Equal, UBS Investment, UBS InvestmentOptions Tech Limited, Cryptex Markets and Block Chain Exchange Pro, all of which blacklisted by the Financial Conduct Authority (FCA) in the UK as potential scam brokers.
Also the address – 8 Copthall, Roseau Valley 00152, the Commonwealth of Dominica, appeared in the notorious archive of the Panama Papers, published by the International Consortium of Investigative Journalists (ICIJ), in connection to other criminal activities.
So basically EagleFX has a pretty shady background.
Also we should mention the fact that EagleFX is not e regulated. The authorities in Dominica does not regulated forex and CFD brokers, but that does not excuse EagleFX for not applying for a license by a well known regulator such as the FCA in the UK, or the Cyprus Securities and Exchange Commission (CySEC) especially if they want to target customers in Europe.
EagleFX deposit/withdrawal methods and fees
We understand that EagleFX accepts payments with major cards like VISA and MasterCard, bank wire and bitcoins. No popular e-wallets like Skrill and Neteller are accepted however, and that is worth to be mentioned, because of the new anti – scam policy adopted by Skrill. According the new policy the Skrill partners only with properly licensed brokers. As we already noted EagleFX is not a licensed broker.
Otherwise the minimum deposit requirement is reasonable – just 10 USD.
How does the scam work?
If you have ever wondered how so many people on the internet lose substantial amounts of money while trying to make some profitable investment, here is how it usually happens. Most commonly you will happen to come across one of the so called robo scam websites like Bitcoin Profit and Brexit Trader, which are especially designed to lure potential investors. Most of those sites are all about a video ad, where you will be told you can get instantly rich, if you only invest a small sum with some innovative software, no strings attached.
And if you do register, leaving your e-mail and phone, promptly you will be transferred to the website of a unregulated, offshore scam broker, where you will be invited to deposit about 250 USD.
And at first everything will seem fine. Your trades will be amazingly successful and pretty soon your money will almost double. That however is just part of the scam. Your account will simply be manipulated so that latter you will be more susceptible to the idea of investing more.
And that is exactly what your “senior market adviser” will tell you on the phone – if you really want to make some big money, you will surely have to invest more – like at least 10 000 USD or so. And believe it or not, but on that stage most people do invest that kind of money without ever realizing they have been scammed until the day they decide to withdraw some of their cash.
And than, it suddenly turns out withdraws are not possible, because of some minimum trade volume requirement, linked to a welcoming bonus. The excuses might be various, but in the end they will all come to the same – scammers will not be paying anything back.
What to do if scammed?
If you are a victim of a scam the chances to get your money back are pretty slim. And yet the best possible action is to file for a charge back with your credit card company. Fortunately both VISA and MasterCard currently will allow clients to file for a charge back within 540 days of their deposit.
Beware as well that some scammers might try to steal money directly form your bank account. So if by any chance you have shared your credit card number or online banking password, immediately change the password and block your credit card.
And finally, do not seek the assistance of the so called recovery agencies. They will not recover you a single penny, but will rather make you pay some fees in advance and basically that will be the end of the story.