Beware! Finexarena 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.
Finexarena plays the game well at first glances, with an alluring yet simplistic approach, and not a lot of texts to weigh on the senses. Yet, one must go deeper into a broker’s website, and not just rely on first impressions. And as is expected, we were left disappointed with Finexarena, for a number of reasons, all of which will be discussed bellow. Read on to find out more.
The procedure of signing up left s wanting more, but at least it granted us access to a user area, or so we though. What we got was a list of pros that revealed a leverage cap at 1:400 on top of a prerequisite in the shape of ID documents. So, in essence, we could not go on without providing copies of our identification papers.
However, we did open a trading software without an issue, and got a EUR/USD spread of 0.9 pips, and the leverage is capped at 1:400. The platform gave us forex pairs, indices, stocks, commodities, and cryptocurrencies as main trading assets.
However is that all the payment details, will all be taken from the website.
The languages are English and German.
FINEXARENA REGULATION AND SAFETY OF FUNDS
Here we have a broker that holds back on literally all regulatory information,which can mean only one thing
Before concluding, we just want to say that the entire website does not once mention of the broker is registered, but even if it did say something, we would not take it seriously seeing what the rest of the review reveals about Finexarena.
So we have no choice but to proclaim this broker UNREGULATED and a risk to all investors in it! Brokers that do not have a license are never safe to trust! These firms are not safe, and as such cannot be trusted with your investments!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
FINEXARENA TRADING SOFTWARE
Surprisingly, even without a registration, we were able to access a trading software from the website, without an issue.
However, one big issue immediately stood out, and that was the third party charts that are a part of the trading software, which basically renders this terminal useless. All the times we have come across similar cases, all these were from fraudulent brokerage firms; again solid proof that Finexarena is illegitimate.
And anyway, even without this thorn, this terminal for trades is bland as one can get. The only thing that saves it from complete obscurity is the pending order and the stop/loss limits.
FINEXARENA DEPOSIT/WITHDRAW METHODS AND FEES
The website reveals that the minimum deposit is €300, and that the payment method are Visa, MasterCard, Wire Transfer, and Bitcoin. Yet, we cannot confirm neither these nor the rest of the payment details we reveal, because we had not been granted access to the client area.
The same section on the website from which we took the depositing methods is sort of broken when trying to get a hold of withdrawal gateways. It did not reveal anything.
The withdrawal policy produced some insight, and that came in the form that they are processed within 24 hours. There was also a vague mention of taxes and fees, but there is no clearance on these. Bear in mind, that what we mean is that there are applicable fees and charges, but that the company at hand has explicitly not included any numerical values!
The bonus scheme is a complicated thing that is not worth your time and energy. Users that accept a 25% bonus cannot withdrawal funds for 3 months. If the bonus goes up to 50%,the period increases to 6 months. If the bonus granted to a user is 100, the withdrawals will be blocked for a whole year.
And even if these conditions are met, client will be limited as to the percentage of profit one can withdrawal. Gold account holders can withdraw only 10% per month . Platinum holder are limited to 20% per months, and VIP users can withdraw 50% of the monthly profits. Overall, unnecessary stuff right here, and proof that this broker is a scam.
The common indemnification provisions makes a return, to make sure that the broker is not held responsible for any issues it cause a user. Again, the addition of this clause is synonymous with almost every illicit company we have reviewed thus far.
The Terms and Conditions are short, and so cannot carry the usual weight that other scammer brokers have. This is the main reason why there are not so many clauses. However, please do not let this lead you away from the fact that Finexarena unlicensed, and a risk to your investments; at the end of the day, this is the biggest and most important variable to consider when looking for a broker to trade with.
If for whatever reason you wish to continue with a deposit, our only advice to yo is to go with the minimum required amount!
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.