Beware! FXMoneyOnline 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.
FXMoneyOnline certainly goes in your face with this title. Inexperienced users may jump at this seeming opportunity, however this is exactly what alleged brokers like FXMoneyOnline aim for. They prey on novices who are hungry for cash, promise them high returns, and in the end take their investments, and never call them back. Is this applicable to FXMoneyOnline, or are we exaggerating? Read the review for this, and more answers.
Upon clicking on the registration button, we got a little surprise in the form of an “Access Denied”. What kind of a broker does not allow for users to register. Well we have two theories. The first one concerns the state of the brokers, as in its functional states. It may be possible that FXMoneyOnline is out of services. The second possibility, is that users are handpicked via phone; the user is contacted by the broker’s representatives and is pushed onto making a deposit. Once the client agrees to invest, only then is she allowed accessed to the registration form What ever the case is, this makes things worse for FXMoneyOnline.
What this means for us, is that all the trading info and payment details will be taken from the website. The users can allegedly trade in commodities, forex pairs, and certain undisclosed CFDs. The spread depends on the account type, with the Premium account spreads are the only ones that are favourable to users. The other accounts have both an average spread equal to or bigger that 2 pips. The leverage is capped at 1:200.
The broker can be accessed in English only.
FXMONEYONLINE REGULATION AND SAFETY OF FUNDS
The Terms and Conditions claim that the broker is operating under the laws of the Marshall Islands.
The Marshall Islands are a very popular destination for illegal brokers, because firms can easily establish their operations there without any hindrances. Furthermore, the nation does not have a financial regulator, and as such doe snot regulate FXMoneyOnline.
Seeing that there are no other mentions of a regulation, we have to label FXMoneyOnline an UNLICENSED broker, which immediately makes it a risk to any investment.
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.
FXMONEYONLINE TRADING SOFTWARE
As per the website’s information pool, the user would have access to the MT4 trading software. However, we have no way of confirming that the software is actually present.
It is too bad that this platform has not been included. Its presence would have elevated FXMoneyOnline status just a bit high, but not to high as for us to recommend it.
In short, the MT4 is by far the most popular and most effective trading software in the market today. This has been proven time and time again by it surpassing its predecessor, the MT5 – an overall improvement of the MT4-, on almost every occasion! We highly recommend trading with a broker that has the MT4
FXMONEYONLINE DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is said to be $500. The depositing gateways have not been indicated, and seeing that we could not register, there was no way to get a hold of this information in any way.
Let it be noted, that this company may charge $15 for a deposit of funds.
Withdrawals are said to be processed within 5 days. There might be withdrawal fees, and other charges, all of which have not been revealed, aside from the ones that we have included in the review.
The broker is entitled to take every month a $36 dollar fee if a user has not traded anything in the last 30 days. If there is less that $36 dollars in the user’s account, and the fee is applicable, the broker will proceed to close said account.
There are two separate clauses that claim two completely different things concerning the withdrawal of bonus. The first states that for a user to be able to withdraw a bonus he or she must complete a trading requirement of $20 000 for every bonus dollar. The other provisions claims that the withdrawal of a bonus is only achieved after the $50 bonus * $500 000 turnover is completed. This confusion is typical for unlicensed brokerages!
The company has the right to, and will undoubtedly, change the data on the website without warning its users first. In so doing FXMoneyOnline can very easily add new fee and/or commission provisions which will require users to pay!
And of course, the classic limited liability clause is here to complete the scammer experience. Basically, the broker is not held accountable for anything that it does to the user. Please note that the below clause is just one in little under a dozen similar provisions.
Do not invest in this here broker! It will not return your initial investment, and as we have pointed out, it will find smart ways to deny your withdrawal and at the same time tax you for things that should not be charged! You have been warned!
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.