Beware! 7FXGT 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.
7FXGT is an anonymous Forex broker and should certainly be avoided. It is a shady entity which, in fact, has presented the public with a relatively good website, we have to admit. There is plenty of information in regards to their trading conditions, including margin requirements, leverage and spreads, also some seminars and free training are available. You can also find a career page, FAQs and everything else that might mislead you and make you think it is a true Forex broker. But this is nothing, compared to the many red flags we found, while dealing with the alleged Forex broker, for more details read the full 7FXGT review.
7FXGT REGULATION AND SAFETY OF FUNDS
7FXGT claims to be a broker that holds the clients’ funds segregated, also they reassure that their 256-bit SSL encryption is secure, and no fraud is possible. They list an address in London saying for themselves to be an UK regulated Forex broker, and here comes the first red flag. No license was to be found in the FCA database, and what is more disturbing, the company standing behind this website was dissolved exactly a year ago!
And here is the address listed on the 7FXGT webpage.
Your funds are not in safety if you make a deposit with 7FXGT , it is an unlicensed, unauthorized and unregulated Forex broker and you should stay away!
If you are looking for a reliable, true Forex broker choose between the CySEC(EU) and FCA(UK) regulated companies, which are the leaders in the retail Forex industry, transparent and trustworthy. The customer protection policy is placed on top of their priority list, not because they want to, but because they have to. In these jurisdictions the Forex brokers have to comply with many strict rules and regulations, such as minimum capital requirements of 730 000 EUR, personnel qualification standards, segregation of the clients accounts etc. There are also money protection schemes in operation, such as ICF in Cyprus and FSCS in UK, which guarantee the deposits of the clients. Under CySEC(Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in UK under FCA you are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
7FXGT TRADING SOFTWARE
7FXGT offers only MT5 accounts to its customers, MT4 or web-based platform is not available. Demo trading is allowed, we managed to download Metatrader 5 and setup a training account. Their conditions were more than favorable, in fact, the spread would be as low as 0.0 pips, which is actually achievable by a true ECN broker. However, as already explained, 7FXGT is an unregulated Forex broker run by a company that was dissolved and you should avoid dealing with it.
The leverage offered is up to 1:1000 which is a level we do not recommend. The stop out level will be just a few pips from the opening price and you might end up destroying your account in a very short time. A spike of no more than 15 pips should be enough to drain out your funds completely. ESMA, the EU financial regulatory agency, agreed and launched a product intervention on the markets, imposing a leverage cap of 1:30, which later CySEC and FCA implemented in their regulatory framework. The step itself is a part of the customer protection policy in the retail Forex industry, because the data showed that the traders and investors with little or no experience tend to record greater losses, by using increased leverage.
Here is the other sign-up method.
7FXGT DEPOSIT/WITHDRAW METHODS AND FEES
7FXGT is yet another Forex broker which does not display T&Cs or a Client Agreement, which is a huge red flag! A Forex broker withholding critical information about itself should never be trusted! There is only a two-page Risk Disclosure which actually state that the company is not really responsible for anything, and also that 7FXGT allows indebted accounts, which itself is the next red flag to note! An alleged UK regulated company, as they advertise themselves, is bound to provide a negative balance protection to its customers, which effectively means that the losses cannot be greater than the total amount deposited!
There are 4 different account types offered, with deposits starting from 1 USD. On their FAQ page, though, they say that the minimum initial deposit is at least 50, and they actually advice the traders to deposit not less than 2500!
There are many funding methods listed such as bank cards, wire transfers, Neteller, Skrill, WebMoney, Bitcoin, WeChatPay, Giropay, Yemadai and so on, but we cannot confirm that these are available, as we couldn’t register.
No minimum withdrawal specified, however, it’s free of charge, or at least this is what they say. They claim to process the requests instantly, but this sounds like a joke, as the true Forex brokers are known to comply with certain procedures, which are required by law, before they make any withdrawal possible.
No bonuses or other trading incentives offered. No dormant account policy or fees for inactivity specified. 7FXGT has an Introducing Broker partnership, but no fully comprehensive information given. Do not become a scammer, by partnering with 7FXGT .
7FXGT has a twin, actually, called TrintFX, a Forex broker we reviewed recently. If the red flags pointed failed to convince you that 7FXGT is a scam, have a look at this picture.
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centers. Sometimes they will simply rely on the quantity, they will publish tens or hundreds of websites and will just wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
Fraudsters are working in the social media nowadays, an increasing number of scammers will first introduce their “services” to the people through Facebook or Instagram. You will click on a page, promising a lush lifestyle if you follow their example, they will contact you, probably offer you a demo account and after some time you will be tempted to invest and make guaranteed profits. Once you are signed-up they will ask you to deposit money and this is just the beginning, because gradually they will be asking for more, no matter if you lose or make profits. The end is always the same, a robbed-off investor who lost his hard-earned money.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!