Beware! EU FX Index 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.
EU FX Index is one of the forex companies we do not recommend to trade with!
This brokerage trades in forex, precious metals, commodities, oil, indices and Bitcoin. Five accounts to choose from – Micro, Standard, Silver, Gold and VIP offer different conditions and perks. We’ll look into these accounts later on in this review.
EU FX Index Regulation and safety of funds
In the footer of the company’s website, we find out that EU FX Index is a brand owned and operated by Terratech LTD. in the Marshall Islands. You should know that Marshall Islands is an offshore zone and does not have financial regulator. Practically, anyone can set a company in the Marshall Islands without actually having to go there. You should stay away from such companies as there are potential risks for losing money. For example, if the company goes bankrupt or simply shuts down and disappears with your money, you won’t be able to recover any funds.
On the other hand, forex companies from well-established jurisdictions provide safety of funds and many more advantages. Believe us, that trading with a legitimately register and regulated forex company is the best way to avoid scammers. Look for forex companies registered and regulated in EU, UK or US. First of all, companies in EU and UK must have an initial capital of 730,000 EUR which help sieve scammers. In addition to that, if regulated by CySEC, these companies must contribute to a compensation fund which in case the company goes bankrupt, will compensate the clients by 20,000 EUR per person. In UK, traders will be compensated up to 85,000 GBP per person if the company is regulated by FCA. Also, to avoid shady deals, the companies must report on a regular basis about transactions executed. What better conditions can you wish for?
EU FX Index Trading software
The company offers its own web trader platform. From the screenshot below, you will see that on the left are displayed the different currency pairs with their bid/ask price and in the middle of the screen you’ll see the fluctuation in price of the EUR/USD pair in a given time frame. From the EUR/USD pair bid/ask price we find out that the spread is 0.6 pips which is not wide. The leverage is 1:500 which is very high which signifies that you’ll be taking serious risks with your funds should you choose to trade via this platform. For comparison, forex companies registered and regulated in EU have a leverage cap of 1:30 and those in US – a leverage cap of 1:50. These are measures to prevent traders from taking unreasonable risks with their funds. You will be well advised to select one of the brokerages with leverage limitation to prevent financial loss.
We also want to advise you that there are some much better trading platforms than the one offered here. For example, MetaTrader 4 and MetaTrader 5 are much better choices and it’s not by chance that they are preferred by the majority of the brokers. The advantages they offer are many, including VPS, auto trading option, code base with customs scripts, an app market, trading signals (for a subscription fee), a financial calendar, etc.
EU FX Index Deposit/Withdrawal methods and fees
In the account type information section, we find out that the minimum initial deposit is $500. However, in the Deposit/Withdrawal section on the company’s website, it states that clients can deposit as low as $200. Such ambiguity in the information provided is confusing to the potential clients.
The minimum withdrawal amount is $100. In the deposit/withdrawal section on the company’s website, we find out that clients may request to withdraw funds at any time and for any reasons which sounds like there is no limitation to withdrawal requests. However, further down, we see that one of the conditions for deposit/withdrawals is 10 transactions per card per month and there is also $100,000 monthly cap.
EU FX Index offers bonuses which are subject to some rules. For each $10 bonus, the client must trade a minimum of 10 mini lots before being able to withdraw any funds. For example, for a bonus of $25, the client must trade 25 mini lots which equals 250,000 currency units. As you can see, this is not something easily achievable and we advise our readers to be cautious in the matter of bonuses. For your information, legitimate and regulated forex companies do not offer bonuses to their clients.
While perusing this company’s site, we also discovered that it offers the so-called risk free promotional services which consist of 100 or 300 risk free trades. It may sound like a good deal, but again, it comes with heavy to fulfil requirements – the client must deposit a minimum of $3,000 and is required to fulfil the 100 allotted risk free trades. To do that, the client is allowed to leverage his account up to 10 times and minimum 5 times from his equity and he/she can risk up to 5% from the total equity. The company will charge a protected fee for every protected trade which will equal the initials size of the spread of the instruments traded. As they say, there is no such thing as a free lunch, so be cautious what you accept as it might prove difficult for you to fulfil these requirements especially if you are not experienced in the forex trading.
How does scam work?
Actually, it’s quite simple and users often fall into the trap of experienced scammers. We bet you have seen those attractive ads on the Internet promising big and quick profits over a short period of time. Just provide your personal information, and voila! The scam brokers are waiting for you and you will be inundated with phone calls promising easy profit. Tempting, right? You think ‘ok, I can spend $200-300 and see what profit it brings me’. Congratulations, you just provided a fat commission for your scammers that will be distributed down the food chain. Now you have ‘graduated’ to be handed over to a senior ‘broker’, a smooth talker who will try to convince you that there is no more perfect time like now to invest more money. After all, you want to make more profit, right? However, something starts to feel off and now you start asking yourself questions and all you want is to withdraw your money and get out fast.
Unfortunately, it is too late! Someone has pulled the cheese and you are trapped because scammers don’t give up easily. Scammers will do anything in order to delay you so that you miss the deadline for chargeback.
What to do if scammed?
Our advice is to immediately file for chargeback if you have been lucky enough to make your deposit via credit card. VISA and MasterCard allow for 540 days chargeback period, so you still have a chance to get your money back.
Things don’t look so good if your currency of choice has been Bitcoin or bank wire. In that case, you may have to wave your money goodbye.
There are some other things that you can do in case of being scammed – cancel your credit card if you have given your CVV code to the scammers. Also, erase any software from your computer that gives scammers access to your private data.
Be warned, as well, that some so-called ‘recovery agents’ may approach you promising to recover your funds for a fee. It could be another form of scam where scammers prey on your misfortune. Should you choose to use one, you must make sure that you are dealing with a genuine and legitimate agency by checking their credential and company’s information and transparency.