Beware! Fxcess 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.
Fxcess is a Forex broker which offers somewhat competitive spreads and desirable bonuses to the traders. At the same time, their legal status is a bit complex, linked to different regulatory jurisdictions, an offshore company and many trading names. Find out everything you need to know about this Forex broker in the full Fxcess review.
Fxcess REGULATION AND SAFETY OF FUNDS
Fxcess is said to be a trading name of Notesco Limited, a company that is registered in Bermuda.
This entity is somewhat linked to Notesco UK Limited (regulated by FCA) and Notesco Financial Services Limited (CySEC regulated). One of the registered trading names of the UK company is Fxcess, but at the same time, they offer trading features that are banned both in the EU and UK such as bonuses and increased leverage. Also, Fxcess doesn’t state on its website that it’s an FCA regulated entity, which certainly makes it looks quite complicated. There isn’t a valid registration to be found in the database of BMA- the financial authority of Bermuda whatsoever, so we are unable to close the case.
Fxcess is a bit of a controversial broker, having some disturbing aspects of its business, and we do not recommend opening an account with Fxcess, instead go for a proven true Forex broker, that is duly regulated in EU or UK. Europe succeeded to create the safest environment for the retail traders, including many customer protection rules in the regulatory framework that the Forex brokers are bound to keep. A fine example is the negative balance protection, meaning that the trader cannot lose more than the sum deposited.
There are also money protection schemes in operation, such as ICF in Cyprus and FSCS in the UK, which guarantee clients’ deposits. Under CySEC (Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in the UK under FCA you are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate such a fund, which is regarded as a last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Fxcess TRADING SOFTWARE
Fxcess offers Metatrader4 accounts and a copy trade platform called MirrorTrader. Metatrader5 is not available for trading. The EUR/USD spread can be as low as 0.0 pips, which is the most outstanding trading condition possible. However, the maximum leverage level is up to 1:1000, a ratio that we certainly do not recommend because it poses an immense risk for your funds. Such a level is no longer trading, but gambling, everything or nothing!
Fxcess DEPOSIT/WITHDRAW METHODS AND FEES
No minimum initial deposit specified; you can fund your account with as little as $10. Most shockingly, however, you can deposit without proof of Identity, which indicates that Fxcess doesn’t have a proper KYC policy making it look untrustworthy! The funding methods are Wire Transfers, Skrill, Neteller, Coinbase and Credit/Debit cards.
No inactivity fees specified, but Fxcess is going to archive the accounts that have been inactive for more than 90 days. There are many genuine Forex brokers that act in the same way, not imposing any maintenance fees for its dormant accounts, which puts the Dormant Account policy of Fxcess in line with the rest of the industry.
There are plenty of bonuses that Fxcess offers to the traders, including Deposit Bonus starting from 40% and a loyalty bonus program. There are also no-deposit bonuses such as an e-mail verification bonus and phone verification bonus, which indeed look funny. Have a look:
Fxcess introduces three types of partnership programs- Introducing Broker, Affiliates and White Label.
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centres. Sometimes they will rely on the quantity; they will publish tens or hundreds of websites and will 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.
WHAT TO DO WHEN SCAMMED
No one is immune to scam; anyone can fall into the trap. Scammers are always 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 necessary 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 essential to protect others, as well. Be responsible!