Beware! RevolutionFx 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.
RevolutionFx is a offshore forex broker with a cheap-looking website, featuring outdated financial news along with an article in French, providing links to free dating sites.
RevolutionFx Regulation and safety of funds
As per the information provided on the company’s website, this broker’s address is in St Vincent and the Grenadines (SVG). We must inform you that St Vincent and the Grenadines is an offshore zone. Furthermore, the Financial Services Authority in that country does not regulate forex and CFD brokers. Non-licensed forex brokers are not good to trade with as they may as well be scammers.
We suggest that if you are looking for a broker, the best idea is to select one from the well-established jurisdictions around the world. If you choose a broker from the US, you must know that brokers licensed in the US must have an initial capital of $20 million which is a good way to ward off scammers. Similarly, in Australia, brokers must have an initial capital of 1 million AUD. The best conditions, however, are offered by licensed brokers in the EU or UK. First of all, these brokers must have an initial capital of 730,000 EUR which is enough to prevent scammers from sneaking in. Also, brokers from these jurisdictions must contribute to a compensation scheme from which in case of bankruptcy, the clients get compensated by up to 20,000 EUR per person if the broker is regulated by CySEC and up to 85,000 GBP per person if the broker is regulated by FCA.
RevolutionFx Trading software
RevolutionFX claims to offer the MetaTrader 4 trading platform, but when you open a live account it opens a web trader, not MT4. Below is a screenshot of the web trader which is a rather basic platform. In the middle of the screen, you see the fluctuation in the price of a currency pair, in this instance EUR/USD with the bid/ask price given at the bottom. From the bid/ask price for this currency pair, we can calculate the spread to be 3 pips which is quite above the industry average. High spread is not to trader’s advantage as it increases the cost of trading and makes it impossible for traders to achieve sustainable profit. Also, if you look at the account types information (in the last screenshot), you will notice that except for the VIP and the Platinum accounts, the leverage offered is very high – 1:100 or 1:200. High leverage may result either in big profit or a big loss. Some traders get tempted by high leverage without realising that chances of making a loss in a transaction are higher than the chances of making a profit.
As we mentioned, the web trader offered by RevolutionFx is a rather basic platform. If you are looking for a really good trading platform, we suggest that you look for a licensed broker that offers either MetaTrader 4 or MetaTrader 5 trading platforms as they are considered the Rolls-Royces among the trading platforms and are number one choice among 80% of the brokers. This is not by chance as both platforms offer excellent trading tools and instruments, including an auto trading option, an app market, VPS, code base with customs scripts, trading signals, a financial calendar and an array of charting options that help to analyse and predict the exchange rates on the market.
RevolutionFx Deposit/Withdrawal methods and fees
RevolutionFx offers 6 different account types – Micro, Mini, classic, Pro, VIP and Platinum. The minimum initial account for the Micro account is $250. The other initial deposits are $1,000, 5,000, 10,000, 25,000 and 100,000 respectively. To feed their account, clients can use VISA, MasterCard, Piastrix or wire transfer.
For accounts that stay inactive for 6 months, there is a fee of 10% for each month. We consider this to be rather unfair on the traders and want to point out that licensed brokers usually ask for $20 a month, not a percentage.
Furthermore, we found some discrepancies in the information provided about processing times for withdrawals. In the Deposit/Withdrawal document, the time for processing a withdrawal request is indicated as 4-7 business days, whereas in the Terms and Conditions, this time is 2 to 5 business days. We just want to say that no self-respecting company will have such discrepancy in information on its site.
You may have noticed in the account types information that this broker may also offer bonuses that start at 25% and go as high as 100%. We must underline here that bonuses are not free gifts, although they may look as such, and normally come with heavy to fulfil requirements attached to them. In this case, to be able to withdraw the bonus amount, the trader must execute a minimum trading volume of 25 times the deposit amount plus the bonus amount. Again, a discrepancy in the information provided on this company website – if you look in the Terms and Conditions document, you will see that the minimum trading volume mentioned there is 30 times the deposit amount plus the bonus. This is not an easy task to achieve even for experienced traders. For your information, licensed brokers never offer bonuses or free gifts and this is an indicator to distinguish genuine brokers from scammers.
How does scam work?
A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.
What to do if scammed?
If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.