Beware! Spotfinex is an offshore broker! Your investment may be at risk.
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Warning! Spotfinex is a Forex broker that is as clear as mud, and it fails to prove in any way that it’s a trustworthy entity. It claims to be a UK Forex broker offering unbeatable trading conditions, 100% safety of funds and the best promotions and contests. The truth is quite the opposite, read on to find out everything you need to know about this Forex broker in the full Spotfinex review.
Spotfinex REGULATION AND SAFETY OF FUNDS
Spotfinex is a Forex broker that misleads the public that it’s an authorized entity based in the City of London. Our research in the register of FCA didn’t produce any results, which was actually expected, based on our impression of their website. On the other hand, Trade Com Limited the alleged owner of Spotfinex has already been blacklisted by CNMV and CONSOB, the financial regulators of Spain and Italy respectively. Here you can see the warning issued by the Italians.
Your funds are not safe if you deposit with Spotfinex, it’s an unlicensed, unauthorized and unregulated Forex broker, which is trying to mislead the customers by presenting itself as UK Forex broker. What’s more, in their Terms and Conditions, we found some hints that make us believe that Spotfinex is an offshore broker, rather than purely anonymous. They say that the laws of St. Vincent govern them, but that doesn’t prove anything either, and it remains an anonymous Forex creature.
You have to stay away from offshore Forex brokers, no matter the competitive trading conditions that they offer and always choose regulated companies. The regulated ones are bound to keep many rules, but most importantly, there are deposit insurance funds that protect the deposits made by the client.
The Investor Compensation Fund in Cyprus guarantees the clients deposits of up to 20 000 EUR per client, while the Financial Services Compensation Scheme in the UK allows you to claim even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar deposit insurance funds, which are considered to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Spotfinex TRADING SOFTWARE
Spotfinex claims to offer Metatrader4 accounts, but that is not true, because there isn’t a download link that actually works. It’s a major scam sign that proves that you should stay away from Spotfinex. Instead, there is some Frankenstein web platform, which we do not recommend even to our enemies. Metatrader5 is not available for trading.
The EUR/USD spread is 1.8 pips, which is a bit higher compared to the rest of the industry. The true Forex brokers will deliver a lower difference even with their Micro accounts. The spread is part of the trading costs for the client- the lower the spread, the bigger the potential profits. You should target regulated brokers that offer lower spreads, and remember the word regulated.
The maximum leverage level is said to be as high as 1:500, but it is a level that is too risky and considered gambling. In fact, EU, UK, USA and recently Australia have all put a leverage cap of 1:30 and higher ratios such as 1:500, for example, became one of the favourite marketing tools of the scammers, in their pursuit to attract customers. So we recommend that you should stop looking for brokers that offer insane leverage levels.
Spotfinex DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Spotfinex is said to be $250, which is a bit higher compared to the industry standards. There is a single funding method- a fishy crypto wallet called Payecard. You are supposed to buy Bitcoins or other crypto and then make a deposit, which is a warning sign, demonstrating that you should stay away from Spotfinex.
No minimum withdrawal amount and no withdrawal fees specified, which is in line with the industry standards.
An account becomes dormant after 12 months of inactivity and will be subject to an annual fee of $25, which is rather a fair clause. But that doesn’t change the nature of Spotfinex in any way, and it’s still a fishy website that should be avoided.
There are bonuses offered, but the separate Terms and conditions are truly unfair. You need to execute a minimum trading volume of 150 times the amount of the bonus plus the deposit to become eligible to withdraw, which is a scam clause whatsoever. Bonuses are banned in the EU and UK because these trading incentives are not free money, but a leverage tool that increases the risk dramatically.
Warning! Spotfinex allows indebted account, which irrefutably proves that it has nothing to do with authorization and regulation. You should stay away from this Broker and report immediately if someone from Spotfinex contacts you.
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.
Cryptocurrency funding went extremely popular among scammers because this form of digital money is absolutely uncontrolled. It’s a powerful scam sign if an alleged Forex broker is accepting only Crypto deposits because it’s almost impossible to make a refund and get your money back!
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!