Beware! TradeFCX 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.
What is hidden behind the boring and uninspiring interface of TradeFCX website? Would this broker provide a successful experience for its traders or is it going to scam them? We are going to find out by exploring the website and looking at some key features.
TradeFCX Regulation and safety of funds
One of the pivotal rules in the forex trading world is that the broker you choose to trade with must be licensed. However, we searched and searched this company’s website to find an address or any information about registration, but alas, all was in vain. It does not seem that this broker really exists in one of the jurisdictions around the world. The lack of address and any traces of registration make this broker unreliable and unsuitable to trade with. Chances are you are going to be scammed and lose your funds.
Our advice is to select a forex broker that is licensed in one of the well-established jurisdictions around the world. The links we provide below will be helpful. What are the advantages of a regulated broker? First of all, you’ll have some assurance that you are not dealing with scammers. Licensed brokers from the well-established jurisdictions of the US, Australia, the UK and the EU must jump through numerous hoops in order to be licensed. First of all, they must have a substantial initial capital which in the US is as high as $20 million and in Australia, it is 1 million AUD. Trading with a well-capitalised broker means that in case of unfavourable financial events, you won’t be left begging on the street. In contrast, licensed brokers in the EU and the UK are required to provide only 730,000 EUR in the form of initial capital. However, they must contribute to a local compensation fund from which traders will be refunded if the broker goes bankrupt. The compensation could be as high as 20,000 EUR per trader if the broker is regulated by CySec and contributes to the local Investor Compensation Fund. On the other hand, traders in the UK can be repaid up to 85,000 GBP per person if the broker is regulated by FCA and contributes to the Financial Services Compensation Scheme.
TradeFCX Trading software
TradeFCX is a broker trading in forex, commodities and futures. The trading software consists of a web trader (screenshot below). On the left-hand side, you can see the currency pairs with their bid/ask price and in the middle of the screen is displayed the chart of one these currency pairs, EUR/USD with a spread of 5 pips. We must say that this spread is way higher than the industry average of 1.5 pips. The implications for traders are that with high spread the cost of transactions will also be high and they won’t be able to make any sustainable profit. At the bottom of the screenshot, you can see that the leverage for this currency pair is 1:100 which is rather high, as well. High leverage signifies that traders’ exposure to risk is also high, thus there are chances of losing big time. Preventing traders from taking huge risks with their hard-earned money is one of the reasons why in the EU there is a cap on leverage which is 1:30 and in the US it cannot exceed 1:50. Australia will shortly follow suit and introduce a cap on leverage of 1:30 for the major currency pairs as of March 2021.
We must say that the trading platform offered by TradeFCX is a rather basic one without many options. On the other hand, MetaTrader 4 and MetaTrader 5 offer a lot more and are choice number one for around 80% of the brokers. It is easy to understand why they are so popular. Both platforms come with a demo account which newbies can use to practice and gain experience, an auto trading option, a code base with customs scripts, VPS, an app market, a financial calendar, trading signals, etc. Both platforms also offer an excellent package of charting options and technical analysis indicators that enhance traders’ experience and help make a profit.
We strongly recommend that you choose a licensed broker that offers one of these platforms.
TradeFCX Deposit/Withdrawal methods and fees
To its clients, TradeFCX offers 3 trading accounts – Mini, Premium and Classic. The minimum deposit amount is $500. For your information, licensed brokers will ask for a lot smaller amount for a minimum initial deposit ($1-5). The other accounts start at $20,000 and $5,000 respectively.
Deposit payment methods include credit card, bank draft and wire transfer. If clients choose to feed their account via credit card, then the minimum amount is $250 and if it is via wire transfer, then it is $10,000. Processing of deposits can take up to 5 business days.
Withdrawal requests processing can take up to 2 business days.
How does scam work?
No one wants to be duped by scammers, but it happens all the time because they know how to manipulate people. As they say in one popular song “sweet dreams are made of this” and this is what scammers rely on – creating in people’s mind a sweet dream of being rich! Scams usually start by unsolicited telephone calls or ads on the Internet or social media promising quick and easy profit. It is easy to fall into scammers’ trap and once you make a deposit, you are done for! Scammers won’t let you get away easily even if you realise that you are being scammed. They will try to delay you when you try to withdraw your funds by asking you to provide this document or fill out this form, etc., in order to make you miss the deadline when you can file for a chargeback.
What to do if scammed?
You need to act very quickly. First of all, if you have made a deposit using a credit card, you must immediately file for a chargeback. Fortunately, VISA and MasterCard allow for 540 day period in which you can file for a chargeback. This is the good news. The bad news is that if you have made a deposit using bank wire or Bitcoin, the chances of you getting your funds back are nil!
Another thing you can do is cancel your credit card if the scammers have your CVV code. Check your PC and erase the software that gives scammers access to your personal data.
Be careful, because even doing all that we recommended, your unfortunate experience with scammers may not be over. There are so-called recovery agents. One of those may approach you offering to recover your funds for a fee. Do not trust them and always check the legitimacy of the recovery agent and the agency.
Also, be aware that some “victims” of scam may post comments after the review, saying how they lost money and how a recovery agent helped them retrieve their funds. They will even put the contact info for this so-called recovery agent. Do not trust them either as it is another case of scam!