Beware! FXCall 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.
FXCall is a trading name of an offshore company which doesn’t have a valid Forex license. They say that their main goal is to protect the clients from risks, but it’s not guaranteed whether they will keep the promises made and deliver. FXCall also claims to be regulated, but that’s a pure lie which makes this broker suspicious. FXCall is somehow linked with an EU regulated FX company, but they don’t even utter a word about it which makes their case boggy. It’s a shady broker that you need to be aware of. Find out all the details that you have to know about this broker in the full FXCall review.
FXcall REGULATION AND SAFETY OF FUNDS
FXCall claims to be a trading name of EFG CALL Business Ltd- a Belize IBC company. We traced it and can confirm that there is such a company in existence, but it’s not licensed by the Belize financial authority to sell Forex products and services to the public. Unlike many of its neighbours in the Caribbean, Belize has taken steps to improve the safety of its financial sector. If a broker wants to obtain an FX license there, it has to provide $500 000 in paid capital, and it’s bound to keep the clients’ funds segregated. But as already mentioned FXCall is not licensed, so your funds are not safe if you make a deposit with them.
Our advice is to avoid anonymous and shady offshore brokers and pick proven to be legit EU(mostly CySEC regulated), or UK(FCA regulated) companies because Europe created the safest financial environment for the traders’ funds. The top Forex brokers hold European licenses, so the alternatives are plentiful. Most importantly, though, money protection schemes were developed in Europe, such as ICF in Cyprus and FSCS in the UK, which is laid out to guarantee the deposits made by traders and investors. Under CySEC(Cyprus) supervision, you can claim up to 20 000 EUR per client in compensation, while in the UK under FCA you are guaranteed of even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar 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.
FXcall TRADING SOFTWARE
FXCall claims to offer MetaTrader5 accounts to its clients; MetaTrader4 is not available for trading. It’s the best choice for a broker because Metatrader is the most popular Forex trading platform in the world, and it occupies the first place because of its stability and reliability. Metatrader also features sophisticated trading tools such as Expert Advisors, Automated Trading, Complex Indicators and even its own marketplace where the traders can buy or use for free third-party-developed trading solutions to implement in their strategy.
The MT5 distribution of FXCall, however, is provided by a Bulgarian company named European Brokerage House OOD. The company is known to be regulated by the local financial regulator- FSC, but the link between FXCall and EBH OOD remain unclear. We managed to open a demo account and saw that the trading conditions are favourable. However, we do not recommend trading with FXCall because it’s still an unlicensed entity whose unregulated status poses a threat for the funds of the traders.
The EUR/USD spread is 0.6 pips, which is in line with the rest of the industry. The spread is the critical element in trading because it forms part or all of the costs for trading. It’s the price that the trader has to pay to open a position.
The maximum leverage possible is 1:500, which is way too risky a level. The leverage is the next crucial element in trading, and actually, it makes retail trading possible. The leverage allows the traders to enter the markets by providing only a fraction of the sum that they intend to place, which helps the traders to start with less money at disposal. But the risks increase proportionally and if misused a level such as 1:500 might cause lightning-quick losses instead of profits. Precisely the risks involved made EU, UK and Australia (from the spring of 2021) force a leverage cap on the market- 1:30 as a customer protection measure. Canada and the US agreed on 1:50, and we recommend that the traders should not rely on brokers that offer insane levels such as 1:500 or 1:1000 because they will either lose their money on the markets or fall prey to a scam.
FXcall DEPOSIT/WITHDRAW METHODS AND FEES
Warning! We weren’t able to register because FXCall demanded that we should upload a copy of ID or a Passport during the sign-up process. It’s a major red flag, and it makes us think that they might as well be involved in Identity Theft. The true Forex brokers will not ask from the traders to do an Identification Proof during the registration, and you should never submit your documents randomly! You can find out more about the Identity Theft scam later in the review.
The minimum initial deposit with FXCall is $25, which is a favourable condition, which gives the traders a chance to test the broker in a real environment with a tiny deposit. Yet, FXCall is a shady offshore broker that operates without a license, so we do not recommend it. In comparison, most of the legit brokers will ask for $100 on average from the customers to let them start trading.
The funding methods available are Credit/Debit cards, Wire Transfers and Cryptocurrency payments. Standard methods such as Skrill, Neteller or other popular e-wallets are not available, which restrict the traders to some degree.
No minimum withdrawal requirements specified, and there are no fees to apply. The withdrawal request processing time is also unknown, and here we have to raise the next red flag because the T&Cs of FXCall does not specify many necessary conditions that might turn to be crucial for the traders.
The dormant account policy is also missing, which is a disturbing sign whatsoever. The policy is a set of rules that determine how the brokers handle the trading accounts that have become inactive- no login, no trading. The regulated brokers will charge the account with an inactivity fee of 5 to 10 dollars per month at most. Any fee higher than that should be considered unfair.
No bonuses are available at the moment, and the company doesn’t indicate that trading incentives are possible in general. We recommend that the traders should avoid brokers that offer bonuses because these are not free money, but a leverage tool that makes the risks even bigger. The bonuses benefit the brokers, not the traders and the EU and UK banned the trading incentives precisely because of that.
HOW DOES THE SCAM WORK
The scam is a crime. Mostly, the scammers are hiding behind offshore companies and brokers while trying to remain anonymous and difficult to trace. There is no or very light FX regulation in jurisdictions such as the Commonwealth of Dominica, the Marshall Islands or St. Vincent and the Grenadines, making them some of the most popular destinations for dodgy enterprises and scam Forex brokers. Regulation means customer protection and safety, and financial authorities such as CySEC or FCA will make it impossible for a scam Forex broker to conduct illicit activities and harm the traders under their supervision. That’s why you should always trade with regulated brokers!
Identity Theft is a classical fraud and a serious crime. It happens when someone uses your documents without your permission and knowledge. Having your personal information, the scammers can access and drain your bank accounts, or they can open new ones in your name and take out loans or lines of credit. Also, they can purchase expensive goods, gain access to your government online services etc. Scammers might also use personal data to register companies in your name, facilitating their illegal activities. In the end, you might be the owner of a hugely indebted company which will cause you troubles you haven’t even thought of. Never submit copies of your personal documents when you sign-up, genuine Forex brokers do not demand you should do it during the initial registration!
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and 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!
It’s very important not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!