Beware! Fx-One 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.
Fx-One is a broker that advertises trading in Forex, Indices, Stocks, Commodities and Cryptocurrencies. They offer five types of accounts starting from a minimum deposit amount of $10,000, and going up to $1,000,000. The other differences are in the leverage and the percentage of margin loan. There is no option for Demo account – a red flag since every respectable broker offers one.
We registered for a Live account by providing our names, email address and phone number and were taken directly to the client area. An email confirmation was sent to our mailbox, but it contained the account credentials in plain view, which is not a good practice in terms of security and privacy since email communications can be intercepted.
Fx-One Regulation and Safety of funds
The brokerage is completely anonymous – they say they have been in this business for over 7 years and focus purely on providing the best trading conditions for the traders, but there is no information about their team, where the company is registered, etc. Only a statement: “If you would like more information about our company, team or would simply like to discuss what we can offer you, please get in touch.”
The Contact us page has the address of a 50-storey office building in London, UK, but no floor or office number, and there is no phone number too. The only way to contact the broker is via email.
Because of the address we decided to check in the UK’s regulator, the Financial Conduct Authority (FCA), register if the broker is authorised by them. The FCA’s database search did not return any results, however.
Fx-One advertises itself as a true ECN broker, meaning that they use electronic communication networks (ECNs) of international banks or liquidity providers, which help clients directly access currency markets. Unlike market makers, which profit from the Buy/Sell difference (spread) they offer to the traders, putting them in a conflict of interest with their clients, ECN brokers usually advance lower spreads, but charge commission on transactions.
In the Terms and Conditions there is a caveat, however – in certain markets (not specified which), the broker may act as a market maker without even disclosing this to their clients – see for yourself:
Fx-One also claims to be safe, secure and trusted, providing “proprietary institutional liquidity feed representing 85%+ of the CFDs market” and that client deposits “will initially be paid into a client segregated bank account.” Such policies are usually adhered to by brokers that are regulated by top watchdog organizations, such as the FCA or the Cyprus Securities and Exchange Commission (CySEC). This is not the case with Fx-One, however; if it was they would put it on their website along with the license number issued by the regulator.
The rules and requirements imposed and overseen by the regulators include Minimum Capital Requirements for the broker of €730 000 to guarantee their good financial standing, participation in Compensation Schemes to provide additional guarantees to investors’ funds in case the broker goes bankrupt – up to 85,000 GBP in the UK and 20,000 EUR in the EU, as well as Client Account Segregation designed to keep clients’ money separate from the broker’s operating funds, and a Negative Balance Protection policy – traders may not lose more than the initially invested funds.
Fx-One is an unregulated, anonymous broker, however, so they are not bound by these rules and policies and any statements regarding adherence to them are misleading or outright false claims. We advise our readers to choose a regulated broker instead.
Fx-One Trading Software
The broker does not advertise or provide any software download links on their website. In the client area, they have misleadingly named their trading server “MT4 Live”, trying to make clients believe they will be trading on the recognized MetaTrader 4 (MT4) platform.
Actually, what they provide is a web-based platform that is quite rudimentary in terms of design and features. Although they may claim it is a “cutting edge online web trader” which provides “state-of-the-art ultra-fast execution”, this is very far from reality.
In contrast, most respectable brokers give their clients access to MT4 – the world’s number one platform, preferred by more than 80% of users worldwide. It offers an intuitive and user-friendly interface, advanced charting and analysis tools, as well as copy and auto-trade options. It can be further customized to create different trading strategies using its proprietary MQL4 programming language.
Fx-One Trading Conditions
The EURUSD spread we see in the platform screenshot above is quite competitive – 0.2 pips. Considering the untrustworthy nature of this broker, it is hard to take anything in their proprietary software at face value – rather we believe it may have been rigged to display good trading conditions. Regulated brokers usually provide spreads between 1 and 1.5 pips for this most traded currency pair.
Fx-One offers leverage up to 1:400 for their premium accounts. Trading on leverage can be tricky as it entails significant risks, especially to inexperienced traders. Although it allows for making bigger profits, one may incur great losses too, often much greater than the invested funds. That is why, most regulatory authorities impose leverage caps for non-professional traders: in the USA it is 1:50, while for brokers licensed in the EU and the UK it is 1:30.
Fx-One Deposit/Withdrawal Methods And Fees
The broker does not provide many options for deposit – they have credit and debit cards, and a method to “deposit via your local bank account.” The latter was noy working, however – even before getting to the interface to enter bank details it said “transaction was declined.” Popular payment methods, such as PayPal and preferred by traders e-wallets, eg. Skrill and Neteller are not supported.
The minimum deposit amount in the client area is $250 (although we saw an amount of $10,000 for their most basic account), which is still more than double the standards of regulated brokers – they ask for $100 from the traders on average. What is more disturbing, however, is the Commissions, Fees and Expenses clause in the Terms and Conditions. It stipulates that the Client agrees to pay a large number of such charges without specifying any details about their size or amount.
In conclusion, we want to warn our readers that Fx-One is definitely a scam broker and they should not invest with them!
How does the scam work?
Users often fall prey of very simple but quite efficient scams. The first snare is usually an internet ad promising big profits over a short period of time, and all you need to do is provide your personal information, usually email address and phone number. If you do that, you will start getting calls from scam brokers who will continue with the pitches of quick and easy profits until you decide to make a first deposit of $200 to $300. On these funds the scammers get a fat commission and transfer you to senior “brokers”.
These expert con-artists are smooth talkers who start talking you into putting even more money in, because “now is the perfect moment” or “the more money you invest, the higher your profits will be”. Usually about this time most traders will start to feel the scam and will want to withdrawal their money and get out fast.
Unfortunately, the scammers will not give in easily. First, they will try to persuade you not to withdraw right now because you will miss on “big profits”, and if that does not work, they will find numerous reasons to deny or delay your request by asking you for additional documents or claiming that there are some other causes for not executing the withdrawal. The ultimate objective in such procrastination is to make the traders miss the crucial period in which a chargeback request can be filed, and thus lose the chance of getting their money back.
What to do when scammed?
If you used a credit card to make a deposit with the scammers you should immediately file for a chargeback. Both VISA and MasterCard have increased the time in which you can file to 540 days, in part specifically to fight such online scams.
If you used bitcoin or some other untraceable source, however, chances of recovering your funds are slim. You might get approached by so-called “recovery agents”, but don’t fall for their tricks. They will ask for payment up-front to recover your money, but this is just another scam and you will not get anything back.