Beware! RFX Capital 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.
We are impressed at RFX Capital interface where professionally-looking people obviously discussing business and nodding knowingly to what the presenter explains about forex trade tend to instil assurance in this broker abilities and confidence that its traders will be taken good care of. However, for us, this is not enough and we dig deep into what this company has to offer for real.
RFX Capital Regulation and safety of funds
As the whereabouts of this broker are nowhere mentioned on its website we had to play Sherlock Holmes to find out the address of the company. From a dodgy map indicating some address and not the name of the city, we managed to find out that this is in London, UK. We checked the register of the Financial Conduct Authority (FCA), the official body that regulates forex brokers, to find out whether it is legit or not. We found out that not only is this broker non-legit but it is also a clone of an authorised firm as per FCA warning.
Forex brokers in the UK are strictly regulated by FCA and they have to jump through many hoops in order to get their license. They must deposit an initial capital of no less than 730,000 EUR that serves as a barrier for keeping scammers out. In addition to that, they must keep clients’ funds segregated with tier-1 bank establishment, report regularly on their transactions for the sake of transparency and provide protection against negative balance. One of the best advantages in trading with brokers from the UK is that they participate in the local Financial Services Compensation Scheme from which the clients can be reimbursed if the broker is declared insolvent.
The trading conditions in the EU are also very favourable for forex trade as the brokers fall under the same regulations. The difference is that brokers regulated by CySec that deduct funds towards the local Investor Compenstion Fund will provide reimbursement of up to 20,000 EUR per client if they go bankrupt.
RFX Capital Trading software
RFX is a forex broker trading in forex, indices, stocks, cryptocurrencies and commodities. The trading software available to the traders is a web trader. This is a very simplistic platform that does very little to enhance traders’ experience. In the top left bos you see the menu with the trading products. Beneath is the box for placing trading orders. In the bottom right box is displayed the chart of one of the major currency pairs that we have selected, EUR/USD, with the fluctuation in price in a given time frame. Above is the box containing information about leverage, margin, etc.
The spread for the same pair is shown to be 1.2 pips which is below the industry average and is beneficial for traders as the cost of transactions won’t be high and they will be able to make a sustainable profit. However, the leverage is 1:200 which is too high. This leverage is another proof that this broker is a scammer because in the UK licensed brokers have limit on leverage and it cannot exceed 1:30. Using high leverage in transactions is a risky endeavour as it may result in traders suffering a great financial loss due to the high leverage. That is why one of the measures in the UK for protecting traders’ funds is capped leverage.
If you are a potential trader looking for a licensed broker with a trading platform that offers good trading tools and instruments, we want to advise you to find a broker that offers either MetaTrader 4 or MetaTrader 5. These two trading platforms are considered to be the Rolls-Royces in forex trade and they are number one choice among 80% of forex brokers. Their high reputation is well-deserved as both platforms offer an excellent package of trading tools and instruments including an auto trading option, VPS, code base with customs scripts, trading signals, an app market, a financial calendar, etc. Their charting options and technical analysis indicators are out of this world and help traders predict the future direction of exchange rates and make a profit.
RFX Capital Deposit/Withdrawal methods and fees
From the information provided on RFX Capital website, we see that this broker offers 4 trading accounts – Mini, Silver, Gold and Platinum. However, there is no information about the minimum initial deposit for each account.
From the link for making a deposit we could only see that the payment method is via credit card.
There is no information either regarding the minimum withdrawal amount or any fees involved.
In the Terms and Conditions we found something that made us laugh. This broker, like so many other non-legit brokers offers bonuses. Bonuses look like they add extra trading power but what is important to remember that they are funds belonging to the broker, not the trader. Bonsues are usually under some hard to fulfil conditions, i.e., the trader must trade a certain volume before he/she is eligible to withdraw the bonus amount. However, with RFX Capital things look a bit different. To be eligible to withdraw the bonus amount, the trader must execute a trading volume equal to blank times for each $1. How do you understand that? Is the trader supposed to fill out the numbers? We shall never know.
We want you to know that licensed brokers never offer bonuses or other incentives. This is once again proof that this broker is not legit.
How does scam work?
If scammers make a movie, it will probably be called “Dream on”. They make everything sound credible and build their scam on your dreams of getting an easy and quick profit. People get duped if they decide to deposit money into one of the scammers’ schemes. What you probably do not know is that your hard-earned money goes as commission to the scammers. Next, you get inundated by daily calls. First, the scammers congratulate you for joining their business, next they try to persuade you to invest even more money. After all, the more money you send, the bigger money fall you can expect. This of course is not how things work. By the time you realise that no money is coming your way, it might be too late. All you want now is to get your money back and get out of there but the scammers have other plans for you and they won’t late get away so easily. Now they try to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
If you get scammed, our advice is to act immediately and if you have paid your deposit via credit/debit card you may still have a chance. Visa and MasterCard allow 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.
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.
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.