FXTBrokers Review – 5 things you should know about fxtbrokers.com

Beware! FXTBrokers is an offshore broker! Your investment may be at risk.

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

Our first impression from FXTBrokers interface is that it looks just like any run of the mill forex broker abounding on the Internet. But let’s not judge a book by its cover and find out more about this broker.

FXTBrokers Regulation and safety of funds

First and foremost, we must verify that this broker is legit. From the information provided on its website, we find out that the website is owned and operated by FXT Brokers with an address in Switzerland. We checked the register of the Swiss Financial Market Supervisory Authority (FINMA), the official body that regulates forex brokers in Switzerland but the name of FXTBrokers did not appear in it. Instead, we found something interesting. The Financial Market Authority (FMA) in Austria has issued a warning that this broker is non-licensed and potential traders should avoid entering in any transactions with it (image below).

As you can see, forex brokers are closely monitored to prevent scammers from infiltrating their ranks. Strict regulations require that brokers jump through various hoops in order to get their license. For example, the must invest no less than 730,000 EUR in the form of initial capital, keep clients’ funds segregated with tier-1 bank establishments, provide protection against negative balance, report transactions on a regular basis for the sake of transparency, etc. One of the best perks in trading with brokers licensed in the EU is that they must participate in a local compensation fund or scheme from which their clients can be reimbursed in case of bankruptcy. For example, if the broker is regulated by CySec and deducts funds towards the local Investor Compensation Fund, then its clients can be repaid up to 20,000 EUR per client if the broker becomes insolvent.

In the UK, the conditions for forex trade are similar with the difference that brokers regulated by FCA participating in the local Financial Services Compensation Scheme can provide a recompense of up to 85,000 GBP per client if the broker goes bankrupt.

FXTBrokers Trading software

Apparently, FXTBrokers does not hold its clients in high regard as the trading platform that is offered consists of a cheap and simplistic web trader with a chart developed by a third party Trading View. On the left (image below), you see the menu with the trading products which shows the forex currency pairs with their bid/ask price. In the middle is the above-mentioned chart which shows the fluctuation in the price of the EUR/USD currency pair in a given time frame. Beneath the chart, traders can open or close orders. From the bid/ask price for the same pair, we find out that the spread is 1.4 pips. This spread is below the industry average which means that the cost of transactions will be relatively low and traders will be able to make a sustainable profit.

On the other hand, from the information on FXTBrokers website, we see that the leverage can go up to 1:500. This is another proof that this broker is non-legit and non-reliable as licensed brokers in the EU are banned from offering leverage exceeding 1:30. High leverage may look attractive to traders as it looks like it amplifies the potential of making a big win. However, keeping in mind that 70% of traders lose in transactions, such high leverage will have the opposite effect and will increase the risk exposure which may result in a substantial financial loss in case of unsuccessful transactions.

As we already mentioned, a web trader is not the best platform that exists in forex trade. If you use the links we provided in the previous section about licensed forex brokers in the EU and the UK, you will notice that the majority of them offer MetaTrader 4 or MetaTrader 5 trading platforms. This is not by coincidence. Both platforms are considered to be the best in forex trade thanks to the many advantages they offer to the traders. For example, MT4 and MT5 are equipped with an auto trading option, VPS, trading signals, an app market, a financial calendar, code base with customs scripts, etc. One of the key features for these platforms is their charting options that offer a variety of charts, time frames, colours and even the option of creating customised templates. We should also mention that the technical analysis indicators which are also part of the excellent package these platforms offer to the clients, help traders predict the future direction of exchange rates and make a profit.

We strongly recommend finding a licensed broker that will offer either platform for your enhanced trading experience.

FXTBrokers Deposit/Withdrawal methods and fees

FXTBrokers offers t trading accounts (image below) – Basic, Silver, Gold, Platnum and VIP. The minimum initial deposit for the Basic account is 250 EUR. The other accounts start at 5,000 EUR, 10,000 EUR, 25,000 EUR and 100,000 EUR respectively.

From the company’s interface, we see that the payment methods include payment via credit card, bank wire, Paysafecard, Neteller, Skrill, WebMoney, QIWI, Yandex. Unfortunately, the Deposit/Withdrawal section on the website does not provide further information regarding the minimum withdrawal amount or any fees involved, except for the fact that it takes between 3 to 5 business days to process a withdrawal request.

You may have noticed in the account types information that this broker offers a welcome bonus that varies from 30% to 150% depending on the account type. This is another proof that this broker is non-legit as licensed brokers never offer bonuses. You should know that although bonuses may look attractive as it seems that they add extra trading power, in fact, they are funds belonging to the broker, not the trader. Bonuses are usually accompanied by heavy to fulfil conditions attached to them. However, these conditions are nowhere to be found in the company’s legal documents which makes it very suspicious. We want to advise you that it is in your best interest to not accept bonuses no matter how attractive they may look.

How does scam work?

A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.

What to do if scammed?

If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give 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.
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.
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.