Beware! 24xForex 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.
24xForex should be the new kid on the block, judging by the corporate information we obtained. It’s an offshore broker but at the same time linked to a British company, which actually belongs to people living in the EU. The corporates aside 24xForex offers standard Forex and CFDs trading with MetaTrader4 accounts provided. An inconvenient feature is that traders cannot open demo accounts on the Dashboard, so the trading conditions we saw might significantly differ than the real ones. Find out the rest about this shady broker in the full 24xForex review.
24xForex REGULATION AND SAFETY OF FUNDS
24xForex is run by two separate companies- PACO World System LTD in the Marshall Islands and PACO SYSTEM LTD in England. The British one is registered in December 2020 on the name of a person not residing in the Kingdom. So PACO SYSTEMS LTD is a fresh entity only with a nominal presence in the UK, but most importantly it’s not registered with FCA, meaning they can’t operate as a Forex broker.
Considering the Marshall Island company, it’s impossible even to verify that there is such a business in existence, at all. The pacific islands are notoriously famous as a dodgy jurisdiction conspicuously lacking in transparency. There isn’t even a financial regulator so the local companies can freely create Forex brokers without paying for licenses. Worse though, as there is absolutely no control, the Marshall Islands businesses can conduct activities harmful for traders and investors without taking any responsibility for their actions. Not surprisingly it’s a jurisdiction bustling with scammers. Your funds are not safe if you deposit with 24xForex because it’s an unlicensed and unregulated shady broker illegally offering products and services on strictly regulated markets.
Avoid 24xForex and see the European brokers and British brokers we recommend. Europe is a financially secure environment, and the regulators supervising the FX market put the customer protection on top of the priority list. There are many strict rules brokers have to meet to get a license, but most importantly EU and UK operate deposit insurance funds laid out to guarantee the clients’ money. If you trade with Cyprus brokers, you can claim up to 20 000 EUR in compensation, while in the UK the guarantees are of even up to 85 000 GBP per client. Each EU member state is compelled to operate a similar deposit insurance fund, seen as the last resort for traders and investors if financial companies and brokers go bankrupt.
24xForex TRADING SOFTWARE
24xForex offers MetaTrader4 accounts to traders and investors, but it’s impossible to register an account from the client area. You’ll first have to submit copies of ID and a bank card even to open a demo account. It’s an alarming sign because the legit brokers are bound by the law to allow their clients opening test accounts. We opened one through the platform, but it’s generic, so the trading conditions might be different from the real ones. Beware!
Anyway, the EUR/USD spread we encountered was 0.1 to 0.2 pips, which is the standard for the generic MT4 demos. We’ll repeat it once again, the rates in the real accounts may dramatically diverge. The spread forms part of the trading costs, so lower Buy/Sell difference is better for the traders and improves profit potential. There are hundreds of legit brokers offering 1 pip or below, so by following the links provided throughout the review, you can find a better company to trade with.
See the regulated MetaTrader4 brokers and MetaTrader5 brokers we approve. MT is the most popular Forex trading platform worldwide, which traders prefer for its reliability and functionality. It features sophisticated trading tools rare to find elsewhere for free such as Expert Advisors, Algo Trading, Complex Indicators, Strategy testers and a marketplace with more than 10 000 trading apps traders can buy or use for free.
24xForex advertises 1:400 as the maximum allowed leverage, which is a very risky ratio having the potential to annihilate traders’ accounts very quickly indeed. The leverage is hazardous, so EU, UK and Australia (coming into effect later this year) imposed a leverage cap of 1:30 to protect traders further. Canada and the US agreed on 1:50, so we do not recommend brokers allowing extended ratios due to the absence of adequate regulation, the risks aside. The Swiss brokers, are not leverage restricted, but Switzerland keeps scammers away, deploying high capital requirements- more than 22 mln USD to obtain an FX license.
24xForex DEPOSIT/WITHDRAW METHODS AND FEES
There is no information about the minimum deposit requirements on the website. Seemingly, traders have to submit their documents, including a bank card copy to get hold of this crucial information piece. We couldn’t find anything in their legal documents either. The lacking of transparency is staggering, and it’s fair to raise a red flag here. We couldn’t find anything in their legal documents either.
The funding methods are Debit/Credit cards, Wire Transfers and certain e-wallets such as Skrill. By far it’s safer to deposit via Credit/Debit cards because it’s possible to file a chargeback within 540 days after the transfer.
The minimum withdrawal amount is 50$, with no fees for Credit/Debit card transaction. There are costs for Wires, but 24xForex fails to specify, which is a disturbing sign whatsoever. It’s typical for offshore brokers to withhold important information to their clients. It’s one of the reasons why we do not recommend trading with Marshall Island brokers.
There is no information about inactivity fees, as well. Brokers must define how they handle dormant accounts- no login, no trading. Yet another disturbing sign, showing a lack of transparency.
On the other hand, 24xForex introduces many clauses regarding their bonus policy. They offer deposit bonuses, but the additional provisions are unfair, to put it mildly. Each dollar bonus bounds to execute 1/4 in terms of lots. To make it clear, for $200 reward traders should execute 50 lots, which is 5 million dollars in turnover. If they fail to do it within 44 working days, the broker withdraws the bonus with profits included. Have a look at the picture below for more information about.
Traders should know the trading incentives are not free money, but a leverage tool increasing the risks. Precisely the misunderstandings plus the worsening trading conditions made EU, UK and Australia (from the spring of 2021) prohibit bonuses and promotions as a customer protection measure.
Overall, 24xForex is a shady offshore broker, which cannot prove it’s secure to trade with them. Stay safe and avoid them.
HOW DOES THE SCAM WORK
New types of investment scams pop-up literally every day. However, most of the new schemes represent a modification of common scams. These are not typical for the local markets, but very similar from country to country.
Scammers usually find their victims through ads in social media or other websites, and that’s the newest trend. The offers look legit and present exciting opportunities to invest money on the Forex market. Traders are reassured that the people behind the broker have an excellent track record, promising high returns or seamless trading. They claim that there are no risks when trading with them, concealing that the FX market is utterly risky.
What usually happens is that scammers just pocket traders and investors money letting them believe they trade in a real environment. Sooner or later clients would ask for a withdrawal, but scammers would delay or straightaway refuse by making up excuses to keep the money. Whenever traders persist, the guys standing behind the fraudulent broker would usually cut the communication or send little money back. Either way, traders are likely to lose some or all of the capital invested. At some point, when the fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to fraud. In case you got scammed, you need first 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, call the police if you feel necessary. Seek help actively!
It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment, but do nothing to help you recover your losses and simply pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!