FinaFX review – 5 things you should know about finafx.com

FinaFX review – 5 things you should know about finafx.com

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

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FinaFX is a shady broker that we can only describe as fraudulent. First of all, they discrepantly claim to be a trading name of at least three separate companies. Then they say to operate in 5 different continents but can’t in any way prove their statement. Also, FinaFX introduces as a MetaTrader5 broker, but it isn’t true either. But there are even more appealing lies, which we are going to reveal in the full FinaFX review. 

FinaFX REGULATION AND SAFETY OF FUNDS

On the footer of the website, FinaFX is presented as a brand of SWISS FINGROUP LTD. However, they do not specify anything about the company. Also, on some of their legal documents, we encountered another company- Fina FX Ltd, which is an illegal or offshore entity that’s impossible to track down. To bamboozle traders and investors, they pretend to be regulated by some fictitious authority based on the Marshall Islands. That’s a falsehood because the Pacific island nation does not even have a financial regulator, and this confirms that FinaFX is a scam. Your funds are in danger if you deposit with this shady business.

Avoid them and see the reliable EU brokers and the British brokers we recommend by following the links provided. The European markets are strictly controlled and safe for traders and investors due to the complex customer protections implemented in the regulatory framework. Most importantly, though, there are deposit insurance funds laid down to protect traders and investors’ money in case of bankruptcy or fraud. For example, CySEC brokers’ clients can claim up to 20 000 EUR, while the British guarantees are up to 85 000 GBP per person. 

FinaFX TRADING SOFTWARE

FinaFX falsely claims to provide with MetaTrader4 and MetaTrader5 accounts. That’s yet another red flag we need to know because they can’t actually deliver any trading software. Worse though, during the sign-up process, we were redirected to a legit Australian broker, so FinaFX operates as a clone firm, too. That’s a revolting scam, stuffed with endless fraudulent tactics to confuse traders and investors. We’ve seen other brokers who intentionally do the same thing to make an impression that they are omnipresent and work with everyone out there. Beware!

Speaking of platforms, see the MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is an advanced trading software providing sophisticated trading tools such as Expert Advisors, Algo trading and plenty of complex indicators. They also created a marketplace where you can find more than 10 000 apps and third-party developed trading solutions.

So, there aren’t spreads and leverage levels we can show. However, they claim that the leverage can reach as high as 1:400, which is an overly risky ratio for retail traders. Such a level might cause losses too challenging to recover, very quickly, indeed. The leverage risks prompted many financial authorities to impose restrictions on their attempts to reduce traders’ losses caused by misuse.

As a result, the European, British and Australian brokers (to come in effect later in 2021) are limited to 1:30, while the Canadian brokers and the US brokers can’t provide higher levels than 1:50. The Swiss brokers aren’t restricted, but there is a 20 million francs capital requirement in Switzerland, which keeps scammers away.

FinaFX DEPOSIT/WITHDRAW METHODS AND FEES

The minimum deposit with FinaFX is $100, which actually meets the industry standards. Considering funding methods, FinaFX claims to accept deposits from a wide variety of payment systems, but we doubt that’ correct. As we already know, that’s a deceitful broker, so we can’t take their word for it. Anyway, we recommend Credit/Debit card deposits only, regardless of the broker. It’s the safest funding method because it’s possible to get a refund for an extended period of time if things, unfortunately, go wrong.

However, if you have a preferred payment system, see our lists with trustworthy Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers and Bitcoin brokers. 

Here comes another red flag. The legit documents presented don’t seem trustworthy because, on some occasions, they simply copied these from other legit brokers, not even making efforts to change the logos and the name of the company they abuse. So, there is no reliable information about withdrawal provisions, fees, bonuses, the refund policy etc. 

Overall, FinaFX is a fraudulent broker and a scam scheme. Stay safe and avoid this dodgy business.

HOW DOES THE SCAM WORK

New types of investment scams come about literally every day. However, most of the new schemes represent a modification of common fraud. These are not typical for the local markets but very similar from country to country.

Nowadays, scammers most often search for victims on the Internet and social media. Classical tactics, such as cold calling, became less widespread as the Internet got prevalent. The offers scammers make look legit and present exciting opportunities to invest money in the Forex market. Traders got reassured that the people behind the broker have an excellent track record, and they promise high returns, seamless trading and guaranteed profits. The scammers deliberately make traders believe that the Forex market isn’t a risky place, but actually, the opposite is true.

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 straightforward refuse to send any money back. Whenever traders persist, the guys standing behind the fraudulent broker would usually cut the communication or even ask for additional deposits. Either way, traders are likely to lose some or all of the capital invested. The end is always the same. When fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.

WHAT TO DO WHEN SCAMMED

Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and 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!

Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!

Share online your experience; it’s important to protect others, as well. Be responsible!

Rich Snippet Data
Review Date
Reviewed Broker
FinaFX
Broker Rating
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