Beware! Exfinances 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.
Cheering and happy looking people greet us from the background video on Exfinances interface which, indeed, sends positive vibes to any potential traders. So, if you are asking yourself whether you should join this broker, our answer is to wait until you read our review.
Exfinances Regulation and safety of funds
Finex Group Ltd is the company that owns and operates Exfinances website. As per the information provided, it is registered in Switzerland, so we checked the register of the Swiss Financial Market Supervisory Authority (FINMA), the official body that provides licenses to forex brokers. The name of the company did not appear to be in it which means that the company is non-registered and non-licensed, therefore Exfinances is a fraudulent broker.
Furthermore, we found out that there is a warning issued by the Spanish National Securities Market Commission (CNMV), the government agency that regulates the forex brokers in Spain, saying that this company is not authorised to provide investment services.
Swiss brokers are strictly regulated by FINMA and they must maintain an operational capital of 20 million CHF which is a considerable amount of money that also serves as a barrier against scammers and prevents them from infiltrating the ranks of legit brokers. Also, in Switzerland, bank deposits made by regulated forex and CFD brokers are guaranteed against bankruptcy up to 100,000 CHF.
In the other European countries members of the EU, forex brokers must deposit an initial capital of no less than 730,000 EUR, keep clients’ funds segregated from their own with tier-1 bank establishments, provide protection against negative balance and keep low leverage. In addition to that, licensed EU brokers must participate and deduct funds towards a local investor compensation fund from which in case of bankruptcy, clients will be repaid up to 20,000 EUR per client.
Exfinances Trading software
Exfinances trades in forex, indices, cryptocurrencies, commodities and shares. Trading software at clients’ disposal is a web trader (image below). On the left-hand side, you can see the menu for trading products with their bid/ask price and in the middle is displayed the chart of the EUR/USD currency pair with the fluctuation in its price in a given time frame. From the bid/ask price of the same currency pair, we can calculate that the spread is 1.5 pips which is exactly what the industry average is. Traders using tight spread will be able to achieve a sustainable profit as the cost of transactions won’t be too high.
Also, we noticed that the leverage offered by the broker is 1:100 which is rather high and the implications for traders are that their funds will be exposed to risk of significant financial loss amplified by the high leverage in case of unsuccessful transactions. Please note that licensed brokers in the EU and the UK can offer maximum leverage of 1:30 for forex currencies which is a measure of protecting clients’ money and preventing traders into entering risky and reckless transactions.
We want to let you know that legit broker normally offer a far better quality trading software and for 80% of them the choice consists of either the MetaTrader 4 or the MetaTrader 5 trading platforms. These two platforms offer far more superior functionalities than a web trader and the package of trading tools and instruments is simply amazing. Among those, we want to mention the VPS, auto trading option, trading signals, code base with customs scripts, the app market, the financial calendar, etc. In addition to that, the plethora of charting options that comprise a variety of charts, time frames and colours combined with the array of technical analysis indicators help traders predict the future direction of exchange rates and make a profit.
We strongly recommend selecting a regulated broker that offers either platform for your enhanced trading experience.
Exfinances Deposit/Withdrawal methods and fees
There is no information regarding the trading accounts offered to the clients or what the minimum initial deposit is.
We can only tell you that the payment methods include Neteller, Skrill, credit card, SEPA, Uphold and bank transfers. Deposits made via credit cards incur 3.75% fee. Deposit fees for Neteller and Skrill are 3.5% and 2.5% respectively and for Uphold, $15.
On the other hand, there are no withdrawal fees for payments made via Neteller and Skrill. However, there are withdrawal fees which are $10 for withdrawal via credit card, 35 EUR for SEPA, $50 for wire transfer and $15 for Uphold.
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.
