Beware! ZankFX.com 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 open with the following statement: ZankFX.com is extremely limited and very poor in quality and in its services. The website looks as if it were taken from an outdated development company, and just labeled the name of the broker. It has a sort of unfinished aspect about it, plus it is very revealing about the true purpose of the broker. ZankFX.com has not made a good effort at concealing its true nature, for the website is lackluster at best! As for the other shady aspects of the website, well, you will just have to go through the review.
The account creation process takes only three credentials to complete, which is laughable and unacceptable. However, afterward, in the user area, we were asked to give away some personal details. However, even there the process seemed too simple to be taken seriously.
To our surprise, we were able to open a live MT4 account without an issue. There we were able to read a 1.4 pips cost of trade for the EUR/USD currency pair, which is actually very good. However, as we shall see, there are questionable commissions applied to these spreads!
The available tradeable assets are forex currency pairs, some commodities like metal and oil, spot indexes, cryptocurrencies, and stocks.
According to the website, the leverage is capped at the most typical offshore brokerage value of 1:500.
ZankFX.com is available only in English.
ZANKFX.COM REGULATION AND SAFETY OF FUNDS
The company’s Financial Services Guide claims the broker to be regulated in Australia, while, nevertheless, being located in the UK. There are two things wrong here.
The first one being the fact of the Australian regulation. In Australia, it falls into the hands of ASIC to regulate the FX market. The Aussie is one of the biggest FX markets outside of Europe and the US, and thus ASIC has a huge responsibility on its shoulders. Nevertheless, ASIC does not regulate ZankFX.com.
Next, the UK address would put ZankFX.com directly into the hands of the FCA, UK financial watchdog. It is by far one of the world’s top FX watchdogs. Here, again, the FCA does not regulate ZankFX.com.
If ZankFX.com really is located in either one of these countries, then be sure that they are operating illegally.
We find no further evidence of this broker being regulated. And it isn’t, no matter what it says or does.
As it turns out, and not to anyone’s surprise, ZankFX.com is yet another UNLICENSED broker whose sole purpose is to steal money from users, making it also a very big risk to all investments!
To deposit in an unlicensed broker is the equivalent of throwing your money away for no reason. We always say that the first thing to do when dealing with any broker is to check for a license; this should be your priority! Usually, we would go for either an FCA or CySEC regulated brokers or other respected overseers. These regulators all employ harsh rules and impose very severe penalties on those brokerages that do not abide by the scrupulous rules. Furthermore, some agencies, like the FCA and CySEC, include reimbursement schemes to all users of brokers under their wings. These compensation funds schemes, as they are called, are put into action once broker cannot pay their clients back to bankruptcy. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
ZANKFX.COM TRADING SOFTWARE
This is one of those brokers whose acquisition of the MT4 is as suspicious as it is unbelievable.
We are barely scratching the surface with the following MT4 trading features: time frames, pending orders, customizable trading indications, trades in centralized markets, Expert Advisors, virtual trading servers, many chart customization options, and hundreds of other helpful tools!
We learn from the Financial Services Guide that ZankFX.com comes with spread commissions.
From the same document, we learn that there is a 3.5% commission on each trade when using the CTrader, but we never saw evidence of this specific trading software.
The closest we get to any real commission info is in the account page, where we learn that VIP Accounts are burned by a 2 per side commission. The 2, we assume, is in dollars. This means that all VIP spreads are given an additional 0.4 pips on top.
ZANKFX.COM DEPOSIT/WITHDRAW METHODS AND FEES
From the registered client portal area, we learn of the real payment methods, and they are all based on online banking. The minimum deposit is $100.
According to the withdrawal area, the minimum amount to take out is $100. Clients can withdrawal either through a bank transfer or a crypto wallet. We find info on withdrawal processing times on the home page. According to it, withdrawal requests get processed between 1 and 5 days.
The broker has not revealed the presence of any withdrawal fees, but bear in mind that this is open for interpretation. Unlicensed brokers are well known for their ability to issue charges at the most unexpected of times.
From all the fees, the one with the best longest explanation is the so-called Administration fee, which is, nevertheless, hard to decipher. So we leave it as a snip to act as a warning.
We find no other interesting or noteworthy clauses to mention, which is a rare thing with unregulated brokers. This does not mean that users should trust ZankFX.com.
However, with everything considered we cannot help but find some sort of potential for ZankFX.com, and even a glimpse of hope. Nonetheless, it is unlicensed and must resolve this issue first of all, before attending all other problems that it has.
Yet, for now, we do not recommend this broker to anyone. It is a risk to all investments, and also to all personal details that you have provided it with!
How does the scam work?
The straightforward way into an investment scam is through the thousands of online ads that flood our browsers and social media sites. These are those familiar ads that promise impossible returns and luxurious lifestyles as a result of investing.
Succumbing to such ads will lead to either the scammer investment site, or to an intermediary source with close ties to this and other fraudulent websites.
In either case, the user will be asked to provide a phone number and probably an email address. The purpose of these is for the reps of the scam to be able to contact the client and push for initial investments. This is the first wave of the fraud, and is usually done by the rookie team.
The second wave is the pros, sometimes those behind the whole scam. These are charming and cunning individuals, whose communication skills can potentially result in the users to invest a second, or third, or even fourth time.
Basically, the scam continuous until the client realizes that she is being scammed. At that moment, when she wishes to withdraw or has questions for the scammer, it is already too late.
The culprits will easily ignore all requests or stall them. There are times when unlicensed brokers even terminate entire accounts, and on rare occasions entire websites are closed!
What to do if scammed?
The safest way to get your money back is to file for a chargeback using your credit or debit card provider. MasterCard and VISA have a chargeback period of 540 days. However, this only applies if you have deposited through a card.
Wire transfers are more difficult to reimburse, although some banks may have a specific plan for such times, so we advise users to directly contact their banks and ask them for help. What’s crucial is for users to change their bank account user names and passwords as soon as possible.
As for any funds invested through a cryptocurrency wallet, be sure that they are lost! Crypto transfers are untraceable!
And finally: never trust recovery agents or agencies. These are fraudsters who will ask for money in return for nothing. Do not trust these!