Beware! Foxycryptofx 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 are reviewing Foxycryptofx, a suspicious broker that’s perhaps legally created offshore. We said “perhaps” because the broker is besides very shady, and it’s basically too daring to draw any conclusions whatsoever. The only sure thing is that people had better stay away, and you’ll see why in the full Foxycryptofx review.
Foxycryptofx REGULATION AND SAFETY OF FUNDS
Foxycryptofx is supposedly a Bulgarian entity as the agreement between the parties is said to be governed by the mentioned country’s laws. However, the broker fails to specify anything further and doesn’t even mention the company standing behind. At the same time, TLC CONSULTING LTD should be responsible for payments handling, which is a shady business incorporated in the Marshall Islands. The company is already an exposed scam blacklisted by pretty much all European regulators for its brand name WiseBanc that was also linked to Bulgarian companies. Besides, we previously reviewed the fraudulent Mt4-Trades– another scam broker blacklisted by the Austrian FMA that’s somewhat related to TLC CONSULTING LTD, too. In fact, the Mt4-Trades’ logo is surprisingly similar to the one used by Foxycryptofx, a coincidence that can’t really prove much but indeed gives food for thought.
Anyway, we researched the Bulgarian financial authority FSC but didn’t find anything about Foxycryptofx, so your funds won’t be safe if you deposit because it’s not regulated. There is plenty of circumstantial evidence of a scam, so it’s highly recommended to avoid this shady business.
That said, we can offer the high-rated EU brokers and British brokers, which are regulated, trustworthy and most importantly, covered by deposit insurance funds. For example, if you trade with a CySEC broker, you can claim up to 20 000 EUR in compensation, while the British protections are of even up to 85 000 GBP per person. Make sure to stay away from unregulated companies, and it’s worth considering money protection when choosing a broker to trade with.
Foxycryptofx TRADING SOFTWARE
In this section, we’ll analyse the trading software and particularly put stress on spreads and leverage because those two are critical elements of trading. The spreads form part of the trading costs, while the leverage carries high risks that can cause severe losses if mishandled. In fact, it is so dangerous that many authorities impose regulations to restrict its usage and reduce traders’ losses. By way of illustration, EU, British and Australian brokers are bound to limit clients to 1:30 for FX majors, while the Canadian brokers and the US brokers can’t provide more than 1:50. Most high-leverage FX companies are poorly regulated and very likely a scam, so you need to be cautious.
Well, Foxycryptofx claims to have the best platform in the world, which we couldn’t access it due to sign-up issues. We had to call the Support Center to activate the registration, but no one was available, so our account was left pending. As a result, we can’t weigh up real-time spreads and leverage. Nevertheless, the broker claims to offer 1:500 leverage, a ratio that Bulgarian brokers can no longer provide. Hence, Foxycryptofx proves to be either unregulated (which it is) or violating the EU financial laws. Well, in both cases, it’s better to avoid this suspected scam.
Instead, it’s worth considering MetaTrader4 brokers and MetaTrader5 brokers topping both lists. The MT platforms are indeed the best globally and feature advanced tools such as Expert Advisors, complex indicators, and first-class charting tools. MetaTrader also comes with a Marketplace where traders and investors can find more than 10 000 apps and third-party developed solutions.
Foxycryptofx DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Foxycryptofx is $250, a requirement higher than the regulated brokers’ standards- $100 on average to let traders begin with real money. Moreover, many reputable companies make trading even more affordable by their Micro accounts starting from $5 to $10, so bear this fact in mind when choosing a broker. The funding methods are supposedly Credit/Debit cards, Wire Transfers, Neteller, and Bpay, but we can’t validate their claims due to our already discussed registration problems.
Speaking of funding, check some Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have trusted payment systems. The companies topping the lists are adequately regulated, and you won’t face scammers if you choose among the high-rated ones.
There is no minimum withdrawal requirement, but each transaction will be charged 3.5% of the sum, which is an unjustified fee that suggests Foxycryptofx is a scam scheme. The dormant fees are not any better- after only 60 days of inactivity, the account becomes dormant and will be charged $200 every two months. Well, it turns out that Foxycryptofx will cut $1200 of the balance just to handle funds during a year of inactivity!
Also, each account, active or not, will be subject to a monthly maintenance fee of 0.5% of the balance. Foxycryptofx is too costly a broker, and we can’t recommend it to anyone merely because of their expensive services.
However, that’s not the end of the story. Each trade, winning or losing, will be subject to a clearance fee of 0.5% and the positions over $1000 to a $5 fixed fee. Well, they fail to specify what $1000 stands for, which is a major red flag. In leveraged CFD trading, it’s impossible to place a trade of less than $1000, which is marked as a micro lot- 0.01 lots. The standard lot in Forex is actually $100 000, so Foxycryptofx probably knowingly refuses to clarify this clause and mislead customers. Beware!
There are trading incentives available, but the broker doesn’t provide much information about the bonus campaign.
Overall, Foxycryptofx is an unregulated broker, and there is plenty of circumstantial evidence suggesting it’s a scam scheme. You’d better avoid this broker.
HOW DOES THE SCAM WORK
Nowadays, the Internet is plagued by scammers and their deceitful offers. It all starts whenever you click on an appealing fraudulent deal and provide your e-mail and contact numbers. Scammers, as seasoned manipulators, would ring you at once and begin straight away pushing you to invest in their schemes. During the phone call, you’d be presented with bonuses, promotions, risk-free offers, Bitcoin opportunities, and anything else you could possibly imagine. Scammers would claim to work with reputable firms, banks, governments, and so on, trying to make their business looks as if legit. Those thieves lie big time and would promise you anything to gain your confidence and steal your money thereafter.
However, the first deposit is just the beginning of the game. Day by day, scammers would carry on asking for deposits. If you lost, they’d persuade you to put more money and recover the losses. If you are profitable, you’d be asked to put more money and increase the gains. The headaches start when you decide to take your money back. The scammers would do whatever it takes to discourage you and would even urge you to deposit again if you want to withdraw. The scammers’ mantra is “give me your money”, they’d push you to transfer more money over and over again for no obvious reason. Urgency is a treacherous sign, so if someone forces you to invest ASAP, that’s a scam.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is safe from scams. If you get defrauded, the first thing you need to do is to protect yourself from further risk. Deactivate your card immediately, contact your bank and ask for advice.
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 fraudulent fund recovery agencies are trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!
Last but not least, share online your experience; it’s important to inform the public about scams. Be responsible!