Beware! FX Active Trading 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 FX Active Trading, an exposed scam scheme that’s twinned with another exposed scam scheme we’ll mention later in the text. The so-called broker was awarded a warning by a European financial regulator, which ultimately confirms it’s a fraud. The rest of the details about this sham creature will be disclosed in the full FX Active Trading review.
FX Active Trading REGULATION AND SAFETY OF FUNDS
FX Active Trading is introduced as an Australian entity, but that’s probably falsehood. Frankly speaking, we didn’t waste time researching the Australian registries because the broker was already blacklisted by the Spanish financial authority CNMV. The regulator issued a warning against FX Active Trading, exposing it as a scam scheme, so your funds will be in danger if you deposit there. In fact, the broker is the same as another one we recently reviewed- FXActive.net, which CNMV also blacklisted. The same scammers run both, so both should be avoided. Fortunately, fxactive.net was brought down, and we hope that FX Active Trading will soon get defunct, too.
If you are interested in trading, you’d better check the EU brokers and British brokers topping both lists instead. The Europeans offer high-grade security and protection guaranteed by deposit insurance funds created to reimburse clients in case of insolvency or fraud. If things go wrong, CySEC brokers’ traders can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. If you are eligible to open an account with European FX companies, you can safely go for it.
FX Active Trading TRADING SOFTWARE
FX Active Trading claims to offer MetaTrader4, but that’s falsehood. The distribution we downloaded could not get functional because the accounts we registered were useless, and we couldn’t access the platform with those credentials. In fact, the only available platform is web-based, and it can’t offer any advantages over MetaTrader. It turns out that FX Active Trading merely takes advantage of MT’s spotless reputation to entice people into their fraudulent scheme.
Nevertheless, the EUR/USD spread is 0.1 pips, which is a remarkable Buy/Sell difference, but FX Active Trading is a confirmed scam, so you shouldn’t even think about it.
That said, the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists are safe and deliver upper-class software. The MT distributions are packed with sophisticated tools such as Expert Advisors, many complex indicators, sophisticated charting tools and even a marketplace featuring more than 10 000 apps. MT is definitely the best choice for traders.
The default leverage is 1:400, a ratio that’s too risky for retail traders. Such a level multiplies profit potential, but it carries exceptionally high risks. In fact, leverage is so dangerous that many authorities even regulate it to restrict its usage and reduce traders’ losses. As a result, EU, British and Australian brokers‘ clients are limited to 1:30, while Canadian brokers and US brokers can’t provide more than 1:50. Most of the high-leverage FX companies are poorly or not regulated at all, i.e. risky to deal with. We urge traders to be cautious when it comes to leverage.
FX Active Trading DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is actually unknown. On the Home Page, FX Active Trading claims it’s $10, but the information on the Account Type page says it’s $500. At the same time, according to the FAQ section, traders should deposit no less than $100. Whatever the case, FX Active Trading is a proven scam, so you shouldn’t deposit even a cent. The single funding method is Credit/Debit cards, which is somewhat a positive feature because it guarantees chargeback rights, and people can theoretically get a refund.
Now we can offer our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The companies on top of both lists are adequately regulated, and you won’t face scammers.
The minimum withdrawal is $500 for Wire Transfers and $200 for Credit/Debit cards. Allegedly, FX Active Trading process the requests free of charge, but it’s a scam, so no withdrawals should be expected at all.
There aren’t inactivity fees specified, either. The broker states that the account will be put dormant after 60 days of inactivity but doesn’t consider any charges due.
Lastly, we’ll mention the guaranteed bonus of 100%, which we firmly oppose because that’s simply a marketing tool to get more people into this fraudulent scheme. Nevertheless, the bonuses given away by brokers are not free money but a leverage tool that carries even more risks, so traders should always be cautious when it comes to trading incentives.
Overall, FX Active Trading is an exposed scam, so you need to avoid it.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s a process. In the typical scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes, and so on. Their imagination is rich and would invent as many stories to get the craved deposits.
Unfortunately, the initial deposit is not the end but the beginning. Gradually, scammers would manipulate victims and would urge them to invest repeatedly. For example, con artists may not allow people to trade themselves but would pretend to manage the trading accounts. Forged results would show victims massive profits, and scammers would ask for more money, promising to secure more gains.
However, the problem starts when people ask for withdrawals. Scammers would make excuses to refuse withdrawals and even require additional deposits to let people take their money out. Those criminals won’t stop asking for funds, no matter what. In the worst case, the victim would believe in the scammers’ falsehood and deposit again and again. However, sooner or later, the scam would become evident, the fraudsters would cut the communication and eventually disappear. They would drop the website, create a new one and carry on with their criminal business untouched, while people would be left with losses almost impossible to recover.
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 so that they can give you instructions and help, 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 to recover 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!