Beware! NewFX.co 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.
It took us a minute to realize the true nature of NewFX.co. The broker does a good job at hiding its true identity to newcomers. but we have been doing this for some time now, and know very well how to tell if a broker is legit or not. The signs for NewFX.co illegitimacy are all there. It’s just might take some time for more novice users to come across these. But don’t despair for we have compiled the following review, which contains all the important details one must know in order to paint a realistic picture of the broker.
First and foremost, a registration. We created an account without any hassle and came across a relatively decent user area, that nevertheless had the markings of the unregulated broker. There were third-party charts being used, while we also found a link to Youtube and to Bloomberg live TV, which seem unnecessary.
Nevertheless, we opened a familiar web trader, where we found that the EUR/USD spread is exactly 3 pips, a value not one bit favorable to traders. We find the leverage information on the website, which is capped at 1:200. There are quite a few available financial instruments for trading here: forex currency pairs, equities, cryptocurrencies, commodities, and indices.
There is no way to change the language of the website. It remains in English.
NEWFX.CO REGULATION AND SAFETY OF FUNDS
The website opens with a disclaimer stating that the broker is not intended for usage by EU residents. Europeans are not to trade with the broker because it may “contain information on services and products not subject to product intervention measures”. This is a very professional and smart way to say that the broker is not legitimate.
The sad part is that this welcome message is the closest we get to any sort of regulatory information.
The next best thing is the set of three addresses in the contact page that put the broker is the UK, Dubai, and the United States. This suggests that NewFX.co is regulated in all of these countries, but it does not go any further than a mere suggestion. None of the FX regulators of these nations have the name NewFX.co in their databanks. Thus NewFX.co is not licensed in either one of these countries.
In fact, the broker is NOT LICENSED at all! There is no proof to suggest any claim to a legitimate status. All investments are at a risk!
There is no reason whatsoever to invest in an unregulated broker. You will be faced with a ton of issues and will waste your time, not to mention money. Best rely on FCA or CySEC regulated entities, although any broker regulated by a legit agency will do. The crucial thing is to always make sure if the current broker you are willing to invest in has a license. Investing in a regulated broker will not only bring you safety and security, but it may also give you an advantage. For example, both the FCA and CySEC have a financial compensation scheme, each, meaning that they will pay back users who cannot get their money back from their broker, due to the latter’s insolvency or any other monetary issue. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
NEWFX.CO TRADING SOFTWARE
The broker offers the Sirix web trader as its main trading office.
Users here can take advantage of a few tradeable options such as pending orders, copy trading, one-point clicking, and a bunch of chart customization options. Yet, the Sirix web trader has been used predominantly by scammer brokers in the past, and a few licensed ones.
There were hints that the company would offer the MT4 and MT5, but we find no further proof of them being available.
NEWFX.CO DEPOSIT/WITHDRAW METHODS AND FEES
The client area reveals that the available payment methods are credit/debit cards, wire transfer, ePay, PaySafeCard, and a load of crypto wallets. The minimum deposit is $1.19.
On the other hand, the withdrawal area discloses the following withdrawal methods: cards, bank, and Skrill. The minimum withdrawal amount is $100, and the user area explicitly says that there are no commissions. Withdrawals are processed within a 48 hour time window.
As is expected, the information on payments on the website in some ways contradicts what the user area reveals. However, the client area is where the real payment info is stored!
Overall, NewFX.co is your common day-to-day unlicensed broker: it is unregulated, a risk to all investments, and most probably a scam! Do not deposit here!
How does the scam work?
The scam is simple, and it can be sub-divided into a couple of steps.
The first one is actually falling for the scam. This happens when a user clicks on an ad that promises any of the following: an unrealistic profit gain; luxurious items and houses; a carefree lifestyle; and anything and everything in-between these. It’s easy to see why so many still fall for investment scams.
Next, the client will be asked to provide an email, or a phone number, or both. These are essential for the scam, as they will be used by the fraudsters to contact you in the next step.
Which is actually to convince users to deposit. Some might throw themselves in, while others might be more skeptical. It is the job of the scammers to make up the minds of the skeptical bunch. Once a first deposit is made, the user has lost her first deposit!
The final step is simple. The pers have solicited an initial deposit; now they want as many investments as possible until the client realizes the true nature of it all. Once this happens, the broker will block all withdrawals.
What to do if scammed?
File for a chargeback if you have used a credit or debit card to pay the scammers! MasterCard and VISA have a chargeback period of 540 days.
Call your bank if the transaction happened through a wire transfer. And make sure to change your bank account user name and password ASAP!
Unfortunately, crypto deposits are lost and cannot be retrieved. That is why we urge readers to never deposit through any crypto method!
And let us not forget NOT to trust the recovery agencies or agents who are also just as fraudulent as the investment scammers, sometimes even more!