Profit4x Review – 5 things you should know about profit4x.com

Profit4x Review – 5 things you should know about profit4x.com

Rating: 2

Beware! Profit4x is an offshore broker! Your investment may be at risk.

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Profit4x is an interesting case, and a confusing one at the same time. The review will disclose all the details, and users should be able to decide whether this one is for them or not.

The registration process was quite a simple and we were inducted to a user area in less than a minute. This does not speak all to well about the broker, because in our experience rushed registration processes are provided by desperate and at times illicit brokers.

We proceeded to open a demo account – a live account was not an option – and were soon faced with the MT4 and all its splendor. The EUR/USD spread was 0.2 pips, while the leverage was capped to 1:500. The available trading instruments are forex currency pairs, cryptocurrencies, spot metals, indexes, and spot commodites.

The low spread is not without its fair share of commissions. Each account tier has its own commission., Let’s focus on the Standard account. The spread commission is 0.08$ per Micro Lot, which when configured for the standard lot is equal to $8 per standard lot. However, we are unsure whether the commission is $8 per side or round turn, and this makes all the difference. An $8 per side increases the initial spread by a whole 1.6 pips, while if it’s only round turn it adds only 0.8 pip to the original cost of trade.
This principle is applied to all other commissions issued by the broker.

The website of the firm is available in English, and seemingly no other language.

PROFIT4X REGULATION AND SAFETY OF FUNDS

The parent firm of the brokerage, by the name of GLO Emerging Markets Limited, is regulated by the Financial Services Commission of Mauritius. We checked the overseer’s site and everything was on point.

However, everything takes a drastic turn once we went to check on the terms and conditions. In these legal documents there is no mention of Mauritius acting as a home base for this broker, nor is there further mention of the Financial Services Commission. Instead, the terms and conditions claim that the broker is owned by a different parent firm- PROFIT4X LIMITED – registered in Seychelles. But here’s the interesting part- there is no reveal that the broker is regulated by the local Seychelles Financial Services Authority (FSA). We wanted to check just to make sure, so we visited the FSA website and found no proof that the broker is regulated in Seychelles.

The possibility lingers that Profit4x is regulated in Mauritius and has a branch in Seychelles; certain brokers divide up their business into different office branches so as to provide more transparency, or in some cases to be able to jump over certain legal barriers that one nation imposes and the other does not.

Or we can say that Profit4x has lied about its license in Mauritius, copying the regulatory information from some other place and presenting it as its own.

The real issue is that we do not know for sure, and can only rely on our gut. Yet, we cannot ignore the fact that everything so far has been pretty standard FX broker proceedings, albeit offshore.

PROFIT4X TRADING SOFTWARE

The MT4 is presented here in full force.

The MT4 is one of the best choices for a trading software and each broker is blessed when using it. It has all one could ask for in any platform.

PROFIT4X DEPOSIT/WITHDRAW METHODS AND FEES

The user area blocked our payment attempts because we had not yet verified our account. This seems to be the reason why the broker wouldn’t let us open a live account. This is a good sign, and proof the broker is legit.

So, the website is the next best source to trust. We learn that the minimum deposit requirement is $250. The payment methods have not been detailed, only mentioned in the terms and conditions as being based on credit cards, debit cards, and bank transfers.

The legal docs mention that there are withdrawal commissions and that the user will receive her money after a 3-day waiting period. As for the fees, the broker does not reveal their values, which is quite shady but considering that it is a broker based in an offshore zone it’s not surprising.

In conclusion, Profit4x is not for everyone, and there are definitely loose ends that must be tied. Personally, we think there are better brokers out there for users.

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