24waysFx review – 5 things you should know about 24waysfx.com

24waysFx review – 5 things you should know about 24waysfx.com

Rating: 1

Beware! 24waysFx is an offshore broker! Your investment may be at risk.

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24waysFx wants us to believe that it is a regulated and award winning forex broker that we can trust with our money. But the fact is that this is yet another reincarnation of a well-known fraud scheme trying to take advantage of people’s desire to make easy money online.

24WAYSFX REGULATION AND SAFETY OF FUNDS

24waysFx claims to be operated by a company named 24 X 7 LIMITED, based in the United Kingdom and regulated by “Lebrn.com” – an anonymous website that claims to represent a fictitious institution called Latvia euro broker register. This fake regulator has been used by numerous other scam websites we have encountered.

To operate in the UK, a broker must be licensed by the Financial Conduct Authority (FCA). Although 24waysFx are obvious scammers, for the purpose of this review we checked the UK regulator’s database for 24 X 7 LIMITED. There we found a company with this name, but it is no longer authorized by the FCA and can no longer perform regulated activities. Furthermore, when it was active, this company used a different domain from 24waysFx. Apparently, those fraudsters are improperly using the name of a now disbanded legitimate company.

And that’s not even the end of the legal mess surrounding 24waysFx. The text of the General Terms and Conditions states that the agreement between the company and the customer is subject to the laws of Estonia. As expected, we found no proof on the Estonian Financial Supervision Authority website that such a broker exists there.

In addition to this, the 24waysFx have attracted the attention of another European financial regulator, Italy’s CONSOB. The institution has issued a warning that this website is illegally offering financial services:

Under no circumstances should you trust your money to such anonymous sites full of false and contradictory information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like FCA. or some reputable EU regulator like Cyprus Securities and Exchange Commission (CySEC).

As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.

24WAYSFX TRADING SOFTWARE

The 24waysFx website claims that the broker offers a web trading platform. After registering an account, however, we receive a link to download a desktop version of MetaTrader 4 (MT4), the most widely used trading software in the industry.

However, the platform is not configured for 24waysFx  but for FXtoAll:

The FXtoAll platform has been used by numerous scam websites that we have reviewed. The credentials provided by 24R can be used to log into the platform, which means that there could be no doubt that this website is also part of the same scam network.

There are more than enough licensed brokers offering clients the MT4 experience and/or the newer version of the software MT5. These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

24WAYSFX TRADING CONDITIONS

There is no description of different types of trading accounts on the 24waysFx website. Nowhere is there systematic information about the basic trading parameters such as spread, commissions, leverage and minimum deposit.

The MT4 platform shows spreads of 0 pips, but these values mean nothing, as scammers like 24waysFx do not offer real trading.

In the client portal you can choose a leverage level from 1:100 to 1:1000. This in itself is proof that 24waysFx could not be a legitimate broker operating anywhere in Europe. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.

24waysFx also allegedly offered bonuses to its customers, another practice banned by all leading regulators.

24WAYSFX DEPOSIT/WITHDRAW METHODS AND FEES

On the 24waysFx  website we see the logos of payment methods such as bank transfer, Visa and MasterCard credit cards and e-wallets such as OKPay. However, the deposit menu is not active unless the account is verified by providing a copy of ID. Because of this, we were unable to confirm what payment methods 24waysFx actually uses.

In the Text of the Terms and Conditions we find withdrawal fees ranging between 25 USD and 100 USD depending on the payment method. There we also see a clause according to which “a levy of 10% of the withdrawal amount will be charged to any withdrawal from an account that has not executed more than 200 in turnover and/or from accounts that have not been verified”. It’s not specified 200 what, so we have to assume it’s 200 lots, or 20 million currency units.

In addition to this, if an account has received a bonus, the withdrawal of any funds becomes subject to a minimum traded volume of 30 times the bonus plus the deposit. Scammers routinely use such impossible to meet conditions to block any requests to withdraw money.

HOW DOES THE SCAM WORK

Fake brokers are a type of scam that has spread especially rapidly in recent years, aided by the excitement surrounding cryptocurrencies. People looking for ways to make money online can very easily come across one of the many scam websites of this type. Scammers are very skilled at convincing people to invest – first small amounts of a few hundred dollars, and then larger sums of money. Some of the scam schemes are quite elaborate and even use trading software to convince victims that their money is actually being invested and even racking up profits.

But when you ask to withdraw those winnings, or even your deposit, you’ll find it’s impossible – you’ll be told that a sudden change in the market has wiped out all your money, or that you have to meet impossible minimum trading volume requirements and pay huge fees and commissions hidden in the terms and conditions. Fraudsters can also simply disappear because they use fake names and offshore shell companies for their operations.

WHAT TO DO WHEN SCAMMED

If you find yourself scammed, the first thing you should do is notify the financial authorities in your country about the scammers’ activities, and spread the word online to warn other potential victims.

Your options for getting your money back are limited. If credit or debit cards were used for the transactions to the scammers, you have the option to request a chargeback. Companies like Visa and MasterCard now allow such requests to be made up to 540 days after the transaction. But keep in mind that if you have provided proof of your identity to the fraudsters, they may dispute that the transaction was voluntary. In addition, fraudsters typically use cryptocurrencies and shady e-wallets that do not allow refunds.

Victims of scams are often targeted by another type of online fraudsters who promise that their money can be refunded for an upfront fee. Under no circumstances should you trust such offers.

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