Beware! Fxmoption.com 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.
Fxmoption.com is a scam broker who at least had the decency of creating a decent, comprehensive website – that is pretty much their only good trait. Do not come expecting reliability, a solid trading platform, or a license – do not even expect to be able to open an account. Trading with this broker will lead to losses so please stay as far away from them as possible.
Fxmoption.com REGULATION AND SAFETY OF FUNDS
Fxmoption.com is a broker who claims to be based in the UK – although it has not mentioned anything about being regulated, in the UK or elsewhere. We decided to give the broker the benefit of the doubt and check the register of the UK financial authority, the FCA. All UK-licensed brokers can easily be found in that register – but we could not find any data on this one.
This means that this broker is not authorized to offer services in the UK – but we could have told you that even before checking the register because no legitimate broker would provide such brief and uncomprehensive legal documentation. Moreover, some of the terms it offers go directly against UK regulations. More on that later.
Trading with a regulated UK broker is actually a great choice – the FCA is one of the most reputable financial authorities in the world which means you would not have to worry about being treated unfairly by an FCA-regulated broker. You can be sure that those brokers had to meet many requirements before obtaining a license, and that they will never be anonymous or not clear about conditions. Client money is kept in segregated bank accounts – this promotes transparency, speeds up withdrawals significantly, and keeps your money safe in cases of unforeseen events such as broker insolvency. Negative balance protection is a must – you could never suffer losses exceeding the amount of money you have in your account. Brokers have to maintain the capital of at least €730 000 to prove their financial stability and participate in a compensation fund – so in case your broker becomes insolvent, you could receive a compensation of up to £ 85 000.
Fxmoption.com TRADING SOFTWARE
Fxmoption.com promises access to one of the most famous platforms in the world of trading – MetaTrader 4. But when we tried to download the platform from the broker’s website, we were redirected to a page describing all its merits – MT4 could not be downloaded. When we tried to open an account, the website malfunctioned and we were not allowed to do so – which means we would only have to trust Fxmoption.com on the trading condition information. This is more than disappointing since such shady brokers often lie about trading conditions.
Better try MT4 with one of these legitimate brokers. MT4 has turned into a true industry staple over the past 15 years – this is the ultimate forex trading platform. The software is intuitive and relatively beginner-friendly but also provides access to a ton of useful features – countless indicators and charting tools, Expert Advisors (trading bots that track markets and trade automatically), the chance to develop your own trading bots and indicators, or to set signals for prices going up or down, a market for additional trading apps to customize your experience, a Strategy Tester, and much more.
Fxmoption.com TRADING CONDITIONS
If nothing else, Fxmoption.com provides an extensive description of account types:
In order to open a Bronze account – which is supposedly the most basic one – you would have to be willing to invest €5000. This is a truly monstrous amount of money considering how affordable trading has become these days – you would have no trouble finding a broker who would set up an account for $100 or less.
The high leverage Fxmoption.com offers proves for a fact that they could not be a regulated UK broker – although we were sure of that already. The broker offers leverage of up to 1:100 even on the most basic account type – that number could go up to 1:400 on more advanced accounts. UK brokers, as well as brokers in the EU and Australia, are legally banned from offering leverage higher than 1:30 on forex majors to retail clients. If you want to get access to leverage like the one Fxmoption.com offers, you would have to qualify as a professional client and meet some additional requirements related to your experience level and the net capital you own. You would have to answer two of the following three criteria – to have worked in a relevant position in the financial field for at least a year, to have made a certain number of big offers in the past year, or to have net capital of more than $500 000. Only then and under no other circumstances would you be able to access leverage like the one this broker claims to offer.
Fxmoption.com DEPOSIT/WITHDRAWAL METHODS AND FEES
Fxmoption.com mentions accepting a few different payment methods – via wire transfer, through the electronic payment system Payeer, or through a few cryptocurrency payment companies – PayBis, Bitnovo, and the popular crypto exchange Binance. There are supposedly no fees but what bothers us is the fact that these are the broker’s preferred methods of payment. Both cryptocurrency transactions and wire transfers are irreversible – which means you would not be able to get a chargeback on any of the payments you have made to this broker. Prevention is key here – do not deposit with Fxmoption.com under any circumstance.
HOW DOES THE SCAM WORK?
Scam brokers are becoming more and more of a constant feature in the world of financial frauds – which means that more and more people are losing their hard-earned money by depositing it with such unreliable companies. We advise readers to always turn to licensed enterprises and thoroughly check registers. Let’s take a look at how such scams usually work and how you can protect yourself from them.
You stumble upon a broker who seems to offer fast, effortless, sometimes guaranteed profits – and decide that there is no harm in opening an account with it to see what it has to offer. After all, you have heard stories of people earning a decent income by trading – why not be one of them. You would not have to deposit, not immediately. But the moment you provide the broker with your phone or email, they would not leave you alone before you do so. You will be promised all sorts of great things – after all, these are people who scam people for a living and who are well-accustomed to convincing. The initial deposit might not be big – but you would be asked for more and more money with time. In some cases, you might even see that money grow – but that is nothing more than a trick that usually involves some sort of platform manipulation.
A time will come though when you will want to withdraw money – and you would not be allowed to do so. The broker will claim that you have not fulfilled a clause in the Terms and Conditions, that there are additional taxes, and that you are obligated to wait a certain time before withdrawing. At this point, you will understand that you are being scammed – but the broker will disappear as soon as they discover they can no longer milk you.
WHAT TO DO WHEN SCAMMED?
The first thing you should do is change all your banking passwords, and uninstall any remote access software (if you have installed any). After all, you would not want the scammers to have any sort of access to your bank account so they could drain it.
Do not trust any so-called “recovery agencies” who ask you to pay a fee so they could track down the broker and retrieve your money – this is a whole other type of scam targeting desperate people. What you should do instead is inform the actual financial authorities, and look into chargeback options – both Visa and MasterCard, for example, battle scams by allowing chargebacks within 540 days of the transaction.
One final thing – it is important to share your story with as many people as possible. The more people know about this sort of scam, the fewer people will fall victim to it. Unfortunately, such stories rarely get a happy ending – which is why prevention is key.