Beware! ZIXFX 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.
ZIXFX is an unregulated offshore broker primarily targeting clients from Thailand. The low quality of the website and the lack of detailed information on trading conditions do not inspire much confidence. In this review, we will take a detailed look at what ZIXFX offers and what alternative options traders have.
ZIXFX REGULATION AND SAFETY OF FUNDS
The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.
The company that owns and operates this website is Zixfx Limited, which is listed as being based in Saint Vincent and the Grenadines (SVG). Such a company can indeed be found among those registered in the SVG. But this does not provide any guarantees of customer protection. SVG is an offshore zone with no broker regulations in place.
As soon as you open the website of the local Financial Services Authority you see a warning that the institution does not licence forex and other types of brokers and does not supervise the activities of International Business Companies engaged in such activities.
If you are a novice trader, the best option is to invest through a licensed and regulated broker. Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in theUS, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds. In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent.
These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.
If you are a resident of a country like Thailand, the best option for you is the leading global brands operating in this market. The local operations of these brokers are also managed by offshore subsidiaries, but the established brand is a guarantee that you will receive quality services.
ZIXFX TRADING SOFTWARE
ZIXFX clients can use the MetaTrader 5 (MT5) platform, which is currently the most widely used trading software in the industry. This is what the platform looks like using a Demo account:
This platform and its famous predecessor MT4 have established themselves as leaders because they offer a wide range of features, including a wide variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
Of course there are plenty of regulated brokers who enable their clients to take advantage of MT4 and MT5‘s capabilities. Larger brands often offer clients additional services such as Virtual Private Servers and extensions that enhance the capabilities of the software for automated trading.
ZIXFX TRADING CONDITIONS
ZIXFX offers three types of trading accounts. But their descriptions lack information on basic parameters such as tradable instruments, order execution method, minimum and maximum size of trades, stop-out levels, etc.
According to the account descriptions, the minimum deposit required is 100 USD. The deposit menu itself sets a lower minimum of 20 USD with automatic conversion to Thai currency.
For an equivalent low amount, you could open a starter account with multiple licensed brokers, including industry-leading brands.
In the trading platform we see a spread of about 1 pip, which is a competitive level. But given the lack of information on the overall trading conditions, we cannot judge whether they are favorable to the investor.
The maximum leverage reaches 1:1000. Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses. A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States.
ZIXFX states that it offers bonuses and promotions, but does not provide a description of the associated terms. Bonuses are typically associated with additional fees and withdrawal restrictions. Most financial regulators prohibit licensed brokers from offering bonuses.
If you are nevertheless willing to take the risk of high-leverage trading and want to take advantage of bonuses, promotions and prize games, the best option is to use the services of offshore brokers operating under an established brand.
ZIXFX DEPOSIT/WITHDRAW METHODS AND FEES
The only way to deposit funds into a ZIXFX account is through a mobile banking app.
Leading brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill, UnionPay FasaPay or QIWI.
ZIXFX does not provide clear information on fees and conditions for deposit and withdrawal of funds.
HOW DOES THE SCAM WORKS
Scammers who promise easy money without any effort are nothing new, especially on the internet. But given the excitement around bitcoin and cryptocurrencies in recent years, malicious actors have run rampant more than ever, capitalizing not only on people’s desire to solve their financial woes with a magic wand, but also ignorance and misunderstanding of how blockchain and complex financial instruments actually work.
If your curiosity is stirred by one of the many flashy websites promising easy riches, and you provide your contacts, you will soon be contacted by skillful and persuasive scammers who will convince you to start with a relatively small and “risk-free” investment. If you agree to this, you will be transferred to even more skilled at convincing scammers, who will persuade you to invest even more. Any money you give to such people is money you are unlikely to get back.
Any attempt to withdraw deposits or alleged profits will be hampered by numerous and significant fees, as well as harsh and often prohibitive conditions written into the terms and conditions – such as high trading volume requirements, unexpected “taxes”, or withdrawal fees as high as 10% or even 20% of your funds.
WHAT TO DO WHEN SCAMMED
Recovering money you have given to fraudsters is difficult and often impossible. Fraudsters always want you to provide them with documents such as a copy of your ID and proof of address so that they can claim that it is a legitimate transaction, agreed voluntarily between both parties. If the transaction is made by credit or debit card, you can request a cashback and hope for the best, but transactions via wire transfer or cryptocurrencies are not refundable. It is important not to trust online offers from people who offer to recover your money in exchange for an upfront payment, because this is also a well-known scam.