Beware! Genex FX 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.
Genex FX is an anonymous, unregulated enterprise that seemed like a horrible investment choice from the get-go. Not only did their website look very bad but it also did not provide any vital information about trading conditions. Moreover, the broker does not offer a functional trading platform which makes opening an account with them completely pointless. Learn more in the review below:
Genex FX REGULATION AND SAFETY OF FUNDS
Genex FX claims to be a reliable UK broker and has even offered a link to the website of the UK Companies House where you can see that the broker is indeed registered in the UK. However, in order to offer services in the country, a broker has to do way more than just register a company – they have to obtain a license from the Financial Conduct Authority (FCA). In order for that to happen, local brokers have to meet a number of requirements and regularly report to the FCA which has the fame of being one of the strictest financial regulators in the world.
Judging from the fact that Genex FX was nowhere to be found in the FCA database, we can conclude that they are in no way authorized to operate:
A much better choice would be to open an account with a broker that is actually licensed by the FCA (the UK), or by CySEC (Cyprus), or ASIC (Australia). A license by any of these regulators means that the broker is reliable and has met many requirements in order to start offering financial services. There are strict reporting procedures that ensure transparency, not to mention the fact that you will always know who the people behind your broker are. Client deposits must be kept in segregated accounts – this means your broker has very limited access to your money and cannot use it for its own financial operations. There are also minimum capital requirements in both Australia and Europe- A$1 million for Australia and €730 000 for the EU and the UK – but in case the broker has a lot of clients, that sum could go much higher. This way, you can be sure that the broker is financially stable and has a long-term approach. Negative balance protection is a must – you could never lose more money than you have in your account. If you are working with a European broker, you could also get compensation in case your broker becomes insolvent – up to £85 000 in the UK and €20 000 in the EU. This is because all UK and EU brokers are obligated to participate in compensation schemes.
Do not put your money in the hands of anonymous brokers like Genex FX and choose a licensed, reliable company instead.
Genex FX TRADING SOFTWARE
Genex FX promised access to both MetaTrader 4 and MetaTrader 5 but failed to deliver on its promises. The broker did not provide any download links on the website. When we tried to open an account, the system simply malfunctioned and informed us that something had gone “technically wrong”. As a result, we did not get access to a client area either. It seems like the broker does not offer a functional trading platform at all which means that you would also not be given the chance to trade.
Check out some brokers that actually offer MT4 and MT5. Both platforms have built a solid reputation for being relatively easy to use as well as packed with useful trading tools and features. Clients would be able to get access to preprogrammed trading bots (Expert Advisors) that track markets and trade automatically, the possibility to create custom scripts, VPSs that could keep your EAs operating even when your computer is off, customizable signals that could be set for prices going above or below a certain level, a market for add-ons, etc.
Genex FX TRADING CONDITIONS
Genex FX offered little information about its trading conditions. However, since we believe that the broker does not offer a functional trading platform, talking about trading terms such as spreads and leverage is pointless anyway. Better check out some legitimate brokers that can offer leverage as high as 1:100.
The minimum deposit Genex FX asks for seemed to be just $1. This is indeed a very humble sum to start trading with. We suppose that such a low entry threshold might attract some readers to the broker. However, since this is not a safe, legitimate company, trading with Genex FX would not be a profitable endeavor, no matter how easy you could start. There are actually plenty of legitimate brokers that offer very affordable accounts – for $50 or less. Check out some offers here.
Genex FX DEPOSIT AND WITHDRAWAL METHODS AND FEES
Since we were not allowed to open an account with Genex FX, we could not see which deposit methods the broker accepts either. That is not information the broker has disclosed on the website.
Scam brokers will also ask their clients to deposit in cryptocurrencies such as Bitcoin, Ethereum, and Tether, and offer no alternatives. The reason for this strong preference is that such transactions are irreversible. Once you have transferred money in this manner, you would not be able to get a chargeback because all crypto transactions are final. They are also more or less anonymous since they can only be traced to a crypto waller and not to a specific person or organization.
Legitimate brokers have also started accepting crypto deposits but always alongside other, more conventional payment methods. You can easily deposit via wire transfer, with your credit or debit card, or using an electronic payment solution such as Skrill, Neteller, PayPal, or PerfectMoney.
HOW DOES THE SCAM WORK?
In recent years, such scams have become more frequent than you can imagine. That is why it is very important to learn how they usually work and how to tell scam brokers apart from legitimate ones.
Always make sure to check the registers of regulatory bodies to make sure that a broker is licensed and reliable. Stay away from shady-looking websites that promise enormous profits in no time with zero effort. Do your own research – never blindly trust what a certain broker is telling you.
All scams start in a fairly similar way. You see an ad on the Internet promising immense fortune in no time – the only thing you have to do is open an account with a particular forex broker. You give in to curiosity and provide the scammers with your phone number and e-mail – at this point, you might still be reluctant to deposit. But once the scammers have your contact information, you will start getting calls and messages from them. They will ask you to deposit to unlock the full potential of their platforms and turn a profit. Keep in mind that such people are well-versed in the art of sweet-talking – they can promise amazing things and make effortless profits seem possible.
After you make an initial deposit, they would not leave you alone and keep asking for more money. You might even be happy to deposit since, at this point, it might seem like you are turning a profit. Scammers tend to manipulate platforms and results to make it look like you are doing great when you are actually just pouring money into their schemes.
The moment you try to withdraw, you will find out that something is not quite right. Reasons why withdrawals are impossible will show up – additional taxes, new clauses in the broker’s Terms and Conditions, etc. At some point, you will figure out that you are being scammed – but it would already be too late. The scammers will stop answering your calls and e-mails – and they will simply disappear with all your deposits.
WHAT TO DO WHEN SCAMMED?
The first thing you should do is contact your bank and inform them about what has happened. Change your banking passwords to ensure that the scammers would have no way of stealing more money.
If you have installed remote access software – such as TeamViewer or AnyTesk – make sure to remove it. Some scam brokers will try to convince you that such software is necessary for a better trading experience – in order for them to help you with platform issues, or even with trading. Their true goal is to get access to your computer and banking systems – so they can start draining your accounts.
If you have deposited with a credit or debit card, make sure to contact your card issuer as soon as possible. Both Visa and MasterCard try to combat scams by allowing chargebacks within 540 days of the transactions. Retrieving your money might still be possible. If you have deposited in crypto, on the other hand, there would, unfortunately, be no way for you to get your money back.
Make sure to inform the authorities in your country about the broker and share your story – online and with acquaintances. This will prevent people from getting scammed in the same way.
One final important note – never trust anyone that calls themselves a “recovery agent”. Such “agents” promise to track down the scammers and retrieve your money – for a fee, of course. This is nothing more but another type of scam directed at desperate people.
