Beware! FXCR 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.
FXCR is a fairly typical example of a financial scam targeting people without the necessary experience and knowledge of financial trading. This website greets us with claims that it is a broker servicing over 12 million accounts – something that not even the leading brands in the industry can claim.
Fact checking leaves no doubt that everything on this website is a lie. Let’s take a detailed look at why you should under no circumstances trust your money to FXCR.
FXCR Regulation and safety of funds
|Guaranteed Funds||Segregated Accounts||Negative balance protection|
|UK regulated brokers||£85 000||Yes||Yes|
|EU regulated brokers||€20 000||Yes||Yes|
|AU regulated brokers||No||Yes||Yes|
|US regulted brokers||Yes||Yes||No|
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 owner of this website is identified as the company FXCR Limited, which is stated to be based in the Marshall Islands.
The Marshall Islands is an offshore zone where there is no financial regulator and companies can be incorporated entirely online. This makes this jurisdiction very convenient for shady brokers and scammers.
FXCR provides a contact number for the United Kingdom. But offshore companies cannot provide brokerage and other financial services in this regulated jurisdiction.
In the text of the Client Agreement, the place for a governing law is left blank.
If you have decided to invest in financial instruments, and especially if you are a novice trader, you should use the services of a licensed broker based in a jurisdiction with strong regulations.
If you want to trade on financial markets without being scammed, you can turn to some of the legitimate brokers that actually operate from established financial hubs like the UK. These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the Financial Conduct Authority (FCA).
They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.
FXCR Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|cTrader||40+ indicators||✅||✅||Android and iOS|
The FXCR website doesn’t even mention the most important tool for forex trading – software. The website also has no form to register a new account, only an option to log into an existing one. Because of this, we were not able to determine if FXCR offers any trading functionality.
If you use the services of a licensed broker, you will get the opportunity to use established software with advanced features and versions for all types of devices and operating systems. The most widely used trading platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (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.
FXCR Trading instruments
FXCR does not provide a list of tradable financial instruments. In fact, the descriptions of trading account types lack information on most basic trading parameters, including spreads, commissions, and order execution method.
FXCR Spreads and cost of trading
Given the lack of information on the website and the lack of trading software, it is unclear what price the trader is expected to pay. But the important thing is that scams of this type offer fictitious rather than real trading, so it doesn’t matter if they promise lucrative terms.
FXCR Maximum leverage
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
One of the few specified parameters is high leverage up to 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.
Higher levels of leverage are only offered to professional clients who trade entirely at their own risk. If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.
FXCR Deposit and withdrawal methods
On the homepage of the website we see the logos of popular payment methods such as credit cards and wire transfer. But FXCR does not provide specific information on deposits and withdrawals.
Experience has shown that fake brokers routinely advertise conventional payment methods, but actually steer their potential victims towards cryptocurrency transactions. This not only guarantees them anonymity, but also deprives the defrauded of the option to request a refund or chargeback.
Legitimate brokers typically offer clients a wide choice of transparent payment methods, including established e-wallets such as PayPal, Skrill, Netelle or GiroPay.
If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.
FXCR Minimum deposit
According to the descriptions of the account types, the required minimum deposit is 250 USD. For the same amount you could start trading through almost any licensed broker in the world. The most established brands offer beginner investors Micro accounts with a very low minimum deposit.
FXCR Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|XYZ / offshore brokers||40x||No info||No info|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
Like most fake brokers, FXCR promises bonuses, a practice that is banned by most financial regulators.
If an account has received a bonus, it can only withdraw funds after it has met the minimum traded volume requirements. These requirements are vaguely and confusingly defined in the text of the Client Agreement: “The size of the mandatory turnover is equal to the amount of the bonus multiplied by his leverage”.
In the account descriptions we see restrictions on the percentage of profits that can be withdrawn per month. Legitimate brokers have no such restrictions.