RedstoneFX review 2023: 5 things you should know about redstonefx.vip

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

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All scam brokers have something in common and that is mainly the absence of forex regulation. And RedstoneFX is not an exception. This firm is definitely not authorized to operate on the forex market just because it’s based in a country that doesn’t license forex brokerage activities as a whole. But wait, there’s more. RedstoneFX also has some quite shady trading conditions as it requires an ID image to be uploaded before you can even see its trading platform or payment methods. How unfair is that? So if you don’t want to get swindled, better read the following lines and stay clear of this broker.

RedstoneFX Regulation and safety of funds

According to its website, RedstoneFX is based and registered in St. Vincent and the Grenadines and this fact alone was enough to convince us that this broker is not regulated. SVG is an offshore destination that doesn’t license forex brokerage activities in general, so any firm situated there is certainly not authorized nor supervised by any financial authority. If you doubt this, feel free to visit the official website of the local Financial Services Authority (FSA). It states the same and warns potential customers about the dangers of dealing with unlicensed brokers. Take a look at the message that appears the moment you land on its page:

Therefore, no matter what RedstoneFX might claim, one is for sure – this broker is not regulated therefore it’s not to be trusted.

What’s even more curious however, is that some parts of this website are in Chinese and other – in English. What’s more, the phone number posted in its contact details is UK based. Such contradictions are typical for scammers so don’t be surprised. On top of that some links on this page don’t work as well, like for example the links for its social media profiles, which are obviously fake. Apparently, this broker is yet another fraudulent scheme run by scammers, so you have no reason to deal with it.

RedstoneFX Trading software

RedstoneFX seems to offer MetaTrader 4. There is also a download link you can use to have a look at the software itself.

However, after we registered we couldn’t get access to our profile until we uploaded an ID image and some further personal data. For this reason we couldn’t see the trading platform in detail. Nonetheless, no matter what software this broker offers, remember that it’s unregulated and totally unlawful, so better stay away from it.

RedstoneFX Trading instruments

RedstoneFX claims to offer a small range of assets like forex, metals, energies and indices. Nothing impressive to be honest. Especially given the fact that most reputable firms provide a much wider arsenal of trading instruments including crypto, commodities, shares and more.

RedstoneFX Spreads and cost of trading

RedstoneFX offers three types of accounts – STD, PRO and ECN. Take a look at some more details about them down below:

The spread promised for the first two accounts is 1.7 and 1.3 pips with no commissions, while the last one offers spreads from 0 pips with 7 USD commission. These are standard amounts to be honest, however still not enough to compensate for the absolute illegitimacy of this broker. Many genuine firms offer tight spreads around or below 1 pip anyway, so better stick to one of them instead.

RedstoneFX Maximum leverage

The maximum leverage this broker offers is said to be 1:1000 and that’s an insane amount without a doubt! Such risky amounts can hardly be seen with reputable brokers for a couple of reasons. First of all, a leverage of such an extent is so insecure and speculative, that it looks more like gambling rather than actual trading. Secondly, most jurisdictions have limited the leverage as an attempt to minimize the potential danger of sudden loss – 1:30 for the UK and the EU and 1:50 for the US to be precise. Still, if you want to trade with higher leverage, don’t make the mistake of choosing some unregulated firms like this one! Instead, look for some of the offshore subsidiaries of legitimate forex brokers.

RedstoneFX Deposit and withdrawal methods

On its website RedstoneFX claims to accept different payment methods like Tether, Visa, Mastercard, UnionPay, Alipay and WeChat Pay. Unfortunately we can’t confirm that. As we mentioned above, we didn’t have access to our profile without an ID image to be uploaded, so we couldn’t see the payment options ourselves.

However, that’s not the main issue here. What bothered us the most was hidden in this broker’s FAQ. According to them the only withdrawal option is only UnionPay, while the deposit methods remain the same as listed above. This sounds rather suspicious, but it was to be expected from a shady firm like RedstoneFX.

In addition, the withdrawal time is said to be around 2-3 working days with no fees required.

RedstoneFX Minimum deposit

RedstoneFX claims its minimum deposit is just 1 USD. And while this amount seems quite low and attractive, don’t let it fool you. This is certainly one more way to lure new clients to register and start trading. As soon as you make a higher investment you may realize your cash is gone for good.

What’s more, there are plenty of reputable brokers who offer micro accounts for as little as 5 USD, so it’s pointless to risk everything by dealing with such sham firms like RedstoneFX.

RedstoneFX Withdrawal requirements

RedstoneFX claims that there are no deposit/withdrawal fees required, however we are quite skeptical. Just beware that scammers often ask for high withdrawal fees which may exceed 15%!

Apart from that, as we mentioned above, the withdrawal method is only one (UnionPay) and takes between 2-3 working days.