Beware! FX Plus500 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.
FXPlus500 is an example of why we should always do careful fact checking before putting our money on the line. This website represents one of the most brazen types of fraud by illegally using the details of a legitimate company – Plus500. In this review, we’ll take a detailed look at how to identify such scams.
FXPlus500 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|
If a financial services provider is legitimate, you will find on its website clear and detailed information about the company that owns and operates it, where it is based, and what licences it has. Genuine brokers also provide access to a comprehensive set of legal documentation. The availability of such information does not guarantee that it is not false or misleading.
On the homepage of the website we see claims that a group of companies licensed in a number of jurisdictions including the UK and Cyprus are behind this brand.
But the UK’s financial regulator explicitly warns that FXPlus500 is a scam using the details of a legitimate company.
The Cypriot regulator’s database also confirms that the legitimate broker is using different domains from that of FXPlus500.
When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.
Under no circumstances should you trust your money to such anonymous websites full of false information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like Cyprus Securities and Exchange Commission (CySEC) or Financial Conduct Authority (FCA) in the UK.
As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK.
FXPlus500 Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|MT4||30+ indicators||✅||✅||Android and iOS|
|MT5||50+ indicators||✅||✅||Android and iOS|
|cTrader||40+ indicators||✅||✅||Android and iOS|
The FXPlus500 website does not even mention the most important tool for the forex trader, the software. At the time of writing this review it was not possible to register a new account.
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.
FXPlus500 Trading instruments
FXPlus500 advertises auctions with a wide variety of financial instruments. But we have absolutely no reason to believe that this scam website offers real trading.
FXPlus500 Spreads and cost of trading
FXPlus500 does not provide information about the cost of the trade, but promises guaranteed profits and bonuses – two clear clues that we are dealing with a scam and not a real broker.
A genuine broker will not and cannot promise you guaranteed profits. In fact, licensed companies are obliged by regulators to warn their clients about the high risk of losses when trading financial instruments.
Scammers often use promises of supposedly generous bonuses to tie their potential victims to extortionate terms.
FXPlus500 Maximum leverage
|FXPlus500||30:1||Not specified||Not specified||Not specified||Not specified|
|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||❌||❌||❌||❌|
FX Plus500 states a standard leverage level of 1:30, but that’s probably just copied from the real broker’s website.
FXPlus500 Deposit and withdrawal methods
Due to our inability to register an account, we were unable to ascertain what payment methods FXPlus500 uses. Experience has shown that fraudsters direct their potential victims to cryptocurrency transactions that do not allow refunds to be requested.
While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Skrill.
FXPlus500 Minimum deposit
FXPlus500 requires a minimum deposit of 1,000 USD. For a hundred times less you could open a trading account with an established and regulated broker.
FXPlus500 Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|FXPlus500||Not specified||Not specified||Not specified|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
Since FXPlus500 does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.