Beware! FXELIT 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.
FXELIT claims to be “the go-to solution for professionals and newbies to trading alike”. However, our attempts to verify these claims have ended in failure. Fact-checking leaves no doubt that FXELIT is nothing more than another online scam targeting people without sufficient experience and knowledge of financial trading. In this review, we’ll show you how to tell the difference between this type of scam and trustworthy financial service providers.
FXELIT 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.
FXELIT is completely anonymous. At the time of writing this review, no company name or contact address is listed on the website. Even the text of the Terms and Conditions does not mention a legal entity name and does not specify an applicable jurisdiction.
This lack of basic legal information indicates that FXELIT could not be the licensed forex broker it portrays itself to be. This has been confirmed by the German financial regulator BaFin, which has blacklisted FXELIT.
Under no circumstances should you trust your money to such anonymous websites full of false and contradictory 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. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.
FXELIT 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|
FXELIT uses a basic web-based trading platform. Here is how it looks like:
It should be noted that the presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers use rigged trading software to fool their victims that their money is being invested.
Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used 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.
FXELIT Trading instruments
FXELIT advertises trading in cryptocurrencies, forex, commodities, stocks, precious metals and indices. But as already stated we have no reason to believe that this shady website offers real trading.
FXELIT Spreads and cost of trading
In the trading platform we see an acceptable spread of 1.2 pips for the major currency pairs. But in the Terms and Conditions it is stated that FXELIT charges a clearance fee of 1% for all executed trades. Real forex brokers do not charge such fees.
FXELIT 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||❌||❌||❌||❌|
FXELIT offers a leverage of 1:200. Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses.
Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.
FXELIT Deposit and withdrawal methods
At the time of writing this review the deposit menu was not active. We were therefore unable to ascertain what payment methods were available.
Experience has shown that fake brokers 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.
FXELIT Minimum deposit
FXELIT specifies a minimum deposit of 250 USD, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker. Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.
FXELIT Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|FXELIT||Bonus x25||Not specified||$1000|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
The minimum withdrawal amount varies between 100 and 1000 currency units depending on the payment method. But if the account has received a bonus, it can only withdraw funds after meeting the high minimum trading volume requirements – 25 times the deposit amount plus the bonus.
In addition to this, FXELIT charges a very high fee for an inactive account of 30 USD per month.