FinnexBot review – 5 things you should know about finnexbot.com

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

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If the claims on the FinnexBot website are to be believed, this is one of the best forex brokers you could choose. But when it comes to financial investments you should not trust promises without verification. And in the case of FinnexBot, verification shows that this is not at all the legitimate and established broker it claims to be. In this review, we’ll show you how to identify licensed brokers and why FinnexBot  is not one.

FinnexBot Regulation and safety of funds

Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licenses it has and which regulators oversee its activities. But the availability of such information does not guarantee that it is not false or misleading.

According to the information on the homepage of the website, this broker is based in England and is licensed by the Financial Conduct Authority (FCA) and CySEC. The first institution is indeed the UK financial regulator, but the second institution is actually the Cyprus Securities and Exchange Commission. The company Finex Capital M LLP is listed as the owner of the broker.

The FCA database has a company with a similar name, but not the same – FinEx Capital Management LLP. This legitimate company operates through the finxcapital.com domain and has nothing to do with FinnexBot.

Another European regulator, Germany’s BaFin, has issued a warning that FinnexBot is not authorised and is illegally using the British company’s details.

The text of the FinnexBot  Terms and Conditions does not mention a name of a legal entity and refers to the Marshall Islands as the applicable jurisdiction. This offshore jurisdiction does not even have a financial regulator.

Under no circumstances should you trust your money to such 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.

FinnexBot Trading software

FinnexBot implements a web-based trading software. While the platform has the basic features for placing orders, customising charts and application of technical indicators, it lacks the more advanced functionality found in the most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

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.

FinnexBot Trading instruments

FinnexBot offers trading in all major asset classes, including cryptocurrencies. But brokers that are truly based in the UK are prohibited from offering crypto derivatives trading to retail traders.

FinnexBot Spreads and cost of trading

In the trading software we see zero spread. This means that the broker has to charge some kind of commission. Usually these commissions are per lot traded. But FinnexBot does not provide clear information about the price paid by the client.

FinnexBot Maximum leverage

FinnexBot   advertises leverage up to 1:500, which also indicates that it is not a licensed broker operating in Europe. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.

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.

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.

FinnexBot Deposit and withdrawal methods

FinnexBot only allows funds to be deposited via wire transfer, which does not allow you to request a refund or chargeback.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller.

FinnexBot Minimum deposit

In the descriptions of the account types a very high minimum deposit of 500 EUR is indicated. The deposit menu itself sets a more standard minimum of 250 EUR.

The leading brands in the industry offer beginner traders starter accounts with a very low minimum deposit. You have no good reason to take chances with shady brokers like FinnexBot.

FinnexBot Withdrawal requirements

To make a withdrawal from FinnexBot you must have traded an amount equal to 30 times the deposit amount plus the bonus.

Regulated brokers are prohibited from offering bonuses and promotions. Scammers often use promises of supposedly generous bonuses to tie their potential victims to extortionate terms.