Financialstocktradefx review – 5 things you should know about financialstocktradefx.com

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

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

Financialstocktradefx is a typical example of a website that promises a safe and secure way to invest in the financial markets, but in reality is a scam taking advantage of the hype around cryptocurrencies. In this review we will show you how to distinguish such scams from credible forex brokers.

Financialstocktradefx Regulation and safety of funds

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. But the absence of these elements is very indicative that in all likelihood you are dealing with scammers.

The home page of the website and the text of the Terms of Use state that Financialstocktradefx is based and licensed in the United Kingdom. But nowhere is a company name given.

To operate in this jurisdiction, a broker needs a licence from the Financial Conduct Authority (FCA). But in the regulator’s database we find not a licence but a warning that Financialstocktradefx is not authorised.

Elsewhere on the website we see an image of a purported licence from the USA in the name of the company Fx Crypto Limited. This document is a fake, and this legal entity in all likelihood does not exist.

If you have decided to invest in financial instruments you have a choice of much more trustworthy options. Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in the US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).

Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds. In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK.

Financialstocktradefx Trading software

Financialstocktradefx does not have trading software. In the dashboard we only see a simple chart with current Bitcoin prices, which has no trading functionality. This alleged broker has neither the licence nor the technological capacity to facilitate trading in financial instruments.

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).

Financialstocktradefx Trading instruments

Financialstocktradefx claims to offer forex, cryptocurrency and binary options trading. But the FCA prohibits the latter two types of trading, so this is more proof that we are dealing with a scam.

Financialstocktradefx Spreads and cost of trading

When you visit the website of a legitimate broker you will find proposals for different types of trading accounts suitable for investors with different preferences, as well as detailed descriptions of trading parameters. All we find on the FinancialstocktradefxF website are promises of guaranteed high profits.

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.

Financialstocktradefx Maximum leverage

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.

If you are willing to take the risk of trading with high leverage and benefit from bonuses and promotions, the best option is to invest through an offshore division of an established brand.

Financialstocktradefx Deposit and withdrawal methods

Financialstocktradefx claims to allow multiple payment methods:

But on the deposit menu, the only option is cryptocurrencies:

Scammers prefer cryptocurrencies because these transactions are not subject to refunds.If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.

Financialstocktradefx Minimum deposit

Financialstocktradefx requires a minimum investment of 1,000 USD. For ten or even a hundred times less, you could open a starter trading account with a licensed broker, including the industry’s leading brands.

Financialstocktradefx Withdrawal requirements

Financialstocktradefx does not specify extraordinary conditions for withdrawal. But these types of scams always surprise you with hidden fees and other tricks that prevent you from withdrawing your money back.