RontoXM review – 5 things you should know about rontoxm.com

Beware! RontoXM 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.

RontoXM claims to be a forex broker that can ease your entry into the world of financial trading. But this website is not actually a legitimate financial services provider. In this review, we will look at the clues that RontoXM is most likely a scam. We will also recommend more credible alternatives through which you could start investing in financial instruments.

RontoXM 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 licences it has and which regulators oversee its activities. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.

There is no identifying information on the RontoXM website – no company name, contact address or regulatory licence details. The text of the Terms and Conditions does not state the name of any legal entity. The applicable jurisdiction is listed as the Marshall Islands, an offshore zone that does not even have a financial regulator.

The website is primarily available in Spanish, which has attracted the attention of the Spanish financial regulator, the CNMV. The institution has issued a warning to investors that it is not a licensed broker. The warning mentions the company Oag Holding Ltd, but at the time of writing this review, that name is nowhere to be found on the RontoXM website.

If you have decided to invest in financial instruments, and especially if you are a novice trader, you should use the services of a licensed broker based in a jurisdiction with strong regulations.

You should only trust legitimate brokers operating in one of the established financial centres like the UK, EU, USA or Australia. There, the activities of brokers are controlled by powerful regulatory bodies such as UK’s Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Commodity Futures Trading Commission (CFTC) in US or Australian Securities and Exchanges Commission (ASIC). Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.

RontoXM Trading software

RontoXM offers only web-based trading software with basic functionality.  We’ve seen the exact same platform being used by multiple fake brokers we’ve encountered. Scammers are using rigged trading software to fool their victims into believing that their money is really being invested and even turning a profit.

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).

RontoXM Trading instruments

The RontoXM  trading software includes a significant number of financial instruments from all major asset classes. But we have no guarantee that this trading is real. There is no good reason to take risks with shady brokers likeRontoXM , given that you can easily be a client of a licensed and established broker.

RontoXM Spreads and cost of trading

In the trading platform, I see a very low spread of 0.6 pips. But RontoXM does not provide clear information on the trading terms, including the availability of additional trading commissions. Therefore, it is not clear what is the price paid by the trader.

RontoXM Maximum leverage

RontoXM advertises high leverage up to 1:400. This is not a level that you see with regulated brokers. Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders. In the EU, UK and Australia the maximum permitted level is 1:30 and in the US it is 1:50. This maximum level only applies to trading major currency pairs, with even more limited leverage 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.

RontoXM Deposit and withdrawal methods

RontoXM allows the deposit of funds via cryptocurrencies, credit cards and the obscure payment processor Moqpay.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer and established e-wallets such as PayPal, Skrill or Neteller. Scammers prefer cryptocurrencies because these transactions are not subject to refunds.

RontoXM Minimum deposit

There is a minimum amount of 200 USD/EUR set in the deposit menu, but according to the account type descriptions, the minimum deposit is 5,000 USD. 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 RontoXM.

RontoXM Withdrawal requirements

RontoXM charges a fee of EUR 10 for withdrawals less than EUR 100. There is also a very high fee for an inactive account – 10% of the balance, but no lower than 25 EUR. You can expect other hidden fees and extortionate terms from such a fake broker.