Beware! Finex Trade 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.
Warning! Finex Trade is a Forex broker that was blacklisted by the UK financial watchdog FCA. An official warning being issued by a financial regulator is the ultimate proof that a certain broker is a scam and you should avoid it.
Apart from the warning itself there are many other red flags that we managed to detect while doing this review, which undoubtedly prove that Finex Trade is a fraud. Find out everything you need to know about this Forex broker in the full Finex Trade review.
Finex Trade REGULATION AND SAFETY OF FUNDS
Finex Trade presents itself as an FCA regulated Forex broker which is run by FINEX CAPITAL MANAGEMENT LLP and acting on behalf of its parent companies operated by FINEX Ltd. We searched through the register of FCA and instead of a license we found a warning, stating that Finex Trade is a clone firm. Clone firms are abusing the names of a genuine firm, its registration numbers, reference numbers or other legal details linked with the authorized company. In this way the scammers are trying to mislead the people and trick them into believing that they are dealing with a legit Forex broker.
Your funds are in danger if you make a deposit with Finex Trade, it’s an unlicensed, unauthorized and unregulated, proven to be a scam Forex broker, which should be avoided. Report immediately if some of their representatives contact you, offering products and services.
Your choice should be a provenly legit European Forex broker- CySEC(Cyprus) or FCA(Britain) regulated, as these locations host the leaders in the retail FX industry. Europe created the safest financial environment in the world by implementing a very robust regulatory framework, consisting of many strict rules and requirements Forex brokers have to meet. The last one that was agreed came out of UK, FCA imposed a ban on Crypto derivatives retail trading with an immediate effect, meaning that you will no longer be able to trade BTC/USD with your British broker. The digital coins are known to be prone to price manipulation, incredibly unpredictable and highly volatile, posing a substantial threat to the funds of the traders. The most important customer protection feature, however, is the compensation schemes for clients of authorized financial service companies.
The Investor Compensation Fund(ICF) operates in Cyprus, while in Britain the similar fund is called Financial Services Compensation Schemes(FSCS). In Cyprus you are allowed to make a claim of up to 20 000 EUR per client, while in UK you are guaranteed of even up to 85 000 GBP per client. If you trade with an offshore broker you are entitled to nothing, it might cease to exist tomorrow and you are going to lose all of your investments!
Finex Trade TRADING SOFTWARE
Finex Trade does not offer Metatrader4 or Metatrader5 accounts to the traders, instead they are providing the customers with some web-based platform having a strange address- web.trading-space.com. It is a red flag itself, because you are being redirected to some totally unknown page that hasn’t been mentioned anywhere on their web-page. Demo trading is possible, however, which is probably the only positive thing that we can say about this Forex broker.
The EUR/USD spread is the mind-boggling 12 pips, which is outrageously high, definitely a strong scam sign and a warning to the traders. Such a spread makes it very difficult for the trader to make some money out of the FX market, no matter the broker. The increased spread is a very popular tactics used by the scammers, they will advertise low spreads and once you register and deposit money with them they are going to significantly worsen the trading conditions. Finex Trade is doing exactly the same, they say that the spreads provided are as low as 0.6 pips on their web page, but you find the staggering 12 pips difference once you are logged in. Stay away!
The leverage is said to be of up to 1:500, which undeniably proves that Finex Trade has nothing to do with FCA regulation, because the British watchdog has capped the maximum leverage that can be offered by the licensed Forex brokers at 1:30, as a customer protection measure.
Finex Trade DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is said to be $250, and the funding methods are supposed to be Credit/Debit cards, wire transfers and Bitcoin. We cannot confirm that these payment systems are available, however, because we were unable to sign in upon registration as no confirmation e-mail was sent to us. Definitely a major red flag, it’s yet another proof that Finex Trade is a scam.
The ultimate proof of scam, however, uncovered itself as soon as we opened their Risk Disclosure document. Finex Trade shamelessly has copied the document from the website of Nord FX, an authorized FCA and CySEC regulated Forex broker. Have a look:
On the other hand, it’s obvious that Finex Trade has put some more efforts when creating their Client Agreement document, at least they’ve changed the names. Otherwise, it’s an exact same copy paste of the Nord FX Client Agreement, as well. It becomes pointless to discuss their Terms and Conditions at this stage.
No minimum withdrawal amount and no withdrawal fees known, which is a red flag.
No dormant account policy and no fees for inactivity known, which is a red flag.
There are bonuses, however, offered by Finex Trade, starting from 10% on the deposit. The bonuses and similar to them trading incentives are banned in Britain, which once again proves that Finex Trade is a scam Forex broker, trying to defraud the traders.
No partnership programs were introduced.
Finex Trade offers paid signal providing services, which is an illegal activity, because true Forex brokers cannot act as financial advisers to their customers.
HOW DOES THE SCAM WORK
The Forex scam is a financial crime and involves the illegal sale of financial products and services without the proper authorization. Being involved in a scam and consequently getting ripped off might be a life-changing event with intense long-lasting effects. Learn how to recognize the warning signals, the knowledge will hopefully help you remain safe. Have a look at five of the common scam signs:
- Scammers are usually anonymous and offshore.
- Scammers will present investment opportunities or trading conditions that are too good to be true.
- Scammers will make falsely risk free offers, reassuring that there is no danger for your funds, unlike the true Forex brokers which will always warn you about the loss potential in the FX trading.
- Scammers will present pieces of conflicting information, for example on their Main Page they will claim to offer a leverage of 1:100, while in reality, upon registration you will find out that the ratio might be up to 1:500. The information inaccuracy is a very strong scam sign.
- Scammers will accept only Cryptos or will use some fishy payment systems, generally unknown to the broad public. Another very strong scam sign!
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!