Beware! Finexia FX 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.
Finexia FX is one of those brokers that offer nothing short of revolutionary- the best platform, the best trading conditions, the safest business and basically the best everything. In reality, though, Finexia FX can’t deliver a thing we’ve never seen before, and their services are indeed pretty costly. It’s actually a dangerous entity, and you’ll see why in the full Finexia FX review.
Finexia FX REGULATION AND SAFETY OF FUNDS
Finexia FX is presented as a brand of Finexia FX Markets Ltd, a company purportedly licensed and regulated in St. Vincent and the Grenadines. Well, that’s a big fat lie because the local regulator SVGFSA doesn’t license the brokers operating legally from the island. What’s more, the companies incorporated there are virtually anonymous, and you don’t even know whom you are dealing with. In essence, your funds won’t be safe if you deposit with Finexia FX because it’s an unregulated high-risk broker. The false claims strongly suggest it’s a scam scheme, so you have to be careful.
As Finexia FX is apparently a scam, you’d better consider the high-rated EU brokers and British brokers topping both lists. We recommend those because the Europeans offer high-grade security and protection guaranteed by deposit insurance funds created to reimburse clients in case of insolvency. Thus, CySEC brokers’ traders can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. So if you are eligible to open accounts with European companies, you can safely go for it.
The screenshot below depicts even more fraudulent claims, so make sure to stay away from the deceitful Finexia FX.
Finexia FX TRADING SOFTWARE
Finexia FX delivers MetaTrader5, which is actually a leading FX platform, but the trading conditions are unfavourable, to put it mildly. First of all, the EUR/USD spread is massive- 3 pips, so it’s costly to trade with this broker. Most regulated brokers offer much tighter spreads of 1 pip and below, so it’s not challenging to find better opportunities. Then, MT5 brokers primarily offer ECN trading, so traders will most probably have to pay commissions to Finexia FX, but the broker fails to specify anything whatsoever.
That said, the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists are safe and provide much better trading conditions. The MT distributions are packed with sophisticated tools such as Expert Advisors, many complex indicators, sophisticated charting tools and a marketplace featuring more than 10 000 apps. MT is definitely the best choice for traders, but not if you trade with Finexia FX.
Finexia FX claims to provide 1:500 leverage, but it actually offers only 4 levels to choose from- 1:10, 1:50, 1:100 and 1:200. Yet another inconsistency and another red flag we need to note! Anyway, most traders will be tempted by 1:200 because of the increased profit potential, but it’s utterly risky and can cause severe losses if not reasonably used.
In fact, leverage is so dangerous that most of the respected authorities do regulate it to reduce traders’ risks. For example, EU, British and Australian brokers‘ clients are limited to 1:30, while Canadian brokers and US brokers can’t provide more than 1:50. In addition, most of the high-leverage FX companies are unlicensed, and we urge traders to be careful when it comes to leverage.
Finexia FX DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Finexia FX is $10, which is seemingly a favourable requirement. However, the broker is a scam, so you shouldn’t send it even a dime.
The single funding method is Credit/Debit cards, but we have to note another red flag because the broker claims to provide various other options. It turns out that Finexia FX is lying about almost everything, and that strongly indicates a scam.
While talking about deposits, we can offer our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The companies on top of both lists are adequately regulated, and you won’t face scammers.
Information about withdrawals, fees, inactivity procedures and so on is not available, and that’s because Finexia FX doesn’t even have legal documentation. There is a single link on the sign-up page, but it’s broken, and here we have to raise yet another red flag. Brokers having no legal documents can’t pretend to be legit.
Overall, after so many red flags, we can conclude that Finexia FX is a scam scheme, so you should avoid it.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s actually a process. In the typical scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes, and so on. Their imagination is rich and would invent as many stories to get the craved deposits.
Unfortunately, the first deposit is not the end but the beginning. Gradually, scammers would manipulate victims and would urge them to invest repeatedly. For example, con artists may not allow people to trade themselves but would pretend to manage the trading accounts. Forged results would show victims massive profits, and scammers would ask for more money, promising to secure more gains.
However, the problem starts when people ask for withdrawals. Scammers would make excuses to refuse withdrawals and even require additional deposits to let people take their money out. Those criminals won’t stop asking for funds, no matter what. In the worst case, the victim would believe in the scammers’ falsehood and deposit again and again. However, sooner or later, the scam would become evident, the fraudsters would cut the communication and eventually disappear. They would drop the website, create a new one and carry on with their criminal business untouched, while people would be left with losses almost impossible to recover.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened so that they can give you instructions and help, 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, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush to recover funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!
Rich Snippet Data