Beware! ClassicFx24Trade is an offshore broker! Your investment may be at risk.

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ClassicFx24Trade is a proven scam. A European financial authority issued a warning against them giving notice to traders. Blacklisted brokers such as ClassicFx24Trade should be avoided at all costs for these are run by scammers who are going to steal your money if you deposit.

However, no warnings needed to quickly realise it’s a scam scheme. The so-called broker produced an inferior website unpleasant to browse through. There are too few clickable pages with no useful information whatsoever, but on top of that, half of the links are broken. Find out what you need to know about this scam broker in the full ClassicFx24Trade review.

ClassicFx24Trade REGULATION AND SAFETY OF FUNDS

ClassicFx24Trade falsely claims to be a broker authorised by the British and the Cyprus regulators, FCA and CySEC respectively. We researched the authorities registers but found a warning issued instead of a license. The financial regulators worldwide blacklist fraudulent brokers and investment companies, guiding the traders on avoiding fraud. Your funds are in danger if you deposit with ClassicFx24Trade because it’s a scam scheme striving to rip traders off their hard-earned money. Avoid this broker and report immediately if they contact you. 

Furthermore, ClassicFx24Trade abuses legit brokers’ details, so we consider this FX creature a clone firm. They may approach people over the phone, pretending to work for genuine companies. Find out more about this facilitating scam technique later in the review.

Consider our lists with European brokers and British brokers we recommend and forget about the illicit ClassicFx24Trade. The best FX companies in the world hold European licenses, so traders have plenty of choices. These brokers are covered by the money protection schemes laid out to safeguard the clients’ deposits. When trading with Cyprus licensed broker, you can claim up to 20 000 EUR in compensation, while in the UK the guarantees are of even up to 85 000 GBP per client. Each EU member state is compelled to operate similar insurance funds,  considered the last resort for traders if brokers, unfortunately, go bankrupt. 

ClassicFx24Trade TRADING SOFTWARE

Perhaps ClassicFx24Trade offers only a web-based platform, but we couldn’t access it because they wanted us to submit copies of our documents. Of course, we didn’t, so we have no idea what their platform looks like if there is any at all. We’ll repeat it many times in this review: ClassicFx24Trade is a scam, so avoid this broker.

See the regulated MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is the most popular retail Forex trading platform globally, which traders prefer for its reliability and ease of use. It features sophisticated trading tools rare to find elsewhere for free such as Expert Advisors, Algo Trading, Complex Indicators, reliable Strategy testers and even a marketplace with more than 10 000 trading apps available by the time.

So, there is no information about the real-time spreads and leverage levels provided. They didn’t even care to lie to us on their website, so we know nothing about trading’s most important elements. However, we’d like to stress on the leverage as a financial tool, for it improves the profit potential, but makes trading excessively risky if misused. Levels such as 1:500 or more can utterly destroy trading accounts within minutes, so traders should be cautious when using this instrument.

Precisely the risks involved made EU, UK and Australia (coming in effect later this year) force a leverage cap of 1:30 on the markets as a customer protection measure. The US brokers and the Canadian brokers are not allowed to provide more than 1:50, so we do not recommend brokers offering higher ratios for the lack of adequate regulation, as well. The Swiss brokers are not leverage restricted, but Switzerland asks for 20 million francs in paid-up capital (more than 22 million US dollars) to issue a license, and that certainly keeps the scammers away.

ClassicFx24Trade DEPOSIT/WITHDRAW METHODS AND FEES

There is no information whatsoever about minimum deposit requirements, funding methods, withdrawal requirements, fees etc. As already cleared out, ClassicFx24Trade present an amateur-ish website, which doesn’t reveal any important information in regards to trading conditions. However, it’s a proven scam enterprise, so we shouldn’t consider credible any piece of information they give. 

Worse though, they insist on submitting ID card or a Passport as quickly as possible, which is a warning sign itself. The scammers always act urgently, having no patience towards the clients, while trying to secure the deposit. In this case, we believe ClassicFx24Trade may as well be involved in Identity Theft fraud. You can find out more about it in the passage below. 

Overall, ClassicFx24Trade is an exposed scam, so stay safe and avoid this broker. 

HOW DOES THE SCAM WORK

Firm cloning is the abuse of legit companies names, registration numbers, address etc. By doing so, the scammers are trying to gain trust and trick the customers into believing they are dealing with a genuine entity. The firm cloning is an effective way to take off the wary investor’s guard, and it’s a scam tactic that’s becoming increasingly popular. FCA issued 303 warnings for cloned firms in 2018 and 365 in 2019, as the number for 2020 is expected to increase. FCA itself became a victim of firm cloning in July 2020, when fraudster replicated the financial authority website urging companies to register for online invoicing and pay annual fees.

Identity theft is widespread fraud and serious crime. It happens when someone abuses your personal information without your permission to commit fraud. Having your details, the scammers can access and drain your bank accounts, open new ones in your name, take out loans or lines of credit on your behalf etc. They can also purchase expensive goods, gain access to your online government services, or even sell your details to someone else. Worse though, the scammers can also register companies in your name, facilitating their illegal activities. There are many examples of people who suddenly become aware that they own a hugely indebted company. You should always be cautious when submitting copies of your ID card, Passport or even utility bills. Do not share personal information because some shady broker asks for it; always do the research first!

WHAT TO DO WHEN SCAMMED

Unfortunately, no one is immune to fraud. In case you got scammed, you need first to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary 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, call the police if you feel necessary. Seek help actively!

It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment, but do nothing to help you recover your losses and simply pocket the money you’ve sent!

Share online your experience; it’s important to protect others, as well. Be responsible!

Rich Snippet Data

Reviewer

TheForexReview

Review Date

2021-01-18

Reviewed Broker

ClassicFx24Trade

Broker Rating