Beware! Fxplus.co 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! Fxplus.co is an anonymous Forex broker introducing itself as a Swiss entity claiming to be the leading European financial institution! In fact, Fxplus.co was blacklisted by the Spanish financial authority, which serves as an official confirmation that this Forex brokers is a scam and should be avoided. Upon opening their website, however, we were able to detect straight away that it’s a scam, by merely looking at their address! Find out everything you need to know about this scam Forex broker in the full Fxplus.co review.
Fxplus.co REGULATION AND SAFETY OF FUNDS
Fxplus.co displays Zurich address and Swiss phone number on their Contact Us page, trying to deceive the public that they are a legit Forex broker that’s based in Switzerland. FINMA- the Swiss financial regulator was among the first in the world to put under regulation the Forex brokers that want to operate there, and their license is probably the costliest in the world! What sets the Swiss apart, however, is the fact that they allow trading on higher leverage, which doesn’t fully protect the customers. Still, their financial system is probably the strongest in the world, so the customers shouldn’t worry if they trade with legit Swiss broker, which Fxplus.co is not! You can find out more about the Swiss regulations and customer protection by following the link above.
Fxplus.co received a warning by CNMV– the Spanish financial regulator that was published on 3 November 2020, which officially proves that it’s a scam Forex broker that you should stay away from!
Your funds are in danger if you make a deposit with Fxplus.co, because it’s an unlicensed, unauthorised and unregulated Forex broker, that is a proven scam. Report immediately to the police and the financial service authority in your country if someone of them approaches you on the Internet or over the phone.
We recommend that you should trade with EU (mostly CySEC regulated) or UK (FCA regulated) Forex brokers because these two jurisdictions provide the safest environment for the funds of the retail traders. Moreover, most of the leading brokers in the world hold EU or UK license, which will definitely help you with the choice. Customer protection is a top priority, and there are a variety of stringent rules and regulations imposed on the Forex brokers that keeps the system stable. These include a minimum capital requirement of 730 000 EUR, segregation of the clients’ accounts, negative balance protection (the trader cannot lose more than the sum deposited) and predefined stop-out levels, to name a few. Most importantly, however, the traders are guaranteed by the deposit insurance funds that were inaugurated to further contribute to the health of the system. Under CySEC (Cyprus) regulation, the clients can claim up to 20 000 EUR in compensation, while under FCA (Britain) the clients can claim up to 85 000 GBP per client. If you trade with an anonymous or offshore broker, you are entitled to nothing, but troubles and issues.
Fxplus.co TRADING SOFTWARE
Fxplus.co doesn’t offer MetaTrader4 or MetaTrader5 accounts to its clients; instead, they rely on some web-based trading platform which is miles behind the mighty Metatrader. It’s called Webtrader and includes only 3 indicators, which doesn’t actually work accurately. There aren’t spreads– no Bid and Ask prices are available, and you will have to buy or sell something, not knowing what you are actually executing!
The spread is the fundamental trading feature, which forms part of the trading costs for the customer. It directly affects the potential outcome, and the lower the spreads, the bigger the potential profits.
The leverage is said to be 1:500, but we cannot confirm it as a valid statement, because we registered with some unknown default level. That’s yet another warning sign and scam evidence! The leverage is the other fundamental aspect of trading, because it allows the traders to increase the size of their positions, thus way amplifying the potential profits. But it also proportionally increases and above certain levels, it becomes unsafe for the funds. If misused the increased leverage might utterly destroy the account in a short time. That very reason caused the EU and the UK to impose a leverage cap as a customer protection measure, disallowing the regulated Forex brokers to offer higher ratios than 1:30. We also recommend that you should stop looking for brokers offering increased levels because you might quickly end up being scammed!
Fxplus.co DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is €500, which is much higher compared to the rest of the industry. The regulated Forex brokers will ask for no more than $100 to start trading.
The funding methods are said to be Debit/Credit cards and Wire Transfers, but that’s not true, because you can only make a deposit through some fishy payment system called PayCent with a domain address cashier.boxipay.io. It’s yet another proof of scam and a warning sign for the traders.
The minimum withdrawal amount is said to be $50, and a fixed fee of $30 applies to each withdrawal. That’s not fair for the trader, because the legit Forex brokers will let the traders pull out as much as they want, with no or minimal administration fee applied.
An account becomes dormant after 3 months of inactivity and will be subject to a fixed charge of $100 every 3 months, which makes $400 per year. In comparison, the regulated Forex brokers will let a year pass before they put your account dormant and will charge no more than $20 per year. Some Forex brokers don’t even impose a maintenance fee on the dormant accounts!
There are no bonuses offered by Fxplus.co. The traders should know that the bonuses and the trading incentives are not free money, but simply leverage tools that further increases the risk, making the losses much more possible.
HOW DOES THE SCAM WORK
The scammers will include as many scam clauses as possible in their T&Cs which will significantly worsen the trading experience. There might be high deposit requirements, high withdrawal requirements, bonus requirements that are almost impossible to fulfil, or a very harsh dormant account policy that will utterly drain up your account if you stop trading for some time. These clauses give them excuses to delay/refuse withdrawal or impose charges that are unfair for the traders.
The two most favourable marketing tools for the scammers are the bonuses and the increased leverage levels because these features are banned in the EU, UK and USA, but happen to be highly sought after by the traders. Both the bonuses and the massive leverage ratios put the funds of the traders at risk, and that’s what scammers want. In case you realise that you are dealing with a risky sham Forex broker, the scammers will make whatever it takes not to give you back the money. At last, they will simply stop answering your calls and messages and will most probably abandon the scam website that they are using. Then they will rebrand by creating a fresh scam broker and will carry on conducting their illegal activities.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and anyone can fall into the trap. Scammers are always 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 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. Seek help actively!
Share online your experience; it’s important to protect others, as well. Be responsible!