Beware! FXTradeIndex 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.
FXTradeIndex is a perfect example of the kind of mess one becomes when one talks the talk, but does not walk the walk. FXTradeIndex paves the way for traders rather smoothly, but then it turns out the paint could easily be washed on painted over. Metaphors aside, FXTradeIndex works under the classic and unofficial guides of suspicious brokers. Read the review to see for yourself.
The process of signing up an account was of no hassle at all. After some time, we received a confirmation mail, and were one step closer to a user dashboard. The client area turned out to be a mess created by a group of people who either don’t care or have no idea of the current industry standards.
Unfortunately, we discovered that none of the advertised trading conditions on the website apply. There is a very clear reason for this that we will soon talk about. For now, all there is to say is that we saw no way of applying the the trading conditions. Thus, there is no real reason to quote the website on said illusory trading terms.
The website comes in both English and Indonesian.
FXTRADEINDEX REGULATION AND SAFETY OF FUNDS
FXTradeIndex promotes itself as a Securities and Exchange Commission (SEC) regulated entity in the U.S. However, the governing FX regulators in the United States are the Commodity Futures Trading Commission (CFTC) and the The National Futures Association (NFA).
The key difference between SEC and the CFTC, is that SEC governs the securities markets in the United States, while the CFTC regulates the U.S. commodities markets.
Forex brokers need to hold a CFTC license, combined with an NFA one, for them to offer legit FX trading services in the United States. A SEC regulation does not apply to FX brokers.
None of these regulatory giants have any interest in FXTradeIndex, we can rest assured about that. Not only is FXTradeIndex poor in quality and quantity, but after some time with it, it also is unable to deliver even a hint of persuasion. This broker is completely UNREGULATED, and a scam. There is far too much proof working against it – the website is poor and lacks information on nearly every Forex trading aspect, and the client dashboard is an utter wreck.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
Another instance that made sure the illegitimate status of FXTradeIndex was when we discovered that the firm has no legal documents. In essence the broker is free to do as it wishes, without a care in the world for a user’s personal details and payments. It is unlicensed and works under no user-broker agreement, thus is is not bound by any rules.
FXTRADEINDEX TRADING SOFTWARE
We are going straight to the point here: FXTradeIndex does not have a trading software. The snip below is all there is to the user area in term of an alleged terminal for achieving trades.
Although it might look complicated, rest assured that nothing here is worth your time. Not least of all things, these charts are provided by a third party chart service website that specialises in these things. Any one can make them a section of their website and label them as a a trading software. We’ve seen it done before, and we will see it in the future.
As of now, it seems that FXTradeIndex has no trading software, which means that FXTradeIndex is not a broker, for the defining aspect of its package is missing.
There is a 0.08% commission on stocks, yet we fail to see how it would apply to trades that are impossible to achieve. Much of the information on the website follows the same paradoxical principle – it’s there but it cannot be applied.
FXTRADEINDEX DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit, as gather from the user area, is just $1. Two common scammer broker payment gateways are available for funding an account: bitcoin and ethereum. Both of these hold risks, because monetary transactions with them are untraceable.
Withdrawals can be done via bitcoin, ethereum, and wire transfer. The minimum withdrawal is $5 via ethereum. There is a $2 charged fee plus a 2% commission for all ethereum based withdrawals, as well as bank transfers. Bitcoin fees are 0.01% plus $0.01. Wire transfers can take up to 2 days to appear in a user’s account, while crypto payments are instant. This info was taken from the user dashboard area. Please do not confuse the honesty of FXTradeIndex concerning the withdraw info as a sign that it will pay you back you money. Unlicensed brokers are renowned for they stalling of withdrawals.
What also is solid proof that the broker won’t return deposits and/or profits is the fact of its missing documents. In this review you wont see any scammer clauses, but even worse- a complete lack of legal documents. This works in ways that will be devastating for depositors. I.e, the broker can do literally as it wants. Do not deposit here!
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.