Beware! FX24.one is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
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X24.one is a Forex broker that really made it hard for us to start with because there are way too many red flags that we instantly detected. A fictitious financial authority falsely regulates them, and it’s one of the striking scam signs that we were able to expose, but that’s just the beginning. Find out everything you need to know about this Forex broker in the full FX24.one review!
FX24.one REGULATION AND SAFETY OF FUNDS
FX24.one is purportedly headquartered in the Marshall Islands as you can see on the picture above, which is actually a big problem for the traders. There isn’t even a financial regulator on the islands, which means that your funds are not protected, and you might easily lose all of your money. The Marshall Islands is a popular destination among the scammers and that’s caused by the lack of financial regulations.
On the footer of their website, though, they introduce themselves as a regulated entity and even provide the people with a link to a financial regulator page. The big issue for them, however, is that IFMRC is a fictitious financial authority- a forged regulator that they include in their deception!
Your funds are not safe if you deposit with FX24.one because it’s an unlicensed, unauthorized and unregulated Forex broker, which exhibits too many scam features and you should avoid it. Choose one that’s legit and adequately regulated instead, because such an entity makes the difference for the traders and investors. In the EU and UK, for example, the brokers have to comply with many strict rules and regulations, which are put in place for the benefit of the traders. Most importantly, however, there are money protection schemes in operation which guarantee the deposits of the clients. In EU (mostly CySEC regulated brokers) you can claim up to 20 000 EUR in compensation, while in the UK (FCA regulated brokers) you are guaranteed even of up to 85 000 GBP per client.
FX24.one TRADING SOFTWARE
FX24.one claims to offer MetaTrader4 to its clients, but in reality, the platform is not available for trading. MetaTrader5 is not available, as well. It’s a gargantuan red flag because they abuse the name of Metatrader, striving to take advantage of its reputation. It’s the most popular Forex trading platform in the world which features sophisticated trading tools such as Expert Advisors, Automated Trading, Strategy Tester, its own programming language- MQL and a marketplace, where the traders can find even more third-party-developed trading tools to utilise.
The only available trading platform is called Sirix– untrustworthy web-based software that lacks most of the features coming with the MetaTrader4 package. Sirix is slow to respond, irritable to use and also deployed by many other scam brokers indeed such as FXAGlobal, Broker Major, New Traders Holdings and CmarketsGroup, to name a few.
The EUR/USD spread is 3 pips, which is much higher than the rest of the industry, where the legit brokers usually offer difference between Buy and Sell that is around a pip. The spread forms part of the trading costs and has a direct impact on likely profits. A lower difference means more affordable, better opportunities, so you should trade with brokers offering tiny spreads, but regulated ones.
The maximum leverage is said to be as high as 1:300, which is yet another proof that this broker has nothing to do with European regulation and there is zero chance possibility that their customers are entitled to 20 000 EUR in compensation, as they claim! The leverage is a powerful financial tool, which allows the traders to increase their positions in size, but if misused, it might cause quick losses that are very difficult to recover.
FX24.one DEPOSIT/WITHDRAW METHODS AND FEES
Warning! FX24.one doesn’t present legal documents to the customers that meet the industry standards. Important information is missing, and most of the conditions that usually apply remain unknown for the traders! It’s a major red flag and a strong scam sign!
The minimum deposit is said to be 200 EUR. The only funding method is Credit/Debit card, and it raises another red flag itself because there are plenty of other options advertised such as Webmoney or FasaPay. Still, none of these is available in reality!
The minimum withdrawal allowed and the fees applicable are unknown.
No information about their dormant account policy was found, too. It’s a set of rules that deal with accounts that have become inactive, and it’s one of the critical conditions that the trader should be acknowledged with.
The bonuses offered are way too many, however, which instantly raises yet another red flag, because the trading incentives are banned in the EU and UK. That’s additional proof that FX24.one unregulated, therefore hazardous for the traders. We have to make it clear: the bonuses are not free money, but a leverage tool that further increases the risk for the trader, potentially worsening the trading performance. The trading incentives benefit the brokers, not the traders!
HOW DOES THE SCAM WORK
The scam is a criminal activity; the scammers are trying to defraud people by making them believe that the markets are nothing to worry about, and it’s no hassle to make vast amounts of money. Mostly, the scammers are hiding behind offshore companies, offshore Forex brokers, trusts and so on, trying to remain anonymous and difficult to trace. It is also little or no FX regulation in the offshore domains such as Vanuatu, Marshall Islands, Commonwealth of Dominica or St. Vincent and the Grenadines- the most popular destinations for shady and illegitimate enterprises. The lack of regulation makes the scammers invincible, as they are not going to bear the consequences of their felonious actions. Regulation and authorisation mean customer protection and safety, no financial regulator such as CySEC or FCA will make it possible for a scam Forex broker to conduct illicit activities.
The scammers and the offshore brokers are crazy about bonuses, promotions and other trading incentives. Everyone loves gifts and candies, and the scammers are taking advantage of that in their attempts to entice the people! It’s a warning sign that many traders are searching for brokers that offer bonuses or promotions because they might end-up trading with scammers. EU and UK disallowed the regulated brokers to offer trading incentives, because of the risks involved. At the same time, the scam brokers went in love with the bonuses, as they saw an outstanding opportunity to more easily rip the traders off, especially if the trading incentives blend with increased leverage such as 1:500.
The bonuses are not free money, but a leverage tool that significantly increases the risks for the traders further. The sham brokers, however, will not explain this to the clients but will let them believe that they’ve hit the jackpot. Precisely the opposite is true though because the trading incentives entirely benefit the brokers, not the traders. Moreover, the scammers will not miss the chance to introduce additional provisions and requirements that are way too challenging to meet and often block the funds in the account, making it impossible for the traders to make a withdrawal.
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!
It’s essential not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!
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