Beware! FXOneTrade 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.
We are all to aware of so called broker like FXOneTrade, with their blend of professional looks and odd little tweaks, all combined to make a deceiving experience. We have reviewed hundreds of similar ones, and so we have no problem dealing with this one. Read the review to find out the most important details!
To register, one must provide the simplest and most common of credentials, and a code that one receives via email. After registering we were redirected to a mess of a client area, with way too much stuff on the screen at once. The home page takes first prize here as the most abundant place of the site, and mind you, abundant here means filled with unnecessary charts that act as alleged trading platforms.
All in all we cannot give any trading conditions, in the likes of a spread for any specific instrument, nor a leverage. For more details, we have explained this in the login section of the review.
One of the first sign we got that there was something not quite right with FXOneTrade was its languages. Specifically, the site can be translated into over 20 languages, a service that we have Google Translate to thank to. No legit broker would ever allow for such a thing.
FXONETRADE REGULATION AND SAFETY OF FUNDS
The site claim the broker to be regulated by the Cypriot watchdog CySEC, and by the Financial Sector Conduct Authority of South Africa.
Let’s clear things up a bit.
CySEC is one of the most respectable agents that license forex brokers in the world. All brokers under its gaze adhere to a set of rules that must be diligently followed otherwise CySEC will not think twice in charging them disciplinary fees. Furthermore, brokers must hold a minimum of €730 000 in capital in order to abide with the CySEC imposed requirements. Next, one of the most important requirements that all brokers hold their money away from clients’ funds in segregated accounts. And last but not least, and one of the crucial elements of CySEC licensed brokers, is that all investors are protected with the Investor Compensation Fund of €20 000, which is applied when a broker cannot meet its financial duties towards a client.
Does FXOneTrade look like a broker that has done all these things? We verified just in case, and can say that it cannot because it is not regulated by CySEC.
The next alleged regulation is by the Financial Sector Conduct Authority of South Africa, an agency which regulates many offshore brokers, but with an iron fist! However, it is not as severe as other agencies, yet not so bad as to allow firms like FXOneTrade to be legalized.
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.
FXONETRADE TRADING SOFTWARE
In the mess that was the user area, the home page gave us the closest we have to a trading software, which was not enough at all to satisfy.
The main site of the dashboard for signed in users has 2 charts, third party ones, that will confuse novice users, because they DO NOT allow for normal FX and CFD trading! These are just charts that have nothing to do with FXOneTrade, and as such have no place there!
Aside from that, one the right of the screen appeared, what seemed like, a binary options trading option, which allows users to bet whether a price of an asset will go up or down. For the purposes of the review, we will include the supposed available assets that can be wagered with. They are forex pairs, commodities, indices, and stocks.
A brokerage firm needs a trading terminal, otherwise it cannot be labelled as a broker. The fact that FXOneTrade has no active terminal makes this company even less worthy of your time and money!
FXONETRADE DEPOSIT/WITHDRAW METHODS AND FEES
According to the Deposit area in the personal dashboard, the user can deposit via bitcoin, bitcoin cash, and ethereum. The minimum deposit is $300. These payment methods are very reminiscent of other scammer brokers, because most crypto payments are untraceable.
The only legal document holds no withdrawal info at all! However, the Withdrawal section in the user area reveals that the methods for withdrawing are Skrill, Neteller, and bitcoin. How can Neteller and Skrill be withdrawal methods if a user cannot deposit with them? The answer to that lies in the fact that FXOneTrade is illicit! Aside from that there is no info concerning withdrawal fees or processing times.
We are unfortunate with this broker, as it does not have Terms and Conditions. The only legal document that we could find was the “Privacy and Policy”, which produced nothing of interest. There were no clauses revealing fraudulent activities or fees, no indemnification provisions, no dormant fees, no nothing. This might seem like a positive side of FXOneTrade, yet we assure you that this in no way makes up for the lack of regulation. And furthermore, illegitimate brokers are all to known for launching all sorts of fees and charges for every type of imaginable service, including, but not limited to withdrawals, chargebacks, maintenance, and so much more. In short, users should not deposit in FXOneTrade.
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.
Rich Snippet Data