Beware! FXSpace 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.
FXSpace is a Forex broker with a terrible reputation in Eastern Europe, as you can find loads of negative reviews about them in these countries. They provide an Estonian contact number, but a headquarter address that’s offshore, which immediately raises suspicions about the legitimacy of their business. There are some funny aspects, though, such as the Shark trading account and the NASA Space bonus. But it’s only true if you have a dark sense of humour, because these guys are asking for money from you, and we suspect that they do not intend to give anything back.
It’s highly a controversial broker that might induce losses if you chose to trade with. Find out why in the full Fxspace review.
FXSpace REGULATION AND SAFETY OF FUNDS
FXSpace is a Forex broker that is allegedly owned and operated by an offshore company called FXSPACE WORLDWIDE FIN SERVICES LTD that is headquartered in the infamous Trust Company Complex in the Marshall Islands. The islands’ financial authority loosely regulates the sector and refuse to control the Forex brokers, at all. That makes it possible for them to conduct their business without taking into consideration the customer protection of the traders. The Marshall Islands grew to a scammers hub that attracted many fishy brokers such as Elite Market (proven scam), SafeIG, Broker Unity (proven scam), TerraTradeX (proven scam), Razer Markets and Globalix (proven scam), just to name a few!
They claim to have a Europen partner- a Polish company called Hillview Holdings LP SP. Z O O, but we didn’t find them to have any valid registration whatsoever! Your funds are not safe if you deposit with FXSpace, because it’s an unlicensed, unauthorised and unregulated offshore Forex broker offering pretty bad trading conditions, as well.
Suppose you are looking for a safe and trustworthy Forex broker. In that case, you should choose a CySEC regulated (EU) or FCA regulated (UK) company, which are not surprisingly the leaders in the retail FX industry. The customer protection is placed on top of their priority list, not because they want to, but because they have to. In these domains, the Forex brokers have to comply with many austere rules and regulations, such as minimum capital requirements of 730 000 EUR, personnel qualification standards, segregation of the clients’ accounts etc. But most importantly, there are money protection schemes in operation, such as ICF in Cyprus and FSCS in the UK, which guarantee the deposits of the traders. Under CySEC(Cyprus) supervision, you can claim up to 20 000 EUR in compensation per client, while in the UK under FCA you are guaranteed of even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
FXSpace TRADING SOFTWARE
MetaTrader4 and MetaTrader5 accounts are not available for trading, which is rather a poor choice, because Metatrader is the most popular and the most powerful Forex trading software, at the same time. It offers sophisticated trading tools such as Expert Advisors, Automated Robot Trading, Complex Indicators and its own programming language- MQL, which helps create even more powerful implementations. There is also a marketplace maintained by Metatrader where you can buy or use for free a variety of third-party-developed tools that you can utilise in your trading strategy.
Instead, FXSpace provides the traders with a web-based platform that is nowhere near Metatrader and its features. It’s ugly and not intuitive, also very slow in response. There is no demo trading available, which is obvious evidence of scam and raises a massive red flag! You should never trade with brokers that do not allow the traders to test the trading conditions and the experience, as a whole!
The trading conditions are poor because the spread starts from 4 pips for EUR/USD, which is a massive difference between Buy and Sell. Many of the legit Forex brokers will offer spreads as low as 0.1 pips with their Micro accounts. The spread forms part of the trading costs for the traders and directly affects the trading performance and the results. The lower the spread, the bigger the potential profits, so you should avoid FXSpace if you want to make money in the markets.
The leverage is said to be 1:500, but we are unable to confirm it as valid because upon sign-up we had some unknown to us default ratio that’s impossible to change! 1:500 is a hazardous level, though, because the risks increase dramatically for the trader, and a small move of no more than 20 pips might eat up the account balance.
FXSpace DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is said to be $100 in their legal documentation, while at the same time they insist on $250 in their Account Type page! It’s an information discrepancy and another red flag to note. The legit Forex broker clearly specifies their deposit requirements, and you should stay away from these that present you with conflicting information!
The funding methods are Wire Transfers, Credit/Debit cards, Alikassa and some fishy Russian e-wallets that you get redirected to when you try to deposit. You should transfer money only through payment systems you are familiar with and trust because if you submit your bank card information in some dubious wallet, you might expose yourself to a long-term risk of fraud!
No minimum withdrawals specified and no withdrawal fees applicable, which is actually in line with the rest of the industry.
The dormant account policy is fearsome and includes scam clauses that actually allow FXSpace to delete your account and pocket the money after 3 months of inactivity!
Deposit bonuses are starting from 30%, and you will be eligible for withdrawal if you reach a turnover of 2 times the amount of the bonus given within 100 days. It’s quite vague a clarification of their bonus conditions that raises another red flag! There are also some NASA Space bonuses, which is a totally ridiculous affair you should never get involved in! You should know that the bonuses are not free money, but a leverage tool instead, which escalates the risk further and mostly benefit the broker, not the trader! EU and UK banned the trading incentives because the risks involved are considered inappropriate for the retail traders.
HOW DOES THE SCAM WORK
The scam is a criminal activity, and the scammers are trying to defraud people by making them believe that they can make easy money. In most of the cases, the scammers are hiding behind offshore companies, offshore Forex brokers, trusts and so on, trying to remain anonymous and difficult to trace. There is no or very light FX regulation in the offshore jurisdictions such as Vanuatu, Marshall Islands, Commonwealth of Dominica or St. Vincent and the Grenadines, making them some of the most popular destinations for shady and illegitimate enterprises. Regulation means customer protection and safety, financial authorities such as CySEC or FCA will make it impossible for a scam Forex broker to conduct illicit activities and harm the traders.
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 also important 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!
Rich Snippet Data