FXBase – Can You Trust This Broker?

Website URL: https://fx-base.com/

Founded: 2019

Regulations: Not Regulated

Languages: English, Russian

Deposit Methods: Visa, MasterCard, Wire Transfer, Bitcoin, Ethereum

Minimum Deposit: $500

Free Demo Account: N/A

Number of Assets: N/A

Types of Assets: Forex, Metals, Commodities, Stocks, Cryptocurrencies

Trading Accounts and Conditions

According to FXBase’s website, this broker offers its clients the follow types of accounts for trading:

• Starter: To trade on this type of account, you need to make a minimum deposit of $500. The leverage for this account is 1:100, and the spreads offered start from 0.1 pips.
• Professional: To begin trading on this account, you need to make an initial minimum deposit of $1,000. You are offered a leverage ratio of 1:500 and a spread beginning at 0.1 pips.
• Advanced: To trade on this account, the initial deposit requirement is $10,000. The leverage levels offered are at 1:500, and the spread is at 0.1 pips.

FXBase – Advantages

Here are the advantages to trading with FXBase:

• High Leverage Levels

The leverage ratio offered by this broker is at a maximum of 1:500, which means that traders with all types of trading strategies will be execute trades.

However, it must also be remembered that a high leverage ratio also implies high risk. This is the reason why many jurisdictions have put a cap on the level of leverage a broker is allow to offer its customers.

• Range of Trading Assets

FXBase has a surprisingly wide range of trading assets of offer for its clients. This broker offers trading in 43 currency pairs, 7 different cryptocurrency pairs, 100 top global stocks, oil and natural gas, and gold.

FXBase – Disadvantages

Sadly, the disadvantages of trading with this broker far outweigh the advantages. Take a look:

• Confusing Corporate Information

FXBase’s corporate information is rather confusing. The broker claims that its holding company is FX Base Holding Limited, which consists of two companies.

The first one is FX Base Limited, which is supposedly regulated by the CySEC (Cyprus Securities and Exchange Commission). And the second one is FX Base Global Limited, which is supposed based out of Mauritius and regulated by the (FSC) Financial Services Commission there.

The broker claims that its holding company – FX Base Holding Limited – is its owner, but its operator is FX Base Global Limited. This means that this broker is operated by an offshore company.

The lack of corporate clarity is worrying since it means that customers don’t really know who will control their funds. This is turn means that their funds could be at risk.

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• Lies about Regulation Status

On its website, FXBase has claimed that it is regulated by the CySEC, the Mauritius FSC, the DFSA (Dubai Financial Services Authority), the FCA (Financial Conduct Authority) of the UK, the BaFin (Federal Financial Supervisory Authority) of Germany and MiFid (Markets in Financial Instruments Directive) of the European Union!

The broker also states that it has a presence in London, Singapore, New York and Berlin.

However, when we check the online registries of these financial regulators, there was no broker or holding company with this name listed anywhere. In fact, these so-called authorization or license numbers actually belonged to another company that had no link to FXBase, or did not exist at all.

In fact, the registration number of its CySEC license actually belongs to a well-know, well-reputed and award-winning brokerage called Orbex.

This means that this broker has brazenly lied about its regulatory status. This is a serious legal issue, and a clear warning that all traders should stay away from FXBase.

• Blacklisted by BaFin

Not only is FXBase not regulated by the German financial regulator, BaFin, it is actually blacklisted by the watchdog. The German regulator as announced publicly that this broker has lied about holding a license with them, and that they are not authorized to offer financial services in their jurisdiction.

• Poorly Designed Web Platform for Trading

Usually, brokers advertise the trading platform they use clearly on their website. However, with FXBase, we do not know which trading platform it uses, because there is no mention of it anywhere on its website.

We did manage to access the platform that FXBase offers, and we were very disappointed by its quality. What we saw was a poorly constructed web-based platform that lacked the features that help with trading.

This platform doesn’t even come close to the most popular trading interface – the MT4 (MetaTrader 4) software, which offers features such as charting options, market indicators and even automated trading bots – all of which can be customized to your requirements.

• Very High Initial Deposit

The minimum deposit requirement for this broker is $500, which is twice as high as the market average. Most brokers require you to deposit a minimum of between $100 and $250.

• Very High Spreads

When you look at the trading conditions mentioned on FXBase’s website, it states that spreads begin at 0.1 pips. However, when we accessed the broker’s web-based platform, we found this too to be a lie.

The spread for the EURUSD currency pair, which is the benchmark for most forex traders and brokers alike, was at 2 pips, which is much higher than the market standards. Most brokers offer a spread that ranges between 1.0 and 1.5 pips.

Conclusion 

FXBase is a broker that cannot be trusted. They have lied about their legal standing, are blacklisted by one of the most eminent financial regulators in the world, have a poor trading platform, terrible spreads and high minimum deposit requirements. You money is not safe with this broker.

If you are looking for a broker with which to contract, then look for one that is regulated and transparent about its operations.

FXBase

2.5

User Experience

3.3/10

Payment Options

2.4/10

Security

2.2/10

Support

2.5/10

Reputation

2.1/10

Pros

• High Leverage Levels
• Range of Trading Assets

Cons

• Confusing Corporate Information
• Lies about Regulation Status
• Blacklisted by BaFin
• Poorly Designed Web Platform for Trading
• Very High Initial Deposit