StockFX – Can They Be Trusted?

Website URL: https://stockfx.co

Founded: 2020

Regulations: Not Regulated

Languages: English, Russian, Spanish

Deposit Methods: N/A

Minimum Deposit: $250

Free Demo Account: N/A

Number of Assets: N/A

Types of Assets: Stocks, Forex, Indices, Commodities

Trading Accounts and Conditions

StockFX offers you the following accounts with which to trade:

• Beginner: To use the Beginner account, you first need to make a deposit of at least $250.
• Trader-Medium: The Trader-Medium account requires you to make a minimum deposit of $1,000.
• Progressing Trader: This account type has a minimum deposit requirement of $5,000.
• VIP: This VIP account requires you to make a minimum deposit of $10,000.

This broker offers you a leverage that goes as high as 1:500, however, they have not provided any information on their spreads. We also do not know if there are other commissions or fees charged by this broker.

StockFX – Advantages

Here are the advantages to trading with StockFX:

• Availability of MetaTrader 4 Platform

The one advantage you will get if you trade with this broker is that you will have the use of the world’s most popular trading platform, the MT4 (MetaTrader 4) interface.

The MT4 platform is popular for many reasons. It is so easy to use that even traders who are beginners will not have a problem using it. Furthermore, for the more advanced traders, there are multiple tools to help with their trades – charting options, technical indicators for various markets and algorithms for automated trading (they’re called Expert Advisors).

• High Leverage of 1:500

StockFX offers you a maximum leverage of 1:500, which is very high by market standards. With such a high leverage, most types of trading strategies are possible.

However, it is also our duty to warn all traders that such high leverages are also very dangerous since the risks involved are as great. Due to this, most regulators have disallowed the use of such high leverages to protect traders from extreme losses.

StockFX – Disadvantages

Besides the fact that StockFX offers their clients trading on the MT4 platform and a high leverage, there isn’t much else that is positive about this broker. Here are all the red flags we found about them:

• Conflicting Corporate Information

On their website, StockFX have listed two different companies – Baumont Group Ltd. and Baumont Solutions OU. The former is registered in St. Vincent and the Grenadines (SVG), while the latter is registered in Estonia.

The problem is that the broker doesn’t clearly state which company owns and operates them.

Plus500

$100

Minimum Deposit

Start Trading

Read Review

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

Start Trading

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The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• Lack of Regulation

We investigated the regulation status of StockFX to see if this broker was legally authorized to offer its financial services to traders. And since we do not know which of the two above-mentioned companies owns this brokerage, we checked the status of both.

The first – Baumont Group Ltd. – is registered in SVG, which makes this company an offshore entity. While being an offshore company is not really a big issue, the concern we have here is that SVG’s financial authority has explicitly stated that it does not offer regulatory oversight to forex brokers like StockFX. Therefore, even if the company is registered there, this broker is not regulated by the SVG Financial Services Authority.

The second company – Baumont Solutions OU – is registered in Estonia, which a European Union member state. To be able to operate in the EU or even in Estonia, a broker needs to be regulated by the EFSA (Estonian Financial Supervision Authority).

So, we checked the EFSA’s online register to see if this company and the brokerage was registered with them. We found no sign of either. This means that this broker is not regulated at all.

What this means for you as a trader is that StockFX is a dangerous broker to do business with as there is safety guaranteed for your funds. And it is usually scammers who do not register themselves with the proper authorities.

• No Demo Account

StockFX does not offer their clients any demo account, which is another red flag to consider. A demo account is important because you as a trader can check for yourself whether the trading conditions offered by the broker are valid, and you also get to test the trading platform being offered by them.

It is normally the scammers who avoid providing their customers with a demo account – for obvious reasons. They don’t want their customers to know what they’re getting into.

• No Information on Spreads

Since there is no demo account available, we were not able to test the MT4 platform and so could not check the spreads offered by this broker. And since StockFX has not bothered providing this key piece of information on their website, we do not know what they are.

However, as a reference point, the market standard for decent spreads ranges between 1 pip to 1.5 pips.

• Vague Information on Payment Methods

Another worrisome aspect about this broker is the fact that StockFX does not provide any information on their website about the payment methods they support.

However, when we checked their Deposit and Withdrawal policy, they only mention credit cards and bank wires, so we assume that is what they offer. The problem is that the broker then mentions fees for ePayments too. So, we don’t really know what types of payment methods they actually offer!

• Unfair Withdrawal Conditions

We also noticed that StockFX has some really unfair withdrawal conditions. And if you do not meet a certain turnover in your trades, then you will be charged another 10% over and above the already expensive fees they charge.

This is not the norm for legitimate brokers, who charge nominal fees for such transactions.

Conclusion 

Everything we have investigated about StockFX has led us to believe that this broker is a scammer and that you will lose your money if your invest with them.

StockFX

2.5

User Experience

3.5/10

Payment Options

2.2/10

Security

2.1/10

Support

2.4/10

Reputation

2.5/10

Pros

• Availability of MetaTrader
• High Leverage of 1:500

Cons

• Conflicting Corporate Information
• Lack of Regulation
• Vague Information on Payment Methods
• Unfair Withdrawal Conditions