EtorFX – Are They Safe?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
EtorFX - DO NOT TRADE WITH THIS PROVIDER
2.4/10
$100
Minimum Depositupdated 2023
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
Try these regulated brokers if you want to start trading cryptocurrencies
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.
Website URL: https://etorfxtrading.com
Founded: 2023
Regulations: Unlicensed
Languages: English, Google Translate languages
Deposit Methods: Cryptos
Minimum Deposit: $1,000
Free Demo Account: Not Available
Number of Assets: Unknown
Types of Assets: Forex, Crude Oil, Bitcoin, Commodities, Other Cryptos
Trading Accounts and Conditions
EtorFX offers their clients the following types of investment plans and their associated trading conditions:
- Bronze Package: The minimum investment is $1000.
- Silver Package: The minimum investment is $5000.
- Gold Package: The minimum investment is $10000.
- Diamond Package: The minimum investment is $20000.
- VIP Trading Plan: The minimum investment is $50000
The spreads for the packages/plans remain at 1.9 pips. There is no mention of other trading conditions such as leverage ratios, order execution methods, fees, commissions and so on.
EtorFX – Advantages
There are no advantages to trading with EtorFX.
EtorFX – Disadvantages
EtorFX is a scammer and here are all the red flags that tell us so:
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Lies About Global Regulation
EtorFX claims to be a globally regulated broker. The broker states that they are operated by Etor FX Trading Ltd. The broker also states that they are registered in the United States and that their company registration number is C/569988. The broker also claims to be licensed by the UFSA, but does not give us a license number.
All of these claims are lies.
First of all, being based out of the US, a broker needs to be authorized by not one, but two different authorities – the CFTC and the NFA. The Commodity Futures Trading Commission requires you to register with them and get licensed by them. The National Futures Commission requires you to become a member with them. It is only once a broker is authority by both these bodies can they operate legally in the US.
Furthermore, there is no regulatory body in the US called the UFSA that handles financial services or anything related to the forex market. EtorFX just made up that acronym to make it look like they are regulated and legitimate.
Just to be sure, we checked the NFA’s database. We not surprised to see that this broker is not listed with the authority at all. Everything this broker has stated is a lie and EtorFX is a scammer.
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.
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.
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Blacklisted by FCA
The Financial Conduct Authority, the UK’s financial regulator, has also noticed EtorFX’s lies. The regulator has blacklisted this broker, stating that they are operating in the UK without proper authorization, i.e., illegally. The authority also warns all traders from doing business with this broker, stating that they are a scam operation.
When a financial authority blacklists a broker, there is no clearer evidence of a scam.
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Poor Trading Platform
Despite promising to deliver a top-notch trading platform, EtorFX’s trading platform is a huge disappointment. This broker once again lies about their offering. When we registered and checked their trading platform, we found out that it is a web-based trading platform that is so basic that it cannot do much more that buy and sell a limited set of assets. The charts the software displays are imported from TradingView, a market tracking website.
A broker has two products on offer – their trading platform and the trading conditions to use that platform. Therefore, legitimate brokers ensure that they offer the best trading platform and the most competitive trading conditions possible.
If there is a problem with either, you know you are dealing with a scammer.
So, that fact that this broker cannot be bothered to provide their clients with the promised top-notch trading software tells us that we are dealing with a scammer.
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Issues with Trading Conditions
As we said earlier, the trading platform and trading conditions together are a broker’s product offerings. We have already revealed EtorFX’s lack of a good trading platform. We can now also let traders know about the red flags in their trading conditions.
The first is their minimum investment requirement. A $1000 for their basic account is much too high. There are so many brokers in the markets today that allow you to open an account with them for less than $50, so the sum that this broker demands is outrageous.
Added to that, the spreads are too high. The market range is between 0.5 pips to 1.5 pips. The 1.9 pips offered by this broker is expensive. Plus, we do not really know if EtorFX charges fees or commissions for each trade, which means we do not know the real cost of a trade.
The rest of the trading conditions have simply been omitted.
All of this information clearly reveals that this broker is a scammer.
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Issues with Payments
Another indicator that a broker can be a scammer is how they handle their payments.
Legitimate brokers offer multiple payment methods and make the transaction process as simple as possible. They also give all details about their payment policy.
With EtorFX, we only know that there is a single payment option – cryptocurrencies. This is the first sign of trouble with the broker. Cryptocurrency transactions are permanent and anonymous. So, once you have made a crypto payment, your money cannot be traced and the transaction cannot be reversed. Other payment methods such as credit card payments allow you to charge for a cashback in case you have been scammed – and there is a good chance that you could recover your money. So, if you see a broker (like EtorFX) that offers you only a single crypto payment method, you know that the broker is out to scam you.
Furthermore, there is no policy in place for withdrawals and deposits. We do not know if there is a fee charged for any of the transactions. We also do not know if there is a processing time, or conditions for withdrawals.
All of this points to a scam.
Conclusion
EtorFX is a scammer and they cannot be trusted with your money.
EtorFX
Pros
- None
Cons
- Lies About Global Regulation
- Blacklisted by FCA
- Poor Trading Platform
- Issues with Trading Conditions
- Issues with Payments
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
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.
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.
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