Foraxi – Are They Safe?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
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://foraxi.io
Founded: 2022
Regulations: None
Languages: English
Deposit Methods: Western Union, MoneyGram, Bitcoin, Ethereum
Minimum Deposit: $100
Free Demo Account: No
Number of Assets: 1,000+
Types of Assets: Forex, Cryptocurrencies
Trading Accounts and Conditions
On their website, Foraxi claims that they offer their clients the following trading accounts:
- Micro: Deposits start from $100. The spreads are floating and no commissions are charged.
- STP: Deposits start from $1,000. Spreads are tight and no commissions are charged.
- ECN: Deposits start from $5,000. Spreads are raw and commissions start at 1.5 units per lot.
- Crypto: Deposits start from $1,000. Spreads are tight and commissions are 0.25%.
There are no leverages mentioned here.
The problem is that when we were registering for an account, an entirely different set of account types were offered:
- Bronze: The minimum deposit is $2,000 and you get a $8,500 bonus.
- Silver: The minimum deposit is $3,000 and you get a $12,600 bonus.
- Gold: The minimum deposit is $4,000 and you get a $15,500 bonus.
- Platinum: The minimum deposit is $6,000 and you get a $18,700 bonus.
The spreads are not specified and neither are the leverage ratios, or other trading conditions.
Foraxi – Advantages
There are no advantages to trading with Foraxi.
Foraxi – Disadvantages
Foraxi is a scammer and here are all the pieces of evidence that tell us so:
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Lack of Regulation
The first giveaway of Foraxi’s scam is their unregulated status.
Regulated brokers provide all details of their legal status: their corporate identity (company name, address, contact details) as well as their regulation proof via a registration or license number.
Foraxi has none of these details in place.
The first thing we see is that this broker claims to offer their services to clients in the US. To be able to operate in the US, brokers need to get authorization from two different agencies – the CFTC (Commodity Futures Trading Commission) and from the NFA (they need to be members of this agency). Added to this, the criteria for even getting authorized are so stringent that most brokers simply avoid the US market completely. So, for a broker to claim that they offer services to clients in the US is a very bold statement. Of course, we checked the CFTC and NFA registers and found out that this broker was lying! There is no broker by this name registered with either body.
Next, Foraxi also claims to be registered with The Financial Commission. The problem is that The Financial Commission is not a regulatory body; it is a privately run self-regulatory body that simply resolves disputes for various parties in the forex industry.
And finally, this broker provides us with an address in St. Kitts and Nevis, but it is an incomplete address. St. Kitts and Nevis is an offshore location and it does not offer any regulatory oversight for forex brokers, so being located there means nothing.
All in all, what we have here is a broker that is anonymous (since they have provided no proof of their exact location) and unregulated. And this means that Foraxi 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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No Legal Documents
Regulated brokers place their legal documents on their website – prominently and easily accessible by all who visit their website.
With Foraxi, you have to register for an account to even get to a link that offers their Terms and Conditions. And when you click on that link, you are taken to a blank page. Basically, this means that this broker doesn’t have any legal documents in place.
The importance of having legal documents cannot be understated. These are the documents that tell you exactly what the broker promises you –trading conditions, policies, fees, commissions, privacy, protection, etc. Without these documents in place, if you get scammed, then no authority can help you.
This is why it is so necessary to read through the legal documents of any new broker before you register with them.
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Lies About Trading Software
Foraxi claims to offer their clients the use of three top-quality trading platforms: MetaTrader4, MetaTrader 5 and TickTrader. Had this actually been the truth, then this broker would have had a big advantage. These trading platforms make the trading experience better: they are easy to use for novices, but have a wide range of tools for advanced traders.
However, once again, we know that this broker is telling lies. As soon as we registered for an account, we found out that there was no trading platform at all – let alone the three this broker promises.
We found out that this broker had simply placed some basic charts that showed current asset prices. There was no trading functionality available at all. This means that there is no way that you would be able to carry out any trades.
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Issues with Trading Conditions
Foraxi’s trading conditions also tell us that we are dealing with a scammer. First is the issue of two completely different sets of trading accounts – the first one on their website, and the second one after registering for an account!
We do not even need to discuss the other trading conditions, since we do not know which ones actually apply: the minimum deposit is either a good $100 or a massive $2,000; we do not know. And there are no spreads mentioned as such. As for the leverage, that’s another blank!
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Issues with Payment Options
On their website, Foraxi claims to offer Visa, MasterCard, Swift and WebMoney. However, when we checked their payments portal, we found that you could make payments using MoneyGram, Western Union or Cryptocurrencies (Bitcoin and Ethereum). But here’s the thing: if you chose any but the crypto payment options, you are asked to contact their Live Chart agent for further information. So, the only actual way that you can fund your account is via cryptos. And this is very normal for scammers, since crypto payments are permanent and anonymous.
Conclusion
Foraxi is not safe and this broker cannot be trusted.
Foraxi
Pros
- None
Cons
- Lack of Regulation
- No Legal Documents
- Lies About Trading Software
- Issues with Trading Conditions
- Issues with Payment Options
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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