Fxbay Live – Are They Safe?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Fxbay Live - DO NOT TRADE WITH THIS PROVIDER
2.7/10
$100
Minimum Depositupdated 2020
Fxbay claims that they offer their customers 6 different types of trading accounts, however, when we checked their account types, details for only 3 types of accounts have been given:
- ECN: To trade on the ECN account, you need to first make an initial deposit of between $100 and $1,000. The maximum leverage offered is 1:500 and the spreads start from 0.8 pips.
- Pro: To trade on the Pro account, the deposit requirement ranges from $500 to $5,000, and the maximum leverage is at 1:400. Spreads start at 2 pips.
- VIP: For the VIP account, the minimum deposit requirement is $10,000. The maximum leverage offered is 1:500 and the spreads start from 0.5 pips.
The broker claims that it charges no commissions on any of the accounts, but does offer referral commissions. For every person you refer, you can get a commission of up to $15.
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://fxbaylive.com/
Founded: N/A
Regulations: No Regulation
Languages: English, Thai
Deposit Methods: Visa, MasterCard
Minimum Deposit: $100
Free Demo Account: Offered
Number of Assets: 250+
Types of Assets: Forex, Metals, CFDs, Commodities, Indices
Trading Accounts and Conditions
Fxbay claims that they offer their customers 6 different types of trading accounts, however, when we checked their account types, details for only 3 types of accounts have been given:
- ECN: To trade on the ECN account, you need to first make an initial deposit of between $100 and $1,000. The maximum leverage offered is 1:500 and the spreads start from 0.8 pips.
- Pro: To trade on the Pro account, the deposit requirement ranges from $500 to $5,000, and the maximum leverage is at 1:400. Spreads start at 2 pips.
- VIP: For the VIP account, the minimum deposit requirement is $10,000. The maximum leverage offered is 1:500 and the spreads start from 0.5 pips.
The broker claims that it charges no commissions on any of the accounts, but does offer referral commissions. For every person you refer, you can get a commission of up to $15.
Fxbay Live – Advantages
Some of the selling points of trading with Fxbay are:
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High Leverage Ratios
The maximum leverage offered by this broker is 1:500, which is quite high by any standards. This means that traders have the freedom to execute a wider range of trading strategies.
However, we must also warn traders that using higher leverages also increases your risk substantially, and so this advantage can be a double-edged sword.
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Decent Initial Deposit Requirement
To begin trading with Fxbay Live, you only need to deposit $100, which is very reasonable by any standards. Currently, the market average for minimum deposits stands between $100 and $250. However, we also need to point out that some of the best brokerages only need you to deposit as little as $5 to start trading on their platforms.
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MT5 (MetaTrader 5) Platform Offered
The biggest plus of trading with Fxbay Live is that you get to use the MetaTrader 5 (MT5) trading platform. This is the latest trading software being offered by the makers (MetaQuotes) of the world’s most popular platform, the MT4 software.
The MT5 platform, just like the MT4 platform, is highly user-friendly, and is reliable, and offers the best charting options and market analysis tools in the industry. You also get to use automated trading algorithms called Expert Advisors. A unique feature of the MT5 platform is that you can trade OTC products as well as ETFs from a single account.
Fxbay Live – Disadvantages
Here are the disadvantages you will face if you trade with Fxbay Live:
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Dealing with an Offshore, Unregulated Broker
Fxbay Live state on their website that they are owned by FxBay Live Limited, a company that is based in St. Vincent and the Grenadines (SVG), and that they are licensed by the financial regulator of that territory, the FSA (Financial Services Authority).
The problem is that the SVG’s FSA has stated repeatedly that it doesn’t offer licenses for forex and CFD brokers, so being licensed by this authority and none other means that Fxbay Live is actually unregulated.
For traders, this means that they are subjecting their funds to significant risk if they sign up with an unregulated, offshore broker such as this one.
Regulated brokers are required to ensure that their clients’ funds are kept separate from their own, so that your money is safe even if the broker goes bankrupt, or is found to be involved in a scam.
Furthermore, you as a trader are protected by the authorities against losses due to broker scamming or bankruptcy.
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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High Spreads
While this broker claims to offer a demo account, we were unable to access it. Therefore, we can only go by what is stated on Fxbay Live’s website. And based on the information they have given, the spreads they are offering are on the higher side, making it unprofitable for traders to use their platform.
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Cannot Access Demo Account
As we mentioned in the previous point, despite the fact that Fxbay Live claims to offer a demo account, we weren’t able to access it, which is another worrying red flag for us.
Demo accounts are important because they let traders see what the trading conditions are for real, and they can also try out the trading platform offered by the broker.
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Bonus Promotions Offered
Fxbay Live offers its clients bonuses on creating new accounts and making their first deposit. Customers are promised a 50% bonus when they do so. However, there is a condition (which is mentioned separately!) that you need to meet turnover targets before you will be allowed to withdraw your funds.
These trading turnover targets are so high that most traders will never meet them, and so will lose their money to this broker.
This is a scam tactic that is used to get people to deposit money, and then when they don’t meet the target set, the broker uses it as an excuse to deny all withdrawal requests.
Legitimate brokers will never deny their clients the right to withdraw their funds at any time.
Conclusion
There are too many red flags that we have found in our review of Fxbay Live, because of which we would not recommend that any trader do business with them. Not only is this broker unregulated and offshore, but it also offers bonus promotions and you cannot access the promised demo account. The spreads offered are also too high to be good for traders.
All in all, this is not a broker to be trusted. We recommend that you look for a broker that is regulated by a strong financial regulator so that your funds are safe.
Fxbay Live
Pros
- High Leverage Ratios
- Decent Initial Deposit Requirement
- MT5 Platform Offered
Cons
- Dealing with an Offshore, Unregulated Broker
- High Spreads
- Cannot Access Demo Account
- Bonus Promotions Offered
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.
eToro is a multi-asset platform which offers CFD and non CFD products. 74% 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.