FxCryptoClub – A Legitimate Broker?

Website URL: http://fxcryptoclub.cc/

Founded: N/A

Regulations: No Regulatory Oversight

Languages: English, Italian, German, Spanish

Deposit Methods: Skrill, Neteller, Bank Wire, Visa, MasterCard

Minimum Deposit: $500

Free Demo Account: Demo Account Available

Number of Assets: Not Given

Types of Assets: Forex and CFDs on Commodities, Shares, Metals, Metals, Cryptocurrencies

Trading Accounts and Conditions

FxCryptoClub offers its customers 3 different types of trading accounts:

• Micro: You need to make a first deposit of at least $500 to trade with this account.
• Standard: You need to make a first deposit of a minimum of $5,000 to start such an account.
• Premium: To start a premium account, you need to first deposit $50,000.

This broker offers its clients a maximum leverage of 1:400 and a fixed spread of 3 pips.

FxCryptoClub – Advantages

Despite the fact that we would not recommend this broker to any trader, it does have a couple of advantages:

• Good Trading Platform

Despite the fact that FxCryptoClub does not offer the MT4 trading platform, it does offer a good trading platform – the ACTIV8. This platform has been created by Sirix (Leverate), and it offers great charting tools, and an array of trading robots in its Strategies section. In its external market analysis section, the ACTIV8 platform has 3 different categories – News, Market Analysis and Calendar.

• High Maximum Leverage

FxCryptoClub offers its clients a maximum leverage that stands at a ratio of 1:400. This is a very good leverage level that the broker offers, since it allows traders to make even high-risk investments.

However, it is wise to remember that many strong regulatory authorities such as those in the US, UAS, Canada, Japan and Turkey have placed a limit on how high a leverage a broker can offer its clients. This has been done to prevent excessive losses for traders.

• Demo Account Available

We look at the availability of a demo account as a positive. This is because such an account allows potential customers to test a broker’s trading conditions and the performance of the trading platform before committing to real money.

So, the fact that FxCryptoClub offers its clients a demo account is a good thing.

FxCryptoClub – Disadvantages

The reasons why we would not recommend FxCryptoClub are given below:

• Unregulated Offshore Broker

FxCryptoClub claims to be owned as well as operated by a company by the name of CapCorp Ltd. We discovered that this company is registered in the Marshall Islands.

The Marshall Islands is an offshore zone that is unfortunately known to be hub for scammers. Regulators here do not require companies to have a physical presence on their territory to be registered there.

Added to that, this territory is known to have laws that are very liberal and it doesn’t offer any sort of regulatory oversight for forex and CFD brokers.

What this basically means FxCryptoClub is not a regulated brokerage and so not safe to trade with.

Plus500

$100

Minimum Deposit

Start Trading

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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.

• Public Warning Issued by Austrian FMA

We are not the only ones who have realized that FxCryptoClub is operating illegally without any regulatory oversight. The Austrian financial regulator, the FMA, has issued a public warning against this broker, stating that they are not authorized to offer financial services in their jurisdiction.

• Incomplete Information on Trading Terms

FxCryptoClub has provided incomplete trading terms. This is a common tactic employed by unscrupulous brokers who use a lack of transparency about their pricing as well as services to their advantage.

This broker has only published the minimum deposit requirements for each of its account types, but there is no information on its website about its spreads, leverage levels and other trading costs.

We were only able to get information about FxCryptoClub’s basic trading conditions by logging into the broker’s demo account.

• High Spreads

After checking FxCryptoClub’s demo account, we found out that this broker was offering a fixed spread of 3 pips. This is a very high spread, more than two times the industry’s average.

A high spread is advantageous to a broker and not a trader. And that is why most brokers in the Forex trading market offer a spread that ranges between 1 pip and 1.5 pips.

• Lack of MT4 Platform

Like we said earlier, FxCryptoClub offers a good trading platform, which is the ACTIV8 trading interface. However, the best trading platform that is used by more than 80% of the traders across the world is the MT4 software.

This is because it offers the widest range of trading tools, from charting options, trading robots to a huge set of market indicators, and it is the easiest software to use in the market today.

So, while you get a decent trading platform when you trade with FxCryptoClub, you don’t get the best.

• Withdrawal Conditions

While going through FxCryptoClub’s Deposit and Withdrawal policies, we came across some worrisome provisions.

The withdrawal fees are very hefty; You get charged $50 for a bank wire transfer, $25 for a credit card transfer (which comes along with a processing fee of an additional $10), and $25 for e-wallet transfers.

Added to that, if you do not execute a turnover of at least 200, there will be an addition 10% withdrawal fee charged to you.

On top of all that, you cannot withdraw less than $250 if you plan to do a wire transfer, and not less than $100 if you use any other withdrawal method.

These are seriously unfair withdrawal conditions that you will not find with regulated and legitimate brokers.

Conclusion 

We would recommend that this is a broker that should be avoided by all traders. There are not just legal issues with FxCryptoClub. This broker also has very unfavorable trading terms that we would have paying much higher transaction fees than with other brokers.

FxCryptoClub

2.5

User Experience

3.4/10

Payment Options

2.1/10

Security

2.3/10

Support

2.6/10

Reputation

2.3/10

Pros

• Good Trading Platform
• High Maximum Leverage
• Demo Account Available

Cons

• Unregulated Offshore Broker
• Public Warning Issued by Austrian FMA
• Incomplete Information on Trading Terms
• Lack of MT4 Platform
• Withdrawal Conditions