FXFellow – Is it Safe to Invest?

Website URL: https://www.fxfellow.com/en

Founded: 2021

Regulations: Unregulated

Languages: English, Deutsch

Deposit Methods: Credit cards, Skrill, Neteller, Wire Transfers, and China UnionPay Minimum Deposit: $500

Free Demo Account: Demo

Number of Assets: N/A

Types of Assets: Forex, Metals

Trading Accounts and Conditions

FXFellow is a newly built website just this 2021 that offers to trade for forex and also metals. It is quite rare to see brokers that offer fewer account types these days, and FXFellow is one of them. They provide a choice of two account types, one with Live Floating Spread and one with No Commission STP. The first one, the Live Floating Spread account, has spread from 1.5 pips and flexible leverage that could go up to 1:500. This account type also has a dedicated account manager, which is a very helpful addition for people that are quite struggling. The No Commission STP account has spread from 1.7 pips and leverage up to 1:200. It is also worth noting that both accounts have a minimum deposit of $500, which is very important to know nowadays when dealing with brokers.

According to FXFellow, they are always on the lookout for ways to improve their service. They then use automated procedures to make every trading process a bit vague and unexplained on their website. For investors, it is important to gain knowledge and understanding of how everything works, and for FXFellow not providing enough details of this, it is indeed a bit sketchy. However, FXFellow is pretty straightforward when it comes to warning their clients, saying that all trading has risks, and there is a high possibility for anyone to lose their capital.

FXFellow – Advantages

There are no clear advantages to using this broker because, first and foremost, they have just been established in 2021, which means that there’s no one yet has enough experience about their platform, which makes them even sketchier. There are more reasons not to trust them with your money, and we will state them further in the disadvantages section.

FXFellow – Disadvantages

• False Regulation Claims

Right now, it is very easy to purchase a domain and create a website, as long as you have a website and you have intentions. That said, FXFellow can be created easily by anyone, and it also requires very little effort to claim something, especially when it comes to things that will convince people, the regulation. FXFellow states on their website that they are under the company named Notesco Limited, which is also the company behind other brokers that exist online, especially those that are verified and regulated. However, with a bit of research, we have concluded that both FXFellow and Notesco Limited aren’t related in any way.

When looking for a broker online where you will deposit heaps of money, it is important to verify the license and regulation as much as possible since they offer client protection. You’ll have power if something bad happens with your assets.

Plus500

$100

Minimum Deposit

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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

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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.

• Very High Minimum Deposit

FXFellow has a very high minimum deposit, which is pretty unusual, even for offshore brokers and those that are deemed as scam services. $500 on both account types is a bit too much as the industry standard is known to be only $5-$10. The only reason for a broker to have a deposit threshold like this is that they are trying to scam people with huge amounts and not allow them to withdraw their funds if they make a profit out of their trading platform.

As an investor, you should always go for minimal fund deposits since trying out different brokers is very tricky. It takes a lot of time to know if you can withdraw from them, so committing only a bit of the fund would help you.

• High Leverage

Both 1:500 and 1:200 leverage are already considered high, and these numbers are present for both accounts offered by FXFellow. Implementing high leverage for brokers is very common, especially those that are operating offshore. Investors, especially those that are just starting, can be easily attracted by high leverage since it would also mean that they can make a huge profit if they’re lucky. However, there is a drawback to this feature, as a loss would also mean a lot. It is high risk and high reward, in simpler terms.

Financial authorities and regulatory boards on certain territories are also doing their best to combat brokers’ existence that is offering high leverage since, in most cases, it always ends up taking more money from the investors instead of them gaining profit. That said, it is a very clear indication that FXFellowisn’t under the regulation of such financial authorities working hard to reduce brokers’ instances like this.

• False Claims About Negative Balance Protection

It is normal for an offshore broker not to have a Negative Balance Protection as it only exists on legitimate and regulated brokers that help investors make money. By not protecting your balance, you are at constant risk of getting into debt to the brokers, to be more specific. Legitimate brokers care a lot about their clients, so they apply this protection to help them, especially those investors that are quite careless with their funds.

While FXFellow claims to have a feature like this, we highly doubt that they are true to their words, given that they are a new offshore broker without any good background and experience.

Conclusion

FXFellow is fairly new in the competition, and although we’re not really against investing in newer markets, in this case, we highly suggest that you look for another broker as FXFellow seems sketchy and is outputting a lot of red flags. The false claims are more than enough for us to doubt their legitimacy since it means that they don’t care about their clients; all they want is for them to deposit money.

Speaking of deposit, FXFellow also has a very high minimum deposit amounting to $500, which is a very big no; you shouldn’t dump this large amount of money all in one go, especially if it has just been made and no prior investors are going out their way and provide testimony. FXFellow is very shady, and we’re sure that they’re only after you’re money, and it is not safe trading on their platform.

FXFellow

2.7

User Experience

3.3/10

Payment Options

2.4/10

Security

2.3/10

Support

3.0/10

Reputation

2.5/10

Pros

• None

Cons

• False Regulation Claims
• Very High Minimum Deposit
• High Leverage
• False Claims About Negative Balance Protection