FXonspot – Is It a Scam?

Website URL: https://fxonspot.com/

Founded: 2018

Regulations: Unregulated

Languages: English, Italian, German

Deposit Methods: SecureMasterpay

Minimum Deposit: $250

Free Demo Account: Yes

Number of Assets: 250+

Types of Assets: Forex, CFDs on Cryptocurrencies, Precious Metals, Futures, Commodities

Trading Accounts and Conditions

FXonspot offers its clients a number of account types:

• Micro Account: This type of account requires you to make an initial deposit of $250, a leverage level of 1:500 and a spread of 1.7 pips.
• Standard Account: In the Standard Account, you need to make a first deposit of $500, and you are offered a leverage of 1:300 with a spread of 1 pip.
• Premium Account: You need to first deposit $25,000 to use this account, and you get a leverage of 1:100, and you get a spread of 0.6 pips.
• VIP Account: For the VIP account, the minimum first deposit is $100,000, the leverage offered is 1:100, and the spread is 0.2 pips along with $6 per lot.

FXonspot – Advantages

Here are the advantages of trading on FXonspot:

• MT4 Trading Platform

FXonspot offers its users the MT4 trading platform, which is a big plus. This platform is the world’s premier trading interface. This is because it is easy to use, both for novices as well as pros. Added to that, the MT4 platform comes loaded with extra features such as trading bots (Executive Assistants), charting tools, market indicators and much more. This makes trading and analyzing trades much easier for traders.

• Decent Minimum Deposit Requirement

FXonspot requires its clients to make a minimum deposit of $250 to being trading on its platform. This is on par with the industry average, which ranges from $100 to $250. So, we would consider this an advantage too.

• High Leverage

This broker offers its customers leverage levels that go as high as 1:500, which means that even the most risk-friendly traders would be happy to trade with FXonspot.

However, offering such a high leverage can also be dangerous, since the risk of losing the money you invest is also correspondingly high. This is the reason why many regulatory authorities have put a cap on how high a leverage a broker can offer its clients.

• Low Spreads

FXonspot offers spreads that are among the lowest in the industry, which would be very attractive to traders.

FXonspot – Disadvantages

Having seen the advantages, you would think that it would be a good idea to trade with FXonspot. However, there are some serious red flags that our investigation uncovered, which lead us to believe that you would be in danger of losing your hard-earned money if you trade with this broker.

• Not Licensed

FXonspot claims that it is owned by Trade Com Limited, a company that is based in the United Kingdom. All brokers that are based out of the UK are required by law to be registered with the Financial Conduct Authority (FCA).

However, when we checked on the FCA’s online registry, we could not find either the company or the broker listed.

This can only mean that this broker is not licensed or regulated by the FCA.

Plus500

$100

Minimum Deposit

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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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• Blacklisted by the FCA

Upon digging further, we found even more worrying information – Fxonspot has been blacklisted by the FCA. The UK financial watchdog has issued a public warning to all traders, stating that this broker is providing financial services with being authorized to do so and is suspected of being involved in scam operations.

This red flag should be enough to warn traders to stay away from trading with FXonspot.

• Withdrawal Conditions

FXonspot has some very strange withdrawal conditions on its terms and conditions page. The broker states that a trader cannot withdraw their funds more than once a month, and that they can only do so if they have met a minimum trading volume requirement of 150 times the initial deposit.

These conditions are absurd as no legitimate broker would ever impose such conditions on their customers.

• Trading Bonuses

FXonspot also offers its clients trading bonuses. On the surface, trading bonuses are very attractive for unsuspecting traders. However, they come with strings attached. To be able to withdraw your funds, you need to meet certain trading volume targets – targets that are usually so high that most traders cannot hope to meet them.

Added to that, brokers who offer these bonuses also usually put in a proviso that these conditions for trading volume targets can be changed at any time at their discretion. The sole purpose of a trading bonus is to scam people out of their money.

And that this why trading bonuses are banned in regulated markets. So, the fact that FXonspot offers trading bonuses is a strong indication that this broker is actually a scammer.

• Payment Methods

Despite the fact that FXonspot’s website claims to provide multiple payment methods such as Visa, MasterCard, and Bank Wires, the only way you can actually make a withdrawal is via bank wire, and the only way you can actually make a deposit is via SecureMasterpay.

This is significant because when you make payments via traditional credit or debit cards such as Visa and MasterCard, then you have the facility to request a chargeback within 540 days of the transaction.

• MT4 Trading Platform Offered by 3^rd Party

Despite the fact that the MT4 trading platform is being offered to you, it is not being offered by FXonspot. Rather, it is being offered by a third-party company called Sky Hub Limited, about which there is no information.

Legitimate brokers offer this platform in their own name, so this is another red flag.

Conclusion

We would strongly advise all our readers to stay far away from this broker as it has all the hallmarks of a scammer.

FXonspot

2.6

User Experience

3.2/10

Payment Options

2.8/10

Security

2.4/10

Support

2.5/10

Reputation

2.0/10

Pros

• MT4 Trading Platform Offered
• Decent Minimum Deposit Requirement
• High Leverage
• Low Spreads

Cons

• Not Regulated
• Blacklisted by FCA
• Withdrawal Conditions
• Trading Bonuses
• MT4 Trading Platform Offered by Third-Party