OrientalFX – Are They a Scam?

Website URL: https://orientalfx.com

Founded: 2019

Regulations: Unlicensed

Languages: English

Deposit Methods: USDT (Tether)

Minimum Deposit: $200

Free Demo Account: No

Number of Assets: Unknown

Types of Assets: Forex, Cryptocurrencies

Trading Accounts and Conditions

OreintalFX offers its clients the following account types:

• Standard: The minimum deposit is $200. Leverage ratios are a maximum of 1:200. Spreads are floating and start from 1.0 pips.
• STP: The minimum deposit is $2,000. Leverage ratios are a maximum of 1:200. Spreads are also floating and start from 0.8 pips.
• Pro: The minimum deposit is $3,000. Leverage ratios are a maximum of 1:100. Spreads are floating and start from 0.4 pips.

OrientalFX – Advantages

While this broker’s website may look good, it actually has no substance. OrientalFX is a clever scammer out to get your money.

OrientalFX – Disadvantages

Here are all the reasons why it is best to stay away from OrientalFX:

• Unregulated Broker, Clone Firm

OrientalFX claims that it is based in St. Vincent and the Grenadines, and a company called Blocedu owns and operate their website. The broker also claims that it is licensed to operate in Canada by the FINTRAC as an MSB (Money Services Business). The broker has also provided a license number from the FINTRAC.

All these claims sound really authentic until you dig deeper. The first thing is that the FINTRAC is the Financial Transactions and Reports Analysis Centre of Canada. It has nothing to do with authorizing forex brokers to operate. That job is the IIROC’s – the Investment Industry Regulatory Organization of Canada. So, that’s the first lie that this broker has told us about its licensing status.

Next, this broker has provided us with the address and company name that are real, but don’t belong to OreintalFX. Blocedu Ventures Ltd is the name of the company that owns Dun and Bradstreet, which is a business data and analysis company. This company has nothing to do with OrientalFX, which means that the broker is actually a clone firm – an entity that steals another (legitimate) company’s information and passes it off as its own.

With regard to this broker being based in St. Vincent and the Grenadines, we would like to point out that even if this broker is registered with the local financial regulator, the SVG Financial Services Authority, it wouldn’t make a difference. This is because the SVGFSA has clearly publicized the fact that they do not offer regulatory oversight for forex and CFD brokers.

At the end of the day, what we have here is an unregulated broker that has tried to make their claims legitimate by lying about their regulation status. What is worse is that they have tried to pass of another licensed company’s information as their own in a bid to appear legitimate. This is a pure scam operation and must be avoided at all costs.

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• Unattractive Trading Conditions

We were surprised to see that OrientalFX offers their clients the genuine version of the MetaTrader 4 software. Unfortunately, that is not a good enough reason to trade with this broker. If you look at OrientalFX’s trading conditions, you will see that they are less than ideal.

The minimum deposit amount is $200. Considering the fact that there are many reputed brokers in the market that allow you to open accounts with them for as little as $5, why would you want to join up with a scammer such as OrientalFX?

Next, the leverage is a maximum of 1:200, which is rather high. Brokers in the US and Canada are only allowed to offer leverage ratios of up to 1:50. And considering the fact that this broker is targeting Canadian traders, we can safely say that the leverage they are offering is not only dangerous, it is also illegal. Other jurisdictions are even more stringent than US and Canada; the UK, Australia and the EU only allow leverages of up to 1:30, while Japan and Hong Kong allow a maximum leverage of 1:20. Turkey is even lower at 1:10.

While the spreads look attractive, the broker has not given any details about the commissions or fees they charge. It is wise to remember that lower spreads usually come with higher fees and commissions. And since this broker has not mentioned those extra costs, we are rather suspicious about them.

• Lies About Payment Options

When you check OrientalFX’s website, you see a range of logos displayed (Visa, Swift, MasterCard, Tether, Bitcoin, Ethereum, etc.), giving you the impression that this broker offers you a variety of payment options.

The broker also offers you a chance to pay using their own cryptocurrency token – OFX. The broker claims that this token functions as a stablecoin, much like Tether. Therefore, according to the broker, 1OFX = 1USD.

Here is where things get a little murky. The OFX token doesn’t really exist. There is a company called OFS, but it has nothing to do with the OFX token or even with OrientalFX. Furthermore, when we checked their payment portal, we found out that this broker will only accept payments in Tether.

The fact that this broker lies about their payment options is just another sign of their scam.

The broker also claims not to charge any deposit or withdrawal fees, only transaction fees. However, when we checked their transaction fees, we felt that they were too high. For crypto transactions, the fee is 3% of the total. If you use their so-called token OFX, then the fee is 5 OFX + 1.5% of the total. And if you use USDT, you pay an even high fee of 3.5% + 5 USDT. 

Conclusion

OrientalFX is a clone firm that is scamming people. Just because they have a genuine MT4 trading platform does not make them a legitimate broker. It would best to find another broker to trade with – one that is legally authorized to offer its forex services.

OrientalFX

2.5

User Experience

3.2/10

Payment Options

2.2/10

Security

2.5/10

Support

2.2/10

Reputation

2.2/10

Pros

• None

Cons

• Unregulated Broker, Clone Firm
• Unattractive Trading Conditions
• Lies About Payment Options