Quotex – Is it Secure to Trade With Them?

Website URL:https://quotex.io/en

Founded:  2020

Regulations: Regulated by the International Financial Market Relations Regulation Center (IFMRRC)

Languages: English, Russian, Portuguese, Spanish, Italian, Polish, Indonesian, French, German, Chinese, Turkish, Hindi, and Ukrainian

Deposit Methods: Visa, Mastercard, Skrill, Neteller, WebMoney, QIWI, Cryptocurrency, and other e-Wallets

Minimum Deposit: $10

Free Demo Account: Yes

Number of Assets: 49+ assets (digital options trading)

Types of Assets: Currencies, Crypto, Indices, and Commodities

Trading Accounts and Conditions:

Quotex is only offering one type of trading account with a minimum deposit of $10. With this account, traders can get full access to all of its 49+ digital options products which includes 27 forex pairs of Currencies, Cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple, 15 leading exchanges of Indices, and Commodities such as silver, gold, and oil.

The trading conditions were not discussed on its website but what we know is that this broker doesn’t offer leveraged investing.

Quotex – Advantages:

It was difficult for us to pinpoint any advantage in trading with this broker. We suggest you choose a licensed broker that’s regulated by a government authority such as the FCA or CySEC.

Quotex – Disadvantages:

Below are some of the reasons why you should not trade with this broker.

• Regulated by a non-government organization in an offshore zone

Quotex is owned and operated by a company called Awesomo Limited which is based in Seychelles. They claim that they are regulated by the Financial Services Authority (FSA) in the UK and the International Financial Market Relations Regulation Center (IFMRRC). However, when we validated these information, we found that neither Quotex nor Awesomo Limited are listed on FSA’s register. Furthermore, IFMRRC is a non-government authority that functions as an independent organization. This means that its credibility is questionable. Most companies that are regulated by this organization are offshore brokers.

Seychelles, where the broker is registered, is an offshore zone. The problem with offshore zones is that they lack serious regulatory measures. Unlike the regulators from the jurisdictions of the UK, EU, or USA, regulators from offshore zones don’t strictly oversee the operations of the brokers. Therefore, scammers will have an easier time taking advantage of their investors’ funds.

To ensure that your funds are safe, you need to choose brokers with licenses from credible regulators such as the Financial Conduct Authority (FCA) in the UK, Cyprus Securities and Exchange Commission (CySEC) in the EU, and the Australian Securities and Investments Commission (ASIC) in Australia. These regulators have the strictest set of rules that brokers must adhere with in order to get licensed. Some of these rules include a big amount of starting capital, participation in a financial compensation scheme, and segregation of accounts for every client.

The goal of every regulator is to ensure that all brokers under their jurisdiction should act in good faith and survive the volatility of the market.

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• Poor trading platform

Quotex clients are offered a web-based trading platform with very limited functionality. The software is also not available in desktop or mobile version.

Traders also have limited control over the trading transactions. With their platform, Quotex controls the volume of the trade, asset of interest, and the closing time. Traders can only choose to go up or go down, and sell now or at a later time. The spreads are also not shown as the software doesn’t provide the bid/ask price. In addition, the leverage is also undisclosed.

With this type of trading platform, we can easily determine that this broker has some hidden agenda and doesn’t act in favor of the traders. This scheme is common to unregulated and offshore brokers in order to manipulate the transactions.

If you want to trade in the best environment, choose MetaTrader 4 or MetaTrader 5. These software are trusted by most of the experienced traders worldwide because of their astounding functionality that helps improve a trader’s performance. Some of the features they boast include technical analysis indicators, financial calendars, VPS, app markets, auto trading options, trading signals, and more.

• Leverage and spreads are unknown

The web trader of Quotex doesn’t allow traders to calculate the spreads. Moreover, the broker also currently doesn’t offer leveraged investing. What’s more shocking is that they control most of the trading transactions within the platform. As described on its website, the platform works in four steps.

1. They choose the asset of interest.
2. They set the trade volume as well as the trade’s closing time.
3. They make a prognosis for a specific time period.
4. They get the trade’s result.

Having very little control over a trading software is very risky because the broker can easily manipulate the transactions to their advantage. It’s still best to trade using a trading software that provides the best trading conditions to protect you from losing your funds. For instance, regulators from the UK, EU, AU, and the US have implemented a level of leverage not to exceed 1:50. Any level exceeding this is considered as gambling and illegal. Spreads should also be maintained as low as possible.

• Fees are undisclosed

The broker’s website doesn’t say anything about fees for withdrawals, dormant accounts, or maintenance. Legit brokers never leave such information undisclosed since these are important details to consider when choosing a broker. Surely, no one wants to be surprised with overwhelming fees in the future. Knowing what to expect from a broker is necessary in order to avoid future troubles.

Conclusion

Everything that we have uncovered about Quotex leads us to conclude that it’s not a secure broker to trade with. First, they lied about their regulation with the FSA in the UK. Second, while it’s true that they are regulated by the IFMRRC, this regulator is a self-proclaimed authority that operates as a private organization. Needless to say, they are not credible enough as a regulating body. Your money is definitely at risk with this broker.

Quotex

2.5

User Experience

3.3/10

Payment Options

2.4/10

Security

2.3/10

Support

2.1/10

Reputation

2.2/10

Pros

• None

Cons

• Regulated by a non-government organization in an offshore zone
• Poor trading platform
• Leverage and spreads are unknown
• Fees are undisclosed