Spotfinex – Can You Trust This Broker?

Website URL: https://spotfinex.com/

Founded: N/A

Regulations: Unregulated

Languages: English, Italian, Spanish

Deposit Methods:Payecard Crypto Wallet and Wire transfers

Minimum Deposit:  $250

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: Commodities, Indices, Forex,  and Share CFDs

Trading Accounts and Conditions 

You can choose from four account types when investing with Spotfinex:

• Micro Account: The minimum opening deposit is $250, the maximum leverage is 1:500*, the spreads are from 1 pip, and the minimum trade size is 0.01 lot.
• Standards Account: The minimum opening deposit is $500, the maximum leverage is 1:300*, the spreads are from 1 pip, and the minimum trade size is 0.01 lot.
• Premium Account: The minimum opening deposit is $/€ 25,000, the maximum leverage is 1:100*, the spreads are from 0.6 pips, and the minimum trade size is 0.1 lots.
• VIP Account: The minimum opening deposit is $/€ 100,000, the maximum leverage is 1:100*, the spreads are from 0.2 pips, and the minimum trade size is 0.1 lots.

Spotfinex   – Advantages

This broker doesn’t offer any form of benefit or advantage to investors. We strongly advise that you stay away from this unquestionable broker.

Spotfinex   – Disadvantages 

We found several red flags implying that this broker is a scammer. Read our findings below and decide for yourself whether or not you can trust them with your money.

• Unregulated and unlicensed broker

Spotfinex claims to be based in London, UK, and licensed by the FCA. However, when we verified this information, the registry didn’t show any results for the said broker. Moreover, as shown on the website, they are owned and operated by a company called Trade Com Limited that has been blacklisted by CONSOB and the CNMV, the regulatory authorities of Italy and Spain, respectively.

Furthermore, this broker also claims that they are governed by the laws of St. Vincent, which implies that they also lied about being based in the UK. Operating as an offshore broker is a common game played by several scammers. Investing with these types of brokers is very risky since they are not regulated by any authorities, hence, they can just disappear or change their rules any time they want.

To keep your funds safe, we strongly suggest you only invest with regulated brokers, preferably those operating under the jurisdiction of the UK and EU. These two countries have the strictest regulatory rules, and all of their licensed brokers are bound to keep those rules. What’s better is that your deposits with them are protected with an insurance fund that will allow you to claim your capital back in case something unpleasant happens with the broker.

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.

• Lies about their available trading software

This broker claims to provide a Metatrader 4 trading platform; however, there isn’t a downloadable link available. The only thing that works is a web-based platform which is very poorly made and one that we’ll never use for trading. Lying about offering Metatrader 4 adds up to their list of lies. This only strengthens our claim that this broker is a big scammer.

The best trading platforms today are the Metatrader 4 and Metatrader 5. The two software are preferred by the majority of traders around the world because of their fundamental and technical analysis tools, robust security features, real-time access to market prices, and many other sophisticated features that help traders perform better.

• Unsafe trading conditions

Upon checking the trading conditions in their system, the spread for EUR/USD is 1.8 pips which are insanely higher than the standard industry. Moreover, the maximum leverage is said to be 1:500. This level is too risky and even considered gambling.

The four most famous jurisdictions in terms of Forex trading, the EU, USA, UK, and Australia have imposed a cap on leverage at 1:30. Brokers who don’t follow this are surely unregulated since regulators always check the operations of those under their wing. Trading with such brokers is very risky and you should therefore not engage in any activities with them.

• Unfair deposit and withdrawal methods and fees

The minimum amount you can deposit to Spotfinex is $250. This is a bit higher compared to other legit brokers. Moreover, the only available funding method they have is Payecard, a crypto wallet that is unheard of. With this payment method, you need to buy Bitcoins or other types of cryptocurrencies to make a deposit.

The minimum withdrawal amount and fees are not stated anywhere on its website. There is, however, a mention of a dormant fee for 12 months of inactivity which amounts to $25. Also, they offer bonuses. But the conditions are unfair since you need to perform a minimum trading volume that is 150 times the amount of the bonus before you can withdraw. Besides, you can only withdraw once a month.

Offering bonuses have been banned in the UK and EU since these are only designed to attract investors. Plus, the conditions you need to adhere to are almost impossible to achieve and trying to fulfill these impossible demands will only put you at a dramatic risk.

• Trader-unfriendly Terms and Conditions

When we reviewed their terms and conditions, the clauses are only advantageous to them and put all the investors at risk. For instance, in one of their clauses, they stated that they can modify, suspend, add or remove the content of the website anytime without informing investors. Moreover, they also stated that they shall not be liable for the losses that investors will incur from the changes they made on the website.

Conclusion

SpotFinex is an unregulated broker that provides false and misleading information just to attract investors. They also offer unfair bonuses and high levels of leverage and spreads which are all banned in the UK and EU. If you choose to invest with them, your funds will be at risk.

For the safety of your funds, only choose brokers that are regulated, especially by the FCA and CySEC. These regulators are world renowned and implement strict rules to ensure the investors’ capital are safe.

Spotfinex

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

• Unregulated and unlicensed broker
• Lies about their available trading software
• Unfair deposit and withdrawal methods and fees
• Unsafe trading conditions
• Trader-unfriendly Terms and Conditions