TradeFXM – Can You Trust Them?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
TradeFXM - DO NOT TRADE WITH THIS PROVIDER
2.2/10
$100
Minimum Depositupdated 2023
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
Try these regulated brokers if you want to start trading cryptocurrencies
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.
Website URL: https://tforexm.com
Founded: 2023
Regulations: No Regulation
Languages: English
Deposit Methods: Bitcoin, Tether, Ethereum, Unified Payments Interface, Visa, MasterCard, Binance
Minimum Deposit: $200
Free Demo Account: Not Available
Number of Assets: Unknown
Types of Assets: Indices, Crypto, Stocks and Shares, Commodities
Trading Accounts and Conditions
TradeFXM offers their clients the following trading accounts:
- Micro: The initial deposit amount is $200. There is a 10% commission and the leverage ratio is 1:200.
- Classic: The initial deposit amount is $2,500. There is a 10% commission and the leverage ratio is 1:500.
- Premium: The initial deposit amount is $10,000. There is a 10% commission and the leverage ratio is 1:1000.
- Professional: The initial deposit amount is $25,000. There is a 10% commission and the leverage ratio is 1:1500.
Spreads and other trading conditions are not mentioned.
TradeFXM – Advantages
There are no advantages to trading with TradeFXM.
TradeFXM – Disadvantages
Listed below are all the issues that prove that TradeFXM is a scammer:
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Lack of Regulation
The first sign of this broker’s dishonesty is their lack of regulation.
TradeFXM claims to be owned and operated by Tradefxm Limited. We are then given two address – one in the UK and the second one in Dubai. There is a UK telephone number listed along with those addresses.
However, nowhere on their website does this broker actually tell us that they are regulated. And neither do they present us with any evidence. This already tells us that this broker is probably not regulated, since regulated brokers clearly display all their regulation and license details – the name of the regulatory authority, their license and registration numbers and so on.
However, just to be on the safe side, we checked the Financial Conduct Authority’s company registration database. This regulator oversees all forex brokers in the UK, so if a broker wishes to operate legally in this country, they need to be authorized by the FCA.
We found out why TradeFXM is not regulated by any financial authority at all. This lack of regulation means that they are operating illegally and that marks them as a scammer.
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.
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.
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Blacklisted by FCA
The FCA has also noticed that TradeFXM is a scammer. In fact, the regulator has issued a warning against them, stating that this broker is unauthorized and that they are targeting traders in the UK. The authority also states that such scammers can give incorrect contact and corporate details, and may even change such details over time.
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Issues with Terms and Conditions
This broker has only a single legal document – their terms and conditions. You can only find this legal document if you check their registration page; there are no legal documents on this broker’s main website. The fact that TradeFMX’s legal documents are not easily available are already a red flag.
Now let us talk about their Terms and Conditions. The language used in that legal document is not legal at all. In fact, it isn’t even grammatically correct. Added to that, the kind of information presented there tells us that that is not a real legal document; it was constructed by someone with very little knowledge of the law and the drafting of legal documents.
And finally, the terms mentioned there are not fair or even advantageous for traders. This broker cannot be trusted at all!
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Issues with Trading Platform
A broker’s trading platform is the single product offering they have. So, they offer their clients only the best software in the market – the MetaTrader 5 or MetaTrader 5 platforms. These two platforms are so good that more than 80% of all traders and brokers use these platforms to carry out their trades.
Legitimate brokers also ensure that they allow their potential clients to try out their trading platform by offering them a demo version of their main platform.
With TradeFXM, we are given none of these advantages. Instead, we get a poor facsimile of a trading platform – one that barely functions.
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Issues with Trading Conditions
There are even more red flags that tell us that TradeFXM is a scammer when we assess their trading conditions. For one, they are incomplete. The trading conditions, used with the trading platform, is a legitimate broker’s offering. So, when it is incomplete, it is a sign of a scam.
Added to that, the minimum deposit required by this broker is much too high at $200, especially when many legitimate brokers invite you to open an account for less than $50.
And the leverage maxed at 1:1500 is not only extremely risky, it is also illegal in the UK.
All of these issues tell us once again that we are dealing with a scammer here.
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Conflict of Interest
TradeFXM, in their Terms and Conditions, state that once you make your deposit, your account with be handled by their account managers. That they will carry out trades on your behalf and that these managers will keep 8% to 10% of your profits for themselves.
We need to point out that brokers make money when you lose on the market. Therefore, if they manage your money for you and carry out trades on your behalf, it is in their interest to make sure that your trades end in failure. That 8% to 10% commission is not significant compared to the money they make when you lose.
This is called a conflict of interest and it is illegal. Another indication that TradeFMX is a scammer.
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Other Issues
Other issues that also tell us to be wary of this broker are the lack of clarity on their payment methods, their withdrawal policy and the fact that they offer bonuses (a practice that has been banned in most regulated markets).
Conclusion
TradeFXM is a scammer and therefore cannot be trusted. It would be best to invest your funds with a reliable and regulated broker.
TradeFXM
Pros
- None
Cons
- Lack of Regulation
- Blacklisted by FCA
- Issues with Terms and Conditions
- Issues with Trading Platform
- Conflict of Interest
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
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.
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.
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