ValueFX – Are They Safe?

Website URL: https://valuefx.eu

Founded: 2020

Regulations: Unregulated

Languages: English

Deposit Methods: Bitcoin, Wire Transfer

Minimum Deposit: Unknown

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Cryptos, Currency Pairs, Metals

Trading Accounts and Conditions

Here are the trading account types that ValueFX offers its customers:

• Basic: You are promised a 10% Return on Ivestment (ROI)
• Standard: You are promised a 20% ROI
• Exclusive: You are promised a 25% ROI

There is no information anywhere on the broker’s website with regard to trading conditions such as minimum deposit requirements, leverage ratios, and spreads.

ValueFX – Advantages

There are no advantages to trading with ValueFX.

ValueFX – Disadvantages

Here are the reasons why we would not recommend ValueFX to anyone:

• Unregulated Scam Broker ValueFX claims to be registered with the Companies House of England in the UK. The broker also provides an address and phone number of the UK on its website, and also gives the incorporation number (07529161).

This may lead many traders to think that ValueFX is legitimate. But it is not. Here’s why.

Firstly, to be able to offer trading services in the UK, a broker needs to be regulated by the Financial Conduct Authority (FCA), which is the body that governs all Forex and CFD brokerages. ValueFX claims that it is regulated by this financial watchdog. However, the reality is that it does not have a license from the FCA; we checked.

Secondly, if you check the so-called certificate of incorporation, take a close look at the domain name of the Companies House website; it reads: beta-companieshouseuk.com. The real domain name for Companies House is beta.companieshouse.gov.uk. So, this means that ValueFX has shows a fake certificate of incorporation to fool customers into thinking that it is a legit broker.

Now, when we checked the incorporation number on the real Companies House website, we found out that it actually belongs to a company called Amhurst Park Ltd. This company is currently dormant. The previous company name was Value FX Limited.

So, what this tells us is that this broker is trying to fool people with a veneer or legitimacy.

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• Blacklisted by Two Regulators

ValueFX’s scam has been noticed not just by us, but also by two of the top regulatory agencies. Both the FCA in the UK as well as the Danish Financial Supervisory Authority (DFSA) have blacklisted this broker for providing it services illegally.

This is proof that ValueFX is not a legitimate broker and that you should not trust them with your money.

• Offers Managed Accounts

Another huge red flag is points to this broker being a scam is the fact that it offers managed accounts. A managed account is where the broker handles your trades for you. This is a clear conflict of interest. A conflict of interest takes place when the two parties joined by a contract have opposing goals. Let us explain further. Your goal as a trader is to make money. So is your broker’s. However. You broker makes money when you lose money. So, if that broker offers to manage your money for you, it becomes a conflict of interest, since it is in the broker’s interest to ensure that you lose money while trading.

• Offers Guaranteed Returns

The first rule of trading is that there are no guaranteed returns. The market is volatile and by its very nature, trading is essentially a gamble, and like most gambles, most people tend to lose more than they win. In fact, regulated brokers are required by law to specify the percentage of their clients that lose funds while trading on the market. On average, 75% to 85% of traders lose money while trading.

Therefore, the guaranteed returns of 10%, 20% and 25% that this broker promises are just lies told to attract more unwary traders to invest their money with ValueFX.

• Trading Platform Missing

ValueFX does not clearly mention what kind of a platform it offers its clients. Instead, you are given a general spiel about how you can manage your account in a single glance.

We decided to check for ourselves by registering for an account with this broker. We wanted to find out what kind of a trading platform they offered. After completing the registration process, we were directed to a strange looking client area. There were no links to any platform – downloadable or web-based.

The only thing that you can do once you open an account with this broker is deposit money.

• No Trading Conditions Mentioned

This broker does not provide any information on its trading conditions. Starting with the minimum deposit requirements, we know nothing about the costs you will need to bear to trade through this broker.

However, there is a very interesting – and worrisome – proviso in the Terms and Conditions section of ValueFX’s website. The broker states that to be able to start trading on behalf of its customers, it requires that you deposit a minimum of $5,000 as a first deposit. Such a massive minimum deposit requirement raises a huge red flag for us – once more indicating that this broker is a fraud.

• Limited Payment Options

On its website, ValueFX gives no information about the types of payment methods it supports. However, on its client area, the broker offers traders three types of payment options – Wire Transfer, Bitcoin and Credit/Debit Cards. But here’s the interesting thing – the Credit/Debit Card option doesn’t work. Every time we tried that option, we got the message Not Available for Your Country.

In essence, this broker offers two payment methods – Wire Transfer and Bitcoin. Both of which are irreversible transactions. This is just another indication that we are dealing with a scammer. Scammers will avoid using payment methods that can be reversed – such as credit and debit card transactions.

Conclusion 

Everything about ValueFX points to one thing – this broker is a scammer. You money is not safe and if you invest with them, you will lose all your funds.

ValueFX

2.5

User Experience

3.1/10

Payment Options

2.3/10

Security

2.3/10

Support

2.2/10

Reputation

2.4/10

Pros

• None

Cons

• Unregulated Broker
• Blacklisted by Regulators
• Offers Managed Accounts
• Offers Guaranteed Returns
• Trading Platform Missing