ETX Capital Review (2022): Is it Safe to Trade With This Broker?
If you are an online investor, you need to know whether you are dealing with an honest broker before committing your finances. Is ETX Capital one of these legit brokers? Are your funds safe with them? Read this in-depth EXT Capital review to answer these questions and more.
Have you lost your money with ETX Capital and would like to get it back? We can help you. Book a free consultation session today. Our team of experienced and trusted experts will work with you to recover your funds.
Here’s the whole truth about ETX Capital.
ETX Capital: An Honest Look at ETX Capital
Founded in 1965, ETX Capital started with mortgage bonds before expanding into stocks and derivatives. The company has been in operation for more than 50 years and rebranded from TradIndex to ETX Capital in 2002.
The brokerage firm is the online trading name of Monecor (London) Limited, an active member of the London Stock Exchange.
While the company appears to have solid backing and has won many awards for its services, is it a genuine investment partner? Is there anything the company is hiding?
Is ETX Capital Legit?
Online brokers, even scammers, usually have well-organized information and websites to attract unsuspecting investors. This is why you need to work with a trustworthy broker to protect your investment.
To determine whether ETX Capital is legitimate, we’ll look at the company’s activities and products. We’ll also tell you whether the brokerage firm is regulated and by which regulatory bodies. Using this information, we will provide a final verdict on the legitimacy of the company.
ETX Capital: A Brief Background
The company specializes in forex, commodities, cryptocurrencies, indices, and shares. It allows traders to access over 5,000 global markets while providing trading technology and education.
Since its establishment, the brokerage firm has had over 55,000 clients globally.
ETX Capital has its headquarters in London.
Is ETX Capital Regulated?
ETX Capital is fully regulated and authorized by the Financial Conduct Authority (FCA) to provide CFD trading products under its parent company, Monecor (London) Ltd. The company is registered under license number 124721.
While this company is authorized to carry out activities in the UK, there have been attempts to clone it on several occasions.
According to the FCA website, Monecor also has a European branch with an address in Cyprus. The FCA has given this firm temporary permission to operate in the European Economic Area (EEA) countries. With temporary permission, the company can only offer certain products and services in the UK.
However, Monecor (Europe) Limited is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 096/08.
In addition, ETX Capital is regulated by the South African Financial Sector Conduct Authority (FSCA) under license number 50246.
Is ETX Capital a Scam?
Since the company has been in operation for years, it appears legitimate. Sadly, it also has aspects of being a regulated scam. What are the aspects that make ETX Capital seem legit? Let’s take a look.
- It’s authorized by key regulatory bodies, including the FCA, CySEC, and FSCA, which have regulations in place to protect customers’ funds.
- Due to the FCA regulation, customer funds are placed in segregated accounts. Therefore, if the company becomes insolvent, investors can receive claims of up to £85,000 under the Financial Services Compensation Scheme (FSCS).
- The parent company Monecor (London) Ltd, is listed on the London Stock Exchange.
- Investors can withdraw their funds via legitimate and well-known platforms, including Skrill, Mastercard, Visa, and UnionPay.
- Traders get to use well-respected platforms such as MetaTrader 4 (MT4) and TraderPro.
- The brokerage firm has won many awards for its trading platforms and educational materials.
- It has educational materials for beginners and seasoned investors to use when trading.
While all these products are in place, is ETX Capital a scam in disguise?
What are the ETX Capital Scam Signals?
Poor Customer Reviews
Customers who have dealt with ETX Capital have tons of negative reviews about the brokerage firm. Reviews on the Forex Peace Army website show that;
- Investors can’t withdraw their money when they need it.
- The stop loss keeps adjusting itself; therefore, customers are making a loss even when they shouldn’t.
- Poor response from the customer service team, especially regarding withdrawals.
Because of all these issues, some customers have reported them to the FCA since they are regulated.
A look at another trusted review site, Trustpilot, shows the same. Customers have shared their issues—from the inability to withdraw their cash and investment manipulations. These real-life experiences indicate the firm is betraying its customers’ trust.
On its website, the company claims that its information is not directed to individuals in countries such as the United States, Singapore, Canada, Belgium, and Switzerland due to the local laws.
While the company is regulated in the UK, it seems that it’s not allowed in these countries because of the strict regulations that protect citizens from potential scammers. If the company cannot meet the financial standards in these countries, it raises a question about its legitimacy.
ETX Capital Review Conclusion: The Final Verdict
It’s clear that ETX Capital has portrayed itself as a legitimate company that has been in operation for several decades. From its listing on the stock exchange to the FCA regulation, everything appears legitimate.
However, tons of customer complaints say otherwise. It appears that this regulated broker has been cheating investors off their money by making it hard to withdraw funds or reach the customer care team, making the company untrustworthy.
Our in-depth ETX Capital review shows that ETX Capital might be a regulated scam; therefore, you need to be careful when investing your funds.
If you’ve lost money trading CFDs, cryptocurrencies, or forex with ETX Capital, we can help you get your money back. Trader Protection has years of experience helping traders get their money back. Schedule a free consultation session with our team today.