EuropeFX Review: Is EuropeFX a Scam or a Genuine Broker?
As any seasoned online trader will tell you, you should always make sure a broker passes the stink test before depositing money with them. And that should always be the first step for any aspiring trader because there are currently too many rogue online forex and CFD brokers.
This EuropeFX review seeks to help you in that regard. It assesses the broker’s business practices and highlights any red flags that popped up during the research.
Sometimes, even with adequate research, any trader can lose their cash to untrustworthy brokers. If you are a victim of such circumstances, don’t lose hope yet.
With the help of a wealth recovery professional, you can reclaim all the money you have lost unjustly. Get in touch with Trader Protection today for a free consultation session and start your reclaim process immediately.
EuropeFX Review in a Nutshell
Founded in 2014, EuropeFX is now in its eighth year of operation and offers financial services as a forex and CFD broker. That’s a long time for brokers because many brokers are barely five years old. Currently, Europe FX offers traders access to various assets, allowing you to trade in currency pairs, stocks, indices, cryptocurrencies, and commodities.
The parent company, MaxiFlex Global Investments Corp Limited, is headquartered in Limassol, Cyprus. The company is registered and licensed by the Cyprus Securities and Exchange Commission (CySEC). Because of concessions between Cyprus and the European Union countries, the CySEC license allows EuropeFX to access most European markets under the European MiFID regulation.
Currently, MaxiFlex Global Investments has physical offices in Germany, Malta, Australia, and Cyprus.
EuropeFX’s fame in Australia has grown significantly recently since it became the official sponsor of South Sydney Rabbitohs.
Licensing and Regulation of EuropeFX
Scam brokers avoid regions with strong regulations to protect traders. For instance, in some European territories, a broker may be required to have insurance cover for traders’ money deposits. Such laws make sure you can still get your money should the company go bankrupt.
There may also be laws to protect your data, prevent the broker from introducing unreasonable fees, or manipulate trades.
Brokers that don’t want their businesses scrutinized often rush to areas where the laws are weak or are not enforced.
A few decades ago, Cyprus was one country that businesses would open their branches or headquarters to avoid accountability. However, since joining the European Union, the country now has stricter regulations.
Therefore, the licensing of EuropeFX by the Cyprus Securities and Exchange Commission sheds it in good light and suggests that it may be trustworthy.
But, with Britain out of the EU, is EuropeFX allowed to register citizens of the UK? Can the company carry out business in the country?
After Brexit, many companies that used to operate in the UK under EU licenses had to re-register themselves. However, EuropeFX has not registered with the Financial Conduct Authority (FCA). It is, therefore, possible the broker does not meet the UK’s new requirements, and traders are not protected adequately.
[Source: FCA Registry]
Also, neither the company nor EuropeFX is registered to operate in the United States.
Types of Accounts
EuropeFX has four primary types of live accounts: Bronze, Silver, Gold, and Platinum.
For all the accounts, the maximum leverage is 1:500. This leverage is significantly low and would not be allowed in some countries. In the UK, for instance, the mandated minimum leverage is 1:30. This rule could be one requirement that made EuropeFX opt out of the UK.
The Bronze account is the most affordable option on the list, with its minimum deposit set at $1000. Unfortunately, this amount is out of reach for a significant number of first-time traders. For this amount, the broker offers services such as a forex specialist and educational material. These features, however, are for a trial period.
The minimum deposit for the Silver account is $2,500, and this gets you additional features such as access to Trading Academy three times a month. You also get a senior forex specialist.
The minimum deposit amount for the Gold account is $10,000. You also get a forex trading specialist and educational material and up to 5 sessions per month in the Trading Academy.
The Platinum account requires a minimum deposit of $25,000. Some of the extra features you get include access to the Event Room, EuropeFX investments, and SMS trade notifications.
The amounts required to open any of the accounts are too high and unreasonable. In addition, the features that EuropeFX offers for those amounts are available free of charge in most other brokers. It is, therefore, not a sensible or fair pricing plan.
Reviews From Traders
Online traders are generally honest about their trading experiences. And although some brokers may try to pay off people to post fake glamourous reviews, you can tell the genuine ones.
Therefore, reading reviews by traders is a reliable way to assess a broker’s service delivery.
Traders using EuropeFX appear to have two primary complaints. The first one is the persistent calling by account managers trying to convince the trader to deposit money. Such behavior by a broker is unethical. If a broker is bothering you with similar calls even after warnings, contact an expert in trader protection to help you out.
The other serious complaint is about commissions. Brokers that have not set a specific commission rate often use the ambiguity to charge high commissions without warning. Such sudden and unexplained spikes in commissions and fees eat into your profits. On this too, you can get the help of financial recovery experts to guide you on how to get the money back from the scammers.
Is EuropeFX a Scam?
EuropeFX has successfully created the image of a reliable broker. In addition, the sponsorship deal with the Australian rugby team has also given the broker credibility and respect.
However, looking at the fees, spreads, deposit requirements, and other business practices, it becomes clear that EuropeFX is not an ideal broker for a retail trader.
The complaints by traders, and the company’s insistence not to abide by the UK and US regulations, further cast doubt on the broker’s trustworthiness. Based on this EuropeFX review, we advise you to avoid opening an account with the broker.
Contact us today for a free consultation session if you have lost money to them or any other broker through unfair practices.