Beware! FxFinance is an offshore broker! Your investment may be at risk.
FxFinance Key Facts
🔴 FxFinance offers questionable bitcoin mining investments – a clear sign of a scam!
🔴 FxFinance is quite coy with crucial contact information – beware!
🔴 FxFinance lack the appropriate license for the provision of its services – a huge red flag!
🔴 FxFinance's domain has been registered only recently – another off-putting detail!
FxFinance products and services
FxFinance is one of many companies that have appeared recently, offering Bitcoin mining opportunities. This is sadly nothing more than a new take on an old scam model where scammers promise their victims incredibly high returns in short timeframes – with FxFinance these returns are up to one percent of the investment daily over the span of six months with the cheapest plan with referl bonuses of 20%. Such high rate of interest is simply impossible, and no legitimate company would offer it.
People should always be cautious when dealing with businesses offering enormously high yields because it's scammers' trait to promise big and create unrealistic expectations. In reality, regulated financial companies cannot secure more than a few percents annually with their fixed-income products. There is a huge discrepancy between these offers and the regulated companies standards. Judging by the products and services they sell, we suspect it's a scam, so beware.
FxFinance company and regulation
FxFinance claims to operate from the UK. However, it does not provide any real documentation to prove that – hilariously stating that its license can be seen on its Facebook page. Well, any UK company's license can also be seen in the database of the country's regulatory authority – we looked FxFinance up there, and this is not the case. We therefore can only determine its claims to legitimacy to be false.
The US financial services regulation is very complex in the USA. Derivatives markets regulation is a responsibility of CFTC and NFA. Forex brokers and most of the investments companies have to be NFA members and CFTC registered to operate in the USA. On the other hand, securities markets are controlled by the SEC, a government independent agency responsible to maintain the integrity of the financial markets.
While SEC focuses more on the procedure regulation insisting on financial reports and management discussion and analysis, NFA and CFTC impose pretty straightforward requirements. To become authorised the companies have to provide 20 million USD in paid-up capital, which is considered a guarantee that the businesses can survive in turbulent times and pay whenever they have to.
Other customer protection measures include clients’ accounts segregation and leverage restrictions for forex brokers- 1:50. Also, CFTC brokers’ clients are not allowed hedging, which is one of the very unique US features. Unfortunately, the cryptocurrencies regulation is still inept, so traders and investors should be wary when dealing with crypto offers.
FxFinance address and contacts
The company provides absolutely no contact information, instead stating that it can be contacted via the aforementioned Facebook page. This is incredibly concerning, since we determined them to be lying about their regulation above. It is also quite hilarious that the official line of communication with FxFinance would be a third party page. Rest assured that an actual legitimate company would never be so unprofessional as to allow that.
Transparency is crucial when talking about brokers and investment companies, and it's part of the regulatory framework. The regulated companies are open to financial authorities following certain transparency rules, so it's generally unlikely to conduct fraudulent activities. They are also bound to provide the public with crucial information about themselves, making it easy for traders and investors to confirm the company's legitimacy.
FxFinance website info
The website FxFinance operates from has been created over an year ago – in December 2019.
The domain is hosted on an USA IP – 198.54.125.87. While the same domain co-hosts over 200 other entities, we could not find any connection between them and FxFinance.
The website does not even rank on website popularity services like SimilarWeb, which is rather odd, given its relatively old age. It also contradicts the claims of global recognition that FxFinance makes.
Finally, the owner of the website is hidden – it seems that FxFinance does not wish to reveal exactly who is operating it. And while this is standard procedure in the EU, given the importance of transparemcy, explained above, it is quite the red flag.
Scam warning
We paid utmost attention to the regulation and transparency in the sections above because it’s mandatory for trading and investments. Pretty much each company offering financial services have to be authorised by the local financial authority.
However, some entities operate unlicensed and intentionally run investment fraud. It would be best if you only dealt with companies authorised by the regulators, so always check to make sure they are. Bear in mind that if you trade with unauthorised businesses, you won’t be protected, so it’s very likely to suffer losses almost impossible to recover if things go wrong.
Online scam is trending nowadays with fraudulent websites popping up literally every day. The financial authorities increase the number of warnings issued year after year, but the dangers are still out there and growing exponentially. You’ll realise the hazards when you consider OneCoin scam- it’s still impossible to calculate the total loss, but it’s regarded as 15 billion worth fraud. Make sure to trade with licensed and regulated companies to avoid off-putting losses.