FxMode review – is fxmode.co a scam or safe?

FxMode review – is fxmode.co a scam or safe?

FxMode Key Facts

🔴 FxMode offers questionable Forex trading signals – a clear sign of a scam!

🔴 FxMode fakes critical contact information – beware!

🔴 FxMode lack any sort of license for its services – a huge red flag!

🔴 FxMode’s domain has been registered only recently – another off-putting detail!

FxMode products and services

FxMode is a scam that offers Forex trading signals – it claims to be able to achieve high trade success rate with an algorithm it has developed. This rate is of 50% at least – and while that might not seem like much, you should know that it is realistic and expected for most traders to never have a success rate of over 10%. Even professional traders rarely  break the 20% mark.

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.

FxMode company and regulation

FxMode does not provide a license for the provision of its services. This can only mean that the company is completely unregulated – a surefire red flag.

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.

FxMode address and contacts

FxMode has given us insufficient contact information – only an address from the States – 819 Virginia St. Seattle WA 98101. However, we do not believe it to be corresponding to wherever FxMode actually resides in, as there is no confirmation they have provided via a regulatory license.

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.

FxMode website info

FxMode’s website has been registered less than 8 months ago, in June 2020. Recently created websites are nine out of ten times the hallmark of a scam.

FxMode’s domain operates on an IP address from the States – 104.18.29.12. It co-hosts the staggering 10 081 other domains, none of which are linked to FxMode as far as we can tell.

FxMode operates in such obscurity that traffic information for the website is not even shown in popularity indexing services like SimilarWeb.

The owners of FxMode do not wish to have their identities known – to that end, they have shielded themseves from WhoIs lookups, which directly contradicts the principles of transparency you should expect investment companies to follow.

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.

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