ScamsUFX review

The forex market is the largest and the most exciting trading zone in the world. The market has daily trading volumes of over $5 trillion and runs 24 hours a day of every working day globally.

The price fluctuates, always opening opportunities to make the quickest bucks in record time. The allure of this blood-pumping arena is often irresistible.

Thanks to modern technology, the trading floors are now open to individual investors through online forex trading. Currently, there are more than 9.6 million online traders in the world.

An honest UFX review

Before we go further into this UFX review, here’s one thing you need to note about forex trading:

Up to 96% percent of traders lose their hard-earned trading capital in the first few trades. Profitable day traders also are a small 1.6% of all traders online.

Companies like UFX thrive on such statistics. They use both legit and dubious ways to take advantage of people.

Here we’ll tell how you how NOT to trade FX and then go into the full review.

Do you want the whole truth about UFX? Let’s go.

How not to trade FX

Any person ready to trade FX online needs to learn how not to trade. Part of this education requires you not to trade with emotions such as fear or greed. You will also lose money if you trade using novel but untested trading methods, which promise millions, fast.

The forex market has been running since the 70s, and there are established trading methods that can minimize the chances of making losses. Unfortunately, traders always tend to run for all that glitters instead. While researching for this UFX review, we noticed that there are many allegations leveled against UFX by dissatisfied clients.

Such complaints are common in an industry where so many losses are incurred. Nevertheless, some missing trust signals signify a higher potential for losses through scamming. If you lost any money fraudulently, you can contact us to help you recover your cash.

UFX background

UFX is one of the pioneer online forex trading firms established in 2007. The company is a product of the unity of like-minded industry professionals whose objective was to create a high-quality, competitive offering for the online trader.

It claims to be innovative to provide top-notch customer service and execution of exceptional quality. The firm was initially named UFX Markets but later rebranded to UFX to match its domain name,

Is UFX registered?

UFX regulationThis firm has a Cyprus Securities and Exchange Commission (CySEC) license. UFX obtained its license in 2011, under Reliantco Investments Limited, its Cyprus entity. It also has a separate entity – Global, which has a Vanuatu Financial Services Commission (VFSC) license.

Are these licenses satisfactory?

UFX has a trust rating of 66 out of 99 at, a reputable review website. The score marks the firm as high risk based on the quality of its licenses.

The license that UFX has is similar to what other FX firms with a history of financial or legal problems use. There are licenses such as Hong Kong’s Securities Futures Commission (SFC), the US’s Commodity Futures Trading Commission (CFTC), or the UK’s Financial Conduct Authority (FCA) that are recognized as high trust licenses.

On the review website, UFX’s Cyprus Securities & Exchange Commission (CySEC) license is a tier two or average trust license. UFX is a global trader with offices in London, and it is a bit of a surprise that in all their years of trading, they have not attained more rigorous trading licenses that come with a lot of business practice scrutiny.

It is advisable to use a brokerage firm with a local license because then your money is protected in case of solvency. The review site also raises some other red flags on UFX. They mention that the firm trust is low also because UFX is not a publicly traded firm, which means that its books are not open to the public.

UFX gives you a risk warning, just before displaying Its awards. See here:

UFX warningIt’s like someone saying they’re bad, but not so bad. Now, should you trust UFX or any other trader because it splashes such awards? Good question. Let’s see how you can spot scams.

How to steer clear of scams when trading

One common FX scam is the use of new trading software that promises enormous gains to novices with little knowledge or effort. Sometimes some of these platforms use misleading or fake figures to enhance the allure of their platform.

Here’s the truth:

  • Even tried and tested trading platforms only assist the trader in identifying trends and analyzing past performance. Never trust a broker, account manager or a “signals provider” 100%
  • A platform cannot be all that it takes to make money in FX trading
  • All platforms in use should be independently and formally tested
  • To stay safe, stay away from exclusive platforms, and use established platforms such as MT4 and MT5 until you have gained a better trading experience
  • Always learn how to properly trade forex. Learn all the fundamentals. Trade a bit on a demo account to test your skills. Only go live when you’ve perfected the art. If a broker doesn’t allow you to trade on a demo account, they’re trying to scam you!
  • Don’t always trust the “expert account managers” who call you from these questionable brokers offering advice and pushing you to deposit money. They’ll bleed you dry.

Trading on UFX

Trading on UFXThe firm offers the MetaQuotes Software Corporation’s MetaTrader4 (MT4). This trading platform is the most popular in online trading. Multitudes of traders and brokers worldwide use it.

The tried and tested MT4 makes it very easy for traders to open and close trades. They can also quickly analyze the markets. The platform is free for download, and it has no attached conditions for use.

UFX has a web-based native platform called ParagonEx. The staff uses MassInsights™ Technology to live stream industry data. And this is where the questions start coming in. We’ll talk about that shortly when mentioning UFX cons.

Let’s see some of its pros first.

UFX trading pros

  • The firm has over 500 instruments on offer, including 30 cryptocurrencies, 49 CFDs and currency pairs, 373 single stocks, 45 EFTs, and five commodity contracts.
  • The firm also offers competitive spreads that vary by account type and offers leverage as high as 400:1.

UFX trading cons

  • The major problem with UFX is that every other trader, besides its Gold and Platinum account clients, all have to use ParagonEx to trade. This is a red flag because respected brokerage firms like FXTM or all allow any trader to use the well-known MT4 or MT5 trading platforms.
  • While ParagonEX is indeed an award-winning platform, any trader who has only encountered MT4 is bound to have teething problems as they learn the new platform. This can adversely affect trading because, in FX trading, one simple mistake can lead to a loss of capital.
  • The ParagonEx platform does not have a guaranteed stop-loss function. This shortcoming could be the reason why most complaints against UFX involve loss-making trades.
  • Such losses are better mitigated with easy to use stop-loss order functions on platforms.

UFX review: genuine or scam?

There are some good aspects to UFX. However, it also has some questionable and unethical sides to it. For example, you have to get to the top tier memberships to be able to use MT4. Other traders are forced to use ParagonEx, which brings in the question of manipulation.

It’s licensing and registration may also not be fully trusted.

Here’s what a reviewer said in TrustPilot:

UFX scamUFX offers “personal account managers” to help new traders mature faster in the trade. The biggest complaint about UFX is that traders are often harassed by UFX staff to make increasingly large deposits, which often vanish in a string of loss-making trades. Since the firm makes money on the spread, it is up to you to ensure that you have stop-loss functions to protect your money.

One common characteristic of a questionable broker like UFX and 24option is the constant calls made to clients to make deposits or to increase the amount of money on trades after a profitable trade.

Here’s a user who complained of nagging phone calls from UFX before getting refunded:

Nagging calls from forex broker

Such firms, like UFX, do not give everyone access to white label platforms such as MT4, so they are in control of the platform’s back end.

They can, therefore, manipulate the system to offer a little profit while urging you to deposit more money. Eventually, you may be advised to get into loss-making trades. Through possible back-end manipulation, you may end up losing part or even all your investment.

Have you lost money to UFX?

UFX has many advantages but it also has some red flags as well. We do not recommend it due to some questionable aspects such as possible back-end manipulation, numerous customer complaints, poor advice from account managers, and licensing that cannot be fully trusted.

Use a broker whose regulator has policies in place that protect your savings. Additionally, use-trading platforms that are not only tried and tested but that are easy to use and provide more flexibility during trades.

If you have lost your money to UFX, book a consultation with us and let us begin the recovery process with you.