Founded in 2011, FXVC is a relatively new forex trading broker. This review looks into the company’s practices to determine whether it is a trustworthy broker or a scam. To this end, we will discuss FXVC’s regulatory licenses and their relationship with online traders.
At Wealth Recovery Expert, we desire to help traders stay away from unscrupulous brokers. Our reviews are intended to help you differentiate between trustworthy and untrustworthy brokers. As you gain experience in the field, you will observe that untrustworthy brokers share some peculiar practices and will start spotting them before they scam you.
If you have fallen prey to some scheming broker, we can help you. Contact us for a free consultation on how you can recover your money.
FXVC’s parent company, Finteractive Limited (Formerly known as Centralspot Trading Ltd), is registered in Cypress. Finteractive Limited is licensed and regulated by Cyprus Securities and Exchange Commission (CySEC).
FXVC offers traders a selection of more than 200 tradable assets, including top stocks, currency pairs, indices, and commodities. You can also trade cryptocurrencies on the platform.
FXVC does not have a MetaTrader platform. This is a disappointing factor because most traders use either MetaTrader 4 or 5 for regular trades. Instead, it has its web-based trading platform with fully customizable charts, high operating speeds, and innovative trading tools.
No demo accounts
The broker also doesn’t offer demo accounts. Demo accounts are especially important for beginners or for traders to familiarize themselves with a new broker. In this case, a practice account would also help the trader to learn about the FXVC platform.
However, beginners can use other resources offered by FXVC to learn. Once you open an account, you will have access to a wealth of material teaching you about trading and how to use the FXVC trading platform.
The site also has a comprehensive FAQ section that covers almost all the important questions.
Finally, you are also assigned an account manager to guide you through the initial stages. Account managers are usually an invaluable resource for beginners. However, as a trader, beware of managers that try to pressure you to place trades against your will.
The different types of ranked accounts
The live accounts have been placed into five categories. Bronze is lowest-ranked, followed by Silver, Gold, Platinum, and VIP. Bronze also has the lowest minimum deposit requirement at €250, followed by Silver, while VIP has the highest, at €250,000.
The higher-level accounts also have other benefits for traders. These include free signals, higher discounts, and other features that make trading easier and more profitable.
FXVC licensing and regulation
FXVC is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under Finteractive Ltd, formerly known as Centralspot Trading Ltd.
Because Cyprus is an EU member, CySEC operates in conformity with European MiFID financial harmonization law. For this reason, CySEC is one of the most respected and authoritative regulatory agencies on security exchange and trading.
Unfortunately, FXVC is currently licensed by CySEC only. Using this license, the broker can operate in Europe and South Africa only. Traders from other African countries, the Americas, Australia, and Asia, cannot register or trade using FXVC.
Conflicts with regulatory agencies
In November 2019, CySEC withdrew FXVC’s license on suspicion that the company was not compliant with the required security laws. During this period, FXVC was prohibited from recruiting new clients, making new business agreements or relationships, and offering financial services.
CySEC gave the broker 15 days to be fully compliant with the applicable EU regulations.
FXVC utilized the grace period to improve its security features. CySEC, convinced with the broker’s security improvements, reinstated the license.
On 9th April 2021, traders in the United Kingdom were informed that they would no longer trade on FXVC. According to FXVC, this action was taken as instructed by the Financial Conduct Authority (FCA).
FCA has indicated that the company may resume normal business after meeting the minimum standards regulating the European Economic Area (EEA) countries.
UK Traders to lose profits
Following this move, FXVC has instructed UK traders to close their trades and withdraw their money. Currently, the traders’ main complaints are:
- FXVC gave a very short notice – 2 days. The broker has claimed that FCA set the short notice period.
- When traders try to withdraw, the broker only allows them to withdraw the amount they deposited. Any profits that were made from trading are therefore being left with the company.
The company has defended itself and said that this might be a regulatory issue beyond their control.
- That even within the grace period, the broker is closing trades that are in the loss zone. FXVC has not responded to these allegations.
- FXVC probably knew that their FCA suspension license was coming and should have stopped registering new traders from the UK.
Brokers often take advantage of situations like this to take advantage of traders. They know that many of the traders do not have the legal knowledge or power to sue the broker for damages.
If you are one of those affected by this situation and feel the trader is conning you, contact Wealth Recovery Expert promptly. We will look at the Terms and Conditions between you and FXVC and help you recover any money they are withholding from you.
FXVC has had run-ins with regulatory bodies. If you are in the UK and you’ve made a profit using the platform, right now you can’t withdraw the profit. This heavily affects innocent traders who would have made good profits using a legitimate broker.
The company license allows it to operate in a very limited location – Europe and South Africa. The suspension of the parent company, Finteractive Limited, by CySEC in 2019 and now by FCA also taints the broker’s compliance record.
As FXVC complies with FCA’s directives, both new and experienced brokers can easily lose their money. You should therefore be observant even if you are trading from outside the UK.
For this reason, FXVC is not a trustworthy broker. Stay away from it.
Have you lost money with FXVC? Schedule a free consultation for guidance on how to reclaim your money.