If you have ever lost your hard-earned cash to a forex broker, then you know that forex scams exist.
Yet, there are many legit Forex brokers too. What’s important is to conduct your due diligence before you proceed to deposit funds and start trading.
Is FX BFI a legitimate forex broker? Is it regulated? Have traders reported any issues when withdrawing funds? In this review, we will take an in-depth look into this online broker to determine the truth behind it.
Before we start, always remember that not all forex brokers have their customers’ interests at heart. Some are schemers looking for a chance to defraud them. Fortunately, there are ways to recover funds lost to such fraudulent brokers.
FX BFI: Background Details
FX BFI Broker Financial Invest Ltd, FX BFI’s parent company, is located in Limassol, Cyprus. The firm espouses the core values of openness, vanguard leadership, and reputability. It provides trading in the following instruments:
FX BFI offers its clients the Meta Trader 4 trading platform. This cutting-edge trading instrument offers all investors, including first-timers, a comfortable trading experience. Besides, it supplies detailed technical analysis, various time-frame options, and reliable data protection. The platform is accessible across all mobile platforms.
Also, it offers WebTrader, a web-based trading platform designed to allow traders to conduct trades seamlessly on the go. The platform boasts a demo account and live analysis. You also get visual trends and trading cubes, which quicken trading by showing prices or lot sizes per your preference.
As a trader, you have four account options besides the swap-free Sharia account. Your account choice depends on your experience and the initial deposit.
Who Regulates FX BFI?
FX BFI is licensed by the Cyprus Securities and Exchange Commission, CySEC. To some extent, FX BFI follows the trading regulations imposed and secures all client funds in separate bank accounts.
The broker is also monitored by the Australian Securities and Investments Commission (ASIC) and New Zealand’s Financial Markets Authority (FMA).
Lastly, FX BFI is supervised by the Latvian Financial and Capital Market Commission. The FCMC also protects the interests of investors.
Curiously, the broker limits its operations to specific countries within the EU and Switzerland. Moreover, it doesn’t offer services to some member states like Belgium and France.
Is FX BFI a legitimate Forex Broker or a Scam?
FX BFI seems legit given that reputable financial authorities regulate it. Is this enough? Should you trust this broker with your money?
Let’s have a look at some red flags that signal that all is not right with this broker.
FX BFI: The Warning Signs
1. Unusually High Fees
Though the broker doesn’t charge commissions on any financial instruments, there are some applicable levies.
For example, your account attracts a monthly penalty if there is no trading activity within a specific period. The fee starts from $10 per month and gradually rises depending on the number of inactive months. Note that if you stay inactive for 271+ days, your account could ramp up charges amounting to 500 EUR per month!
The broker charges an unspecified commission depending on your traded volume. And, a swap fee is levied on overnight positions across all the products. The broker claims to offer spread charges as low as 0.03. However, this is mainly for Platinum account holders, who, on their part, pay commissions on each trade.
Finally, the standard account spreads are much higher than the industry average. High leverage on trades is risky since it leads to many traders losing money. As a result, the European financial regulators set strict maximum leverage of 1:30. Still, FX BFI hedging leverage goes up to 1:400.
2. Scanty Website
FX BFI website is lacking in pertinent details. Unlike most forex trading platforms, the home page is very plain and has minimal copy. Besides, it bears no mention of the services it offers. In the rest of the website, the only information available is general.
Equally, the site has no information on the minimum deposit or what spreads the broker charges. This is not sufficient to attract potential investors and smacks of a lack of transparency.
3. Limited Customer Support
In line with the scanty site details, the contact information is insufficient. As shown here, the Contact Us page only shows phone (one) and email contacts.
Though the broker claims to offer 24/7 support for both retail and professional customers, this is not the case. Support channels are only available between 07:00 am and 05:00 pm, Monday – Friday.
Furthermore, the quality of support offered is wanting. For instance, live chat support is either unresponsive or takes too long.
Customer support is critical for both clients and potential clients. Hence, this lackluster support is a glaring departure from the norm.
4. No Micro Account Offered
FX BFI product offering is quite limited, and the broker does not offer a Micro Account. Many brokers allow traders to open mini accounts and trade micro-lots of 1,000 currency units, which provide better flexibility. But with FXBFI, you can only open a Real Account. This features fixed spreads at 2 pips with a minimum trading volume of 10 000 currency units.
5. Low Confidence Levels
Though FX BFI’s core principles include openness, this is a far car from what the firm practices. Transparency and honesty are lacking in the information it offers investors. This does not inspire much confidence in the forex broker. On the contrary, it makes you question its trustworthiness.
Though it boasts official regulation, FX BFI does not inspire much confidence in its services. Its website only displays basic information. The lack of sufficient customer support also shows that the broker is not concerned about its clients’ interests.
Besides, the exorbitant inactivity fees are a deterrent to many investors. This tactic is typical of scam forex brokers. It is an indirect way to pressure traders to keep trading, even amidst continuous losses.
There is no doubt that FX BFI is a regulated scam. If you have incurred losses with this or any other forex scam, it’s possible to recover your money. Schedule a free consultation, and we’ll help you.