FXOpen has been poorly operating in the market since 2005. It does not allow comfortable trading for brokers . We can consider the broker as unregulated because there is no information regarding regulation on its website. This word “unregulated” compels us to declare that the firm is a scam. So, please think twice before opting it.
The next major setback is the poor and slow official website of the broker. Their site’s user interface is conventional and seems to be overloaded with irrelevant information leaving the important ones.
Is FXOpen scam or safe?
We can place FXOpen in the scam list as there is no information related to the regulation on its official website. Neither it has mentioned the license number nor upload the certificate for the same. How can you trust such a firm which has not taken any step to prove its legitimacy?
It merely reflects that it is trying to hide this major issue. Investing in this firm can be risky. Think twice and check everything before opting.
Tradable assets and markets
The only option you get with FXOpen is forex trading. Thus, it blocks all the ways for investors who aspire to trade in indices, cryptocurrencies, commodities and stocks. Also, the options available in forex pairs are restricted.
The other major setback in the asset range is that there is no information about the number of currency pairs available. It has mentioned irrelevant information in the forex session such as advantages of forex trading etc. This data again reflects that the website lacks important data.
The minimum deposit needed to trade with the firm is high and does not do justice with the limited services. Various other renowned firms offer research tools, educational tools, and wide assets range at low deposit charge. Furthermore, it tickles your mind with a thought that there’s something fishy and it can eat away your funds, going by continuous scams.
The broker offers the leverage up to 1:500 on trade which is very high. It is beyond the limit set by some legitimate financial bodies (the European Union has set this limit to 1:300). Brokerage firms offering margin about this value are considered unsafe and untrustworthy for trading. Also, trading on a high margin is risky, and about 70% of traders lose money while trading.
Courses, videos, webinars and articles are vital sources for surging traders’ knowledge and enhancing their trading standards. Unfortunately, the firm has not taken any action for surging its clients’ standards and knowledge. Lack of educational material on the website proves this fact.
FXOpen fails to offer research tools such as economic calendar, repost season calendar, trading signal and news fees to its clients. Also, the demo trading account is available for a limited period.
High Commissions, spreads and fees
The brokerage firm charges a high inactivity fee and withdrawal fee on trade. Inactivity charges include a $50 reactivation fee and $10 maintenance fee per month.
Spreads are high and variable. The broker enhances them in high/low market conditions, high/low volatility and sudden market events. Apart from this, the broker charges high additional fees which directly impact profit size of traders.
Deposit and withdrawal
The process of deposit and withdrawal is time-consuming and complex. It takes several days for a withdrawal request to proceed and also carry certain charges. Moreover, the options available are limited.
The broker has not provided account opening steps on its website. Also, the time required to open an account is time-consuming as the firm takes several days (more than normal) to verify the information.
Customer support service
The broker’s customer support team is inefficient and fails in providing an instant response to your queries. The response time for receiving calls is greater than one minute. Also, the support team is available on weekdays. Also, the executives do not take any cognisance to what you say. Instead, their behaviour is rude towards their clients. The chat services offer irrelevant replies, which further wastes your time. Queries on email-id take forever for a response.
Besides, the message box here does not assist either and looks to engage you in a timepass. Several people have lost their money because of such callous behaviour earlier. If you do not want to add your name to the list of unfortunates, you should see yourself a door to exit.
Disadvantages of FXOpen
The several reasons or setbacks which compel traders not to opt for this brokerage firm are:
- Lack of research tools
- Lack of educational material
- High leverage
- High minimum deposit
- Does not offer to trade on indices, stocks, commodities, cryptocurrencies, and metals
- Limited currency pairs
- 24/5 customer support
- Restricted leverage for European Union traders
- Significant transaction fee
- No clear data about regulation
The Bottom Line
FXOpen has been operating in the market for 15 years; it has still failed to upgrade its official website. It is complex, lacks vital data and is overloaded with irrelevant facts. No authentic financial body regulates the broker. Hence, the firm is a scam and investing your hard-earned money can be risky.
Apart from this, the limited trading assets, lack of educational and research tools, high minimum deposit and poor customer support provide us with a robust reason to look for other firms over FXOpen. You can opt for advanced and renowned firms such as ROinvesting, 101investing, Global TradeATF, T1markets, and HFTrading. They offer excellent trading service at an affordable rate.