FXClub is an unusual broker with a very obsolete website. I don’t know if they have kept their website obsolete deliberately or didn’t care for their clients. The language of this website is in Russian and you can switch it to English only through Google Translate. Their website (fxclub.org) will bring you back to the 2000’s when websites were simple and weren’t as interactive or dynamic as modern ones are.
FXClub License and Regulation
FXClub is a part of the Forex Club group which has multiple subsidiaries. This specific branch (fxclub.org) concentrates on users based in ex-Soviet states. However, they do not accept Russian clients. For Russian clients, they have a different branch.
Another subsidiary of the Forex Club is Libertex (libertex.com), which is regulated by CySEC.
However, the website I’m reviewing in this article doesn’t hold a license. FXClub is only a part of the International FInancial Commission, an independent organization of forex brokers for internal dispute resolution. The International Financial Commission is not a regulatory body.
So FXClub is an unlicensed and unregulated broker.
You should only trade with regulated brokers. Regulated and licensed brokers have to follow the strict rules and regulations of their license provider which ensures that they won’t act against your interests. Reputed regulators such as CySEC and FCA even have insurance provisions in case the broker turns out to be a fraudster. For example, a CySEC-regulated broker’s client can get up to 20,000 EUR as insurance compensation if the broker runs away with their funds.
You won’t get such benefits with an unregulated broker. That’s why I don’t recommend doing business with FXClub.
However, I won’t say that FXClub is a scam as the parent company behind this broker is quite reputed and runs multiple brokers that hold proper licenses.
Note that finding all of this information was a huge pain for me. A normal client wouldn’t easily find all of this information and that can cause a lot of issues.
FXClub Trading Conditions
The trading conditions of a broker can tell you a lot of things about its trustworthiness. Let’s see if the trading conditions of this broker are good for you or not:
In my opinion, it’s best to trade with a broker that uses Metatrader 4 or 5. Metatrader has a very positive reputation in the industry because of its numerous features and benefits. This is the main reason why Metatrader is the most popular trading platform among forex brokers. With Metatrader, you wouldn’t need to worry about such stuff.
And with FXClub, you get access to both MetaTrader 4 and 5. Along with these platforms, you also get access to the Libertex trading office, which is a good trading solution as well. Certainly, the trading platforms are quite an attractive section and impressed me the most.
FXClub demands a minimum deposit of $20, which is excellent. It makes them appear more reliable however, finding this information was quite a big challenge.
Suspicious brokers tend to keep their minimum deposit requirements high so they can get a hold of as much funds as possible. Regulated brokers keep their minimum deposit requirements very low to let you test out their service-quality. On the other hand, shady brokers keep high deposit requirements so you are forced to make a big monetary commitment.
Leverage and Spreads
The maximum leverage you can get with this broker is 1:200, which is a lot higher than the industry average.
If you’re a beginner in forex trading then you should stay away from high leverage ratios. The Canadian and US financial regulators don’t allow their brokers to offer more than 1:50 leverage ratios to their clients. That’s because a high leverage ratio can wipe out all your deposited funds in an instant and put you in a lot of debt.
The offered spreads with this broker are 0.8 to 0.9 pips which are quite competitive. I didn’t expect to see such good spreads with such a broker.
FXClub Payment Methods and Charges
On the footer of FXClub’s website, various payment methods would greet you. This would make you think that the broker accepts multiple payment options including Skrill and Neteller. However, that’s very misleading.
FXClub lets you fund your trading account through wire transfer, Bitcoin or bank card. I don’t recommend using bank transfer or Bitcoin as getting a chargeback with those methods is nearly impossible.
The minimum amount you can withdraw from your trading account is $30.
FXClub charges you 2.5% commission on bank transfers and claims to take five days to process them. They don’t mention how much they charge for withdrawals made through cryptocurrencies.
It is quite suspicious when a broker does not specify its charges to its clients. The broker can use this to their advantage and charge you random fees to steal your funds. With unregulated brokers like FXClub and Mt. Cook Financial, this risk increases substantially.
Should You Trust FXClub? No
There are many kinds of scammers operating in the forex industry. Shady forex brokers tend to attract new users to their websites through promotional offers and ads. They focus on attracting inexperienced traders so they can deceive them easily.
Such brokers have unfair terms and conditions so when the person signs up on their site, they accept those conditions. These brokers then steal the funds their users deposit in their accounts through hidden fees and charges.
This is a big reason why I don’t recommend trading with brokers based in offshore areas. These areas don’t have proper financial regulators such as CySEC or FCA. Without proper regulation, the clients of such brokers face numerous financial and privacy risks. You should always do thorough research before signing up with a forex broker.
FXClub is a subsidiary of a reputed forex company. However, it is an unregulated broker who doesn’t provide sufficient information to its clients and makes most of its vital information inaccessible. So, even though I wouldn’t say it’s a scam, I can’t trust this broker.
There are many options that are far better than FXClub, you should go with them and avoid this broker.
FXClub Review: Conclusion
The parent company of FXClub is a reputed organization so it wouldn’t be okay to say that FXClub is a scam. However it is not a trustworthy broker either.
It is a suspicious broker who provides contradictory information to its clients and doesn’t hold a license to operate as a forex broker. You should avoid them as there are plenty of better brokers available.
I hope you found my FXClub review useful. If you’ve had a bad experience with any forex broker, you can share your experience below.This review has been syndicated from The Skeptic Tank To read the full review, go to – www.skeptictank.org/fxclub/