FXGroup100

FXGroup100 makes some pretty big claims about its services. They claim they know what you need to succeed financially. But any broker can make such claims. In my FXGroup100 review, youíll find out whether you can trust these claims or not.†

FXGroup100 website

FXGroup100 License and Regulation

The parent company of FXGroup100 is AAA Global Ltd. The address of that company is in Marshall Islands, which is an offshore region. Offshore regions donít have financial regulators so itís obvious that FXGroup100 is an unlicensed and unregulated broker. 

FXGroup100 website

FXGroup100 License and Regulation

The parent company of FXGroup100 is AAA Global Ltd. The address of that company is in Marshall Islands, which is an offshore region. Offshore regions donít have financial regulators so itís obvious that FXGroup100 is an unlicensed and unregulated broker. 

Your funds and data would be in danger with FXGroup100

As unregulated brokers are illegal operations, 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 wonít 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 brokerís client can get up to 20,000 EUR as insurance compensation if the broker runs away with their funds. 

You wonít get such benefits with an unregulated broker. Thatís why I donít recommend doing business with FXGroup100. 

The website of this broker (fxgroup100.com) is quite an ordinary website. Thereís no unique UI or features that would make this broker stand out. However, I did notice a peculiar thing.

The live chat support of this broker is in Russian:

FXGroup100 support

So, even though their website is in English their customer support is available only in Russian. Itís quite a weird disparity. 

FXGroup100 Trading Conditions

The trading conditions of a broker can tell you a lot of things about its trustworthiness. Letís see if the trading conditions of this broker are good for you or not:

Trading Platform 

FXGroup100 offers the MetaTrader 4 platform to its clients. In my opinion, it was one of the few positive things I noted about this broker. 

Metatrader 4 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 wouldnít need to worry about such stuff.  MT4 lets you use various trading signals, VPS, and an auto trading option. It gives you a code base with custom scripts to simplify things further.

However, note that many shady brokers try to use the good reputation of MT4 to fool people into thinking they are a reliable option. I suspect FXGroup100 is doing the same with its clients. 

As they donít have a license to operate legally, I canít recommend trading with them. 

Minimum Deposit

FXGroup100 doesn’t provide any information about its minimum deposit requirements. It seemed very suspicious that they didn’t provide such a vital piece of information.

Regulated brokers focus on keeping things transparent with their clients to maintain trust. I believe FXGroup100 is trying to go after its users’ personal documents by hiding such vital information behind its ‘verification policy’.

Leverage and Spreads

The maximum leverage ratio with FXGroup100 is 1:500, which is too high by industry standards. You should be wary of such brokers. 

If youíre a beginner in forex trading then you should stay away from high leverage ratios. The Canadian and US financial regulators donít allow their brokers to offer more than 1:50 leverage ratios to their clients. Thatís because a high leverage ratio can wipe out all your deposited funds in an instant and put you in a lot of debt. 

I wasnít able to see their offered spreads because I couldnít open a live account with these people. They ask for a lot of personal documents and I donít believe one should share such sensitive information with an unreliable broker like FXGroup100. 

FXGroup100 Payment Methods and Charges

Transaction Methods

Another evidence that FXGroup100 is a shady and unreliable broker comes when you check its deposit options. According to their T&Cís, you can only add funds to your deposit account through credit cards.

However, when youíll open an account with them, youíll see that you can only use a BTC wallet (bitcoin wallet) to add funds to your trading account. With a BTC wallet, it would be very difficult for you to get a chargeback so it is another negative point. 

Fees

This broker doesnít give much information about its fees. In my opinion, itís quite suspicious of them to hide any fees-related information. Thatís because it allows them to charge you anything under the guise of Ďmaintenance feeí or Ďtrading feesí. Shady brokers use hidden charges to drain their victimsí accounts of their funds. It seems to me that FXGroup100 is using that tactic as well. 

Bonuses

Like most shady brokers, FXGroup100 offers plenty of bonuses to its clients. Note that legitimate brokers donít offer trading bonuses. 

Because of that, I donít recommend joining a forex broker because of their offered bonuses. These bonuses donít provide you with any monetary rewards. Instead, they impose additional restrictions on your withdrawal conditions so you canít get your funds easily. This is why the FCA (Financial Conduct Authority) doesnít allow its licensed brokers to offer bonuses to their clients. 

For example, to withdraw your bonus winnings with FXGroup100, youíll need to trade a quarter of the bonus amountís volume within 60 days of getting the bonus. Otherwise, youíll lose your winnings. This is a very challenging feat to accomplish, even for experienced traders. So you can understand how FXGroup100 uses shady conditions to trap people.

Is FXGroup100 a Scam? Yes!

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 donít recommend trading with brokers based in offshore areas. These areas donít 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. 

FXGroup100 Review: Conclusion

First there are shady brokers like OctaFX. Then there are obvious scammers like FXGroup100. This broker doesn’t hold a proper license, uses shady bonuses to lure people, and has very limited payment options. You should stay away from such a shady broker. 

I hope you found my FXGroup100 review useful. If youíve 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/fxgroup100/

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