Our ECforex Review Found No Valid License For This Brokerage
ECforex used to be a regulated broker with a license issued by FRC. This license is no longer valid. We can only speculate whether it has been revoked, or if it has expired and never got renewed.
The company website of ECforex is poorly maintained, with the last entries dating to mid-2022. This leaves many traders hanging, and writing this ECforex Review is quite difficult. Much of the information about trading conditions is either out of date, or inaccessible.
|Blacklisted as a Scam by:
|Eurasia Capital Holding
|Types of Assets:
|Free Demo Account:
|Accepts US clients:
|US clients are accepted
Is ECforex a Reliable Broker?
There is some disconcerting information about ECforex and their license and regulation. The company has been registered through Mongolian Financial Regulatory Commission (FRC). Besides the notion that the FRC is not considered a very strict regulator, there are other issues with ECforex in particular, as you will see later in our Review.
ECforex provides their services for clients outside Mongolia as well. Because different nations have different regulatory standards, we advise our readers to always choose a brokerage that is legally registered and licensed in their nation of residence.
The UK’s FCA is considered a Tier-1 regulator. To begin with, a brokerage in the UK must operate at least £730 000 of starting capital, and provide a Compensation Fund of £85 000.
Bonuses are forbidden, and Negative Balance Protection as well as Segregated Bank Accounts are mandatory. Leverage is restricted to the maximum of 1:30 in the UK, and FCA requires full financial transparency.
Much of the same is expected from brokers operating in the EEA, with the addition of further MiFID restrictions, as dictated by ESMA.
In North America, US CFTC requires a starting capital of US$20 000 000 and their Canadian counterpart, New SRO requires CA$1 000 000. There is no special requirement for Negative Balance Protection in either of these countries.
Both New SRO and CFTC also allow bonuses to be offered, and max leverage is set at 1:50. Segregated Bank Accounts are required, of course. Additionally, unlike CFTC, New SRO requires a Compensation Scheme.
The lack of international regulation puts ECforex in an unflattering position, and their international clients at slightly higher risk of financial loss. The FRC allows a higher leverage than most Tier-1 regulators. Although some traders enjoy the greater potential for profit, the markets swing both ways. When it’s easy to profit, it usually proves much easier to lose your assets.
What We Discovered About ECforex Regulation
Here is the difficult part. You see, we couldn’t really verify that ECforex still has a valid license in Mongolia. The parent company of ECforex, Eurasia Capital Holding, used to be registered and licensed by FRC.
However true this may be, they do not appear in the FRC’s database of registered Virtual Asset Service Providers (VASPs) anymore. This leads us to the conclusion that at the time of writing this ECforex Review, the brokerage is completely unregulated. Other unregulated brokers don’t play nice, like SurgeTrader for instance. We advise caution when dealing with ECforex as well.
It is possible that at one point the brokerage simply failed to renew their license for one reason or another. Indeed, when you look at the ECforex website, you will notice that the site has not been maintained in some time. The timestamps on the latest updates loosely coincide with the time the license would have expired.
What Are Eurasia Capital Forex Nations Of Service?
We have mentioned that ECforex currently does not have a valid trading license. There are quite a number of people who find themselves stuck in limbo, where they can’t be certain their money is safe anymore. Many of these folks live outside Mongolia.
Here is where the majority of ECforex clients are from:
- United States
- United Kingdom
Everything About ECforex Trading Accounts
Unfortunately, due to the dilapidated state of ECforex website, we could not find out much about the trading accounts this broker offers. There is a single trading account, and a single demo account on offer. Both of these accounts are available for the ECforex proprietary trading platform, but this is where we got stuck.
You see, the broker does advertise different trading assets, and a low spread of 0.1 Pips, but nothing beyond that. Our attempts at creating an account were fruitless, because the broker requires an email verification. This email never arrived with multiple account creation attempts.
Furthermore, when you attempt to create a demo account, your Web Browser will show you a security risk error. The issue is in the expired security certificate. Is this a result of the poor website maintenance, or something more insidious? Again, some dishonest brokers like True Forex Funds are known to abuse their website in this way.
Eurasia Capital Forex Available Software
What distinguishes Eurasia Capital Forex in their field is that they have developed a proprietary trading platform. It is a commendable endeavor, especially since it is available in Mongolian language. This simplifies things for Mongolian natives who wish to participate in the exchange.
That’s about all that we can say about this trading platform, unfortunately. With all the problems we had creating any trading accounts, we couldn’t test the environment first hand.
The current industry standard software that you’d see with regulated brokerages, like cTrader, MT4 or MT5 are not supported at ECforex. This is one of the major cons with this company.
Deposit and Withdrawal Methods
This is yet another thing we could not test directly through the ECforex broker. There is no advertisement on the broker’s website either. The more problematic prospect is that the Terms & Conditions document is nowhere to be found.
There are some unregulated brokerages that abuse this informational opacity to their advantage. To avoid any problems with payouts from your broker, always select one with transparent conditions, and one that supports payment methods that include a chargeback, such as Bank Cards.
What Can You Do If You Lost Money To ECforex? – Start the Chargeback Process
If you have deposited your funds with ECforex, and now find yourself in a bind and unable to recover your money, don’t despair. There are channels through which you can still recover your assets. Our team of legal experts is on hand to help you with recovery.
We have implemented a live chat to help you get in touch quickly and efficiently. Contact our staff as soon as possible, so we can start the process in due time. Our first consultation is free of charge. Remember – your money is not lost until you give up!
How Trusted Is ECforex?
ECforex does not have a very bright reputation, as they are currently an unregulated brokerage. The company did have a license previously, but it is no longer valid.
Can I Trade Crypto and CFDs With ECforex?
There are more than 500 different tradable CFDs available on ECforex, but Cryptocurrencies are not included.
Does ECforex Have a Demo Account?
Although ECforex offers a Demo to their clients, it is currently impossible to create any trading account with this broker.