Online CFD and forex broker ETFinance is the sister broker to MagnumFX. Both brokers are part of the parent company Magnum FX Ltd. This Cyprus based company maintains current registration with CySEC, the Cyprus regulator. Ordinarily, this would give a broker passporting rights to every country in the European Economic Area, but ETFinanace is one of several brokers banned in the UK.
Trading With ETFinance
Our ETFinance review found the broker has over 50 forex pairs available, including a good selection of minor and exotic pairs. Their CFD choices are also extensive, covering stocks, commodities, indices, and almost 20 cryptocurrencies. Their spreads are competitive with most similar brokers. The broker offers the ESMA mandated maximum leverage of 1:30, therefore, protecting novice traders from taking on precarious positions.
Big Trouble for ETFinance from Regulators
While the broker’s offerings might seem attractive, their history with regulators should give traders pause when considering them. Their parent company was one of the first companies to fall victim to the FCA’s crackdown on online CFD brokers. On June 1st, 2020, the FCA issued a ban against four companies that had used fake celebrity endorsements to advertise their services to UK residents. The ban stands to this day, with both ETFinance and MagnumFX being unable to offer any services to UK residents.
The broker’s regulator, CySEC, evaluated the FCA findings and saw fit to issue a temporary suspension against all brokers involved. The broker couldn’t advertise or seek out new clients for one month. At that point, CySEC believed that the broker had implemented their suggested corrective measures. The suspension is now over, and ETFinance legally offers services again.
ETFinance provides its trading services through the popular MetaTrader 4 platform. Demo accounts are available for investors to learn more about the broker before making the minimum deposit of $250 to open a trading account. They accept typical payment sources to fund accounts, credit cards, wire transfers, and popular online payment processors. They offer their services in several languages in addition to English, including Spanish and German
Start Recovery of Your Funds Today
In conclusion, it doesn’t seem like such a great idea to invest with a company that is banned from one of the most prominent trading jurisdictions. Action from regulators often come too late, and many victims can lose their money before they know better. When you can’t retrieve your deposit from a broker, you can contact us to explore additional fund recovery options.
Is ETFinance a scam?
ETfinance is CySEC regulated broker. Based on its customer reviews, we advise you to be very careful when going into business with this broker. All the customers are saying that withdrawals with this broker are nearly impossible.
Is ETFinance regulated by the FCA?
No. After Brexit, ETFinance lost its possibility to fully conduct financial services in the UK. The company is not allowed to provide CFD trading to UK clients. The company has no regulation from FCA whatsoever and is not allowed to work with UK clients.
Does ETFinance charge commission?
ETFinance is a very not transparent broker. Nowhere on their website can be found information about deposits, withdrawals, and their commission for the services. It can happen that after you make a profit, you realize that the broker will charge you a 50% commission for its services.