EuropeFX is an online broker specializing in forex and CFDs. The parent company that operates this broker is Maxiflex Ltd. This company has had trouble with regulators in the past, formerly being known as Maxiflex Global Investments Corp Ltd. Regulators have censured this organization over misleading marketing practices and falsified endorsements.
|Supported Platforms:||MT4, web trader|
|Minimum Deposit:||200 EUR|
|Types of Assets:||FX, commodities, indices, shares, cryptocurrencies|
|Site Grid||www.europecapitalgroup.com www.europestocks.com|
Warnings From Financial Regulators
After Brexit, all the companies that wanted to continue operating in the UK needed to opt for the FCA license. However, many of them did not do so and just kept working with the UK clients. Therefore, the FCA issued a warning against several brokers including EuropeFX and confirmed the broker no longer has an authorization to provide CFD trading in the UK.
Getting Started with EuropeFX
Traders with EuropeFX have access to a relatively standard range of assets. CFDs are available also on stocks, indices, and commodities. There is also a variety of forex pairs available. The forex spreads are very favorable, as low as 0.1 to 0.4 pips. However, this is, unfortunately, too good to be true. On top of spreads, EuropeFX charges a hefty commission on all forex lots.
EuropeFX Trading Platforms
The Australian financial regulator ASIC is currently investigating the operations of EuropeFX. They have placed an asset restrain order against the broker, severely limiting their operations within Australia. Above all, this investigation centers on transparency and marketing practices. There are many online user reviews of EuropeFX that allege the broker to disclose the risks inherent to trading CFDs inadequately.
Beyond this investigation, the UK’s FCA has rescinded permission for EuropeFX to trade CFDs within the UK. As a CySEC registered broker, they enjoyed passporting rights with the UK, allowing them to do business with UK citizens. As of June 2020, the firm may no longer sell or market CFDs to the UK residents. EuropeFX bears the mandatory risk disclaimer for CFDs on their website but in a very obscure position. This ban was part of a sweeping effort by the FCA that removed the passporting rights of many online brokers.
The broker has four different types of accounts. These are bronze, silver, gold, and platinum. The minimum deposit for the bronze account is €1,000, ten times the typical minimum deposit for online brokers. The platinum account requires €10,000 and offers various premium services like in-house forex experts and reduced lot commissions.
Negative User Reviews
In conclusion, EuropeFX gives traders access to the dangerously high leverage of 1:200. In the EU, the legally mandated maximum is 1:30. Higher leverages allow new traders to lose more at once, and they often don’t understand this until it’s too late.
Unable to Withdraw Your Funds?
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Is EuropeFX a legitimate company?
EuropeFX is owned by the company Maxiflex Ltd, a company well-known for binary options scams. So we cannot say that EuropeFX is a trustworthy company. Maxiflex Ltd changed its name, hoping to cover its past. Legit broker does not mind operating under the same name for several years.
Is EuropeFX safe?
EuropeFX does have a CySEC regulation, but it is not considered safe. The owner of the company is a company related to binary options scams. Maxiflex Ltd, the owner of EuropeFX, changed its name recently, probably since everyone discovered its connection to binary option scams.
Is EuropeFX a con?
EuropeFX is CySEC regulated broker. The company can conduct its services within the EEA zone with a regulation. However, the owner of the EuropeFX brand is related to binary options scams, so we advise caution.
What is the EuropeFX withdrawal fee?
EuropeFX withdrawal fee is 25 EUR fixed, not related to the payment method you use to withdraw your funds. This is a big amount of money, 10% of the minimum deposit with the broker. Usually, legit brokers have no reason to charge their clients for withdrawals. They have legit ways of making money.
Does EuropeFX support automated trading?
This broker offers its clients’ Robot trading, an automated trading system. Usually, this is the effective method of scam brokers to extort money from their clients. The broker will convince you that an automated system can make guaranteed money, and this is usually how the scam occurs.
Where is EuropeFX based?
EuropeFX is based in Limassol, Cyprus. It is regulated by CySEC. However, be careful when opening an account with this broker, it is surrounded by scamming past and bad reviews. We advise opening an account with more trustable brokers regulated by FCA or ASIC.