FirewoodFX Review – Scam Hiding In Exotic Places
FirewoodFX has a catchy, comprehensive and seemingly expensive website to capture the visitor’s attention. Unfortunately, not everything depends on the shiny surface. The appealing foreground at FirewoodFX website is used to mask the devious intentions brewing underneath. Our FirewoodFX review is here to expose the unlicensed entity down to the very last bit of their unprofitable offer.
|Unregulated Offshore Broker
|Is This Company Safe?
|Offshore companies are dangerous for trading!
|Have Warnings from:
|SVG/St Lucia/Costa Rica
|$50 Welcome Bonus/ Up to 88% Deposit Bonus
|Forex, Crypto, Metals, Energies, Indices
|Free Demo Account:
|How to Withdraw from This Company?
|Contact us for legal support during withdrawals!
Grey Zone Shelter
FirewoodFX is a brokerage brand owned by FirewoodFX Global Ltd, located in Saint Vincent and the Grenadines, where the regulatory body doesn’t supervise brokers.
The website claims to also belong to the same group of companies, Firewood Global Limited from Saint Lucia being a part. Finally, the third office location given on the site is Costa Rica! Every last one of these locations are offshore areas, where the regulatory entities loosely oversee the brokerage activity, if they do so at all.
What’s worse, FirewoodFX doesn’t own a single Tier 1 license from any of the reputable regulators like FCA, CySEC, ASIC, BaFin and CFTC/NFA. That further solidifies our suspicion about the broker not having segregated bank accounts for clients’ deposits, compensation funds and negative balance insurance. Additionally, the leverage offered is up to 1:1000, in contrast to the maximum allowed by Tier 1 regulators (1:30 or 1:50). Stay away like you should from UltraBrokerz, too.
South-East Asian Victims
FirewoodFX scam is designed to make Forex investing sound as plain and simple as a walk in the park. If you’re a total beginner at online trading, you can sit back and relax while your dedicated account manager controls your funds and makes all the right moves for you.
The boiler room agents will convince you all the riches are right at the tips of your fingers if you just invest a little. Sadly, the deposit requirement significantly increases over time.
The more attractive the proposition sounds the less real it is. The victims from the following countries could confirm that:
- South Africa
Although in the game since 2014, we can’t say that FirewoodFX has been actively scamming and being a brokerage brand since day one. However, they’ve done well to mask their online presence. Here’s one thorough review from a defrauded user:
“firewoodfx will take your money in a smart way they will charge you more spread pips and take your money and call it slippage. i traded with the on demo account everything works well. on real account when i open a trade at certain price they manipulate it and open it in different price and call it slippage[…]”
How Much it All Costs
From the website itself the claimed leverage is 1:1000 maximum. That would quickly be able to diminish your initial deposit, and it would take a single mistake. The spreads are supposedly fixed, starting at 3 pips on EUR/USD. We know a handful of reputable brokers that have far more affordable trading prices.
Other costs like deposit and withdrawal fees only supposedly exist for some funding methods. But those are also astronomical. For example, credit card deposits are charged with 5%, while no withdrawal fees make us even more suspicious of the truthfulness of these claims.
Bonuses Impossible to Withdraw
Two types of bonuses could be chosen by the newly joined clients:
- $50 Welcome Bonus – Can be withdrawn if 2 standard lots are traded in the next 60 days.
- For deposits of $100 and above, clients choose between 20% deposit bonus, 50% deposit bonus or 88% deposit bonus. Can be withdrawn after trading (Bonus amount / 2) lots.
As evident, the bonuses are virtually inaccessible for withdrawing with such absurdly high demands for profit to be accumulated first!
Offer Works Only on Paper
The general problem with the FirewoodFx offer is not in the way it sounds, but the way it doesn’t actually work. Firstly, the promised trading platform cannot be accessed, and the account types do not present realistic information. The number of available assets is jokingly small, but that matters less when trading isn’t even possible.
Trading Platforms – Where is MT4?!
The FirewoodFX platform is allegedly MT4. As outdated as the offer may seem due to the presence of MT5 on the market, it’s still better than the abundant webtrader used by StockCore. However, the web terminal isn’t accessible as the page doesn’t exist! For the desktop version, the broker provided us with the wrong login credentials. Getting to use the terminal is not even possible.
Poor Choice of Assets
Except for Forex, where you can choose between about two dozen pairs, the other instrument groups are jokingly incomplete:
- Currency pairs (EUR/USD, EUR/GBP, USD/CHF, GBP/JPY)
- Metals (Gold and Silver)
- Crypto (BTC and ETH)
- Energies (USOil)
- Indices (US30, SPX500 and NAS100)
Several Account Types
Available FirewoodFX account types are the following:
- Micro – $10
- Cent – $10
- Standard – $10
- Premium – $100
- ECN – $200
While the prices may seem attractive, spreads tight starting from 0 pips, and leverage up to 1:1000, let us remind you that unlicensed brokers do not fall under any legal framework. That gives them the freedom to offer fake features to attract investors.
Demo and Islamic Accounts
Attempting to log in into the platform with the wrong credentials didn’t successfully allow us to test the Demo environment. Also, islamic account is claimed to exist, but we didn’t get to choose any upon completing registration. Our greatest doubt is that there’s a single live trading account with hardly anything to offer!
Glossary, News and two short articles on what Forex is cannot be called education. FirewoodFX still claims their educational resources are unprecedented. If they were to be compared to what reputable brokers offer, this swindler would be put to shame.
Unconfirmed Withdrawal Conditions
All FirewoodFX withdrawals should be smooth and quick, if the broker’s statements were true. Also, it would appear that the service provider doesn’t charge fees, but who would, in their right mind, believe that without being able to read the Funding Policy or Terms and Conditions?!
The site offers very vague information on how transactions are conducted, so we suspect sudden fees and astronomical commissions to be charged upon every single payout.
The contact page reveals a dozen of emails and a phone number, along with the SVG address. However, our inquiries about the wrong MT4 credentials were never answered. This has left us thinking that the support channels are just for show, and no customer service even exists.
Conclusion on FirewoodFX
After taking in consideration all of the results of our research we can conclude that FirewoodFX is not a legitimate brokerage. However, this illicit entity is just one in the sea of many. So if you’re having issues with withdrawing funds from this or any other similar site, please contact us instantly.
Time is of value here, so the sooner we act together, the greater the chance of your regaining control of your stolen funds. Our Online chat agents are always at your disposal for booking a free consultation.