FxNet Review – Offshore Branch And A CySEC Settlement Worth 60.000€
FxNet started off as a financial services provider in Cyprus. The firm was established in 2012 and to this day owns a CySEC license. However, this concrete domain, fxnet.com, isn’t listed among approved domains since 2019 after a regulatory breach.
Our diligent research has proven that FxNet doesn’t have quite a spotless profile and that there were some conflicts with the elements of the governing law. Apart from that, the firm also operates through an offshore branch, registered in Belize. Exactly how safe that is for Forex clients and what FxNet generally has to offer, is described in the following FxNet review.
|Regulated by:||CySEC (previous), IFSC|
|Is This Company Safe?||Yes, FxNet is a dubious broker with questionable services and not entirely safe|
|Have Warnings from:||N/A|
|Trading Assets:||Forex, Commodities, Shares, Indices, Metals, Crypto|
|Free Demo Account:||Available|
|How to Withdraw from This Company?||If FxNet is giving you trouble with withdrawals, feel free to contact us for legal support!|
Past and Present Regulations
FxNet Limited is a Cypriot investment firm, present in the business register of Cyprus companies. FxNet Ltd was licensed in 2012 by CySEC as an investment brand offering investment and ancillary services. FxNet also owns passports to provide their licensed services to EEA countries.
International clients are served through an offshore branch – BELFX LIMITED (Belize), which is also regulated by the jurisdictional IFSC.
During 2019, FxNet was fined by CySEC with 60,000EUR for multiple regulatory breaches. Apparently, one major reason for the fine was the fact that one of the company’s sites (fxnet.com) wasn’t entirely transparent and clear on the potential risks that they were obligated to properly warn their customers of.
After the regulatory breach, the fxnet.com domain is no longer licensed and considered safe by CySEC. The other two domains owned by FxNet Limited that are still properly licensed and approved by CySEC are nessfx.com and investing24.com.
We also warn our audience of the loose regulatory standards in Belize – FxNet main regulation. The risks of loss are increased and proper fund protection isn’t implemented. Belfx Limited clients are advised to be cautious when choosing to trade here.
Areas Of Activity
FxNet has existed for more than a decade now. Throughout the course of more than 10 years, the company has established quite the user base. Customers apparently come from all over the world, and EEA isn’t the sole focus of FxNet. Here’s a list of countries where most of their customers live:
- United States
The downside to the entire deal is the fact that FxNet also owns an offshore firm and has had multiple regulatory breaches, which have cost the domain a CySEC approval. All of the customers are now served through the Belize branch, which cannot be considered safe as an offshore supervised entity.
Not Enough Reviews
FxNet has claimed their Trustpilot profile in 2022. However, not a single review has been posted yet. With the publicity and the years spent on the Forex market, it is strange not to see a single review. Has FxNet simply not been actively advertising their services well enough, or something else seems to be the case, we can’t tell for certain.
The CySEC dispute in the past and the offshore business conducting could be potential signs of customers being displeased with their services, but that’s open for debate. No valid proof of what customers think exists to help us draw a conclusion on this matter.
Leverage, Commissions and Other Costs
FxNet is generally offering the leverage of 1:30 maximum for their EEA clients. On the other hand, other customers can choose a leverage of up to 1:500.
As for the spreads, they differ depending on the account type you choose. If you’re willing to buy the more expensive account type, starting spreads on EUR/USD go as low as 0.0 pips. The spreads on other accounts start from staggering 23 pips on EUR/USD.
The broker has a publicly visible table of rollover fees if you’re interested in holding your positions overnight. Other fees included are the dormant fee of 40 EUR charged every month after 90 days of inactivity.
When it comes to account funding and withdrawal fees, commission might be charged by certain payment providers. The site declares that no such commissions are charged by the company under no circumstance.
Key Trading Features Of FxNet
Some of the trading features found on FxNet are well defined and transparent. Company offers industry standard software, MT4.
Market execution is featured for every order, with no rejections or requotes. There are several problems with informational opacity with this broker, though. The fxnet.com website does not feature an account creation portal, for instance.
FxNet Supported Trading Software
The main trading software with FxNet is MetaTrader4, software developed by MetaQuotes specifically for online trading.
When we installed the FxNet MT4, however, we were only able to connect to a MetaQuotes demo server, without the ability to create an FxNet specific trading account.
We advise our readers to take caution when installing such software on their computers. Many dishonest companies like FoxicaTrading use the MT4 demo as a fake trading application of their own.
For clients who prefer a no-download, no-installation platform instead, a Web Trader is available as well. This may be run directly from your web browser of choice.
Assets Available For Speculation
Visitors of the fxnet.com website can view individual assets of any group from a corresponding table. These tables also include minimum price fluctuation, spreads and Swap rates.
Let’s take a look at a few examples:
- Forex (EUR/USD, USD/JPY, GBP/CHF, AUD/CAD)
- Cryptocurrencies (Bitcoin, Ethereum)
- Metals (Copper, Silver, Gold, Palladium, Platinum)
- Shares (Heineken, IBM, NVidia, VolksWagen)
- Commodities (Natural Gas, Brent, Cocoa, Corn, Wheat, Coffee)
- Indices (Dax, Dow Jones, Nikei)
Various Trading Accounts
What we did not expect with FxNet is the lack of transparency with different account types. From what we could gather from the Trading Instruments tables, there are 3 major account types.
We could not find the minimum deposit requirement for different types of trading accounts:
This opacity is common with unscrupulous firms like Trustpac. We know that FxNet was involved in a dispute with CySEC, and these problematic account types are yet another reason why we would not recommend trading with FxNet.
Mobile App Support
Mobile device trading at FxNet is available through the same apps as with the desktop users. Because of its renowned flexibility, MT4 is compatible with iOS and Android devices as well.
The Web Trader is also available, however it is not an easy program to use with the touchscreen input method. Either way, traders who wish to speculate on the go may do so with the FxNet broker.
Provided Demo Is Not Adequate
Although there is no explicit advertisement about any demo account on FxNet, a demo does in fact exist. It’s not what we would consider a viable solution for risk-free speculation with the FxNet platform.
You see, the demo is not run by FxNet, but by the developers of the MT4 software. It is a demonstration account for the software itself, and not for testing the trading specifics found on FxNet by any measure.
Opaque Financial Channels
We have encountered an additional problem where transparency is concerned. The issue in question is that the FxNet broker doesn’t openly discuss their payment options.
Without creating an FxNet login, clients can’t really know which financial options are available for deposits or withdrawals. Since there is no way to create a trading account either from the fxnet.com website or their MT4 application, we couldn’t review withdrawal options either.
Contact the FxNet customer support if you encounter any issues with withdrawals from the company. If they fail to resolve your problems, you may rely on our chargeback experts for other recovery options.
Slow Customer Support
The customer support at FxNet is subpar when compared to the industry average. There is no live chat, for instance, nor is there a call center support. Although you may contact FxNet by phone, you will be hard pressed to get a clear line and actually connect to a support agent.
Because of this clients need to rely on other customer service options, like email or contact forms. These are not reliable or hasty enough should a user encounter a problem that must be addressed momentarily.
The Experts’ Final Opinions On FxNet
FxNet has a problematic corporate history. They have already been in hot water with CySEC for multiple regulatory breaches, one of which is lack of informational transparency. FxNet is yet to address these problems.
Much of the necessary information, such as amounts of different fees, various account types and financial channels is still missing from the fxnet.com website. As it stands, we cannot recommend trading with FxNet for these exact reasons.
Consider withdrawing your assets from this firm in due time. If you encounter any issues which FxNet client support is reluctant to resolve, contact our legal experts instead. You may reach us 24/7 via the live chat, and our first consultation is free.
What is FxNet?
FxNet is an investment firm registered in Cyprus in 2012 and regulated by CySEC and IFSC. Fxnet.com is not one of their approved domains since 2019.
Is FxNet Regulated?
Fxnet.com is regulated by IFSC. It was also previously regulated by CySEC but this domain isn’t anymore after a regulatory breach in 2019. If you’re having issues withdrawing from this firm, consider contacting us for legal support.
What Are The Trading Tools Available In FxNet?
The FxNet broker only features an economic calendar, and a demo account of questionable reliability when it comes to trading tools other than the provided trading platforms.