TegasFX Review – Why Offshore Regulation Is Not Enough
TegasFX is a Vanuatu-based brokerage operating under Clover Markets Limited ownership. The company is regulated in Vanuatu with the license number 14697. It seems that the broker regularly renews their license every year, no doubt about that judging from the VFSC register. But more on those details later in this review.
What we’d like to point out from the very beginning is the fact that offshore regulators have considerably more relaxed licensing standards. Your funds’ safety and privacy can never be as protected as with a heavily regulated firm. That’s why we alert our audience to find out more about this important trading aspect by reading our TegasFX review.
|Broker status:||Regulated Offshore Broker|
|Owned by:||Clover Markets Limited|
|Supported Platforms:||MT4, MT5|
|Cryptocurrencies:||Yes (BTC, ETH, LTC, BNB, BCH)|
|Types of Assets:||Forex, CFDs on crypto, metals, energies and indices|
|Free Demo Account:||Available|
|Accepts US clients:||US clients are not accepted|
Is TegasFX a Licensed Broker?
TegasFX, evidently, abides by certain regulatory standards. In this case, these standards are, unfortunately, far more relaxed than the ones present in heavily regulated states. VFSC also doesn’t supervise their licensed firms as diligently as Tier 1 regulators do.
In order for a broker to be fully trustworthy and undeniably safe, they need to acquire a Tier 1 license. This is only issued by major regulatory bodies that oversee the biggest financial markets in developed countries. You must have heard of FCA, BaFin, CySEC, ASIC, and FINMA. These are the financial authorities issuing prestigious licenses. However, getting one such certificate is not easy to earn.
Firms have to first provide proof of being a stable and long-lasting business by depositing at least 730 000 EUR/GBP upon applying for a license. Then comes the implementation of the major safety measures. First are surely segregated bank accounts for separate safe-keeping of clients’ deposits so the broker cannot manipulate the capital that isn’t theirs.
Among the risk-reduction measures are the leverage limitation to 1:30 and negative balance protection. Along with absolute transparency and compensation funds, clients can invest in the projects they trust and know everything about. Plus, users are safe to trade knowing the financial ombudsman guards their back in case the firm collapses financially.
Having just any license isn’t enough to provide the best trading conditions and safety. That’s why choosing a top regulated broker is always a better solution. We always advise caution for traders dealing with such firms.
VFSC, on the other hand, is more loose in terms of licensing brokerage firms in Vanuatu. The initial deposit is low, there’s no negative balance insurance, bonuses are allowed and the leverage isn’t limited to only 1:30 maximum. We advise high caution when approaching such conditions. It would be in every trader’s best interest to have their risk-managing techniques perfected before investing here.
The Opinions of Traders On TegasFX
At the time of putting together this TegasFX review, not much feedback stands recorded on TrustPilot. This firm doesn’t seem to be overly popular among retail traders. Ratings given aren’t as impressive, either. The opinions are very divided in terms of customer satisfaction. Take a look at some of the reviews:
‘’Scammer.Not an ECN broker at all. I have start trading in Tegasfx few weeks ago and last week i notice that my orders where with huge slippage and i was losing my money[…]’’
‘’I have deposited 250$ to this broker, and they deposited 195$. I traded for a week and made some profit and decided to stop trading and requested a withdraw which they claim is 24 hrs, after 3 days they have replied that my profits are deleted and i can withdraw my deposit. This is what we call SCAM BROKER!!!’’
TegasFX Platforms – A Software Comparison
TegasFX provides two most commonly used platforms in the Forex industry today:
- MetaTrader 4
- MetaTrader 5
Although developed by the same company, both of the platforms are stand-alone projects directed at best possible trading experience. MT4 has been serving millions of customers over the course of 15 years, while MT5 is a newer technological discovery.
Both of the terminals are available across every and all devices and operating systems. The array of features available is inexhaustible and undoubtedly provide an edge on every market.
However, no matter the complexity and the innovative technology, we still haven’t got a single reason to suggest this broker over all other properly regulated firms. Noor Capital is a far better recommendation and a lucrative place for investing.
What Financial Instruments Does The Platform Include?
As implied before, TegasFX focuses on CFD trading. The offer of financial instruments judging from the demo distribution isn’t excessively rich. A number of advanced and acclaimed brokerages around the world offer a palette of various products. Trade Capital Markets is a regulated firm with a far wider choice of tradable assets.
If you still decide to invest here, these are the groups of available instruments:
- Forex (EUR/USD, USD/GBP, EUR/AUD, NZD/CAD, USD/JPY)
- CFDs on Crypto (Bitcoin, Cardano, Dogecoin, Polkadot)
- CFDs on Indexes (AUS200, GE40, JP225)
- CFDs on Metals (Silver and Gold)
- CFDs on Energies (Brent Crude Oil, Natural Gas)
Companies practice many ways to motivate clients. Engaging in attaining bigger profit and certain trading benefits is achieved by various methods. One of them is certainly by providing users with a chance to participate in special programs and promotions.
While bonuses and similar rewards are banned in the EEA, offshore zones are free to practice them. Since TegasFX doesn’t operate under EU regulatory supervision, they are free to design and offer different projects, such as TegasFX partnership. There’s several types of it and we’ll explain them in the next part of this review.
As promised, we will now explain how each particular affiliate program functions:
- For affiliates – Introducing Broker
- For professionals – Asset Manager
- Tailored Solutions – White Label
Being an Introducing Broker brings benefits like real-time commissions stats, maximized performance, Copy-Trading, PAMM and MAM. The three levels of engagement and the bonuses included are:
- Beginner – 1 Level Plan: 25% from direct clients
- Advanced – 3 Level Plan: 2.5% from direct clients, 7.5% from 2nd Level and 5% from 3rd Level
- Individual – Custom Plan
Asset Managers enjoy automated performance, management fee and spread rebate allocation, with also premium cost and pricing available. White Label is designed for institutions which want their own branded technology.
TegasFX Countries Of Service
The intel we collected shows that TegasFX has the most clients residing in Europe and some part of Asia. Despite the attractiveness of their offer, we’d still advise you to choose an EU regulated broker instead. Especially if you’re coming from an area where the regulatory standards are more strict. Believe us when we say it’s for your own good.
Anyhow, the most of the traders using the TegasFX services and buying their products originate from the following countries:
- South Korea
Account Options Offered by TegasFX
ECN/STP account types at TegasFX supposedly all include raw spreads and access to the same tradable instruments.
The difference between the several packages lies in the beginning deposits and commissions. If you choose to buy a more expensive account option, you can expect lower commissions, and vice versa. TegasFX is explicit about the services depending on your investing abilities.
The available account types are these:
- MT4 ECN/STP – $200
- MT4 ECN/STP Pro – $ 2 000
- MT5 ECN/STP Pro+ – $1 000
- FIX API 4.4 – $5 000
Can a Trader Use a Demo Account?
Joining with a trial account for virtual trading is a possibility at TegasFX. Once you open a Demo account you can choose which trading platform you prefer. After accessing it on any of the devices you choose, there’s several options to set before trading.
First you have to put in the credentials and then also choose the leverage of up to 1:200 and available margin. For a limited time, you can use these parameters to test the platform functionality and quality of TegasFX offer.
Still, the risk of being manipulated by the artificial trading environment stands. The brokers often resort to such measures to convince traders to start investing real cash. So we’d warn you to take the alluring Demo environment with a dose of caution.
Terms of Service for TegasFX
As usual when it comes to this part, we like to accentuate the importance of reading the tiny text at the end of the contract. The annoying essay on user agreements and obligations comes under the same roof.
What brokers commonly reveal here are the real trading costs and other conditions not always revealed on the website. They would otherwise potentially repel the clientele.
For example, TegasFX says here that they ‘’reserve the right to raise commission on withdrawal up to 5% in case there is no sufficient trading activity’’. If you aren’t trading or depositing in over 90 days, TegasFX claims they will terminate their account if they see fit. All these and other details are found in this single doc – be sure to pay attention to it!
Leverage, Spreads and Fees
Since the offshore regulation doesn’t limit the leverage, TegasFX offers the ratio at 1:200 maximum. Although, as a customer, you can decide how to customize it. Of course, if you’ve previously invested enough money to be allowed to make such choices.
As for the trading costs, TegasFX isn’t particularly clear on that. Every account type supposedly offers raw spreads but this is the only statement pertaining to this element. Anything more in-depth explained is not found on the site until you invest. And judging by the customer feedback, high trading costs seem to be a source of displeasure.
Withdrawing Profits From Your Broker Account
TegasFX explains withdrawals are processed the same day the request was made. As for the minimum withdrawal amount, bank transfers can’t be performed unless you have at least $50 available. Minimum account balance for other withdrawals is around the same.
All in all, the payouts at TegasFX are performed through the following channels:
- Bank wire transfer
- Credit Card
- Crypto (Bitcoin, Ethereum, US Tether)
The broker does say withdrawals may be followed by fees pertaining to conversion and processing charges, but they do not explicitly state the amounts.
What Should I Do If I Have a TegasFX Problem?
When it comes to TegasFX, most of the clients have complained about high withdrawal fees. Also, the processing time seems to sometimes take longer than 24h, how long TegasFX claims to be able to solve them. Either way, we’re here for you. Just contact us any time of day or week and we will answer the call. If you need friendly advice or a strategic plan to restore the investments you’ve made with TegasFX, we’ve got you covered. Our team will try to respond to your inquiry as soon as possible, with the information you seek to find.
What Is TegasFX?
TegasFX is an offshore broker from Vanuatu, owned by a company called Clover Markets Limited.
Is TegasFX a Regulated Broker?
Yes, the broker has obtained a license by the jurisdictional regulator – VFSC. They appear in the search results of the regulators database of licensed companies.
Does TegasFX Have a Referral Program?
The site explains the possibility of participating in the referral program with different levels of activity and different cash bonuses according to that.
Does TegasFX Offer a Demo Account?
There is an option of opening a Demo account. You can choose the leverage and the margin for the account you will use for platform testing and price speculation.