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AxnFX Review – is it scam or safe?
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|Account type||Minimum deposit||Maximum leverage||Spread|
|Classic||$100||1:400||ECN feed +$20 per lot*|
*The costs of trading at AxnFX are not disclosed by the company. These are the conditions we saw when testing their platform.
AxnFX is a forex broker, which hasn’t released a lot of information on its trading conditions. This gives an immediate negative impression, but here are the full details about this broker.
The Company. Security of Funds
|POWER BUSINESS GROUP LIMITED||Seychelles||N/A|
AxnFX is owned and operated by POWER BUSINESS GROUP LIMITED. The company is based in the Seychelles, which generally is a negative sign. The reason for that is quite simple – off-shore companies are usually not regulated as heavily as their ones based in other countries.
On top of that, Axnfx is not overseen by any regulatory agency. The difference between simply having a registered company and one which is overseen by any major financial watchdog is huge. You away carry some sort degree of counterparty risk (the risk of not getting paid) with unregulated entities.
On the other hand, different countries have their own agencies, dedicated to monitoring financial service providers. For instance, Cyprus is a relatively popular destination for forex brokers. Being a member of the European Union, the country allows access to the entire single market. More importantly, the local regulators, the Cyprus Securities and Exchange Commission (CySEC) enforces strict rules upon the companies, which it oversees. Two of them are the most prevalent in terms of the security of your trading capital.
All CySEC-regulated brokers have their client’s funds kept in the so-called segregated accounts. This means the companies can’t simply take your deposit and not offer anything in return (the most ugly form of scam). These segregated accounts can only be touched under certain rules.
Additionally, companies registered with the Commission must participate in the local compensation scheme. This is a mechanism, by which brokers contribute a relatively small portion of their profit to a fund. The fund then acts as guarantee, in case one of the participating brokers happens to go bankrupt. In the case of CySEC, the fund covers trading accounts, up to €20,000.
Minimum Initial Deposit
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AxnFX requires a minimum deposit of $100. This level can be considered the current industry average, as a lot of brokers have set is as a criteria. For instance, you can open a trading account with the FCA-regulated industry veterans at HYCM with $100.
That being said, this criteria is only important for those traders who can’t afford a more serious trading account, as it does not tell you much about a company’s credibility.
Average spreads & Commissions
The average spreads at AxnFX are not disclosed by the company. After doing some tests with the demo version of the trading platform, we saw relatively tight spreads and a substantial commission. While the EUR/USD spread varied in the 0.1 – 0.5 pips range, there was a $20 commission. This translates to an effective spread of around 2.1 – 2.5 pips, which isn’t attractive. Nowadays, a lot of brokers offer far better conditions. To get the full picture, be sure to try our real-time spread comparison platform.
The maximum leverage at AxnFX is 1:400. This is very high ratio, which can lead to substantial losses, if you don’t know what you are doing. That being said, a lot of brokers offer 1:500 or even more, in leverage.
While a higher ratio sounds better, it does not actually represent better trading conditions. More leverage simply allows you to take more risk. This can lead to very big losses, especially if you don’t know the basic principles of position sizing.
AxnFX offers the popular MetaTrader4 (MT 4) trading platform. This shouldn’t come as a surprise to anybody who is familiar with the forex market. The platform is being offered by many brokers and there is a reason for that – the charting provided by MT4 is amazing. On top of that multiple custom tools for the platform are available. The most popular ones are technical indicators and automated trading systems. Feel free to check out our reviews of the so called Expert Advisors here.
MT4 also has an excellent mobile app, available for both Android and iOS. It captures almost all of the functionality of the desktop. In fact it may actually be too complicated for total beginners, which is its only major downside.
Here is a preview of the MT4 platform offered by AxnFX:
Methods of Payment
The payment methods at AxnFX are Bank Transfer, Credit/Debit Card, Skrill and Neteller. While this may not satisfy everybody, at least the e-wallets are the two most popular ones (when it comes to trading).
AxnFX is an unregulated broker, with an off-shore registration. These two factors immediately spell “danger”. Additionally the company does not fully disclose its trading conditions on the website. The spreads we observed after opening a demo account were not even close to the current state of the industry. Here is a summary of our experience with AxnFX:
|MetaTrader4 available||No regulation|
|No information about the trading conditions on the website|
|Wide spreads on the demo account|
FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.
XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.
FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.
FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.
FBS is a broker with cool marketing and promotions. It runs an loyalty program, offers a $100 no-deposit bonus for all new clients outside EU willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.
FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.
HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage – one of the highest in the industry.
AXNFX Review: Scam or Reliable Forex Broker?
After doing some research, we found out that a lot of traders are reporting AXNFX and writting bad reviews about it.
It’s always important to know what other traders are thinking about a broker before using it and we can say that they are not saying good things about AXNFX.
What do regulators say about AXNFX ?
This is the most important thing you need to know about a broker before using it. Is AXNFX regulated ? Is it an offshore company ?
Most brokers are unregulated or regulated by an offshore regulation authority which won’t help you in case of problem. Keep in mind that if a broker steal your funds, you won’t be able to complaint about it unless they are licensed by a serious regulator such as the CySEC (Cyprus Securities and Exchange Commission).
An unregulated broker is clearly not authorized to operate in any regulated country and you should definitely not put any money into it.
AXNFX is an unregulated offshore broker owned by Power Business Group LTD and located at Tenancy 10, Marina House, Eden Island, Mahe, Seychelles.
They can be contacted by phone at this number : +442032892479 or you can send an email to [email protected] / [email protected] / [email protected] / [email protected]
You should definitely avoid any unregulated or offshore broker and AXNFX is one of them.
Have you been Scammed by AXNFX ?
Have you been victim of this company ? Did you lose money with them ? Everyone does mistakes. Don’t worry, you are not alone, and we are here to help you.
Our team of experts is available 24/7 in order to help you recovering your hard-earned money.
Chargeback is the solution
As we said before, the good news is that there is a solution and it’s called a Chargeback.
Not a lot of people know that, but there is a high probability of getting your money back when you build a Chargeback case as long as it is built correctly from the beginning to the end.
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AxnFX Review – 5 things you should know about Axnfx.com
Beware! AxnFX is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
AxnFX is Forex brokerage registered in Seychelles. It provides the MetaTrader4 platform and an extremely generous leverage. Traders are extended a leverage of up to 1:300. Furthermore, there is a wide range of trading products from which to choose and several e-wallets available as payment methods. The required minimum deposit is $100 which is quite below the industry average and certainly an advantage for the brokerage.
AxnFX regulation & safety of funds
The company behind AxnFX is registered in the Republic of Seychelles. Here is a screenshot:
We learn through the website that the brokerage is regulated by the Financial Services Authority of Seychelles with a license Company No: 191108. Here we remind readers that the financial regulator of Seychelles – the FSA – cannot compare with prestigious regulatory agencies in Europe, most importantly because it does not provide participation in a financial mechanism by which client’s losses may be recovered in case of bankruptcy or fraud. There is also no assurance for the segragation of accounts which exposes the clients to the possibility of commingling – combining the broker’s finances with that of the client. Furthermore, the agency requires a starting capital of the meager $50 000 while CySEC requires at least $730 000.
After checking with the online registry of the Financial Services Authority we may conclude that the brokerage is in fact licensed by the authorities in Seychelles
The brokerage purports to provide the MetaTrader 4 trading platform, however, we were unable to register for a demo account which isn’t something uncommon with scammers. Without a demo account we cannot get acquainted with the trading conditions of the brokerage. Through the website we only discern that the required minimum deposit is quite low at $100 and that the leverage extended to traders is generous – up to 1:300. Putting all that aside, the lack of credible regulation inclines us to suspect that potential clients of the brokerage may be open to substantial risk.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
AxnFX deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via the standard Visa and MasterCard. Popular e-wallets such as Skrill, Neteller are also supported.
There is scant information in the terms and conditions of the brokerage regarding the withdrawal and deposit conditions. We do not find any explicitly stated withdrawal fees, but brokerage such as this one may always surprise traders with unexpected fees once they have already deposited. We always remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Besides judging the brokerage beforehand through the info given on its website, a valuable piece of information in the trading world would be precisely how a scam would go about. Here is a description of the typical three steps:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Cash where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback. The growth of scammers that are spawning everyday in forex trading has forced both financial services giants Visa and Mastercard to step up and take action. MasterCard has already increased the previous time period of six months for filing a chargeback to a year and a half, effectively bypassing the “recovery department” part of the scam.
If, however, you have provided the broker with your credit card number and CVV code, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!
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