Smartfxbroker Review Is Smartfxbroker.com Scam or Legit Broker

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SmartFXBroker Review

In this review, we will describe why SmartFXBroker is a scam that you should avoid at all cost !

SmartFXBroker Scam Review

Have you been scammed by SmartFXBroker ?

SmartFXBroker is an unregulated broker to avoid at all cost. If you have been scammed by them, check out our ChargeBack process here or get a Free Consultation by a team of expert by clicking here.

SmartFxBroker Review – 5 things you should know about Smartfxbroker.com

Beware! SmartFxBroker 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.

SmartFxBroker is a Vanuatu-based brokerage which provides the MetaTrader 5 trading platform. Clients are extended a generous leverage of up to 1:400. The spread on EUR/USD stands at 1.9 pips which is above what we would consider favorable for traders and certainly a disadvantage for the brokerage.

SmartFxBroker regulation & safety of funds

Reading through the website of the brokerage we discern that the company which owns and operates is registered and regulated in Vanuatu with the same name as its broker brand.

The government of Vanuatu does regulate Forex trading through its regulatory body Vanuatu Financial Services Commission, however, after checking with the online registry of the Vanuatu Commission we can safely conclude that Rock Capital Markets is in fact regulated by the VFSC. The Vanuatu Financial Services Commission cannot compare with prestigious regulatory agencies in Europe such as the Financial Conduct Authority in the UK or CySEC in Cyprus, for one, it does not assure clients of the brokerage participation in a compensatory scheme by which they may recover any losses suffered due to bankruptcy or fraud. However, even though there is no room for comparison – a license by the VFSC is better than anonymity and certainly counts for something in Forex trading.

Putting that aside, the brokerage does provide the MetaTrader5 trading platform, and there is a demo account available which we view always as an advantage. Without a test-drive clients cannot get adequately acquainted with the trading conditions of the brokerage which is perhaps the most crucial aspect of Forex trading.

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Through the demo account we could see an adequate platform with crisp charting but a spread of 1.9 pips which is quite unfavorable, we usually consider all spread below a pip and a half to be favorable for traders. Furthermore, there is no information regarding the required minimum deposit (usually Forex brokers require at least $250) and the leverage extended to traders is generous at 1:400. However, we are inclined to suspect that potential clients of the brokerage may be open to substantial risk due to the lack of credible regulation.

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 Financial Conduct Authority 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. The FCA compensates traders up to 85 000 pounds where as CySEC guarantees up to 20 000 euro per person.

SmartFXBroker deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw via a wide range of payment methods including the standard Visa and MasterCard as well as bank wire, however, popular e-wallets such as QIWI Wallet, WebMoney and Yandex Money are missing.

The brokerage does not state explicitly any withdrawal fees, however, the lack of regulation induces us to remind readers that there is no guarantee that the brokerage may not charge some unexpected withdrawal fee once it has received the initial deposit. This is why we 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?

Scammers mostly rely on vulnerable and easily tricked people, that is why a well-informed trader is, perhaps, their most difficult target. That is why we believe all traders should be well-versed in the different ways of the scam. Here is the most popular one:

In most cases through clicking a tempting ad with promises for quick and easy profits, you will be redirected to a website like Crown Signals or Top-Algo Trade where registration will require your address, email and phone number. Your personal information will be immediately shared with brokers in call centers who are just waiting for fresh leads. After a few minutes on the phone listening to the whole prepared brokers pitch , you decide to deposit some $200-250. And just like that –a 25 per cent commission gets wrested from the initial deposit by the broker on the phone.

After stinging you for a few hundred bucks, senior scammers will take you up and begin pushing you to further invest. You may even budge and continue investing. At some point, however, you’ll probably begin to consider closing the account and getting back your money.

However, now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, it will be high time for the “recovery people” to take it from here. They will begin further stalling in any way possible in order to remove the last guard you may have – filing a chargeback with your bank. This options expires for good after six months or more have passed since the initial deposit.

What to do if scammed?

A scam could happen to anyone, including you, and, in such a case, it would be best to know what options are still available to you. That way you’ll be certain your reaction will be adequate and on spot.

You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit, as was noted above.

If however you have provided the broker with your credit card details, immediately cancel your credit card.

If you have given information regarding your online banking pass – you should change it asap!

So-called “recovery agencies” should not be trusted! Such agencies target scammed and vulnerable traders in an attempt to further swindle them into giving away their money. They will require from you an “up-front payment” in order to get your money back, but no such thing will happen!

SmartFx Broker Review – is it scam or safe?

Trading Accounts and Conditions

Trading account Min. deposit Max. leverage Spread
Standard N/A 1:400 1.9 pips

SmartFx Broker presents itself as an international online Forex and CFD trading firm. It doesn’t seem to offer different account types and has not disclosed any of its trading conditions, so we filled the table above with what we saw on the demo MetaTrader 5 account. This review aims to shade some light on this ofshore broker’s service, so make sure you read it prior to investing.

Note that this broker appears to be different from SmartFX, despite the similar sounding names.

SmartFx Broker Advantages

Access to the MT5 platform

Actually, trading with SmartFx Broker does not appear to have many benefits to it, but the one that stands out is the availability of the MetaTrader 5 (MT5) platform.

The latest MetaQuotes software is currently one of the most popular forex trading platforms. The main advantage of MT5 over its predecessor MT4 is the fact that it enables traders to execute trades on different financial markets (including stock exchange markets) through a single account. In addition, MetaTrader 5’s execution is faster than MetaTrader 4 and after the hedging option was added to it last year, among other enhancements, it gained popularity both among forex traders and brokers.

Up to 1:400 in leverage

Clients of SmartFx Broker are extended leverage up to 1:400. Leverage levels that high will probably suit even the most aggressive traders, however, don’t forget that there is a price you have to pay – increased risk of losses.

That is why the leverage available to retail traders is capped in a lot of jurisdictions, including in the European Union (at to 1:30), in the US (at 1:50), and Japan (1:25).

SmartFx Broker Disadvantages

This broker is owned and operated by Smart Securities and Commodities Limited, a company registered and licensed in offshore zone Vanuatu. The Vanuatu Financial Services Commission (VFSC) has rather lax requirements and practically does not exercise any oversight on “licensed” brokers, so we can’t be certain about SmartFx Broker and whether it will fulfill its obligation s towards clients. The truth is, most offshore brokers choose to register on sunny islands to cut legal corners and run investment scams.

Needless to say, such offshore brokers are not authorized to operate on any regulated financial market, such as in the USA, EU, Australia, Japan, etc. Yet, many of them illegally target residents of these countries and jurisdictions.

Trading conditions not disclosed on website

Overall, the website of SmartFx Broker is not very informative. It reveals no essential trading conditions, as we mentioned in the opening paragraphs of this review. More specifically, the broker has not mentioned any spreads, leverage levels offered, minimum investment required, etc. This is a worrisome sign as it shows lack of commitment and transparency on the part of a brokerage. It is also very typical for scam brokers.

Demo spreads above the average

Through a demo account we could see a spread of 1.8 – 1.9 pips on EUR/USD which is higher than the industry average (1.0 – 1.5 pips for this pair).

SmartFx Broker’s demo MT5. Click on the image to zoom in.

For further information and comparison on spreads, check out the below link:

Limited demo CFD offering

Another thing we noticed while testing SmartFx Broker’s MT5 is the limited CFD offering. The broker offers trading in around 30 forex pairs, and CFDs on indices, commodities and precious metals on the demo platform. If the situation is the same in live trading environment, many traders will surely miss other instruments such as CFDs on stocks and cryptocurrencies. Besides, as we mentioned above, the MT5 is popular for allowing dealing in derivatives and exchange-traded stocks from a single account.

Conclusion

SmartFx Broker is an offshore brokerage whose offer is not clearly presented on its website, but our investigation on the matter revealed that it is not that good anyway. As always, we advise investors to deal only with brokers licensed by reputable agencies like the CySEC in Europe or ASIC in Australia. Also, it is a good idea to do a due diligence check before you deposit and google the broker’s name to see whether there have been warnings against it or user complaints.

Regulation in Cyprus involves a set of rules and requirements introduced both on local and on a EU level, which provides certain guarantees to their clients. For example, Cypriot brokers have to hold a minimum capital of at least €730 000, which should be maintained at all times, to keep client funds separately from the company’s operational assets, to regularly report executed transactions and many more. Moreover, they have to comply with ESMA’s rules on leverage, trading incentives, provision of negative balance protection, and more.

And finally, let’s sum up the strong and weak sides of SmartFx Broker:

Pros Cons
Access to the MT5 platform Registered offshore
Up to 1:400 in leverage Trading conditions not disclosed on website
Demo spreads above the average
No CFDs on stocks, crypto
Broker Advantages

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.

Trading212 is a European broker with an excellent proprietary trading platform, which is now available as an iPhone app as well (we tried it out and we loved it). Trading 212’s customers enjoy fast execution a vast selection of trading instruments.

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.

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