Introduction to FinmaxFX Review:
The homepage of FinmaxFX opens up with a big golden badge on the side of the web page which states that the broker is 100% trustable and this fact is guaranteed. With over 500 assets to trade, FinmaxFX advertises itself as a forex and CFD trade brokerage firm. They also claim to have various offices in exotic locations around the world apart from their headquarters to support the wide base of customers that they have. Despite all these high-end claims with no proof to support any, FinmaxFX goes on to declare itself as the best in the market with no competition whatsoever. In this review, we are here to debunk some of these far-fetched claims and to see how legit FinmaxFX really is. Read the full FinmaxFX review to know more about the FinmaxFX scam.
Debunking the claims:
In this section, we will adopt a specific approach for each of the red flags hoisted by FinmaxFX.
Address and Regulation:
It is stated on the website that FinmaxFX is based in Vanuatu. The address is given as Port Vila, Vanuatu, PO box 1276. For those of you who may not know, Vanuatu is an offshore zone and in layman language, it is a haven for the scam brokers. It is very easy to get licenses from such offshore zones as they do not have regulatory bodies to supervise the area and the brokers present there. Therefore, it is not safe for traders to invest in a brokerage firm that has a license from such offshore zones. Not having the license poses the first red flag against FinmaxFX.
Minimum Deposit:
Various regulatory authorities advise against asking for a minimum deposit from the customers as it is unnecessary and another way to extort money from the traders. However, the scam brokers do not adhere to these rules and advice and ask for huge amounts of minimum deposits from the customers. In our case, FinmaxFX demands a minimum deposit of $250. Even though it might not seem like a huge amount, it is very big as compared to the minimum deposit demanded by the regulated brokers which lie in the range of $5 to $10.
Leverage:
Any broker with little experience in the trade market might know the role of leverage in the trades. If the leverage is higher, it increases the risk of the trader losing their money. For this same reason, many countries put a limit on the leverage that can be offered. In Europe and the US, the leverage is capped at 1:30 and 1:50 respectively. In our case, FinmaxFX offers leverage of 1:200. This is yet another red flag against FinmaxFX as such huge leverage indicates the deliberate risk that the customers are facing.
Conclusion:
To sum up, all that has been stated above, we leave the decision of deciding whether FinmaxFX is a scam or not to our dear readers. If you are thinking of trading with this broker or already have an account, we must warn you as FinmaxFX is a potential scam. In case you are a victim of the FinmaxFX scam, report it with us right now, and we will get you the help needed.
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