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101FX (101fx.com) is a fine looking broker, that lures us in with its visual and promises of a brighter future. Read the review to see if these promises are kept, or if there is something lurking behind the pretty facade of 101FX.
The Terms and Conditions say that the broker is governed by the laws of New York, the state, and as such is a US broker by definition. There is no mention of a regulation, however.
For a broker to operate in the US it must be a member of the National Futures Association (NFA), and has to be registered as a Futures Commission Merchant (FCM) and Retail Foreign Exchange Dealer (RFED) with the Commodity Futures Trading Commission (CFTC); it cannot be registered as an offshore entity and at the same time be regulated by both the NFA and CFTC. not to mention that the minimum capital requirement for any broker to be licensed in the US is $20 000 000. This lead us to conclude that 101FX is in fact UNREGULATED.
We strongly advise traders to trade only with regulated brokers that hold a license from renowned and severe institutions such as the FCA or CySEC. Not only do these agencies oversee operations and require regular reports from brokers registered with them, but those under their jurisdiction are members of compensation funds that cover victimized clients’ losses of up to £85 000 (FCA) and €20 000 (CySEC)
The maximum leverage that we were given when opening an account was 1:999. This value was dropped when we were registering.
We were, however, no able to open the trading platform because we did not receive any log in details via our email. For this reason, a direct EUR/USD spread is not available. The website says that the average spread for the EUR/USD currency pair is 1.1 pips, which is not bad at all, and is very favorable to traders. But since the info on the spread can be easily manipulated, users should be aware that there is a chance that this value is not accurate.
The trading assets that the broker claims to offer on the website are as follows: Forex Pairs, Shares, Indices, Crypto, Commodities. Again, an impressive array, but we cannot confirm just how accurate this information is. As we have seen before, this type of delicate information is usually false when compared to the broker’s trading terminal.
The client portal is available in English and Chinese, The website is exclusively in English.
The broker promises a MT4 platform. This may be true, but we did not get to use is because the log in info was never sent to us. The broker either sends it via phone, or directly calls you and uses manipulative tactics, mentioned in this review, to lure traders into depositing.
Nevertheless, The MT4 offers essential tools for every trader if he or she wishes to survive today’s online trading industry: Expert Advisors, technical analysis, mobile and tablet support, simultaneous charts among many other elements.
The leverage is capped at 1:999, while the EUR/USD spread is said to be 1.1 pips.
The MT4 comes as both a desktop trader and a mobile terminal.
101FX MINIMUM DEPOSIT
We could not get any deposit details from the client portal.
So we rely on the website for a minimum deposit, which it says to be $10 on the Home Page.
The only means to deposit seems to be via bitcoin, because when we were registering an account, we were asked to give away our bitcoin address. Furthermore, the How to Deposit page guides us only through a bitcoin deposit.
We would not deposit with this one if we were you. This broker is clearly not legitimate and not regulated, meaning that who knows what they will do with your investment. Traders should deal exclusively with brokers regulated by exemplary agencies such as the FCA or CySEC, for they oversee a brokers activities from head to toe with a severe case of diligence.
DON’T PROVIDE YOUR CREDIT CARD CVV CODE
The CVV code is the one thing that separates a buyer from a product. Without it, one cannot complete a purchase, even if him/her has given all other necessary information. By giving this detail to someone else, you are essentially inviting them to use your funds for their own means. And be warned that unregulated brokers most certainly plan to do so.
DON’T PROVIDE ACCESS TO YOUR COMPUTER AND BANK ACCOUNT VIA ANYDESK OR TEAMVIEWER
It may or may not happen, but if an unregulated broker asks you to install AnyDesk or TeamViewer and give them log in details, consider yourself very open to a complete drainage of your funds from all your online accounts. These software allow for anyone to access your PC from another station and go through all your files and vital information, including credit card, bank and alternative payment method details. Thankfully, these platforms are completely legal and will need your own personal approval in order to be used.
101FX WITHDRAWAL TIME AND FEES
The same reason because of which the depositing info was limited is applied to the withdrawals. What’s more is that the broker site offers close you no information on withdrawals.
In fact there is no withdrawal info anywhere on the website. This isn’t that surprising, since the broker is illicit and will probably not return any of your investment.
ADDITIONAL FEES AND TAXES
The first clause that deserves to be mentioned is the classic one that ties you to indemnify the broker and absolve it from any blame connected to a client’s losses or claims:
The second, and last, clause that caught our attention gives power to the company to terminate an account without prior notice for any reason:
Heed our words. Unregulated brokers do not care who you are and what your situation is; all they see is money, and they will trick you into giving it to them every chance they get. It is only logical then, that any attempt at withdrawing will be unsuccessful. The most popular excuses for denying your withdraw requests are usually smart and for the most part scripted. These include but are not limited to loopholes in the T/C, asking for more deposits in order to withdraw, or just prolonging your pending withdrawal by claiming that the market will suddenly propel, multiplying your winnings by unrealistic proportions.
If a broker is unlicensed, never give you ID and personal details to it, because the broker will use these details against you once you file for a charge back. Furthermore, any allegation held against the brokerage will be easily refuted if they have in their possession a copy of your ID and proof of address.
The most important thing to note is that this broker will not return your deposit, nor will it pay your winnings. It never had this intention in the first place. The best advise is to walk away from it, and go straight for a regulated broker. The FCA and CySEC are the top non-US license issuers, and those under their gaze are bound by the law to put the security of users’ funds as pivotal priority.
HOW TO RECOVER
Don’t delay, and file for a charge back ASAP with your bank or credit card company, but also ask them what the situation with your current account is.
If you have given a CVV code to the broker, be sure to cancel your credit card as soon as possible, because the broker will not delay with draining every cent from it.
Also, beware of self proclaimed “recovery” agencies or agents. These cheeky scammers promise to fix your problem and restore the lost funds. They offer their services in exchange of a small sum from your end, after which you won’t ever hear from them again.
The last line of defense for these indecent folk is more like a desperate cry: often times they will comment on reviews and cite the whole ordeal as a conspiracy initiated by competitive brokers against them; at times even claiming that reviewers are anything but objective, and that no one writes good reviews. The absurdities are limitless!
101FX is yet another unlicensed broker that targets unaware investors. Beware, and stay back!
101FX compared to other brands
United Kingdom, Cyprus, South Africa, Mauritius
Cyprus, Saint Vincent and the Grenadines