Table of contents
Is there any doubt that with a name like Fx4lux the following broker will be anything but scammer mediocrity? Read on to find out.
The only regulatory information is found in the footer where it is clearly stated that Fx4lux is “authorized and regulated in various jurisdictions“. That's all. There is no mention of a location and no license issuer. Fx4lux is without a doubt UNLICENSED, making it a risk to all investments.
Investing in unregulated brokers is the digital equivalent of throwing your money away for the wind to disperse it. It’s obvious that no one would do such a thing. Go with brokers that are regulated by trustworthy organizations like the FCA or CySEC. These entities work closely with the law, enforce it when called for, and have strict requirement for those under their gaze. Not to mention that those under their jurisdiction are members of compensation funds that cover victimized clients’ losses of up to £85 000 (FCA) and €20 000 (CySEC).
What's more is that the legal documents are shortcoming in both quality and quantity, revealing basically no info of importance.
We opened an account, and were greeted with a web terminal that gave us a EUR/USD spread of 1.5 pips on average. The leverage according to the dashboard is capped at 1:500, a common value for illicit brokers. Users can trade with Forex Pairs, Shares, Commodities, Crypto, and Futures, making the list of instruments very decent.
Users can scroll through the website in English, Italian, and German.
The trading platform at Fx4lux is not the MT4, as the website claims. Instead, there is a proprietary looking trader that is decent enough to retain users. Users are given freedom to customize their trading experience, while also being able to execute pending orders. Overall this trading platform is very good.
FX4LUX MINIMUM DEPOSIT
The payment terminal gave us Xpate and Wire Transfer as depositing methods. We were able to continue the depositing process with just a dollar, meaning that there is no minimum deposit amount.
Due to the broker’s lack of any regulation, we advice against depositing any amount whatsoever. If traders wish to invest in forex, they will find that any FCA/CySEC regulated broker will surely do. These agencies are at the top of their game, demanding a strict conduct from brokers, and requiring regular reports on their activities.
DON’T PROVIDE YOUR CREDIT CARD CVV CODE
In the Terms and Policy section the broker has left out these pivotal details, meaning that at some point they might request these details from you. The three digit CVV code is essential to making purchases or completing transactions online. By handing this info to someone claiming to be a broker, your are exposing your savings to the biggest risk of all!
DON’T PROVIDE ACCESS TO YOUR COMPUTER AND BANK ACCOUNT VIA ANYDESK OR TEAMVIEWER
Be sure to never give AnyDesk or TeamViewer access to your PC to unverified agents. These 2 platforms allow for your PC to be taken over by a second party, often times for help or guidance, but in the case of these brokers for the sole purpose of looting your bank account(s) and personal information. However, in order to do so your consent is needed, and this is the only thing standing in the scammers’ way.
FX4LUX WITHDRAWAL TIME AND FEES
The withdrawal terminal gave us the option to request a withdrawal only via a bank transfer, asking us for our details in the process.
According to the Deposit and Withdraw policy, the waiting time for w request to be processed is 5 days tops.
There are no withdrawal fees mentioned anywhere.
ADDITIONAL FEES AND TAXES
The very short Terms and Conditions contain one important clause, the indemnification. With this in their tools, the broker can easily be absolved from a y damages it causes to users.
The lack of fees does not nullify the fact that incoming and hidden charges might pop up at any time, seeing as this broker is unregulated. Furthermore, once you request a withdrawal, probably due to your suspicions being realized, the broker will most certainly deny your appeal. This denial is followed by a well thought of justification. Either they will find a loophole in the T/C that upholds their right to keep your deposit, or they will ensure you that now is the worst time for withdrawals, for the market will very soon thrust upwards and multiply your initial investment by unrealistic numbers.
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.
We are positive that this so called broker will not return your funds; the evidence we have laid out before you work in sync against it. The sound thing to do is to direct your attention and investment to a broker that is actually regulated by a Swiss financial regulator like FINMA which is the European equivalent of the NFA in the US.
HOW TO RECOVER
Filing for a charge back is the best advice we could give you. Immediately contact your bank or credit card company and lay out the circumstances.
If you have given away your credit card details including the CVV code to the “broker” you should cancel it ASAP and check with your bank to see the damage inflicted.
At some point or another you might stumble upon a “recovery” agent or agency that promises to retrieve all your money back. This sounds all too good to be true, and that’s because it isn’t. Before proceeding with the recovery they will ask a payment for their services. If you chose to indulge them, they will disappear with the money without a hint of remorse.
The last line of defence 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!
Fx4lux is not regulated, which basically gives this broker unlimited power over any deposit. They can do what ever they ant with it. Do not invest here!
FX4LUX compared to other brands
United Kingdom, Cyprus, South Africa, Mauritius
Cyprus, Saint Vincent and the Grenadines