Did you know that about nine in every ten investors lose money while trading online? And we are talking about dealing with legit brokers! The losses are because trading in digital assets is primarily speculative and unpredictable. So many economic and geopolitical factors are at play, such that the markets can take any turn without warning. Mind you, the statistics of people who lose money to scammers are even more baffling than the ones mentioned earlier. Scores of unsuspecting traders have lost their entire investments to brokers like FX-Infinitytrade.
The broker tries to convince us it is a worthy broker providing a transparent trading environment and the best pricing. Luckily we didn't struggle to establish that it was a dodgy broker as the signs were plastered all over. The most obvious one is a Google disclaimer warning us that the broker's website was deceptive. It couldn't get any clearer that we were dealing with a hoax.
Yet the above discovery does not surprise us. In our reviews, we have seen similar brokers posing as legit but swindling you with no remorse. Even after we expose them, some reconstitute themselves and come back under new guises. By now, you have already figured out that being oblivious to investment threats in this space
would be a costly mistake. Since scammers will always be lurking online, ready to strike, the best you can do is be vigilant.
As a leg-up, we will share insights on standards in the brokerage market. Also, we will share tips on identifying approved forex brokers and scammers. Additionally, we will reveal more about this broker. Cue; don't invest with it!
You can use a broker's operation to infer its dependability. Ideally, the longer a broker has been in the market, the better. This is not always the case; you still must conduct other checks. This entity registered its domain with whois on 26 November 2022. At barely six months, this rogue broker shouldn't even be in the investment conversation.
We also found that the broker talks about a different entity, ForexCoinInvestment, on its ‘about' page. This sends a not-so-good impression about the broker's credibility. Another weird feature we found was incessant pop-ups claiming so and so earned thus much. These only serve to show the broker's desperate attempts to impress you. Also, shouldn't there be some sort of a privacy/confidentiality code binding the brokers? It is unlike a genuine broker to display profits that traders make on its platform.
Investors on the platform can purportedly trade in forex, shares, indices, futures, metals, and energies. The alleged platform benefits include deep liquidity, razor-thin spreads, lightning-speed executions, zero requotes, and secure accounts.
According to the broker's website, investors can deposit via debit or credit cards, e-wallets (Skrill, Neteller), bank transfers, or cryptos (Tether). However, we could not verify the accuracy of that claim since we didn't open the account. Remember Google's disclaimer?
However, we can say something about assessing deposit methods. Credit cards top the list of the preferable mode since there is a provision for refunds. For wire transfers, refunds are out o question. For e-wallets like Paypal, refunds are possible but not guaranteed. You will find most genuine brokers accepting these channels.
On the contrary, most fishy brokers pressurize investors into paying via cryptos. The reasons include the fact that crypto transactions are anonymous. Also, these transactions are final, so you can't reverse them. Never use crypto transactions unless it is the last resort with a regulated broker.
The broker provides four investment plans. The beginner account has a minimum deposit requirement of $500. Investors in this bracket access dedicated account managers. Next, the advanced plan requires investors to deposit at least $1000. Advanced traders get support from senior account managers. The third plan, luxury, has a funding threshold of $5000, with the backing of personal relationship managers. Lastly, the legend plan requires a minimum of $20000, and support comes from personal relationship managers.
As a beginner trader, you should not risk a lot of money on these platforms. You are still testing waters so the amount staked should be negligible. To this end, the market range for a minimum deposit is $200-250. If a broker is asking for anything high, abort. Fx-Infinitytrade’s asking for the basic account is relatively high and suspicious. Search for genuine brokers with more affordable micro-accounts.
Fx-Infinitytrade has not included any legal documentation on its website, another warning sign. See, if a broker claims to be licit, they should walk the talk, which entails laying everything bare. This is not too much to ask for, so if you cannot get all the facts, drop the broker.
The broker offers a leverage of 1:500. If leverage worked one-way, we would be all in. Unfortunately, that is never the case. The parameter that can magnify your profits is the same that dwarfs them, which tells you why sobriety is paramount here. To manage your risks, you have to adjust your leverage settings wisely. However, you won't need to if dealing with a regulated broker. These abide by leverage cappings that respective regulators impose; for example, 1:30 by FCA and 1:50 by CFTC.
For checks, brokers are recommended to offer spreads up to 1.5 pips. The spread advertised here is 0.1 pips. That would be a great deal for you, except that the broker fails to mention something. There is an applicable commission with such a low spread, but the details are unavailable. This opacity is unsuitable for you as you will get into an arrangement without all the facts. It's either the broker has hidden commission or will take your deposits.
Since the broker claims to be in the UK, it should be in the regulating agency's database, or so we reasoned. However, FX-Infinitytrade claims to be under the Security Investment Commission (SIC). There is no such regulatory body in the UK, and the FCA is the body mandated with overseeing brokers here. This agency has issued a warning against this broker. This confirms our reservations about this broker being suspicious.
We recommend investing with a licensed broker. These brokers must adhere to strict standards for operational transparency and financial stability. For instance, they must offer negative balance protection to clients and contribute to a guarantee fund that protects against broker insolvency. They must also maintain separate bank accounts for their operating money and the money belonging to their clients.
Fx-Infinitytrade promises MT4, MT5, and IRESS trading platforms. However, there was not a single functional link to download the software. Most con brokers advertise sophisticated trading platforms only to deliver simple web-based ones. Even worse, some brokers rig this software to convince victims that they are genuinely investing. In all honesty, a web-based platform is a liability to investors who want to boost returns.
Nonetheless, shady brokers can still offer widely acclaimed MT4 or MT5. This shouldn't change your view on the rogue broker. The MT5 and MT4 have made a name for themselves by providing a broad range of features, such as numerous options for customization, support for multiple accounts, the ability to create and use unique scripts for automated trading, and techniques' backtesting capabilities.
We may not accurately discern a genuine broker, but we know a scammer when we see one. The writings are usually on the wall; no regulation, unverifiable claims, absurd trading conditions, and lousy trading platforms. Fx-Infinitytrade checks all those boxes, and we can confidently call it what it is –a scam.
You could flop in all other areas, but at least ensure you get it right on approved forex brokers. These will save you a lot of investment headaches. They will secure the funds you deposit or earn on their platform.
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