ProofFX Review: this is the name of a Forex and CFD broker that is located in the offshore region of St. Vincent and the Grenadines. Is Prooffx.com a legit Forex broker or a scam?
The location of the brokerage gives us immediate concern as we have found that the address has been used by many other brokers that turned out to be scams. Citizens of Japan, USA, Israel, Iran, Sudan, North Korea and Belgium are restricted from using the service.
It says it is created “for a new generation”. It promises a simple innovative investment technology for everyone. The broker claims to have 172,000+ registered customers. We find that it claims to be under the strictest regulations. Also, clients are promised an easy, simple and profitable investment.
It is common for Forex brokers to start out with claims of making clients richer. This is because everyone seeking out easier ways to trade effectively does so to make more profit.
However, traders need to be careful about believing everything they encounter in the business sphere. Some are geared to just deceive and steal their funds. Considering what is offered and proofs are effective means of discovering fraud as well as reading our reviews and comparing the offers to those of other legit brokers at the bottom of this article.
ProofFX Trading Platform
It is mentioned that ProofFX trading software is operated on a MetaTrader 4 platform available to all their clients.
Legit brokers are known to offer at least the popular MetaTrader 4 or 5 trading platform.
This platform is a very good sign along with MT5, as they have become some of the most widely used by experienced traders. They are found to be compatible with various devices’ operating system. All can be used on desktops, Linus, windows, iOS and Android.
Tools that comes with these trading platforms are also found to be useful for traders. It has proven to be user friendly as well and helps traders in analyzing the market easily.
Trading instruments offered to traders are: Forex currency pairs and CFDs on indices, gold, silver, platinum, palladium and oil. We know that legit brokers offer currency pairs, indices, CFDs on many commodities and cryptocurrencies. It is important to let traders know the options open to them.
Maximum leverages can reach up to 1:100 and while this is generous, it can pose danger as well. High leverages can lead to huge loss of funds as well. Spreads are placed at an average of 0.3 pips and $30 per lot.
Spreads of 1.5 pips or below are what is obtainable in the forex industry and traders are asked to look out for this. Leverages of between 1:30, 1:50 and 1:25 are also common among regulated brokers.
Deposit and Withdrawal methods on ProofFX
The means of making payments and withdrawals with this broker are: MasterCard, Visa and Bank Wire Transfer. We do not find it encouraging that this broker does not offer popular e-Wallets.
This is because standard and legit brokers make deposit and withdrawals available via Visa, MasterCard and Wire Transfer. Many offer e-wallets like: Skrill, Neteller, UnionPay, FasaPay, and so on.
Minimum deposit required is placed at $2500 which is higher than the obtainable average of $100 – $250 among brokers. Withdrawal of funds is determined by trading volumes that are set by the broker. They also state in their terms and conditions that traders are to give the broker permission to deposit funds in their account and thus run it to some degree.
Trading bonuses are offered to clients and we have found that this is a method used by scammers to impose restrictions on clients’ accounts.
This information is important so that clients can invest any little amount they can spare. In order to be able to first watch the working of the brokerage. If then they are satisfied with what they see, they can determine when to withdraw their money.
Is ProofFX Licensed?
No. ProofFX is not a duly licensed broker. It is located in an offshore location where Forex trades are not regulated. We have warned traders countless times to avoid unlicensed brokers.
Offshore locations are notorious because scam brokers choose to be based and operate from there. It is the same with this broker and they are not under any regulatory commission.
To contact the customer care agents of the broker, clients are directed to call: +44 (20) 80898137 or email: firstname.lastname@example.org or email@example.com
As we have discovered that ProofFX is not a licensed broker, it would be unwise to trade with them. Its withdrawal fees and “administrative” ones are also red flags along with the bonus. Trading bonuses from unregulated brokers are always bad signs.
The spreads are quite high when the commission attached is considered. Further we found that the MT4 trading platform shown on the demo account is from another financial institution that is not theirs.
COMPARE WITH A TRUSTED BROKER
Fortrade is a UK-based broker with address at Michelin House, 81 Fulham Road London, SW3 6RD, United Kingdom. They are among the best brokers in the industry offering trades in numerous assets including stocks, commodities, currencies, indices and cryptocurrencies. Fortrade is regulated and licensed by the FCA(Financial Conduct Authority) in the UK well as ASIC in Australia which makes client funds safe. They accept traders worldwide..visit their official website