Safumax.com Review: this is the name of a Forex broker offering clients several investment choices. It is based in New Zealand. Is Safumax a scam or legit Forex broker? Read this review before you invest with this company.
The most vital part of our reviews is the uncovering of if a company or Forex broker is properly licensed or not. To do this, we first establish the location or region where it claims to be based. Then we check with the commission or authority regulating trade there whether it is listed among regulated companies or not.
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Safumax mentions that it is based in New Zealand. This region is regarded as a top European trading region and regulated by the Financial Markets Authority. The company mentions that it is registered under the FMA but this turns out to be false. Trading with a Forex broker that is unlicensed pose many dangers to traders’ funds. Misappropriated funds may not be recoverable by the government as well.
Unlicensed brokerages are not under any rules of traders and this puts traders in more risk than they will be in if they had chosen properly licensed ones.
Advantages of Safumax
Among why clients should choose it for investment, the website mentions regulation which we have discovered is false. Other advantages include an advanced trading platform as well as high transparency and tight spreads.
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.
Safumax Trading Platform
Safumax offers traders the MT4 trading platform. We advise readers and traders to always look out for the MT4 or MT5 platforms. The MetaTrader platforms are commonly used because they allow the use of trading robots.
Legit brokers are known to offer at least the popular MetaTrader 4 or 5 trading platform.
These platforms are very good signs 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: 10 currency pairs, precious metals, crude oil, stocks, indices and cryptocurrencies. 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 leverage offered to clients is 1:100 and while this may seem generous, it is not advisable. High leverages can lead to huge loss of funds as well. Spreads are 6 pips on the EURUSD pairs.
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 Safumax
The means that traders are to use to make deposits and withdrawals are not disclosed and the link does not work when we tried accessing it. This is unusual and discouraging 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 also not displayed. We are aware that the average among many brokers is somewhere around $100 to $250, but we would like brokers to let clients know this upfront. Withdrawal fees are not mentioned and this may be because they do not apply. However, we will appreciate it if this is stated.
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 Safumax Licensed?
No. The broker falsely claims to be licensed in New Zealand. It turns out to be false when we checked the register of the Financial Markets Authority (FMA) of New Zealand. Since this is an unlicensed broker, we want readers to know about this lack of licensing.
Regulated Forex brokers in Europe, America, Africa, Australia, and Asia are under many strict rules. The regulatory bodies like the FCA, FSCA, CySEC, AISC, NFA and many others have regulations protecting Forex traders from unfair brokers. This is why they come top as recommended Forex brokers.
Blacklisted by The FMA
When we searched the name of the company online, we found a warning from the regulatory commission. It mentions that Safumax Group Limited is operating from a false address and that it is not authorized by them.
To get in touch with the customer support of the company, interested clients should dial: +852-5128-3808 or email at: firstname.lastname@example.org.
Safumax is unlicensed and therefore, poses danger to the funds of clients. Further the few trading conditions it makes known are not encouraging as we see from the spreads. Finally, there exists a warning from a top commission advising traders to stay away from it. If you have anything to say about this broker, do so in the comment section.
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