SimpleFX goes by the motto “Keep it Simple” and allows you to start your trading journey with a demo account. But as much as the SimpleFX scam is keeping it simple, is it also keeping it honest?
The broker is growing; it offers multi-currency trading different platforms in Forex CFDs, along with the access to buy and trade cryptocurrencies, indices, and commodities. So let’s know all about the broker and if simplefx scam or not?
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What is SimpleFX?
SimpleFX was founded in 2014; it is a CFD broker. The broker was registered with an International Business Company in St. Vincent and the Grenadines; it was bluffing about its 200,000 registered users; the twist here is that it doesn’t have a license from a financial regulator. Their advertisement shows that the company provides securities of funds, a negative balance protection policy, and segregation of client funds with many other things.
The broker has been blooming since its inception and claims to trade in 160 countries around the world. SimpleFX has also made trading more beginner-friendly with their web-based trading platform. They also offer an MT4 platform for experienced traders.
The site and platform focus on a global audience and have been translated into over 18 different languages.
How SimpleFX Works?
The broker was offering clients many facilities such as trade commission-free on more than 200 different financial CFD instruments, almost all covering Forex, Stocks, Cryptocurrency, Commodities, and Indices. SimpleFX provided these services via the MetaTrader4 trading platform and the SimpleFX MT4 Tools Web Trader platform for Windows.
SimpleFX also had an exclusive trading app for its users on Android and iOS. The app covered trading for more than 60 currency pairs, more than 16 cryptocurrency pairs, and a vast range of indices, commodities, and stocks, all of these have many deposit options. SimpleFX also includes five significant cryptocurrencies.
All the traders with SimpleFX were offered 500:1 leverage, spreads from 0.1 pips, multi-currency accounts, and this also included no minimum deposits. However, the most intriguing feature was a trading community for signal trading between all MetaTrader 4 brokers. They also had an active trading blog covering the current market and giving live analysis.
They offer low FX spreads on an expansive range of Forex pairs. The customer support provided was stellar and responsive; it leaves you with a strong impression of the broker. They also offer MT4 to their traders. It also has room for traders who have progressed from Web platforms to hone skills on an advanced and world-famous trading tool.
The site also offers a demo trading account you can practice on without risking your money. SimpleFX also states that all quotes used on demo accounts are similar to the real trading accounts with a 5-minute delay, so you get the accurate practice to trade in live markets.
SimpleFX Spreads, Leverages, and Fees
SimpleFX leverage is up to 1:500, the usual for offshore brokers. The spread ranges from 0.9 pips, which is the typical industry average. The fees and commissions are not stated clearly, which raises a red flag similar to the other red flags the company raises.
The Trading Account Types Offered
The brokerage company offers one account type only, which limits a user. Adding more money will not unlock better terms, leaving them uninterested. A minimum deposit of $1 is required offering leverage up to 1:500.
The Demo Account
Apart from the standard live account, SimpleFX offers a Demo. However, this account works solely for the broker’s proprietary trading app and not for the MT4. As a result, traders might experience different conditions than those provided on MT4 and limited charts and indicators.
SimpleFX scam offers the following security measures to claim their trading is safer,
- Two-factor authentication
- Negative balance protection
- No dealing desk
- Fast and secure transfers
Is SimpleFX a Scam or Legit Broker?
Here comes the most crucial question of all. The safety of a broker and their funds tops our list when looking at a broker. First, you have to look through all the broker offers and know if it is not leading you astray; this is your first step to success. Next, you have to be assured that your funds are in the right hands.
To ensure the authenticity of a particular online trading medium is the regulation by an official financial entity. The broker has to accomplish the essentials and criteria to be eligible for a license. Let’s look at SimpleFX scam is legit,
In simpleFX’s case,
It is potentially a scam; the broker is registered offshore and does not have any proper license from a trusted financial regulator. It is unsafe to trade with SimpleFX; we advise you against trading with an offshore broker. The financial investment service they offer is not worth your trust.
SimpleFX is registered by the IBC with register number 22361 and has LEI (Legal Entity Identifier) of 21380042B8QJ87V4HA89. However, it still remains unregulated. Saint Vincent Law binds its operations. The main reason for the lack of regulation, according to them, is their use of cryptocurrencies.
What to do if you have been a Victim of the SimpleFX scam?
To sum up. SimpleFX scam has a good show with the web trading platform and its clean and intuitive layout. Moreover, the trading experience offered is not that intimidating for those stepping into FX trading for the first time. But we cannot, however, ignore its lack of regulation.
- With dedicated experts and free consultation service, you can have the specialists analyze your case.
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In our opinion, open a trading account with only regulated brokers by the respected world authorities that follow the rules and have a good reputation through the delivered timeframe of operations.