When starting Forex trading, you need to make sure you’ve got everything under control. Or at least, have thoroughly thought about the risks associated with online trading.
This is especially true for selecting a Forex broker. The Internet is full of such companies that claim to have the most competitive trading conditions on the market. But, when it comes to weighing their offers against the credible ones, they start to reveal hidden flaws.
The RFXT FX brokerage is yet another Forex broker that needs no less attention than others. In this review, we’re going to take a look at their trading terms and conditions, as well as see what their licensing is all about, and conclude, whether it is safe to trade with them or not.
RFXT is a broker established in 2006 under the regulatory control of Australia, Cyprus, and Lebanon. According to the broker, these countries’ financial bodies oversee its activities all around the world and make sure there’s no scam in their trading mechanisms. We’ll examine these claims later and see, whether they’re true or not.
As for the trading conditions, the RFXT Forex broker does offer some of the most competitive numbers on the market. The maximum leverage goes as high as 1:400, which promises large profit prospects.
The spreads vary from one account to another and start from 0.8 pips. The minimum deposit requirement also depends on what type of account you select and varies from $50 to $100,000. The broker also offers micro accounts for those, who really want to minimize financial risks associated with Forex trading. Those traders are able to make a minimum lot of just 10 cents.
The RFXT broker offers 5 different account types to its customers. This is a good opportunity for beginners to start trading without too many risks, as well as more experienced ones to make some serious profits. Whether these trading conditions are real or just another scam, we’ll find out down below.
The website is probably the most ambiguous aspect when it comes to assessing the broker. On the one hand, it contains every information at just a single click away from the visitor. Users can access any detail about the broker without making too much effort.
On the other hand, the interface is too complicated with visual effects and contrasty images. The color combination does also look amateurish and unprofessional, considering the broker was established so many years ago and should have gained enough experience.
Now, let’s head over to the licensing remarks and see, whether they’re the real deal or not.
Can RFXT be trusted with these regulation claims?
As we mentioned above, the RFXT broker claims to have been registered by the Australian Securities and Investment Commission (ASIC), as well as the Cyprus Securities and Exchange Commission (CySEC) and Banque De Liban (BDL). At first, the licenses provided from these bodies should be enough to dissolve any RFXT fraud suspicions that arose during the initial overview.
However, there’s more to it than meets the eye. Let’s review each country and determine if they’re actually capable of controlling the broker.
We all know that Australia is a developed country. Just this one sentence should be enough to persuade us, right? Not that fast. Even though it is considered among the richest countries, Australia still has one of the most liberal legislation when it comes to gambling and money trading.
Plus, it is located in the furthest part of the world with the world’s oceans around it. So, we suspect it’s probably going to be particularly difficult to oversee the financial activities of the company that operates worldwide.
As for Cyprus and Lebanon, things are much more obvious. These two small countries with no significant political prowess at their disposal cannot possibly control the RFXT broker and its trading ventures around the world.
What we suspect here, and other analysts might agree with us as well, is that these countries are used to fill the regulatory papers and cover up any RFXT scam suspicions that can undermine broker’s schemes.
One more thing to keep in mind is that the broker doesn’t mention whether it is allowed on US soil or not. Which brings us to conclude that RFXT doesn’t provide service to the US citizens. This further enforces our suspicions.
The RFXT trading terms and conditions
When it comes to trading terms conditions, you can find out a lot about the broker just by looking at them. At least, that’s what happens for the RFXT broker.
In the initial overview chapter, we mentioned that the broker offers some of the most competitive conditions on the market. On the one hand, this can be considered as a good profit-making opportunity. But, more often than not, it indicates that the broker uses these flashy numbers to overwhelm its customers and lure them in. Let’s review these offers one by one.
The maximum leverage goes as high as 1:400 and is the same for every trading account. This ensures that when you make a $50 deposit, the broker will make it $2,000 and let you trade with the greater amount. The profit received from this option is far greater than that of your initial $50. However, the reason why we’re so suspicious of this offer is the fact that the market average is far lower than this one: it sits somewhere around 1:250.
The same goes for the minimum deposit requirements. The broker requires its customers to deposit at least $50, which is less than the market average of $200. As for the spreads, 0.8 pips (for some accounts) is the only indicator that revolves around the average spread of 0.7 pips.
These indicators make us suspect the broker’s credibility. Just like we mentioned above, the tempting numbers and conditions are probably used to lure potential new customers and make them put as much money as possible. Or at least, that’s our RFXT opinion and we’ll be more than happy to be proven wrong.
The rfxt.com review
Now, let’s move to the most two-faceted parts of this review – the website. We said earlier that the website contains almost everything related to the broker. Besides, the composition of the interface makes it easy to access any information with just a single click.
The broker offers it’s customers a wide range of trading accounts that enable them to trade according to their level of expertise. There are 5 accounts: Classic, Premium, Edge, VIP, and Pro 100. All these have their own distinctive perks but the most fundamental trading aspects are the same across the board: the maximum leverage of 1:400; the RFXT MT4 and WebTrader trading platforms; and the ability to choose the micro-account.
The ease of access to the information, the variety of accounts, and the up-to-date trading platforms are probably the biggest upsides of RFXT. Other than that, we’re loaded with unnecessary interface features and design choices.
The website is full of unimportant visual and transition effects that, at first sight, might seem fun, but fundamentally are unnecessary. They divert visitors’ attention to the aspects that they’re not interested in.
In addition, saturated and contrasty images complicate the interface even more. They have literally no purpose other than making the website look fancy. This leaves us under the impression that even though it was established back in 2006, the broker didn’t really gain much experience when it comes to creating a sophisticated and simplistic website.
Overall, our RFXT rating revolves around 2/5.
All that glitters is not gold
In this review, we assessed yet another Forex broker – RFXT, that offers pretty lucrative trading terms and conditions.
The company was registered in 2006 under the licensing bodies such as CySEC, ASIC, and CMA. For some, it might seem persuasive but after a closer inspection, we revealed that these institutions cannot possibly control the financial activities of the company that operates all around the world.
We also reviewed the fancy trading conditions: leverage of 1:400, spreads from 0.8 pips, and minimum deposit requirement of $50. On the one hand, if the broker is the real deal, these offers can produce serious profits. But, on the other hand, the RFXT broker might be trying to tempt potential customers with these flashy numbers to involve them in some sort of a financial machination.
As for the website, it contains every bit of information about the broker that is also easy to access. The broker also offers a wide variety of trading accounts for all kinds of traders. Other than that, the interface looks complicated and filled with unnecessary visuals. Overall, it almost 50/50 when it comes to the website’s pros and cons.
To put our review in a nutshell, the broker doesn’t seem to be legit. To the contrary, with its over-the-top trading conditions, insignificant regulatory remarks, and overcomplicated website, we think that the RFXT Forex broker is conducting a fraudulent trading activity and you should definitely avoid making financial commitments to this broker.