EagleFX is a Forex brokerage registered in the Commonwealth of Dominica and offering trades on currency pairs, company shares, cryptocurrencies and etc.
Our initial EagleFX review has shown that the company is indeed a scam as the Commonwealth of Dominica does not regulate Forex brokerages, therefore they’re classified as an unlicensed offshore brokerage, and any company that has that classification is most definitely fraudulent.
We offer our insight into the company’s trading conditions, legal issues and general features that customers can expect.
EagleFX review shows the company is an offshore unlicensed broker
As already mentioned, EagleFX is a company located in the Commonwealth of Dominica, which has clearly stated that they do not govern, regulate or license any Forex brokerages operating from the country, therefore they can’t guarantee any type of safety for traders who opt for these companies.
The only thing the Commonwealth of Dominica does with FX companies allows them to register, because why wouldn’t they. It’s also a prerequisite that the company agrees not to cater to the local population.
Even on the website of the broker itself, the word license is never mentioned, which is at least some kind of a plus as they don’t lie about their legitimacy. All they say is that they are registered in the Commonwealth of Dominica, which is at least some points for the transparency.
Other issues we found about the broker’s legitimacy was their claims of catering to the United States customer base, which is quite a rarity in the FX market as it is. In order for a company to provide services to US customers, they need to hold a CFTC license and comply with all the regulatory laws within the country, not to mention the huge capital they have to have registered in a bank account to even qualify as a legitimate company.
Considering the fact that EagleFX scam is located in the Commonwealth of Dominica, it’s safe to say that they do not have any credentials what-so-ever to cater to the US population and therefore fall under the illegal companies classification with major red flags everywhere. Should the CFTC find out about their activities, the company could face fines numbering in the millions of USD.
But other than issues with its legal documentation, we need to look at the company’s trading conditions to give this EagleFX review at least some flair and showcase the company from both perspectives. Would they actually be a good brokerage if they had a legitimate license? Let’s find that out.
EalgeFX scam conditions or normal conditions?
In terms of trading conditions EagleFX comes across as an average brokerage, maybe some of the conditions are slightly above average, but that’s what we always expect from scammers. There can be no scam company that offers terrible trading conditions such as wide spreads and low leverage and expect to have a large influx of traders every single day.
With EagleFX, they excel at only three parts of their trading conditions and those are leverage, deposits, and methods for payment. Let’s look into them with more details attached as they’re quite important.
The maximum leverage available on currency pairs with the broker is 1:500. Had we not already identified EagleFX scam we’d actually rank this as an amazing deal when compared to what’s available on most of the European Forex market. However, the issue that brings this deal down is the presence of both spreads and commissions.
There was no definitive information about the spreads though, it only said that it is floating, while the commissions start at $6 per traded lot. It may sound quite a lot but combining them with the spreads could lead to very serious losses on otherwise profitable trades.
One thing that could be ranked as positive was the conditions of EagleFX withdrawals and deposits. The minimum requirement for funding the account is $10, but it seems that there is only one account type available, which is quite disappointing as diversity is key here.
When it comes to methods of funding that account traders get exactly three payment options. These are Credit/Debit cards, Bitcoin payments, and Wire transfer. There is a minimum requirement on withdrawals though, but it’s an inconsequential $10 amount. Another good news is that there are no fees attached here.
Overall, this segment of the Forex broker is quite nice and makes us wish other brokers had it as well, it’s a shame that only scammers tend to use it.
The trading software
Normally we would be ecstatic to find out that a brokerage has more than two software options, but seeing that one of them is a Webtrader belonging to a confirmed scammer, brings us even more evidence to speculate about. The EagleFX scam would become much easier if they could privately tweak some of the back-end code of their own Webtrader platform. With MT4, their second option, it’s impossible as it belongs to an autonomous company.
Should you trust EagleFX?
Overall, you should have already guessed that we simply cannot recommend EagleFX as a reliable brokerage. It’s quite obvious that the company is a complete scam due to lack of regulatory licenses, service offerings to a region which is virtually inaccessible and of course, the issues with the commissions and spreads despite high leverage and low minimum deposits.
We do not recommend you register with EagleFX, stay away from this broker!