Finarix Review is Is Finarix.com Scam Or Legit Read Before Investing!

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Finarix Review – 5 things you should know about finarix.com

Beware! Finarix is an offshore broker! Your investment may be at risk.

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

Finarix is a unregulated, offshore broker based on the Marshall Islands, but operated from Bulgaria.

The broker claims to be offering the classic MetaTrader4 platform, but we were unable to find where to download the platform on their website. Instead there is a web based platform, offered with a leverage of 100:1 and several account types.

Trading instruments include 29 forex pairs with several exotic currencies like South African Rand, Turkish Lira, Russian Ruble and Norwegian Krone, as well as a number of crypto CFDs on coins like Bitcoin, Dash, Ethereum, Ethereum Classic, Golem, Litecoin, Monero, Ripple and Zcash. Other CFDs include contracts on oil, natural gas, silver, gold, coffee, copper, sugar and wheat.

Spreads are advertised to start at 1,8 pips, but we can not comment on that as we were not able to open a demo account. Still, trading conditions put aside, we have some serious concerns about the regulatory status of the broker, so if you are thinking about trading with them be sure to read this review first.

Finarix regulation & safety of funds

Finarix is owned by Zolarex Ltd – a Marshall Islands registered company, but all payments are processed by Zola Ltd, which is based in Sofia Bulgaria. Besides, the same Bulgarian company operated a binary options broker – BinaryOnline, which became notorious after many complaints about people being scammed.

In any case Finarix does not have a license to offer financial services and is not authorized to operate on regulated markets like the European Union, the USA, Japan or Australia.

Have in mind that trusting your funds with a unregulated broker has always been extremely risky as most such entities are involved in scam.

Trading with a properly regulated broker on the other hand is safe, because the regulatory regimes of official financial authorities such as the Australian Securities and Investments Commission (ASIC) , the Financial Conduct Authority (FCA) in the UK or the Cyprus Securities and Exchange Commission (CySEC) impose strict rules and mechanism of supervision.

Regulated brokers for example are required to provide traders with a negative balance protection, to keep their money in a segregated account, to file regular reports, to allow external audits, to maintain a certain minimum operational capital and with some regulators even to insure traders money.

Thus for example, if you trade with a FCA broker you will not have to worry about the first 50 000 GBP in you account, even if your broker files for bankruptcy. Similarly the insurance with a CySEC broker covers up to 20 000 EUR of your capital.

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Finarix deposit/withdrawal methods and fees

The options to pay at Finarix range form a bank wire transfer to credit cards like VISA and MasterCard and iDeal – an e-wallet used predominantly in the Netherlands.

We do not see the option to pay with Skrill and that is significant, because recently the payment company adopted some new anti scam rules, according which all brokers using Skrill are required to prove they hold a legit license. As we already noted Finarix does not have a license at all.

And while the minimum deposit requirement is 250 USD, which is more or less in line with what most brokers would ask you for a standard account, Finarix has some rather unusual withdraw conditions and fees, which you should be aware of.

For example there is a withdraw fee and processing fee, as well as a 10% withdraw tariff, which is charged on the withdraw amount requested in case you have not traded your deposit 200 times. That, we should note, is highly unusual.

And also, if you accept a trading bonus, which by the way is offered with all account types, you will not be able to withdraw until you trade your bonus at least 90 times.

Besides, in case your trading account is “connected to third party algorithmic trading providers” and you have accepted a bonus, you will have to trade 1000 lots or 100 million USD for every 3000 USD bonus, before you will be allowed to request a withdraw. Needless to say, that is almost an impossible trade volume requirement.

And finally, if your account is under investigation – an investigation can be opened under any pretext and with the brokers sole discretion – your funds will be blocked and you will be allowed to request to withdraw just 10% of your withdrawable capital per month.

How does the scam work?

Certainly there are lots of scam scenarios going on around and yet here is what usually happens to careless investors, who do not check the background of the broker they deposit their money with. You may happen to stumble upon one of the so called robo – scam websites like Crypto Revolt and Bitcoin Evolution, where you will be presented with “a once – of – a – life – time” offer for fast, easy and “completely risk free” returns in exchange of a modest investment. But actually all you will be asked in the beginning will be your e-mail and address.

So if you do fill the registration form, the robo scam website will transfer you to the web page of a unregulated, offshore, scam broke, where you will be asked for some money – probably 250 USD as an initial deposit.

After you open your trading account you will surely get lots of trading signals and probably even a call from a “market adviser”. In any case your trades will go pretty well and soon the money in your account will nearly double. That, however, will be just a part of the scam – the idea is, that if you believe you are making money with such a pace, you will surely be convinced to invest a larger amount.

That is when you will receive another call as well. This time it will be a “senior account manager”, who will basically explain, that if you want to make some real cash, you will definitely have to invest more – at least 10 000 USD for a start. And besides, most people do not realize they have been scammed until the very moment they request to withdraw some of their funds.

Than it will suddenly turn out this is not possible, because of some minimum trade volume requirement, linked to the welcoming bonus you have so gladly accepted in the first place. The pretext to cancel your withdraw request might be whatever, but in the end it will all come to the same – you will not be allowed to withdraw a single dime.

What to do if scammed?

Do not waste a minute but immediately file for a charge back with your credit card company, as this is the only viable way to get your deposit back. Besides, the good news here is that recently both VISA and MasterCard extended the period in which you will be allowed to file for a charge back to 540 days – precisely to reduce the risk of online scam.

And if by any chance you have given away to the scammers your personal online banking details like your credit card number or online banking password, be sure to immediately change the password and block your credit card.

And one final note – do not accept the offers of the so called recovery agencies. They will not recover you any money, but will simply collect an upfront payment and basically that will be the end of the story.

Finarix review – is it scam or safe?

Trading Accounts and Conditions

Account type Min. deposit Leverage Spread
Takeoff $250 1:200 N/A
Standard $2 500 N/A N/A
Premium $10 000 N/A N/A

Finarix seems like a broker that allows you to trade in forex, binary options and covers various asset classes. It offers the account types listed above, however, the trading conditions are not all that clear. Yet, our main concern with Finarix is that it is not regulated and could be involved in scam. Read on to get all the details.

Finarix Advantages

A lot of assets covered (allegedly), high profits promised

According to the information on its website, Finarix offers trading in more than 200 assets, including currencies, stocks, indices and commodities, and promises profits up to 85% with a single click. Unfortunately, we could not verify these claims, as we could not open an account with this broker.

Leverage up to 1:200

The maximum leverage offered by this broker is quite solid, reaching 1:200. Such ratio will suit most trading styles and yet is not dangerously high.

However, keep in mind that leverage levels that high are not suitable for each investor. Make sure you perfectly understand how margin trading works before you use high leverage levels..

Finarix Disadvantages

Not regulated, blacklisted by the FCA

The website of Finarix features the names of two companies: Zolarex Ltd., registered on the Marshall Islands, Zola Ltd., operating out of Bulgaria. Forex and binary options brokers on theses offshore islands are not subjected to any licensing, nor oversight. As regards the Bulgarian entity, it is not regulated by the local Financial Supervision Commission, nor by any other EU regulator, as required by law.

Besides, we found out that the FCA has blacklisted Binaryonline, a binary options broker associated with both aforementioned companies. It seems that Binaryonline has swindled a lot of investors out of their money. Many clients of the broker have complained about it in comments below our review and some even warn that “Binaryonline.com is now Finarix.com and still operating unregulated and scamming people”.

All companies providing financial services in Europe, have to be licensed by a legit financial regulator. As regards binary options, they have been banned on a EU level, so any company that offers that type of services in Europe, does so illegally.

Trading conditions not fully disclosed, no demo

As we mentioned in the beginning, the offer of Finarix is utterly unclear. The broker only promises some percentages of returns, and has not specified any spreads, or payouts for the different account types it offers. On top of that, Finarix does not offer demo accounts either, and it is not clear what platform the broker uses. It mentions some simple web-based trading interface, though, so obviously MT4 or MT5 are not available.

Unfavorable withdrawal fees & conditions

According on the Finarix’s terms and conditions, withdrawals may take up to 21 business days, and are subject to “telephonic approval”. The usual practice of unregulated brokers like Finarix actually involves calls from company’s representatives that try to talk investors into depositing more in order or instead of withdrawing any money. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back.

On top of that, in case Finarix allows any withdrawals, the fees are quite salty:

Furthermore, the broker states that it charges 10% on each withdrawal, if the account holder has not reached a turnover of more than 200. Such high withdrawal fees only further incline us to suspect that Finarix is a scam.

Conclusion

Finarix is a financial services provider that most likely runs some sort of investment scam. The website of the broker does not disclose essential trading conditions, testing service is not available either. What is worse, Finarix is not licensed, and the companies behind it have been blacklisted by the UK’s FCA.

Let’s sum up the positive and negative sides of Finarix in a few words:

Pros Cons
Many tradeable assets Not regulated, FCA warning
Solid leverage Trading conditions not fully disclosed, no demo
Unfavorable withdrawal fees and conditions
Broker Advantages

FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.

XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.

FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.

FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.

FBS is a broker with cool marketing and promotions. It runs an loyalty program, offers a $100 no-deposit bonus for all new clients outside EU willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.

FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.

HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage – one of the highest in the industry.

Finarix

Broker Name: Finarix
Platform(s): FX, CFD, Crypto
Founded: 2020
Bonus: Up to 75%
Spreads: High
Leverage: 1:100
Regulated: No
Demo Account: Yes
Minimum Deposit: 250
US Traders: Not Accepted

Finarix Review

Finarix is an offshore, unregulated FX and CFD broker owned and operated by Zolarex Limited, with a listed address at Marshall Islands. Payment processing services across Europe are provided by Global Prime Management EOOD, located in Sofia, Bulgaria. This entity is not regulated either.

Editor’s Note: Why Finarix Sucks In 50 Words

The spreads are one of the highest I’ve seen. They are so high that I had to look twice because I thought I was missing something: 18 pips for EUR/USD, 40 pips for GBP/JPY and 140 for NZD/JPY. ThatSucks! BIG TIME! Also to keep in mind, these are floating so they can change if volatility increases. As a side note, the industry average spread for EUR/USD is around ONE pip.

Why Finarix Doesn’t Suck In 50 Words

They have a pretty well-groomed website, with accessible information and an acceptable trading platform. However, that’s about it because they lack major positives like regulation, a long time in business and a good reputation.

Is Finarix A Scam?

This is a very new broker (or rather just a new trading name), launched in early 2020, it has no regulation and according to our research it is a facelift or rebranding of BinaryOnline, which was a binary options broker with a very bad reputation for failed withdrawals and high-pressure tactics. That being said, we cannot classify Finarix as a scam because we must give them the benefit of the doubt: maybe they are trying to turn the page and become a well-respected broker. Time will tell if this is the case but in the meantime, remember that you are dealing with an unregulated, offshore broker.

Should I Open An Account With Finarix?

Launched in early 2020, this broker offers FX and CFD on stocks, indices, commodities and Cryptocurrencies on a simple, web-based platform and with very unclear trading conditions. According to their homepage, you can get “up to 85% profit with one single click”, which is puzzling at best and stupid at worst. What is this? Binary Options? Because last I checked, FX and CFD don’t have use this model for profit calculation. But then again, considering they are a simple rebranding of BinaryOnline, which was a broker focused exclusively on binaries, it’s easy to see why they still show “up to 85%” on their website. It also shows a lack of interest.

Accounts start at $250 (“Takeoff”), which is average for the industry but I consider it too high, especially since we are dealing with an unregulated broker. The next account is the Standard, which starts at $2,500, followed by the Premium, with a minimum requirement of $10,000. There’s also an Elite account but to open one of those, you will have to contact their representatives. The main difference between these account types is the Bonus you receive, which is 25% for the Takeoff account and goes up to 75% for the Premium. Other than that, you will get a personal advisor and some trading signals, which is definitely not enough to justify the very high deposit requirements.

Overall Finarix looks like BinaryOnline with a new skin and I don’t see enough evidence of them trying to become a better broker. The trading conditions are unclear, the fees are high (not to mention the spreads) and they lack any form of regulation. So, unless you plan a trip to the Marshall Islands to get your money back, we suggest you stay away from this broker.

The broker can be contacted at phone +35924964405 and email [email protected]

Finarix Complaints

Although the broker is new (under this name), there are quite a handful of complaints online about failed or delayed withdrawals and high-pressure marketing tactics. Many people are already aware that BinaryOnline is now Finarix and are warning others in their comments.

Finarix Regulatory Warnings And Announcements

Although we couldn’t locate any warnings against Finarix, you must be aware that the British FCA has warned about BinaryOnline in the past.

Finarix Bonus

The bonus offered by this broker ranges from 25% for the Takeoff account ($250 min deposit) to 75% for the Premium account ($10,000 min deposit). The required turnover is “at least” 90 times the bonus, which is huge. Be aware that other terms and conditions apply so make sure you read them in full before accepting a Finarix bonus.

Finarix Withdrawals

The processing time is 3 business days and an additional 7 days may pass until the funds reach the clients’ accounts. Minimums are $100 for debit/credit cards and e-wallets, while the lowest wire transfer is $500. The exact e-wallets are not specified and the fees are… interesting to say the least: debit/credit cards incur a fee of $25 and a Processing Fee of $10. So, in other words, you pay a double fee, which brings the total fee to $35, which equals 35% of the minimum allowed withdrawal. HUGE!

Finarix Extras

This broker thinks that FX/CFD trading is a simple “tool”, which really shows the lack of understanding when it comes to even the most basic stuff. Also, I cannot help but mention the 18 pip spread for major pairs, which is definitely an extra.

Finarix Overall Ratings

User Friendliness 12/20

The website is only available in English, the information is often times conflicting (for example their FAQ talks about MT4 and demo accounts but Live Chat said they don’t have these features). The platform is simplistic, demo accounts and mobile apps are not available. US traders are not accepted.

Range Of Markets, Spreads And Leverage 11/20

The asset index is composed of currencies, indices, commodities, stocks and quite a handful of cryptocurrencies but the spreads for most of these trading instruments are huge, as mentioned before. Actually, some of the listed spreads appear to be a mistake: BTC/USD lists a spread of 85000 but they don’t specify if those are satoshis, dollars or pennies. Well, either way, the spreads are very high. Leverage goes up to 1:100 for most asset types and 1:25 for cryptocurrencies.

Fees And Support 13/20

There’s no fee to open an account but there are some hefty fees for withdrawals: $50 for wire transfers, $25 for e-wallets and $25 for cards. An additional fee of $10 will be added for card withdrawal. Support was relatively fast to answer but they gave me information that contradicted what was written in their FAQ section.

Deposits And Withdrawals 12/20

The methods for deposit are credit/debit cards, some unspecified e-wallet and wire transfers. However, to use the latter option you will have to contact one of their representatives to get a special form with all the banking information. Processing takes 4 to 5 business days according to their Banking section but just 3 rows below they say you can “fund your account in minutes”, so I don’t know which one is it.

Withdrawals can be made via the same methods but they don’t really go into detail about the procedure. Minimums are $100 for cards and e-wallets and $500 for wires. The processing time is 3 days followed by an additional 5 to 7 business days for the money to reach you.

Finarix Extras 9/20

Huge spreads, conflicting information and paying a fee to a fee… I’d say that’s pretty extra but unfortunately not the good kind.

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