FXGroup100 makes a number of bold assertions regarding the quality of its services. They assert that they are aware of everything necessary for your monetary success. However, any broker is free to make such assertions. You’ll discover out in my evaluation of the FXGroup100 whether or not you can put your faith in these assertions.
License & Requirements for the FXGroup100
AAA Global Ltd. is the corporation that FXGroup100 reports to as its parent. That business has its headquarters in the Marshall Islands, which is a territory that is considered to be offshore. It should come as no surprise that FXGroup100 is an unregistered and unregulated broker because offshore territories do not have financial regulators.
You should only engage in business with regulated brokers, as dealing with unauthorized brokers constitutes unlawful activity. Brokers who are regulated and licensed are required to adhere to the stringent rules and restrictions imposed by the organization that issues their license. This assures that regulated and licensed brokers will not act against their client’s best interests.
Even in the event that the broker turns out to be a fraudster, reputable authorities like CySEC and the FCA have insurance arrangements in place. For instance, a client of a broker that is regulated by CySEC may be eligible for insurance coverage of up to 20,000 Euros in the event that the broker disappears with the client’s assets.
These advantages are not available to you if you work with an unlicensed broker. As a result of this, I do not advocate conducting business with FXGroup100.
The website of this broker, which can be found at fxgroup100.com, is a very typical website. There is no distinctive user interface (UI) or features that would set this broker apart from others. Having said that, I did find something very odd.
This broker offers help for its live chat service in Russian:
Support from the FXGroup100
Consequently, despite the fact that their website is written in English, they only offer support to customers in Russian. It’s an odd contrast, to say the least.
FXGroup100 Trading Conditions
You may learn a lot about the reliability of a broker by looking at the trading conditions offered by that broker. Let’s find out whether or not the market conditions offered by this broker are favorable for you:
Trading Platform
FXGroup100 provides its customers with access to the MetaTrader 4 trading platform. It was one of the few positive things that stood out to me about this broker, and in my opinion, it was important.
Metatrader 4 has a very positive reputation in the industry because of its numerous features and benefits. This is the main reason why Metatrader is the most popular trading platform among forex brokers. With Metatrader, you wouldn’t need to worry about such stuff. MT4 lets you use various trading signals, VPS, and an auto trading option. It gives you a code base with custom scripts to simplify things further.
However, note that many shady brokers try to use the good reputation of MT4 to fool people into thinking they are a reliable option. I suspect FXGroup100 is doing the same with its clients.
As they don’t have a license to operate legally, I can’t recommend trading with them.
Minimum Deposit
FXGroup100 doesn’t provide any information about its minimum deposit requirements. It seemed very suspicious that they didn’t provide such a vital piece of information.
Regulated brokers focus on keeping things transparent with their clients to maintain trust. I believe FXGroup100 is trying to go after its users’ personal documents by hiding such vital information behind its ‘verification policy’.
Leverage and Spreads
The maximum leverage ratio with FXGroup100 is 1:500, which is too high by industry standards. You should be wary of such brokers.
If you’re a beginner in forex trading then you should stay away from high leverage ratios. Canadian and US financial regulators don’t allow their brokers to offer more than 1:50 leverage ratios to their clients. That’s because a high leverage ratio can wipe out all your deposited funds in an instant and put you in a lot of debt.
I wasn’t able to see their offered spreads because I couldn’t open a live account with these people. They ask for a lot of personal documents and I don’t believe one should share such sensitive information with an unreliable broker like FXGroup100.
FXGroup100 Payment Methods and Charges
Transaction Methods
Another piece of evidence that FXGroup100 is a shady and unreliable broker comes when you check its deposit options. According to their T&Cs, you can only add funds to your deposit account through credit cards.
However, when you’ll open an account with them, you’ll see that you can only use a BTC wallet (bitcoin wallet) to add funds to your trading account. With a BTC wallet, it would be very difficult for you to get a chargeback so it is another negative point.
Fees
This broker doesn’t give much information about its fees. In my opinion, it’s quite suspicious of them to hide any fee-related information. That’s because it allows them to charge you anything under the guise of ‘maintenance fee’ or ‘trading fees’. Shady brokers use hidden charges to drain their victims’ accounts of their funds. It seems to me that FXGroup100 is using that tactic as well.
Bonuses
Like most shady brokers, FXGroup100 offers plenty of bonuses to its clients. Note that legitimate brokers don’t offer trading bonuses.
Is FXGroup100 a Scam? Yes!
There are many kinds of scammers operating in the forex industry. Shady forex brokers tend to attract new users to their websites through promotional offers and ads. They focus on attracting inexperienced traders so they can deceive them easily.
Such brokers have unfair terms and conditions so when the person signs up on their site, they accept those conditions. These brokers then steal the funds their users deposit in their accounts through hidden fees and charges.
FXGroup100 Review: Conclusion
First, there are shady brokers like OctaFX. Then there are obvious scammers like FXGroup100. This broker doesn’t hold a proper license, uses shady bonuses to lure people, and has very limited payment options. You should stay away from such a shady broker.
I hope you found my FXGroup100 review useful. If you’ve had a bad experience with any forex broker, you can share your experience below.
