EagleFx Review: The Truth About EagleFx.Com Brokerage
EagleFx has a very well-made website, with a pleasing, dark aesthetic. The website in question is quite comprehensive, albeit somewhat difficult to navigate. There is no account comparison page, for instance, and you will be hard-pressed to find which trading instruments this broker is offering.
There are mentions of a free demo account, and that the trading aspect of this broker is compatible with the MT4 framework. This is not completely true, as you will see later in our EagleFx Review. The site does not mention any licenses, only that the parent company, EagleFX LTD is based in Dominica.
This is not true either, but there is one very important truth that is not disclosed on the site: the Canadian OSC has issued a scam warning about this broker being a fraud. You may view the warning by OSC by following this link:
|Address||Commonwealth of Dominica|
Is EagleFx Legit? Regulation and Safety of Funds
EagleFX LTD falsely claims to operate their business, EagleFx, from the Commonwealth of Dominica. Dominica does regulate online brokers, but their regulatory body, FSU, lacks the resources to enforce strict regulatory standards. This does not worry EagleFx – they are not even registered in Dominica, let alone authorized to trade in Dominica or anywhere else for that matter.
In order to more easily illustrate the dangers of unregulated brokers, we can show you which safety standards you’re missing out on when dealing with one. Let’s take for instance a regulatory body from France, called the AMF.
Companies authorized by AMF must provide these safeties:
- The initial capital of 730 000€ or more
- Compensation fund of 20 000€
- Leverage maxed out at 1:30
- Bonuses are forbidden
- Segregated bank accounts to separate client and company funds
- Negative balance protection for client accounts
- Regular and transparent financial reports, in accordance with EU MiFID
It is not easy to offer a service within these constrictions. EagleFx is offering leverage up to 1:500, which is many times greater than what the AMF would allow.
When we checked with other regulators, namely FCA, BaFIN, CONSOB, CBR, and ASIC, we found no entries, just like with FSU. Then we moved to Canada and checked the OSC register, and found a scam warning instead of a license!
EagleFx Trading Platform Overview
EagleFx offers two trading platforms for their investors. One is a Web Trader, and the other is MT4. We should remember that many other scam brokers like Quanta Trade exclusively use Web Trader to manipulate the trading data more easily, and EagleFx is no different in this regard. Frauds will use this to their advantage, and make the client lose their investment rapidly.
The MT4 is an industry-standard secure trading program that has many embedded features. It supports trading signals, and expert advisors to name a few.
With EagleFx, we couldn’t create a live trading account with MT4, since the broker requires us to deposit funds before account creation. This is a dangerous practice that coaxes you into investing before you have a full grasp of the market conditions.
Account Types Offered at EagleFx
With EagleFX, there is no information on account types besides the widely advertised demo. Of course, an addition of a demo account is a welcome one, but something sinister is going on behind the curtains.
We suspect that this is a scamming strategy. We already mentioned how this broker does not allow users to create a live trading account unless they have already deposited some money.
It is quite possible that there are no live accounts at all, and that this whole scam is based on the 1st deposit. We have managed to dig up the minimum investment amount at least, which is a somewhat modest $50.
EagleFx Funding Method
This broker does not offer any secure funding method to their clients. The supported deposit channels include cryptocurrency payments and bank wire transfers. These methods both lack an easy chargeback, which is what the scammers like another one we reviewed, TopTrade500 capitalize on. A client may opt to choose Bitcoin, USD, GBP or EUR as a base currency.
When we access the trading dashboard, we can see that the Bank Wire transfer for payouts is not an available option. The base currencies for a withdrawal are, again, Bitcoin, USD, GBP, and EUR, but the payout is only available through Crypto wallets.
The website does not contain a legal document that would outline withdrawal conditions, which is another shady part of EagleFx’s business model.
How is Fraud Orchestrated?
EagleFx uses some very common strategies to defraud its victims. Their only concern is how to squeeze as much money from their victim as possible. Many of the trading platform functions are locked before you make an initial investment. The demo account doesn’t cover the entire scope of the trading possibilities.
Deposits are only done in Crypto and Bank Wire transfers, and the EagleFx platform is doctored to show false trading results. Withdrawals can only be done in Crypto, and assets are held in so-called “cold” storages to make them difficult to access.
EagleFx tries to use big words and a high-quality website to attract its customers. With a demo account and a mention of MT4, some people are sure to be fooled. When you examine everything about this broker with some scrutiny, you will find out that they don’t even have a company registration, let alone a license.
The only deposit methods are those that are difficult to charge back – Crypto and Bank Wires. Withdrawals are not even outlined in Terms and Conditions, so the scammers can invent a myriad of reasons to block a withdrawal request.
FAQs About EagleFx Broker
What Can I Trade with an EagleFx Broker?
In theory, EagleFx allows trading Forex, Cryptocurrencies, Indices, Commodities, Stocks, and Futures.
What are the Available Methods of Withdrawal?
The only withdrawal method with EagleFx is through Crypto wallets.
Is EagleFx Broker Regulated?
EagleFx is an unregulated offshore broker with false credentials.