Novatech Fx Review: Reasons You Should Not Trust This Broker
Novatech Fx certainly has a well-done website that gives us the feeling of a legitimate broker. For someone who is looking to start trading for the first time, it instills certain confidence through the website design. Once you start navigating the website, you will start seeing signs that something is not quite right.
Novatech Fx seems to be incorporated in St. Vincent and the Grenadines, but also claims that another country, the British Virgin Islands, holds legal precedent in case of any legal disputes.
This Terms and Conditions document also has some very dangerous clauses, such as the ability of Novatech Fx to cancel your account at any time for any reason. We will touch upon the implications of this later in our Novatech Fx Review.
If this wasn’t problematic enough, Novatech Fx doesn’t have any customer service contact on their website. Only an email address is given, and users can only open a ticket and wait for the agent’s response.
Suite 305, Griffith Corporate Center PO Box 1510
Beachmont Kingstown, Saint George, VC0120
License for Novatech Fx and Security of Funds
This broker claims to be incorporated as a Limited Liability Company in the country of St. Vincent and the Grenadines. We have checked the company registrar of the SVG’s main financial regulator, FSA. Novatech Fx does not appear in the FSA records, which means that the company is not registered.
SVG’s regulator, FSA, stopped regulating brokers in 2022, and the trading licenses issued by this regulator are no longer valid. This necessitated brokerages registered in SVG to obtain their trading license elsewhere.
One of the most prominent financial regulators in the world is CySEC from Cyprus. As Cyprus is a member nation of the EU, and they have very strict regulatory standards. Brokers in the EU must adhere to this legal framework:
- Necessary starting capital of €730,000 or more
- Compensation fund of €20,000
- Leverage is restricted to 1:30
- Segregated bank accounts required
- Negative balance protection required
- Bonuses are banned
- Full transaction transparency per EU MiFID
These important regulatory conditions mitigate the risks of volatile markets and protect the assets of both the client and the broker. These are all absent from Novatech Fx, which makes it unlikely that they have a trading license in any EU nation.
This broker allegedly defaults to the British Virgin Islands for any legal disputes. This is completely nonsensical, as laws between nations greatly differ. Just to be sure, we have checked the registry of BVA’s regulator, the FSA. There were no companies listed under the name of Novatech Fx.
Other regulators, such as German BaFIN, Canadian IIROC, FCA from the UK as well as NFA and CFTC from the USA also have no information on the company. This is solid enough proof that Novatech is an unregulated company.
Trading Platform Overview
This broker offers one of the best trading platforms, Metatrader5, to their clients. This excellent software is the industry standard in the online trading world. It incorporates interactive charts, expert advisors, strategy testers, and even automated trading solutions.
The problem with Novatech Fx is that they don’t provide access to the market through MT5. Only a demo version of the program is available to Novatech Fx users, you see. No matter how high the quality of the program is, it becomes useless if you have no means to access the trading market.
Options for Deposit/Withdrawal
Novatech Fx website does not contain any information about payment methods. The only way to find out which financial channels are available is through the account dashboard. Once you have gained access to your dashboard, you will see that the only funding method for Novatech Fx is cryptocurrency transfers.
When it comes to withdrawals, we couldn’t find any information whatsoever. The website doesn’t even contain the word “withdrawal” at all, not even in the Terms and Conditions! Terms and Conditions state that Novatech Fx can cancel your account at any time, so it’s clearly a very simple “take the money and run” kind of deal with these frauds.
Account Types Available
Novatech Fx doesn’t explicitly use the word “account”. Instead, they use weasel words like “membership level”, “investment plans” and “opportunities” as a way to manipulate their potential clients. Nevertheless, we needed to review them, so we did.
These are the account types, pardon, “membership levels” available:
- Customer: PAMM Trading, monthly subscription fees, can be upgraded to a business plan
- Affiliate: PAMM trading, monthly subscription fees, contains the business plan
- Trade-On-Your-Own: No subscription fees, MT5 platform
We can see how Novatech Fx preys on novices by offering them a way to earn passive income. These same novices are not aware of the devious nature of the site.
How the Scam Is Executed
Novatech Fx uses the appearance of a serious, well-established company to lure investors. Their legal framework is non-existent, as the company is not registered or regulated in any nation. The scammers that pull the ropes behind the curtain are smooth talkers that promise a world of opportunities to unwary clients.
Their accounts are subscriptions based and will charge recurrent fees to their investors. The trading platform they use is a demo only, which does not facilitate trade. There is no way to withdraw any currency from the account.
Novatech Fx Summary
Novatech Fx is an online investment scam. The company is not regulated by any regulatory agency. These smooth talkers will stop at nothing to coax some money from their victims.
When you look a bit deeper, you will find that there is no customer support or a functional trading platform. As far as we know, there is no way to withdraw any funds from this scam broker.
FAQs About Novatech Fx Broker
Is My Money Safe with Novatech Fx?
No, you risk losing your whole investment with this scam company!
Is Novatech Fx Regulated Broker?
No, Novatech FX is an unregulated entity.
What Is The Novatech Fx Minimum Deposit Amount?
The minimum deposit amount with Novatech Fx is $99.