Updated on February 20, 2024
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In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding RaxoFX due to the issues we've identified.
Is RaxoFX Scam or Legit Broker? ▲
RaxoFX has been flagged as a completely fraudulent company. This broker has chosen to register in an offshore location and lacks any form of reputable licensing from a recognized financial authority, making it an unsafe choice for traders. The absence of a trustable financial investment service from offshore brokers like RaxoFX signifies that entering into trading with them is based solely on the broker's promises, which is a precarious position for any trader. The lack of oversight by official Forex industry regulators means there's no safety net or guarantee for traders, exposing them to significant risk by trusting RaxoFX's word alone.
RaxoFX operates as a broker for Forex and CFDs under the ownership of Raxo Limited, an offshore entity registered with the FSA (Financial Services Authority) in St. Vincent and the Grenadines. However, their website lacks any concrete information regarding their registered address, only offering a contact number with a Cambodian country code and supporting the Indonesian language, indicating a target market in these regions. The glaring absence of regulation from any authoritative body starkly highlights RaxoFX's potential for fraudulent operations.
In conclusion, our advice to traders is to opt for brokers regulated in reputable jurisdictions like the UK or Australia, where their funds are secured. For instance, the Financial Conduct Authority in the UK mandates a EUR 125,000 capital requirement for the STP license, separate from client deposits. Moreover, clients of brokers under the FCA's regulation are safeguarded by the Financial Services Compensation Scheme, which covers up to GBP 50,000 per person in the event of the company's insolvency.
Our latest research reveals that the RaxoFX website is currently inaccessible, with no clear information available regarding the broker's operational status. Given the uncertainty and the inherent risks associated with offshore brokers, we strongly advise against engaging with such entities. The lack of stringent regulation and oversight makes these brokers highly unstable and unsafe for traders seeking reliable and regulated trading partners.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
RaxoFX Review 2024
