FX Premium Review – Is fx-premium.com scam or good forex broker?
FX Premium touts itself as a forex and CFD broker, accredited by a variety of reputable financial agencies. These institutions include BaFin in Germany, the Financial Conduct Authority (FCA) in the United Kingdom, and the Cyprus Securities and Exchange Commission (CySEC).
All of that turned out to be a fraud, as it was revealed that FX PREMIUM had really stolen the identity of a legitimate broker in an effort to lure unsuspecting clients into their investment scheme. In the following review, you will find more details regarding the con that was perpetrated.
Account for Beginners
Min. deposit: $500
Advantages of FX PREMIUM: In most cases, we begin our evaluations by discussing all of the positive aspects that a broker may possibly offer. In the case of FX PREMIUM, we are unable to say anything positive about the website because it is obviously a fraud. As we have mentioned previously, the company is attempting to deceive traders by pretending to be a legitimate broker.
FX PREMIUM Advantages:
Website that is a clone of that of a legitimate broker
FX PREMIUM makes a fraudulent claim that it is regulated by a number of trustworthy financial institutions, including the Financial Conduct Authority (FCA) in the United Kingdom, the Cyprus Securities and Exchange Commission (CySEC), and the Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin in Germany.
No license
The complete absence of responsibility for the method in which unregulated brokers manage your money is the primary issue that affects all of these types of brokers. When this is taken into consideration, it should not come as a surprise that a large number of unregulated brokers are actually participating in fraudulent activity.
On the other hand, due to the stringent supervision they are subjected to, all brokers who hold legitimate licenses issued by official financial regulators such as the Financial Conduct Authority (FCA) in the United Kingdom, the Cyprus Securities and Exchange Commission (CySEC), or the Australian Securities and Investments Commission (ASIC) are reliable.
All licensed brokers are required to submit regular reports, to allow external audits, to maintain at all times a certain minimum operational capital – 730,000 EUR in the EU and 1,000,000 AUD in Australia – to keep all traders’ funds in a segregated form their own, trust account, and to maintain at all times a certain minimum operational capital. In some cases, licensed brokers are even required to insure their clients’ money.
In this way, for instance, if you are trading with a broker that is licensed by the FCA, your account will be insured for up to 85,000 British Pounds, which would be paid out in the event that your broker declares bankruptcy. You can also check out our list of brokers that are regulated by the FCA here:
Trading platform for binary options
We get the impression from the presentation on the FX PREMIUM website that the broker is offering forex and CFD trade with over 1000 instruments in a variety of asset classes. These instruments include over 60 forex pairs, precious metals, indices, stocks, commodities, bonds, ETFs, and even crypto coins. And all of it with the option to trade using either the MetaTrader4 or the MetaTrader5 platforms.
When we signed up for an account and started a demo account, however, we discovered that FX PREMIUM truly offers binary options on a subpar web-based trading platform. This was a surprise to us. And this did not come as much of a surprise to us because, as we had previously mentioned, FX PREMIUM is a clone website that is most likely running a fraud.
Bear in mind, as well, that commencing in the month of July 2018, the trading of any and all binary options was made illegal across the entirety of the European Union.
MetaTrader4 not supported
Unfortunately, and as we previously mentioned, FX PREMIUM does not support the MetaTrader4 platform. The most widely used trading platform is known as MT4, which boasts a high degree of dependability, an intuitive user interface, and a variety of sophisticated charting capabilities. In addition to this, MT4 comes equipped with approximately one hundred market indicators and trading robots that are very customizable and will be of great assistance to you in running automated trading sessions. You are welcome to look through this list of brokers that support the MetaTrader4 platform:
High minimum deposit requirement
The minimum investment that is required by FX PREMIUM is at least 500 USD, which is twice as much as the minimum investment that is required by the majority of other brokers. In addition, you will be able to register a trading account with as little as five dollars or even less with some of the industry’s major players, such as FBS and IG.
10% withdraw fee
According to the Terms and Conditions that are detailed on the FX PREMIUM website, “The Client agrees to pay 10% of whatever amount he or she will withdraw at any point in time as commission fees to the broker company.” Keep in mind that the vast majority of reputable brokers do not impose any fees at all on withdrawals.
It has been determined that the website known as FX PREMIUM is a copycat website that most likely runs a scam. Before putting any money into a broker’s account, you should always follow our standard recommendation, which is to trade only with brokers that are fully regulated and to perform a comprehensive verification of the broker’s legitimacy (including checking the necessary regulatory registers).
