Though a relatively trusted broker in the beginning, it seems FXOpen have taken a turn for the worst. Starting in 2010 they have gradually taken some very bad decisions and lost a lot of their traders trust by means of some very shady tactics such as manipulation of trades, refusal of withdrawals, and closing or archiving trader’s accounts when they make a big profit. From the looks of it, they will do anything to prevent traders from actually seeing the results from their hard work and investments.
Regulated: Australian Securities and Investments Commission (ASIC): AFSL 412871 since 17.05.2010
Financial Conduct Authority (FCA): 579202
Minimum Deposit: $1
US Traders: No
Free Demo Account: Yes
Brand Companies: FXOpen Markets Limited (Nevis), FXOpen AU Pty LTD (Australia), FXOpen Ltd (England and Wales)
88 Phillip Street
Sydney, NSW 2000
+64-9-801-0123 (New Zealand) and a number of other contact phone numbers in their Contact Us page.
All in all, when put this way, they really do seem like a good broker, perhaps even trusted. The problem doesn’t stem from that though.
About FXOpen Scam Broker
The problem with this broker is when you look at their track record. Though initially they started off as a generally ok broker, they have taken that trust and thrown it all away a while back when they started conducting their business in a very unprofessional manner with their traders. First, let’s take a look at what they claim they offer and then we’ll look at what they’ve taken away.
The type of spreads available to traders depend entirely on the type of account they have opened. For better spreads, ECN accounts where the spreads are very competitive. The commissions also depend on the account type opened. With accounts greater than $1000 (or other currency units) charge a $2.5 per $100,000 (1 lot). All in all, very competitive transaction costs which makes them seem like a very reasonable choice.
There are 5 different types of accounts that you can fall under as a trader.
- ECN Trading Account – minim deposit of $100 – no dealing desk – all trading styles
- Crypto Trading Account – minimum deposit $10 – Crypto currency trading – low spreads and commission
- STP Trading Account – minimum deposit $10 – for novice traders – ECN trading benefits with lower minimum deposit
- Micro Trading Account – minimum deposit $1 – for novice traders –market maker execution – floating spreads
- CFD Trading Account – available for ECN account holders – low spreads – 1% margin requirement
They have made sure there is something suitable for each trader in order to fit their needs. They have obviously put in a lot of effort to please their traders in the beginning. Only, they forgot to match it with honest dealings and quality customer service that they obviously lack.
They use the MetaTrader 4 trading platform that allows manual and automated trading. If you have programming skills you can manipulate and make custom trading programs and chart indicators. The problem is that the overall platform is far from simple or easy to work with, and definitely not attractive. It is certainly not a great option for traders that are not experienced.
Also, they lack regulatory oversight, thus putting traders at risk. As mentioned above, they offer auto trading through Myfxbook and Zulutrade, which may seem like a good option if you have no experience with trading, but they are full of scammers, thus making it near impossible to actuallymake any real profits by means of their automated trading option.
Why is FX Open a Scam Broker?
Well, this is my conclusion at least and I don’t see myself ever investing with them. It seems they have started their relatively bad dealings as early as 2010 where many of the complaints begin. IN 2012 there was a case submitted inForex Peace Army by Kovacs Norbert claiming they have removed their profits from their trading account. Had this been a small sum it probably would have blown over, but here we are talking about a balance of upwards of $40K! Once the facts were laid out, the FXOpen broker was found guilty of all bad dealings.
From that point on the negative reviews have not died down. It has gotten gradually worse and worse. Complaints coming in from every direction. I have found that the complaints about this broker gradually get worse as the years pass and spread not just on the FPA website, but far beyond into forums and numerous reviews and discussions. From the looks of it, they have completely lost control.
They tried to start saving face in 2015 when they began replying to negative comments and reviews in several websites, claiming they are going to resolve their problems. It seems that they have finally realized that their bad dealings have reached their future potential traders and are trying to stay afloat. Unfortunately, with every reply to a complaint 5 more appear. Over the last couple of months they have gradually died down, but that does not necessarily mean they are getting any better. The complaints I am seeing during this time period are far worse and more serious.
Though there are many different issues people complain about, the main seems to be the fact that they tamper with their trading accounts and the moment they have reached a nice fat balance they want to withdraw something seems to happen with their account and they lose it all. They have a lot of loopholes in their terms and overall dealings that allow them to get away with robbing their traders. Other issues are slippage and general technical problems with their platform. Though in the past they seem to have been a decent broker, they have gradually turned into a scam you should avoid.
There may still be a chance to get back to being a descent broker if they put in a bit more effort and stop robbing their traders, but I highly doubt they can dig themselves out of the hole they have dug themselves into. I personally think that the FXOpen broker is a scam and there are plenty of other better options for investing your money.