Why Finarix Sucks In 50 Words
The spreads are one of the highest I’ve seen. They are so high that I had to look twice because I thought I was missing something: 18 pips for EUR/USD, 40 pips for GBP/JPY and 140 for NZD/JPY. ThatSucks! BIG TIME! Also to keep in mind, these are floating so they can change if volatility increases. As a side note, the industry average spread for EUR/USD is around ONE pip.
Why Finarix Doesn’t Suck In 50 Words
They have a pretty well-groomed website, with accessible information and an acceptable trading platform. However, that’s about it because they lack major positives like regulation, a long time in business and a good reputation.
Is Finarix A Scam?
This is a very new broker (or rather just a new trading name), launched in early 2019, it has no regulation and according to our research it is a facelift or rebranding of BinaryOnline, which was a binary options broker with a very bad reputation for failed withdrawals and high-pressure tactics. That being said, we cannot classify Finarix as a scam because we must give them the benefit of the doubt: maybe they are trying to turn the page and become a well-respected broker. Time will tell if this is the case but in the meantime, remember that you are dealing with an unregulated, offshore broker.
Should I Open An Account With Finarix?
Finarix is an offshore, unregulated FX and CFD broker owned and operated by Zolarex Limited, with a listed address at Marshall Islands. Payment processing services across Europe are provided by Global Prime Management EOOD, located in Sofia, Bulgaria. This entity is not regulated either.
Launched in early 2019, this broker offers FX and CFD on stocks, indices, commodities, and Cryptocurrencies on a simple, web-based platform and with very unclear trading conditions. According to their homepage, you can get “up to 85% profit with one single click”, which is puzzling at best and stupid at worst. What is this? Binary Options? Because last I checked, FX and CFD don’t have used this model for profit calculation. But then again, considering they are a simple rebranding of BinaryOnline, which was a broker focused exclusively on binaries, it’s easy to see why they still show “up to 85%” on their website. It also shows a lack of interest.
Accounts start at $250 (“Takeoff”), which is average for the industry but I consider it too high, especially since we are dealing with an unregulated broker. The next account is the Standard, which starts at $2,500, followed by the Premium, with a minimum requirement of $10,000. There’s also an Elite account but to open one of those, you will have to contact their representatives. The main difference between these account types is the Bonus you receive, which is 25% for the Takeoff account and goes up to 75% for the Premium. Other than that, you will get a personal advisor and some trading signals, which is definitely not enough to justify the very high deposit requirements.
Overall Finarix looks like BinaryOnline with a new skin and I don’t see enough evidence of them trying to become a better broker. The trading conditions are unclear, the fees are high (not to mention the spreads) and they lack any form of regulation. So, unless you plan a trip to the Marshall Islands to get your money back, we suggest you stay away from this broker.
The broker can be contacted at phone at +35924964405 and email [email protected]
Although the broker is new (under this name), there are quite a handful of complaints online about failed or delayed withdrawals and high-pressure marketing tactics. Many people are already aware that BinaryOnline is now Finarix and are warning others in their comments.
Finarix Regulatory Warnings And Announcements
Although we couldn’t locate any warnings against Finarix, you must be aware that the British FCA has warned about BinaryOnline in the past.
The bonus offered by this broker ranges from 25% for the Takeoff account ($250 min deposit) to 75% for the Premium account ($10,000 min deposit). The required turnover is “at least” 90 times the bonus, which is huge. Be aware that other terms and conditions apply so make sure you read them in full before accepting a Finarix bonus.
The processing time is 3 business days and an additional 7 days may pass until the funds reach the clients’ accounts. Minimums are $100 for debit/credit cards and e-wallets, while the lowest wire transfer is $500. The exact e-wallets are not specified and the fees are… interesting to say the least: debit/credit cards incur a fee of $25 and a Processing Fee of $10. So, in other words, you pay a double fee, which brings the total fee to $35, which equals 35% of the minimum allowed withdrawal. HUGE!
This broker thinks that FX/CFD trading is a simple “tool”, which really shows the lack of understanding when it comes to even the most basic stuff. Also, I cannot help but mention the 18 pip spread for major pairs, which is definitely an extra.
Finarix Overall Ratings
User Friendliness 12/20
The website is only available in English, the information is oftentimes conflicting (for example their FAQ talks about MT4 and demo accounts but Live Chat said they don’t have these features). The platform is simplistic, demo accounts and mobile apps are not available. US traders are not accepted.
Range Of Markets, Spreads And Leverage 11/20
The asset index is composed of currencies, indices, commodities, stocks, and quite a handful of cryptocurrencies but the spreads for most of these trading instruments are huge, as mentioned before. Actually, some of the listed spreads appear to be a mistake: BTC/USD lists a spread of 85000 but they don’t specify if those are satoshis, dollars, or pennies. Well, either way, the spreads are very high. Leverage goes up to 1:100 for most asset types and 1:25 for cryptocurrencies.
Fees And Support 13/20
There’s no fee to open an account but there are some hefty fees for withdrawals: $50 for wire transfers, $25 for e-wallets, and $25 for cards. An additional fee of $10 will be added for card withdrawal. Support was relatively fast to answer but they gave me information that contradicted what was written in their FAQ section.
Deposits And Withdrawals 12/20
The methods for deposit are credit/debit cards, some unspecified e-wallet, and wire transfers. However, to use the latter option you will have to contact one of their representatives to get a special form with all the banking information. Processing takes 4 to 5 business days according to their Banking section but just 3 rows below they say you can “fund your account in minutes”, so I don’t know which one is it.
Withdrawals can be made via the same methods but they don’t really go into detail about the procedure. Minimums are $100 for cards and e-wallets and $500 for wires. The processing time is 3 days followed by an additional 5 to 7 business days for the money to reach you.
Finarix Extras 9/20
Huge spreads, conflicting information, and paying a fee to a fee… I’d say that’s pretty extra but unfortunately not the good kind.