The online forex and CFD broker FXVC is part of a complex structure of parent companies and affiliated brokers. While there aren’t any warnings or past fines against FXVC itself, the group in its entirety has had numerous issues. The broker maintains licenses with both CySEC and ASIC, allowing it to operate within Australia, Cyprus, and the wider European Economic Area. Our FXVC covers the complex history of regulatory violations this broker’s parent company has had and the FXVC’s mediocre offerings as a broker, in general.
Today there are two operating companies behind FXVC. Together, they cover the broker’s operations out of Cyprus and Australia. The Cypriot branch of their services falls under Finteractive Ltd. However, until late 2020 Finteractive Ltd went by Centralspot Trading Ltd. Despite the recent name change, the broker has spent most of its time since its 2013 founding as Centralspot Trading Ltd. In Australia, the operating company is Intelligent Financial Markets Ltd.
Operating Company Trouble With CySEC
During the company’s time as Centralspot Trading Ltd, they developed a substantial reputation. The company received its initial CySEC license in 2014. In 2019, a series of events led to the broker temporarily losing their CySEC license. The regulator released a statement on November 8th, 2019, stating that they suspected the broker of non-compliance with securities laws. Furthermore, the statement included a suspension of the company and its brokers. This temporary suspension was for 15 days, during which the company would have to take corrective actions.
For the purpose of ensuring the protection of the broker’s clients, the CySEC suspension placed strict limits on FXVC’s operations. During the suspension, the broker was unable to provide any investment services, initiate new business relationships, or take on new clients. Furthermore, the broker was unable to advertise itself as a provider of investment services throughout the suspension.
FXVC Trading Continues
Despite their possible violations, the company was able to meet the terms set by CySEC to reinstate their license. On November 18th, 2019, CySEC issued a statement recalling the company’s suspension. Since the broker had seemingly met all terms, CySEC stated that they were satisfied and could end the suspension. The terms met by the company included meeting the standards on capital ratio and handling of funds. After that, CySEC restored the full privileges of the company’s license.
It might seem that a temporary suspension, of which the company satisfactorily met the terms for reinstatement, wouldn’t tarnish the reputation of Centralspot Trading Ltd so badly as to require a name change. However, this isn’t their first run-in with CySEC. On December 15th, 2017, the financial regulator put out a statement. In further detail, this statement imposed an administrative fine of €50,000 on the company. The specific reasons for the fine were a lack of supervision or reasonable steps to prevent unjustified deterioration in operational risk when assigning tasks to third parties. In other words, the broker did not properly vet third-party service providers for the risks they could bring to clients. In addition, they sent out advertising materials that were potentially misleading, unclear, and imprecise.
FXVC’s Family of Brokers
Despite the parent company name change and Australian co-operation obscuring the whole structure of the organization, our FXVC review found another broker under the same company as FXVC, Opteck. This broker has been in operation for years, initially selling binary options before they became widely illegal. They shifted towards CFDs and forex as financial regulators began banning binary options. While the broker no longer offers blatantly illegal products, there are still numerous warnings from financial regulators worldwide to stay away from the broker.
Belgium’s FSMA maintains a list of unauthorized investment firms they believe to be offering financial services within their country. In 2016, they added Opteck to this list. The regulator stated that the broker has no authorization to provide financial services of any kind within Belgium. Furthermore, they warned that many brokers of this type operate boiler-room type scams and should never be traded with. A further warning comes from the Canadian Securities Administration, specifically naming Opteck as an “unregistered trading platform currently soliciting Canadians.”
The most recent warning comes from the Financial Markets Authority of New Zealand. In April 2017, the regulator released their warning about Centralspot Trading Ltd, operating as Opteck. They stated that the broker has no authorization to operate within the country while citing the previously mentioned warnings from other financial regulators.
What’s more surprising is a 2015 warning from ASIC, the financial regulator with which the broker holds a license through their Australian operating company Intelligent Financial Markets Ltd. It is only FXVC that holds this license, not Opteck, which is purely under CySEC. As a result, the Australian regulator has issued a statement saying that Opteck has no Australian authorization and cannot provide financial services within the country. Companies with overly complex organizational hierarchies can run into strange situations like this.
The situation is further muddied by Intelligent Financial Market Ltd’s second broker, Intelligent Financial Global Markets, or IFGM. While this broker doesn’t have any of the issues that Opteck has, the way that the organization spreads itself across so many brokers and operating companies is generally a warning sign.
What Former Clients Are Saying
During this FXVC review, we carefully combed through the reputation that this broker has online. The complex structure of their company makes finding reliable information difficult. The name change of the operating company is still recent enough to have little effect on finding information. However, the spread of services over multiple sister brokers can make it hard to gauge the overall suitability of the organization.
Across the board, FXVC and the other brokers in its family receive generally negative feedback from past clients. As is the case with many other brokers, the primary complaint is about withdrawals. Some of the past clients of the broker say that withdrawing their money from the broker is excessively difficult and sometimes even impossible. Although these complaints are the bulk of the negative commentaries from clients, there are a few other FXVC complaints that likely don’t drive as many people to leave a review every time they happen. Clients state that the company is difficult to reach, with long hold times and a clear understaffing of the phone lines. In addition, the representatives are said to be overly aggressive and pushy when it comes to soliciting further withdrawals from existing clients.
Account Types and What They Offer
The broker breaks their accounts into five levels, Bronze, Silver, Gold, Platinum, and VIP. Starting with a Bronze account requires a minimum deposit of $2,500. This is many times what most similar CySEC or ASIC regulated brokers require. Some go as low as $100, but $250 is typical. Anyone investing that amount of money as the minimum would expect a much better reputation from their broker than what this broker can provide. What’s more, is that $2,500 is just the minimum for the most basic FXVC account. Accessing higher accounts takes even more, with the VIP account requiring a whopping $100,000. Surely, anyone investing that amount of money would do so elsewhere.
The broker doesn’t really make it clear why anyone would be interested in the more expensive accounts. They don’t advertise better spreads or higher leverage, the two most common selling points, except for the VIP account, which literally advertises with the words “Lower Spreads” and no further information. Accounts above basic will have access to a dedicated client relationship manager. The former client reviews online spoke at length about these representatives, stating that they are overly aggressive. Gold and onwards include SMS research alerts. Since the trader is putting down over $10,000 at that point, they should expect more than receiving a text with investment advice.
Selection of Available Assets
Our FXVC review found that the broker has a unique selection of available assets. Their forex currency pair selection was decent, but their CFD selection really stood out. They offer CFDs on stocks, indices, commodities, cryptocurrencies, and more, like many other brokers. However, many of their CFD options are rare among brokers, with a variety of BRIC company stocks that most other brokers do not carry. There are also some uncommon indices and more.
FXVC Trading – Unique But Mediocre Trading Platform
Traders familiar with MetaTrader 4 will be disappointed with this broker, as FXVC does not offer a popular platform to its clients. Instead, they have what they call the FXVC WebTrader platform. This is a browser platform that is severely lacking in terms of features. Compared to MetaTrader 4, the platform is completely barebones with none of the comprehensive market analysis tools that traders need to succeed. There are a few technical indicators and charting tools included in the platform, but they aren’t much when put up against MetaTrader 4’s extensive library of tools.
Anyone who still wants to give them a try can set up a free demo account to take a closer look at the platform. Because the demo accounts are funded only with virtual demo dollars, traders can evaluate the broker’s offerings without any risk to themselves.
Excessive Fees Across the Board
Right off the bat, this broker has the type of fees expected from a broker with much lower minimum deposit requirements. They have a monthly maintenance fee of $20. Regardless of what you do with your account, you will face a charge of $20 per month for maintenance. In addition to this, they charge an inactivity fee of $79 per month after just one month of inactivity.
Every withdrawal, no matter what method the trader employs, incurs a withdrawal of 1%. While this might seem bad enough, there is also a minimum of $35 on the withdrawal fee, so anyone withdrawing less than $3,500 has to pay $35 anyway. There is a minimum withdrawal amount of $25, and traders can process their withdrawals through credit or debit cards, wire transfers, PayPal, or other online payment processors.
Similar to many other mid-range registered brokers, FXVC offers an economic calendar to keep clients up to date on all the happenings in the finance world. The calendar has a lot of economic indicators, showing upcoming events and the expected outcomes. It’s a great way for traders to keep an eye on anything that might affect their investments. However, traders will find the actual information within the calendar the same as at most other brokers, as the information for these economic calendars is almost always farmed out from a third-party organization.
Furthermore, the broker offers a variety of educational assets. These include their WebTV videos on a variety of markets, their trading glossary for new traders, and their market analysis articles and blogs on their website. The content here isn’t particularly in-depth. However, there is a lot of information for novice traders.
FXVC Review Summary
This FXVC review has found a broker with no offerings to offset their shockingly high minimum deposit requirements. They have a decent selection of assets, but that can be found elsewhere on much better terms. What’s more, distressing is their history of temporary suspensions and fines from CySEC. The operating company even changed its name recently, possibly to distance itself from these issues. This strategy might be working, as some warnings only carry the company’s old name.
Initiate Your Chargeback Proceedings Today
Companies can go to great lengths to obscure negative information about themselves online. Examples include complicating the structure of the company and changing its name. This leads to many traders signing up without realizing the dangers. If you’ve lost your deposit trading with a broker that you thought you could trust, you could be at risk. However, it’s not too late. Contact us today to speak with our knowledgeable representatives about your case. You could be eligible to implement a chargeback and recover your lost funds.
Where Is FXVC Registered?
The broker maintains two separate licenses with CySEC and ASIC, splitting Cypriot and Australian operations between two separate companies.
Is FXVC's Suspension Still In Effect?
No, CySEC has rescinded the suspension against their parent company after their terms and conditions were met.
Is FXVC'Minimum Deposit Comparable to Other Brokers?
No, their minimum deposit is many times higher than the $250 that most CySEC and ASIC brokers require.