EuropeFX is the operating name of Maxiflex Ltd – a CySEC registered forex and CFD broker. The former name of this company is Maxiflex Global Investments Corp Ltd. The firm has had trouble with both the ASIC and FCA. Due to their involvement in fake celebrity endorsements, they were no longer allowed to do business in Australia and the UK.
What does EuropeFX Do?
EuropeFX offers a variety of investments and financial assets. They give users access to stocks, cryptocurrencies, and commodities. They also operate as a broker for forex and CFDs. In certain markets, their regulation is very poor. Clients can invest using MetaTrader 4 on their computers or mobile device.
What is EuropeFX’s Reputation as a Broker?
Several warning signs are showing that caution should be taken before investing with EuropeFX.The ASIC has an ongoing investigation into EuropeFX, along with asset restraint orders limiting their investment actions. There are a number of online reviews from clients who have invested with EuropeFX – many of these reviews state that clients have had difficulty understanding their investments with EuropeFX.
On June 4th, 2020, the FCA issued an alert stating that EuropeFX will no longer have permission to engage in regulated investment activities with citizens of the UK.
These actions came just days after the blocking of UK passporting rights for several other Cypriot firms, including ET Finance. Like EuropeFX, the firm is now unable to offer investments to the UK. ET Finance also received a partial suspensionfrom CySEC. Both firms engaged in similar fake endorsement advertising.
EuropeFX Practices That Merit a Second Look
In an attempt to comply with regulatory requirements for trading CFDs, EuropeFX has placed a risk disclaimer in an obscure part of their terms and conditions. This appears to be as they’re following the rules. However, they still hide the fact that 83% of their investor accounts lost money while trading CFDs.
They also seem to pressure users into making the largest possible deposit into their system by offering different account types. Their premium account requires a deposit of €50,000. The higher account types included access to a “forex specialist,” who some client reviews have said will constantly pressure users to make as many trades as possible.
Always Be Careful Choosing a Broker
EuropeFX offers incredibly high leverage of 200:1. Most regulating bodies allow firms to offer no more than 30:1. This means that clients could lose significant amounts of money on investments they don’t fully understand. CFDs and forex are complicated investments, and it’s hard to tell if a broker is reliable or not. EuropeFX is a registered broker.
However, their difficulties with the FCA are a good reason to look into them carefully before investing. If you’ve lost money investing in CFDs or forex, please let us know, and we may be able to help you recover some or all of those funds.