If you have come to this Foxane review, it means that you are shopping for a broker to start trading online. There is no doubt that these markets are brimming with opportunities to make money and many people have made their fortunes here. But, it is also a well-known fact that the broker you partner with can have a significant impact on how you fare in the long run. Hence, it is not a decision to be made lightly, especially considering the number of scam brokers that are currently operating in the market. The number of these fraudulent platforms is increasing because they can find hundreds of victims easily.
The question is how people fall for their tricks when they know of their existence. The simple answer is that these fraudulent platforms have gotten very good at drawing people. They deliberately add such offerings that many people find hard to resist and mimic legitimate brokerages, so it can be almost impossible to tell them apart at first glance. Therefore, you shouldn’t make your decision based on first impression at all. Instead, you have to take some time and vet a platform thoroughly before you trust them with your money, or your personal information.
This is how they will exploit you, so it is best to do your research and make a wise decision. It means taking everything the broker says with a grain of salt and following up on their claims. Only when you have ascertained that their offering are legitimate should you open an account with them. When you do the same with Foxane, one of the forex and CFD brokers in the market, you will come to know just how deep these scams go. There are a number of red flags associated with Foxane and these become apparent when you check their offerings carefully. Let’s find out exactly what are their issues:
Lack of licensing
If you make an effort to find a common theme amongst scam brokers, you will realize that every single of them was operating without a license and were not regulated anywhere. Obviously, this is how they were able to get away with what they were doing and people had nowhere to turn to for getting back their lost funds. Thus, the first thing to do is avoid unlicensed and unregulated platforms and you will find that Foxane belongs to this very same category.
A quick check of their website shows that the broker is owned and operated by a company named Foxane LTD and it claims to be based in Saint Vincent and the Grenadines. Registration in this jurisdiction is absolutely worthless because the country has a reputation for being a haven for scammers. After all, their laws state that forex markets are now regulated in any capacity, which means anyone can set up a company and offer their services and not have to answer to anyone. What else does a scam broker need?
Most of the brokers based in St. Vincent and the Grenadines just go under in a couple of months, after taking their clients’ deposits. This indicates that Foxane is not one to be trusted at any cost.
Unfair Terms and Conditions
People are required to agree to certain Terms and Conditions before they sign up with a brokerage. These are meant to dictate the relationship they will have in the long-term, which means the fees you will pay, the conditions you will be provided and other policies of the company are disclosed here. Doing your homework means checking them out in order to ensure that you know what you are getting into. When you check Foxane’s Terms and Conditions, you will find a ton of problems with the company.
Check their clause for payment charges and you will notice that Foxane is very vague about the fees you will be required to pay during the course of trading. According to them, you have to pay the fee mentioned on the website, but a full search of the website doesn’t disclose any fee schedule at all. To top it off, they have even threatened their clients with legal action if they do not comply with their fee. This kind of open clause will give the broker the freedom to charge you with as much as they want and you will not be able to do anything about it.
Another problematic clause is that 10% of the deposited amount with Foxane will incur additional terms and conditions. However, these haven’t been explained by the broker either and they also have conditions associated with the trading bonuses they offer, but they haven’t elaborated those either. It should also be noted that the practice of offering trading bonuses is also banned in most jurisdictions due to which most legitimate brokers do not offer them anymore.
High minimum deposit
The fact that a broker asks you to make a minimum deposit for opening an account is not an issue. But, Foxane asking for a minimum deposit of $1,000 is certainly a big problem. This is because it is considered very excessive, since most platforms out there are now letting their clients open micro accounts for as little as $10. Even if they ask for a higher deposit, it is not more than $250, which means the minimum deposit asked by Foxane is 4 times more than the average. This is definitely not a good sign because scam brokers would want to take as much as possible, which they seem to be doing.
Absence of MetaTrader platforms
The trading platform is a major component of your trading experience and you want to have access to the best. But, Foxane fails in this regard as well because they are offering a web-based platform that doesn’t have much to offer and is very basic in terms of features and services. There is no MetaTrader platform available, which is the undisputed market leader.
Viewing the number of problems that Foxane has, it is apparent that it is not a reliable broker for anyone at all.