With the number of scams increasing with each passing day, sorting through the numerous online brokers offering their services has become a daunting task. Most people are left overwhelmed and confused when they begin searching and don’t know how to choose one from the thousands of companies that exist. Many appear to be very similar and it can be difficult to separate the scams from the genuine platforms. The good news is that identifying a scam broker is not that difficult and you can find this FxCityIndex helpful in this regard.
It shows that while scam brokers also make similar claims as legitimate ones, they cannot live up to them. Therefore, all you have to do is put in a little bit of time and effort and you will not have a problem in learning the truth. Most of the claims of these fraudulent platforms will fall apart and it will make it easier for you to make a decision. Just because you are in a hurry doesn’t mean that you should skip your due diligence because it can lead to disastrous consequences. FxCityIndex may appear to be a good choice at first glance, particularly with their claims of licensing and regulation.
However, it takes only a little bit of research for you to realize that FxCityIndex is all talk and there is no truth to what they are promising. Let’s take a look at their offerings to know more:
Licensing and Regulation
The first thing you need to look at when trying to evaluate a broker is their licensing and regulation because it will tell you just how legitimate they are. Companies have to go through a stringent process and meet numerous requirements before they are eligible for a license, so it automatically adds credibility. A look at the FxCityIndex website shows you that the brokerage claims to be licensed and not just in one jurisdiction, but in several.
This would undoubtedly be appealing, only if it were true. But, when you take a closer look at these claims, you would know that FxCityIndex is making false claims. First and foremost, it claims to be licensed in the United States by the Financial Services Authority (FSA). The licensing and regulatory authority in the US are the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). The brokerage hasn’t even got the name of the regulator right, so how can it be licensed?
Next, FxCityIndex also claims to be licensed in Malta, which is certainly not true because a warning has been issued against the broker by the Malta Financial Services Authority (MFSA). They have clarified that it is not licensed or authorized to operate in Malta and is making false claims. Furthermore, the last jurisdiction where the broker claims to be licensed is the United Kingdom and you can check the online register of the Financial Conduct Authority (FCA) and not find FxCityIndex mentioned anywhere. Most importantly, it is also in direct contradiction with several of the policies outlined by the regulator, which indicates that it is not licensed.
Terms and Conditions
It is also a must to go through the Terms and Conditions of a broker to determine if they are fair and transparent about their offerings. You wouldn’t want to sign up anywhere without knowing what kind of fees you would be charged and the policies you would have to comply with. It is a good idea to check these because doing so in the case of FxCityIndex further confirms that the company is not an authentic one.
The Terms and Conditions show that there are some the bonus offered by FxCityIndex is going to impact your ability to withdraw. The first thing to note is that bonuses are exploitative by nature because they have strings attached with them. Therefore, they were banned in a number of regulated jurisdictions, including the UK and Europe. This means that FxCityIndex should not be offering any bonuses at all.
Yet, it seems that bonuses are offered and what’s more is that they may also have some strings attached that will affect your ability to withdraw from their platform. Of course, FxCityIndex has not bothered to disclose what these conditions are, but this makes it obvious that you will not be permitted to withdraw your money for one reason or the other.
Checking what leverage is available is also a priority for brokers because it can give you some breathing room during the trading process. You will have ratios as high as 1:200 available at FxCityIndex and while it may seem like an advantage, you should note that such extreme levels of leverage are very risky. Moreover, regulated jurisdictions like the UK and the US have imposed a cap on the leverage brokers can offer, which is 1:30 and 1:50. This is further proof that FxCityIndex is not regulated in these jurisdictions because it is breaking their rules.
It is often required to make a minimum deposit to open an account with a broker and this is not surprising, but FxCityIndex is asking for a deposit of $500 and this might be a problem. Many brokers allow their clients to open accounts for as little as $10, while the average deposit is around $200 to $250. This makes it apparent that FxCityIndex is asking for twice more than what is standard and this is something scam brokers often do.
You also need to take a look at the payment methods that FxCityIndex offers and even though they have promised a variety of options, no details are provided. You shouldn’t open an account with a broker that does not accept credit cards like VISA and MasterCard, which are eligible for a chargeback, as you will not be able to get your funds back if there is a problem.
Keeping the outright false claims of regulation and the withdrawal and bonus policies applicable at FxCityIndex, it can be safely said that this is not an authentic broker at all.