Buyer Beware
Forex

ETFinance

Exposing the fallacious commitments of ETFinance

ETFinance is a popular brand, they have successfully marketed themselves. However, don’t be fooled by their grandiosity as there is a lot of dirt under the rug. In this ETFinance review, we go over some crucial cons and red flags which show the reality.

Let’s not waste any time and get started!

Limited Demo Account

A demo account helps in eradicating the fear of losing money among traders. The global traffic in trading is currently operating at the highest levels. A demo account rescues traders from the volatility of the markets. It helps to judge the best trades without the peril of losing money. With the use of a demo account, traders get access to global currency markets within a few minutes. A demo account used for Forex trading helps in getting access to the latest real-time Forex data. Just like training is important in a job, practicing on a demo account is mandatory. 

ETFinance claims to offer a demo account to its traders. The examination of the demo account of the broker leads to the fact that it is only available for 1 week. There is no way a person can learn the basic steps of how to execute a trade, how to use the trading tools, find the best trading tool, how to close a trade, or how to use the trading indicators in 7 days. A new trader requires a minimum of one month to understand the entire workings of the demo account. Weak judgment of trading tools, know how of the trading platform, and figuring out the best time to trade in a limited demo account are of no use to traders.

The provision of such a futile demo account is only to dupe traders. The quality and reliability of the demo account are below average.  The restricted simulated account of the broker fails to serve its basic purpose. 

My ETfinance.eu review establishes that the demo account is a scam of the broker which is used to fetch traders. A user can accrue any benefit only when the demo account gives the user synchronized trading conditions with full access to the trading tools and services. Sadly, there is no such provision with ETFinance.

High Loss Percentage 

ETFinance mentions on its website that 81% of traders lose their investment while trading with them. 

My ETFinance broker review warns traders to bear in mind that the broker earns in every case, irrespective of a profit or loss of traders. A trader’s earnings have no relation with the profits of the broker. 

Coming to ETFinance’s loss percentage suffered by traders, it is a very lofty percentage. I respect the volatility of the trading environment and the risk involved in trading but regulated brokers do not have loss percentages greater than 65% in usual cases. 

ETFinance must highlight this disclaimer on their website as the trading platform involves huge amounts of money. The clear verification of the disclaimer establishes its value more than the universal rule for all of the brokers. 

A revelation of such a high loss percentage by ETFinance makes it seem bad, that’s why it hides the same. I sincerely advise traders to stay away from such brokers that carry high loss percentages. It is a common euphoria of the human mind that we pay more attention to making money and are afraid to lose money. Fraudsters take advantage of this same attitude. You should perform detailed analysis of every term and condition of the broker to understand the quality of their services.

ETFinance & its Terrible Transaction Conditions:

Expensive Withdrawal Limit

The first shock to traders is the minimum withdrawal limit set by ETFinance which is as high as 50 Euros. Regulated brokers do not set any minimum withdrawal limit to encourage traders to deal with the broker. Setting a minimum withdrawal limit is a greedy move of the broker to withhold the funds of traders. There is no mention of other types of fee related to fund transfers. None of the other etfinance.eu reviews have highlighted this point.

Unfair Dormant Account Policy

The second most serious concern is the dormant account policy of ETFinance. The company starts charging the dormant account fees after inactivity of only 2 months. This limit is too early as most of the regulated brokers start charging the dormant fee after 6 months of inactivity. After completion of the 60 days, the broker charges 160 Euros. The broker charges 200 Euros after the completion of 6 months. The increase in charges continues up to 500 Euros after completion of 9 months of inactivity.

Hidden Charges:

The third trouble is that the company keeps its supremacy in rejecting any withdrawal requests by giving the reasons for lack of supporting documents of the lesser margin levels. It is beyond my understanding in my ETFinance review as no regulated broker has any right to hold the withdrawal request of a trader. The broker’s control over the end process of withdrawals of the profited amount uncovers the hidden greedy policies of the broker. 

The company also mentions that it can change the fee at any time. It does not bother to share the same or to provide a warning to traders before raising the fees. Due to this, you’d need to check the company website again and again. Traders have no other way but to pay the charges according to the will of the broker, which leads to the possibility of hidden charges. 

No EMIR Cover:

The fourth divulgence is the non-association of ETFinance traders with the European Market Infrastructure Regulation (EMIR) clearing policy. The regulation of the broker thus stands insignificant. The clearing policy of the European Market Infrastructure Regulation secures traders from unfair practices of the broker. ETFinance does not submit any notifications related to its clearing limits to the EMIR. 

My ETFinance review thus, once again warns traders to check the entire terms and conditions policy before investing money with traders.

Limited Payment Options:

The payment service providers of the broker do not include Skrill as mentioned on the website of the broker. The listed payment service providers are Truslty, WireCard, Inatec, SolidPay, Isignthis, Paydoo, and SolidPay only.

The absence of Skrill as a payment partner to ETFinance is an eye-opener for traders. Skrill works under an “anti-scam” policy. It does not work with unregulated offshore brokers to protect traders from their fraudulent policies.

The limited payment methods are a problem for traders. There is no provision of popular e-wallets like Neteller, Skrill, etc. Few methods to transfer funds create a concern for them as there are no alternatives available. Adding to the woes of the clients is the undisclosed fee associated with deposits and withdrawals. Then comes the problem of the command of the broker on the charges and payment approvals. 

It is another example of the biased and greedy policies of this broker. They try their best to hide the details but my ETFinance review successfully found the truth. It is not safe and profitable for you to deal with this broker.

Disappointing Trading Services of ETFinance

The next disappointment from ETFinance is the absence of the multitasking Meta Trader 5 (MT5) platform. 

Missing MT5

The broker claims to provide forex, CFDs, and commodities as trading tools to the customers. MT5 is an excellent all-in-one trading platform with secure and reliable services. The tough trading platform is a great pick for traders to ensure hassle-free trading. MT5 is the finest trading platform for trading tools like CFDs, futures, stocks, etc. Traders have the option to create scripts, in which a single click can execute trades. Thus, it decreases the time taken by traders to perform the same.

Instead of such an advanced solution, ETFinance provides its customers with the outdated MT4 platform which has become obsolete. 

Missing Social Trading

They don’t offer social trading to their customers. Social trading helps traders to share their ideas and experiences. It is a simple process of copying the trades of successful traders. A click of traders gives them easy access to the information and strategies related to successful trading around the globe. 

It helps new traders to learn about different trading platforms. Smart execution of social trading helps them in earning profits. ETFinance fails in this respect as well.

Missing Scalping

There is no facility for scalping provided to traders. They cannot enjoy the benefits of higher profits using scalping strategies. There is no need to wait for placing a strong trade as traders adopt the policy to execute multiple trades. It is the basic strategy of trading a currency pair and then grasping it for some time. This holding for the timeframe counts for the profit of the trader. The main source of profit of the scalping is the minute difference in the prices on any specific trading day. Thus, traders can continue to earn profits without worrying about market conditions.  ETFinance deceives traders as there is no such provision of scalping in the accounts of the broker.

ETFinance Trading Accounts

After getting a real-time check of the so-called demo account of the broker, the absence of PAMM accounts is a supplementary concern. It stands for Percentage Allocation Management Module. It is a simple concept of profit-making which is majorly used by professional traders. In the PAMM accounts, there is no need for trade execution by traders on the trading platforms. It is a basic notion of earning by investing the money in the accounts of other traders. The secondary trader who uses the funds of the PAMM account holder also gains by earning a percentage in the total profit realized by the funds of the parent trader. The skiving PAMM accounts are an indication of the non-suitability of the trading services of ETFinance to the professional traders.

The live trading accounts are of 3 types.

  1. Silver Account: It is the most basic account of ETFinance. There is no definition of the minimum initial deposit of this account. Mentioning services like the trading assets and customer support is a poor strategy of the company. It should be kept in mind that these are services of the trading platform, not the broker’s. A broker gives access to the trading assets to all traders. The provision of customer support is a must for all companies. The brokerage involves huge amounts of money involved in the day to day operations and good support to traders is essential. The leverage is set at 1:30. 
  2. Gold Account: The conditions are different for a retails account and for a professional account holder. Again, there are no details about the minimum initial deposit required to open a gold account with ETFinance. The provision of an account manager is not useful to professional traders and the webinars are impractical. They are suitable for new traders which do not have any knowledge about the basics of the trading accounts and the trading platform. They have mentioned these futile services in the gold account of the company just to show a long list of the services. These services do no good to their customers. It would’ve been better if the broker had only mentioned useful information related to the accounts.
  3. Platinum Account: The silence over the minimum initial deposit deepens with the third trading account of the broker. The broker mockingly mentions services like free VPS and new alerts as services to prospective clients. It is hard to understand the missing details even in the platinum account. All these are hints of the weak policies of the broker which only aim to lure traders. 

It is worth noting that ETFinance’s live trading accounts fail to serve the purpose of providing efficient trading services to traders. The difference in the services to the retail and the professional traders are an indicator of the promoted paid strategies of the broker. It is clear with the difference in the leverage ratio between the retail and the professional accounts. Most of the advantages of live trading accounts are actually the benefits of the trading platform. The trading tools are very limited as compared to the commitment of the broker.

Not So Beneficial “Professional” Tag

The trading with a tag of “professional trader” is not at all useful for traders. The leverage is competitive in the case of a professional account holder while low in the case of a retail account holder. This inculcates the feeling of getting transformed into the professional account holders of the broker. ETFinance review found something foul in this strategy of the company. There is no safety of the professional traders under the investor compensation fund. The professional trader enjoys the bigger advantages of trading but there is no provision of the basic fund’s compensation schemes to the professional traders. It is the next level low performing strategy of the broker which aims to collect money. The company does not care about the safety of the funds of traders.

After a long list of dejected services like a weak trading platform, limited demo account, and weak channels of funds transfer, the broker fails to convince traders with vague live trading accounts. The absence of a minimum deposit of each account is still questionable. This all accumulates to add to the gripe of traders. Again, my ETFinance review strongly advises traders to do a proper and thorough investigation before investing their funds. 

Online Presence of ETFinance

Let me start with the website analysis of the broker. The broker has two different websites. One website is https://www.etfinance.eu/

Another website of the broker is https://invest-in-bitcoin.lp-etfinance.eu/

It is still confusing that there are two identical websites of the broker. The website (https://invest-in-bitcoin.lp-etfinance.eu/) has no details about any of their services. Any click on the website leads to their registration page. Once a person completes this registration process, he/she will receive multiple calls from the company. The company’s representatives will try to convince them to invest funds and start trading with the company. 

The quality of the provided information is below average. Similarly, the duplicate websites are questionable and do not fulfill the essentials of a standard webpage. Their design is full of gaudy elements.

The social media accounts of the broker firm are lately updated and do not provide updates to traders.

The Facebook and Twitter pages of the broker flaunt the association of the broker with the Real Madrid basketball team so it can distract prospective clients. It is an official sponsorship, but it allows them to seem credible when they are not. 

There is a swarm of negative responses from traders. The broker does not answer those negative responses. Some traders complain of their weak withdrawal policies, while others have never received a response for their technical complaints. ETFinance fails to effectively use social media platforms. Self-praise is not the reason for online presence. The praise is automatically done by traders if the broker provides a reliable and secure trading environment to traders.

Terrible Customer Support

ETFinance does not offer round the clock technical customer support to its traders. There is a single contact number, and an email-id to help traders. An option of live chat is available but it requires filing a complete form (registration). The lethargic response of the live chat is useless to traders.

A strong, reliable, and efficient technical support should be present 24*7 for traders. There is a deepened silence on the regional linguistic technical support and dedicated email-ids for such support. Regulated brokers provide a detailed list of technical support numbers so that traders can readily contact the team in case of any emergency. The feeble technical support of ETFinance downcasts traders.

Missing Ownership Information

Magnum FX (Cyprus) Limited claims to be the owner of ETFinance. The claims of regulation are shady. ETFinance is a trading name of Magnum FX. It belongs to the weak region of Cyprus. The address of Magnum FX (Cyprus) Limited is at KPMG center 1, Agias Fylaxeos Street, 2nd Floor, Office 1, 3025 Limassol in Cyprus. The address of ETFinance is 79, Spyrou Kyprianou Avenue, 3076, Limassol in Cyprus. The ownership claim does not match with the different addresses of ETFinance and Magnum FX (Cyprus) Limited.

The Cyprus region is well-known to traders as a haven of fraudulent brokers. The weak jurisdiction of the region allows scammers to use their clients’ funds for the criminal activities going on in the region. The broker tries to evade taxes by staying in such weak regions. For example, the USA does not allow ETFinance to provide its services there. Strong regulatory authorities backed with an efficient judiciary does not allow the development of such fraudulent brokers. 

In addition to this, ETFinance does not provide any details about the team responsible for its operations. There is no outline of the professionals behind the brokerage firm.

ETFinance aren’t worth your time and money

ETFinance cannot score more than 0.5 stars in the 5-star rating scale. ETFinance fails on all basic parameters of being a good forex broker. They lack efficient live trading accounts, as well as supportive trading services like social trading, scalping, etc. The broker takes no step in improving its services despite numerous negative reviews of its past clients. My ETFinance review does not recommend this broker at all. You should focus on finding someone else. 

4 Total Score
REALLY BAD!

ETFinance doesn't have MT5, social trading or scalping. Their laughable customer support doesn't help either. It's best to avoid ETFinance and go for a more reliable broker.

Trust
3
Customer Support
4
Pricing
5
Reputation
4
CONS
  • Limited Demo A/c
  • High Loss Percentage
  • Unacceptable Transaction Conditions
  • No MT5
  • No Social Trading
  • No Scalping
  • Pathetic Customer Support
  • Questionable owners
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