Fake Claims and Infamy Reputation
IronFX is the trading name of Notesco Limited. It is based out of Bermuda. It is registered in Bermuda but is not regulated by any reputed regulating body of the region itself. The terms of business excerpt states the same.
Registration means that the company has submitted all of the documents about its existence as a business conducting organization. While a regulation for broker companies means that it will be working under the supervision of the regulating authority for providing brokerage services to the traders from the same area. For example, if a company is regulated by the UK’s Financial Service Authority (FCA), it is considered regulated for the traders from the UK only while for the traders from the USA, it will be considered as an offshore broker company only.
IronFX is an offshore broker operating from Bermuda. While the company mentions that it is regulated under various respectful regulatory bodies, it is missing in the terms of business of the company. The terms of business clearly mention that the governing laws are the Laws of Bermuda only and it is not regulated under the Bermuda market.
The Company Dissolved in Cyprus
In my IronFX review, I have tried to search the details of the company and have found several astonishing facts. The Department of Registrar of Companies and Official Receiver, under the Republic of Cyprus, Ministry of Commerce, Industry, and Tourism declare the status of the IronFX as dissolved.
A Red Flag by British Columbia Securities Commission
The British Columbia Securities Commission (BCSC) is based out of British Columbia (Canada). It is headquartered in Vancouver and is responsible for the securities legislation and administration. The BCSC has already notified the citizens of British Columbia that IronFX has no jurisdiction to do trade with the BC citizens and the traders from the region must not get involved with the company.
Illicit Extracting of Traders from China
The Chinese Government in the year 2018 caught the IronFX representatives for their fraudulent dealings in China. The persons were presented for a criminal trial in Shanghai Pudong District Court. In the meantime, a Chinese journalist has already run an undercover operation against the IronFX. As if now, no traders from China are neither interested nor allowed to do any proceedings with IronFX. The news came about the swamping of the regional office with the Chinese traders. The reason for the same is believed to be the complaints of the customers in withdrawing money from their trading accounts. It has been 6 months to a year that the Chinese traders are not able to get their money back from the company.
The Fine Settlement with Cyprus Securities and Exchange Commission
Notesco Limited claims to be regulated by CYSEC. Cyprus Securities and Exchange Commission (CySEC) imposed a fine of 2,000 Euro as IronFX failed to submit the yearly audited financial statements to the authority. This fine has been imposed after CySEC has issued a first warning to the company regarding a delay in abiding by the compliances. The CySEC is the Cyprus based financial regulation agency.
The Notesco Financial Services Limited has been registered as a limited EEA Authorized by the UK FCA but it is with a different address and different name.
Things would have been easy to judge for any trader, had the company mentioned the regulating details clearly in its terms of business.
Trading Services and Accounts
The company is dealing with Forex, CFDs, indices, futures, metals, and shares. The various types of live floating accounts provided by the company are as under.
- Micro Account: The minimum initial deposit for the micro account is set to $100. It is higher than the competitors’ minimum deposit which is as low as $50. The leverage is flexible up to 1:1000. While there are no specific services provided by the company, the trading conditions are not clear.
- Premium Account: The minimum investment limit of the premium account is 10 times higher than its predecessor. It is set to a whopping $1,000. It is noteworthy that nothing more in the name of services as given in the micro account is provided to the trader.
- VIP Account: Another 10 times rise in the minimum deposit will land you in the VIP account of the company. The spread is cited to start from 1.4 pips and leverage remains the same.
- Zero Fixed Account: Do you need an account with a spread as low as 0 Pips? Sadly, this is not as it is committed to being. The spread is committed to being 0 pips but it goes up to 3 pips. While the minimum deposit is set as high as $500, leverage is reduced to 1:500.
The various types of ECN/STP accounts provided by the company are as mentioned below.
- No Commission Account
- Zero Spread Account
- Absolute Zero Account
The minimum deposit for all of the accounts is set to $500, which is almost 5 times higher than the competitor’s ECN/STP model. Leverage also, remains the same as 1:200 but is subjected to change according to the kind of trading one does. The only difference is in the spread which is 0.3 pips for absolute zero, 1.7 pips for no commission account.
So, a total of 7 accounts are provided by the company. A demo account with unrealistic trading conditions is also available. While the floating accounts are set at high minimum deposit accounts, the leverage does not go as expected. In the STP/SCN model, there is only the difference in spreads, which basically can’t be considered as different accounts. The traders face slow execution of trades while dealing with the company accounts.
The use of MetaTrader4 as the trading platform came as no surprise to us. Powered by analytical tools, it is free of cost trading platforms. The electronic trading platform designed by the MetaQuotes Software Corporation is the most complete trading platform available in the broker industry. It is best of analyzing the market and auto trading using its trading signals. For IronFX, traders gripe about the random freezing of the platform, thus resulting in losses to the traders.
Money Swindling by IronFX
The terms of the business policy claim that the commission charged by the company is liable to be changed at any time without any notification to the account or the trader.
The company provides bonuses and promotions under three different categories. The 100% sharing bonus scheme will not be valid unless you deposit a minimum of $500 in your trading account. The 20% iron bonus scheme is limited to an amount of $2,000 only. The 40%power bonus scheme is limited to a deposit of $4,000 only. It looks more like a profit-making scheme than any bonus to the customer. Noted herewith is that the customer can not withdraw the bonus money. The sole purpose of this money is to promote aggressive trading.
The deposit and withdrawal conditions are not specified by the company. Neither there is any mention of the withdrawal fees or the deposit fees. It deepens the fact of the undisclosed fee charged by the company.
The time taken by the company for withdrawal requests starts from a month and ends with a wait of up to 6 months. The support team, when contacted, always gives the same reason for high trading traffic to the traders. Also, the quality of advice is highly unprofessional.
Social media accounts of the company are tiredly updated. There is a rush of promotional offers and no watchful information is provided over the social media accounts. The company has failed to extract the potential of social media and kept it as a low affair dull task only.
IronFX is not allowed to extend services to traders from the USA, Cuba, Syria, Sudan and North Korea. Dribbling information, high response time, counterproductive classification of accounts, spreads going above average, and absence of integrated cryptocurrencies, make it a substandard trading acquaintance.
So, all in all, my IronFX review doesn’t recommend their services in any case. You should look for some other forex broker.
Numerous regulatory authorities have taken action against this broker, it is clearly not a reliable choice for a trader. You should stay away from IronFX.
- Fined by CySEC for shady practices
- Unspecified Payment Conditions
- Excessive Deposit Requirements