EnviFX is an offshore broker with an impressive website. Navigating the website and setting up an account was easy as a breeze until the broker started asking for a phone number for verification.
I didnít think giving them my contact number would be a smart idea because they didnít seem very trustworthy. Also, you shouldnít give your contact number so easily to such brokers too. You never know who might turn out to be a scam.
In my EnviFX review, I have covered all the aspects of this broker to help you figure out whether you can trust this broker or not:†
EnviFX License and Regulation
The website of EnviFX seemed great until I stumbled upon this:
When a broker puts all the regulatory responsibility on the user (who doesnít pick regulation), it usually indicates that the broker doesnít have a license.
In the clause above, the broker is simply saying that itís your responsibility to avoid trading with them if they are not allowed to offer services in your area. This is a complicated way of saying that the broker doesnít have a license.
Furthermore, the Terms and Conditions of the broker claim that the agreement falls under the laws of St. Vincent and the Grenadines, an offshore region.
Offshore regions donít have any financial regulators, making it easier for shady brokers to register and start their enterprise there. Thatís why I donít recommend trading with an offshore broker like EnviFX.
Itís obvious by now that EnviFX is an unregulated and unlicensed broker. Trading with them would be very dangerous for your funds and data.
You should only trade with regulated brokers. Regulated and licensed brokers have to follow the strict rules and regulations of their license provider which ensures that they wonít act against your interests. Reputed regulators such as CySEC and FCA even have insurance provisions in case the broker turns out to be a fraudster. For example, a CySEC-regulated brokerís client can get up to 20,000 EUR as insurance compensation if the broker runs away with their funds.
You wonít get such benefits with an unregulated broker. Thatís why I donít recommend doing business with EnviFX.
EnviFX doesnít have a license to offer its services as a forex broker. You should avoid trading with them. Unlicensed brokers can steal your funds or data and itís not worth the risk.†
EnviFX Trading Conditions
The trading conditions of a broker can tell you a lot of things about its trustworthiness. Letís see if the trading conditions of this broker are good for you or not:
In my opinion, the best trading platforms are Metatrader 4 and MetaTrader 5. Metatrader has a very positive reputation in the industry because of its numerous features and benefits. This is the main reason why Metatrader is the most popular trading platform among forex brokers.
EnviFX offers you the popular MetaTrader 4 platform, which makes it quite an attractive brokerage. However, many shady brokers use the excellent reputation of MetaTrader 4 to seem reliable. And itís clear that EnviFX is using the same strategy here.
The broker doesnít give any information on its minimum deposit requirements. This is quite suspicious because reliable brokers keep this information available to all.
Transparency is quite a vital quality of reliable brokers. But EnviFX prefers to keep such crucial information hidden.
Itís possible that their minimum deposit requirement is too high by industry standards and thatís why they have kept it hidden from users.
Suspicious brokers tend to keep their minimum deposit requirements high so they can get a hold of as much funds as possible. Regulated brokers keep their minimum deposit requirements very low to let you test out their service-quality. On the other hand, shady brokers keep high deposit requirements so you are forced to make a big monetary commitment.
You should avoid trading with brokers that have high minimum deposit requirements. The industry standard in minimum deposits is around $50 and some even go as low as $10!
Leverage and Spreads
The maximum leverage this broker offers is 1:500, which is a common leverage for offshore and shady brokers. This is quite high by safety standards so I donít suggest using it at all.
If youíre a beginner in forex trading then you should stay away from high leverage ratios. The Canadian and US financial regulators donít allow their brokers to offer more than 1:50 leverage ratios to their clients. Thatís because a high leverage ratio can wipe out all your deposited funds in an instant and put you in a lot of debt.
EnviFX claims to offer very tight spreads but I couldnít verify this claim of the broker as I wasnít able to open a trading account.
EnviFX offers you the following types:
The account offers 1:500 leverage and charges a $1 commission per lot. For this account the spreads start from 1 pip. You get to trade around 29 pairs with this account.
With this account, you get to trade more than 200 pairs and your spreads start from 1.2 pips. This account doesn’t charge you any commission per lot.
The spreads for this account start from 0.8 pips and charges a commission of $8 per lot. You get all the benefits of the previous accounts.
The spreads for this account start from 0.4 pips and youíd have to pay a commission of $9 per lot. Apart from these benefits, you get all the benefits of the previous accounts.
Note that EnviFX doesnít mention the minimum deposit requirements of any of these account types.
EnviFX Payment Methods and Charges
There is very little information on the payment methods available with this broker. However, EnviFX claims to help you bitcoin through debit or credit cards.
I donít recommend buying bitcoin from EnviFX. Chances are, your money would go to their pockets but will never get converted into a cryptocurrency.
Apart from that, the broker doesnít mention how you can add funds to your account or how you can withdraw the same.
EnviFX doesnít give any information on the fees it charges except the commission it charges on its account types. The broker doesn’t mention any dormant fee or withdrawal charges. Moreover it doesnít say that it doesnít charge those fees so itís obvious that the broker has simply kept its fee-related information hidden.
Brokers who tend to keep such information hidden usually steal funds from their clients through unfair fees and hidden charges.
Is EnviFX a Scam? Yes!
There are many kinds of scammers operating in the forex industry. Shady forex brokers tend to attract new users to their websites through promotional offers and ads. They focus on attracting inexperienced traders so they can deceive them easily.
Such brokers have unfair terms and conditions so when the person signs up on their site, they accept those conditions. These brokers then steal the funds their users deposit in their accounts through hidden fees and charges.
This is a big reason why I donít recommend trading with brokers based in offshore areas. These areas donít have proper financial regulators such as CySEC or FCA. Without proper regulation, the clients of such brokers face numerous financial and privacy risks. You should always do thorough research before signing up with a forex broker.
EnviFX Review: Conclusion
EnviFX is an unlicensed broker and is probably a scam. You should avoid trading with such a suspicious broker.
They have kept a lot of information hidden from their users which indicates that their intentions are not good.
I hope you found my EnviFX review useful. If youíve had a bad experience with any forex broker, you can share your experience below.This review (EnviFX) was originally published at Gripeo. To read the full review, go to – www.gripeo.com/envifx/