September 9, 2020

EuropeFX Review

Overview

EuropeFX is a CFD broker and forex broker, that is regulated and based in Cyprus. The broker is a part of a company that goes by the name of MAXIFLEX Ltd Group. EuropeFX offers a multitude of forex pairs, that include Turkish Lira, Russian Ruble, Mexican Peso and 37 more currencies. It also offers a decent variety of Cryptocurrencies too, that include all the major cryptos. The broker also provides CFDs on spot metals like gold, silver and commodities like petroleum, corn and sugar. Read the full review of EuropeFX here.

About EuropeFX

EuropeFX, being based out of Cyprus is regulated by Cyprus Securities and Exchange Commission (CySEC). Trading accounts start from the Basic Bronze account which requires a €200 minimum deposit, but EuropeFX suggests starting with €1000. When it comes to commissions and spreads, the picture is a bit murky, with the broker suggesting 1.2 to 1.4 pips; However, an investigation by an online watchdog organization showed that spreads were as low as 0.1 to 0.4 pips. Add to this the commission fee of 20 USD on every traded lot, adds to worries.

Being a part of the EU, EuropeFX conforms to European Securities and Markets Authority (ESMA) regulations. Because of this the leverage for forest trade is capped at 1:30, however the company claims leverages as high as 1:200 for professional trading accounts. The broker operates on the market renowned Meta Trader 4, which is the industry standard and has most required features and then some more.

In December of 2019, the Australian Securities and Investments Commission (ASIC), approached the Federal Court in Sydney with an interim asset restraint order against Maxi EFX Global AU Pty Ltd (trading as EuropeFX) and BrightAU Capital Pty Ltd (trading as TradeFred). The federal court also issued orders that doesn’t allow any international travel for John Carlton Martin (director of USGFX). The issue has been in court ever since, with the court ordering in April 2020 that any withdrwals of over 50,000 USD will have to wait for approval from the ASIC. Meanwhile EuropeFX has appealed for leniency in terms of asset restraints and the travel restriction of their Director. However the matter remains in court, with the next hearing having been set for the date of 22nd of September 2020.

The Verdict

While EuopeFX has a lot of great services and good spreads to offer on CFDs, the broker does seem to be in trouble in 2020. With thee ASIC, sticking to it’s guns and not showing any mercy on EuropeFX, and the hearing having been rescheduled multiple times, there doesn’t seem to be any relief in the near future. And we suggest potential traders to stay vary of the broker, and not put your money in jeopardy.