Buxforex – The Dangers to Look for

Buxforex

Whether you have experience in the financial markets, or are just starting your trading journey, almost everyone is familiar with scam brokerages. Their activities have not gone unnoticed, given that they have stolen money from countless people all over the globe. Yet, they continue to operate in the market and the number of their victims has only grown. Why? This is because even though people know they exist, they do not know how to identify them. Therefore, they are able to convince people into signing up on their platform, even though they are not legitimate. This Buxforex review is an example of such a brokerage.

Even savvy and experienced traders have suffered at the hands of these shady and fake platforms, so you need to be extremely wary. When you are searching for a brokerage, you should never take anything for granted and always do your own research. It is vital to remember that you cannot distinguish between a genuine and fraud company just by looking at their website. They can be quite similar and this can result in a great deal of confusion. At the end of the day, you could end up making a mistake you will regret.

How to not make that happen? You have to understand exactly how you can identify a scam brokerage to ensure that you make the best decision for yourself. There are some dangers that you need to look for when you are going through a broker’s website because they will tell you what kind of company you are dealing with. You should never make compromises in these areas, or else it can lead you right to a scam. It is best to not do the same with Buxforex that boasts a rather convincing website, which is bound to impress you at first glance.

The offerings that Buxforex advertises include a wide range of metals, currency pairs, indices and commodities that come with lucrative trading conditions. But, you will discover some prominent dangers when you dig into Buxforex and those you should never accept. What are they? You can check them out here:

False regulation claims

The biggest proof of a reliability and legitimacy of an online brokerage is their license and regulation because it indicates that they are compliant with rules and laws. The purpose of a license is to hold companies accountable and to provide consumer protection, which is exactly what happens and this ensures that people can enjoy transparent and fair services. It is not easy to obtain a license, particularly in a well-regulated region, but companies that do have one are considered a smarter option than those that don’t.

You will find that Buxforex claims to be owned and operated by BUX Financial Services Limited, which is based in the United Kingdom and is regulated by the Financial Conduct Authority (FCA). It is obviously reassuring because the FCA is one of the top regulatory bodies globally, so a license from it can give legitimacy to a company. However, this does not mean that you take the broker’s claim for granted. It is essential to check the license credentials and verify them for your peace of mind.

You will find that there is a BUX Financial Services Limited regulated by the FCA, but it has absolutely nothing to do with the brokerage Buxforex. This is because it supports a different domain address, which is buxmarkets.com. This shows that Buxforex is pulling off a common scam called cloning, where it has taken the details of a legitimate website to pass off as its own in order to fool people. This is one of the dangers that you should be wary of.

No MT5 platform

The trading platform you are given by a broker plays an important role in your trading experience, so you obviously want to have access to the best one that has all the right features and tools. People will be impressed with Buxforex when they discover that it has the MetaTrader 5 trading platform, as it is considered the industry-leading trading software these days.

But, when you actually check out the Buxforex trading platform, then you will find out that the MT5 claim is a big lie. There is no such trading platform available. Instead, they have some kind of unproven, downloadable trading software that you should not install because there could be security issues.

High leverage

Another major danger that you should immediately be alerted to when you are checking out Buxforex are their leverage ratios. The brokerage is promising you excellent trading conditions, which include tight spreads, but they have not specified how tight they are. Again, this means that there is a lack of transparency that should not be considered acceptable.

Secondly, the leverage ratios are as high as 1:100 at Buxforex and this should be a problem because the brokerage claims to be under the regulation of the FCA. If that were truly the case, then it would not be able to offer such ratios because the regulatory authority has restricted leverage at 1:30 for retail traders. This is because high leverage can be extremely dangerous, so brokers are not permitted to offer such ratios.

Only crypto payments

Checking out the payment options offered by a brokerage is also necessary because you want to be able to get your money back in case of problems. You will find that Buxforex advertises a range of payment methods, which include VISA, MasterCard, Skrill, Neteller, China UnionPay, FasaPay, Alipay as well as bank wire transfers.

Some of these methods do support a chargeback, so it seems reassuring. But, the actual payment methods that Buxforex supports are only crypto deposits. You can use bitcoins and Tether to make deposits, which is dangerous. This is because crypto payments tend to be final as well as anonymous, so you cannot get your funds back after you have deposited them.

Bottom Line

These are the dangers that you need to be aware of at Buxforex because they show that the company is definitely not what it claims to be.