While most scam brokers can’t survive more than a year, some of them still hide their real faces so well that they manage to stay on the market for years. These kinds of brokers are especially dangerous for newcomer traders, as they easily get attracted by their years of experience and conditions.
Thus, today, we’d like to introduce you to one of the market’s veteran unsafe brokers, FINMAX.
What is FINMAX?
Founded in 2015, FINMAX is a CFD and binary broker based in Bulgaria. It claims to provide an innovative platform offering more than 75 assets for trading indexes, stocks, commodities, and currency pairs in major financial markets.
However, the main question is whether FINMAX.com is a safe place to store funds or not. Based on our analysis, we do not believe that FINMAX is a safe broker. Let’s go into details together.
Why is FINMAX unsafe?
Max Capital Ltd owns and operates FINMAX broker. Its operating address is located in Sofia, Bulgaria. However, we did not find this company in the register of the Bulgarian Financial Supervisory Commission.
FINMAX is located in Bulgaria, does not hold any financial license, and cannot provide services in the main market. In addition to legal status, the nature of unauthorized transactions will cause the greatest risk of capital loss because there is no authority to check the security measures and protection tools that have been implemented.
Therefore, FINMAX or any other unregulated broker can use customers’ funds in any way without any consequences.
The broker’s terms and conditions stipulate that British law regulates the company. However, the regulator’s register does not mention the broker, and FINMAX does not actually have any legal rights to provide its financial services to the British residents.
FINMAX claims to be regulated by FMRRC. Although FMRRC is an independent self-regulatory institution, its purpose is to provide a certain degree of supervision for derivatives traders and brokers. It has no relationship with the Russian Central Bank, Russia’s official supervisory authority, and has little legal power to supervise FMRRC-supervised brokers.
Trading conditions-Account types
Generally, FINMAX provides five different account types. $250 is required to open a bronze account. There is a 25% welcome bonus. US$1,000 is needed to open a silver account with a 50% bonus and provide initial risk-free transactions up to 25% of the deposit size. Opening a gold account requires a deposit of at least $5,000 and a 75% bonus. The standard winning transaction payout for this type of account will increase by an additional 2%.
Platinum and VIP accounts already require ridiculously high costs: $25,000 and $100,000. While opening Platinum and VIP accounts, the broker claims to offer a 100% bonus and an additional 4% to the standard winning transaction payout using this type of account and provides a wide range of further benefits.
Silver account holders and above will receive a dedicated account manager. Gold and platinum account holders can get unlimited free signals, while platinum account holders can also get free withdrawal services.
FINMAX tries to trick its clients into fraud with fake bonus offers. Remember, the bonus is usually a sign of a scammer, so don’t get too excited! Almost no honest brokerage company offers bonuses.
Trading conditions-Trading platform
The only trading platform provided by FINMAX is their proprietary platform. The platform is intuitive and user-friendly, with many features.
The platform comes with a built-in application called “Social Radar,” which adds a social trading element to the FINMAX experience. It allows users to discover FINMAX’s leading traders and replicate the behavior of these winners to a certain extent, including real-time execution of the same transactions as them.
Traders can choose to trade high/low or above/below types of options. Standard spending has a place in the market.
Customer support
Speaking of customer service, FINMAX offers multiple ways to reach them.
Phone lines:
+359 429-197-14 – Bulgaria
+43 (720) 145-742 – Austria
+44 (204) 577-05-30 – United Kingdom
Email: [email protected]
Live chat and message boxes are available too.
Summery
Well, to be fair, the conditions mentioned on FINMAX’s website are pretty interesting. However, we can’t possibly offer anyone to start trading with an unregulated and unlicensed broker. No regulation already means your funds are under severe risks.
Although the trading product looks attractive, there are many questions about the trust in FINMAX’s services and how they operate online transactions themselves.
There are hundreds of safe and honest brokerage firms available on the market, and you can check them on our forex brokers list too. If you want to try yourself in the industry, go ahead, select the trusted one, and enjoy secured trading.
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