FXCL Review – What is this broker all about?
Are you a Forex trader who wants to get a new broker with decent trading conditions or a beginner trader who is looking for a way to enter the market for the first time?
Either way, you need to invest a considerable amount of time in choosing the best Forex broker that you can find. Unfortunately, this is not an easy task as many brokers have gone in a fraudulent direction, making their goal to steal your money.
However, with a little help and insight, you can still find the one. In our FXCL review, we’ll help you determine whether FXCL is the right choice for you. So, let’s get right to it!
The Fxclearing.com review
First, let’s take a look at the website. We always start from the design of the interface, which includes the design and the overall feel of the website. The website of FXCL gives us mixed feelings: for one thing, its interface doesn’t really look that professional; it is cluttered with clunky windows and uninspiring color backgrounds.
Yet, the same website manages to deliver all of the important information that shows how trading is done at FXCL. We were able to easily find details about the leverage, spreads, order sizes, and commission rates. For this, we have to give FXCL some credit, even though we’re not entirely sure that the information we’ve seen is 100% true – but we’ll get to that later.
During our Fxclearing.com review, we also looked through account packages available on the platform. And we were able to find quite a few, namely:
- Interbank Cent
- Interbank Standard
- ECN Plus
These accounts are quite a bit different from one another, be it in terms of their leverage offerings, spread quotes, or execution types. One thing to note, though, is that FXCL doesn’t really say what the minimum deposit requirements are for each of these accounts, which isn’t the most customer-oriented trait in the world.
Lastly, we had a look at what trading software at FXCL looks like. We found out that you can use the FXCL MT4 to trade all instruments available on the platform. And granted, this software is known for its rigid structure and convenient trading features, however, if the broker is a scam, it doesn’t matter how complex and stable its platform is – it’ll still be able to steal people’s money.
Is FXCL properly regulated?
The next entry in our comprehensive review is going to be the broker’s license. As you may already know, a proper license plays a huge part in restricting the broker’s activities and ensuring that it abides by strict financial standards. And the absence of such a license practically sets the broker to free to do anything it wants.
In the case of FXCL, we were easily able to find the licensing note on the website. It says that FXCL has been registered in St. Vincent and the Grenadines at the address of Suite 305, Griffith Corporate Center, P.O. Box 1510, Beachmont, Kingstown, and the license from the Financial Services Authority (SVGFSA).
Now, there are a couple of grey areas in this claim that we want to tackle. But before we do that, we have to point out that some people may fall prey for such claims and actually believe that a broker is regulated. However, with our insight, you’ll see that it’s definitely not the case.
So, the first tackling point is the address: Suite 305, Griffith Corporate Center is a so-called gathering place for a lot of Forex brokers. In our reviewing experience, we’ve come across several dozens of brokers with the same registration address, which is very suspicious on its own.
But even more suspicious is the licensing claim. The SVG government has explicitly pointed out that it doesn’t regulate Forex brokers, not within its borders nor outside of them. Yet more and more brokers claim that they own a full-fledged SVGFSA license that ensures quality financial experience on their platforms.
What we’re trying to say is that the FXCL Forex broker is using SVG as an offshore destination to hide its earnings, as well as illicit activities, and be free from regulatory restrictions. Therefore, there’s a big chance that you’ll get scammed by trading with it.
Should you trust FXCL promotions?
At last, we will take a closer look at what trading terms and conditions look like at FXCL. As we browsed through the website, we found that FXCL mainly offers currency pairs, yet you can also trade a couple of precious metals and some cryptocurrencies as well. Just the fact that there are instruments other than FX pairs is a neat little advantage, yet these assets aren’t that many to make any difference for you.
When it comes to conditions and features that come with these assets, we were quite a bit suspicious about how overzealous they were. For example, the maximum leverage you can get with FXCL is 1:1000, and that is for the Cent account – the one that mostly the beginners will use.
Here’s why this is so dangerous: beginners are more susceptible to losing money in trading, and they try to limit their trading sizes down to micro-lots. Yet with a 1:1000 leverage, they significantly increase their exposure to market dangers and risk their trading balance beyond necessity, and the FXCL FX brokerage doesn’t seem to be concerned about that.
Next, let’s talk about spreads and other commission charges. As FXCL proudly claims, you can get down to 0 spreads for FX pairs, which would be more than fine if we knew that there were other commissions that balanced out this chasm in broker’s incomes. Yet when we checked out the ECN platform, which should be super-expensive due to its complex nature, we found that even that has very low spread quotes, something like 1.1 pip.
This fuels our suspicions about the FXCL scam because there seems to be no significant source of income for this broker. In such cases, you have to pose a legitimate question: where does the broker get the necessary funding to support its platform? And could that funding come from fraudulent sources? In our experience, that could very well be the case.
Next up, let’s take a look at the ways in which you can make deposits and withdrawals at FXCL. Before saying anything negative, we should at least admit that it was super easy to find the exact details about transactions to your account. However, there are some issues we have with the exact methods of deposit and withdrawal.
As we have found out, you can only make transactions via bank transfer, Bitcoin, PerfectMoney, FasaPay, and Dragonpay. FXCL doesn’t offer credit/debit card transactions, which is a very big disadvantage and leaves many potential clients out.
Can FXCL be trusted?
So, what did we learn about FXCL and should you consider trading with it?
Well, we have established that the broker’s website doesn’t have a very seamless design, yet it manages to convey information necessary for trading. The FXCL accounts are decently diversified, yet we couldn’t find minimum deposit requirements for them.
When it came to licensing, our suspicions about the FXCL fraud came dangerously close to reality as we found that the SVGFSA license is not a legit license in reality.
Finally, we checked various trading terms and conditions and determined once again that the broker doesn’t seem to be playing by conventional rules. It offers very bloated leverage and suspiciously low spreads, which suggests FXCL wants to attract as many clients with shiny conditions – without being too sincere to them.
Therefore, based on all that we’ve said and found, we don’t think that you’ll be safe by trading with FXCL.