Finexico is a new Forex and CFD broker owned and operated by the SLN Development LTD based in Nicosia, Cyprus. Finexico offers a variety of asset portfolio for trading.
They claim that Finexico is the online Forex CFD provider of choice for high volume traders, scalpers and robots.
The broker boasts of raw spreads, fast order execution, institutional grade trading and top choices for automated traders which is their greatest selling point.
It is quite unfortunate that Finexico is operating from a regulated jurisdiction but has no license authorization.
Since Finexico is offering its services or at least targeting clients residing in Cyprus and the European Union in general, they should consider applying for a license from the respective financial organizations.
Therefore, based on this disadvantage, traders should think twice before they can put any money into the account of this broker.
Finexico offers variety of asset class for trading which include Forex Market, Commodities, Stocks, Indices and Bond. The broker offers 5 types of trading accounts to its clients. Minimum deposit fot the most basic account is $1000 and bonus extends from 10% at the micro account upto 75% on the gold account.
In as much as this broker claims to be providing a lot of benefits to traders and investors in general, we feel that the downside far out-weigh the benefits.
They claim fast order execution with low latency fibre optic and Equinix server and that they’re offering average execution speeds of under 40ms.
These claims are hard to verify unless we sign up and try their platform with the best Forex services. Unfortunately, we don’t see any link that allows us to create a free trial account.
Beware of bonus traps
Their micro, Classic, Silver and Gold account is promising a trading bonus of 10%, 20%, 40% and 75% respectively.
This can seem exciting to most newbie traders but investors should also know that trading bonuses are just a trap. In fact, they are illegal in EU and brokers who are regulated don’t offer such bonuses to their clients because they are also highly controversial and comes with outrageous requirements.
Bonus promotions is often a common practice used by shady brokers to steal from traders instead of making them prosper.
If Finexico broker is offering these bonuses, naive traders stand a chance of being manipulated to lose their funds.
Illegal broker warning
The reason this broker can afford to offer illegal bonus is because they’re unregulated and not accountable to any financial regulator. You should expect such practices from an offshore broker who is unregulated. They are always not credible.
When a broker is regulated, it means strict regulatory requirements that ensures safety of their customers’ funds and If they are not, the broker can decide to close down and abscond with funds. They can’t be traced and certainly innocent investors will lose all their investments.
If you want to trade with a broker based in Cyprus, they must be regulated by the Cyprus Securities and Exchange Commissions (CySEC) or any notable watchdog in the European Union like the UK Financial Conduct Authority (FCA).
Any broker who avoids regulations before going air is definitely hiding something.
<<See Safe Brokers>>
There’s no way an unregulated broker like Finexico can be trusted. The problem is that there are lots of them showing up on the internet lately.
These include brokers such as Select Global, TradeVtech and many more. As a matter of fact, you should generally avoid such brokers.