Is Fresh Forex a Scam or a Legit Forex Broker?
Fresh Forex Review
FreshForex Is Almost Perfect as an Online Broker But..
When signing up with an online broker, you don’t want to compromise on anything that’s related to safety. Yes, you can do some compromise on the trading conditions, the leverages provided or the welcome bonuses. However, if you notice that there is something wrong with the safety and security of your money and information with the broker, you should look for other options. FreshForex has one of the most impressive websites on the internet for an online broker. It has the most amazing features when you look at the different account types being offered.
Things are almost perfect when you compare this broker with others. However, when something is “almost” perfect, there is something for you to worry about. In this particular case, the only thing missing happens to be the most important thing for anyone looking to sign up with a broker online. Let’s take a look at what are some of the reasons that should prevent you from signing up with Fresh Forex if other better options are available to you.
Too Good to be True
The first thing that sends the signal that this broker might not be the right option is that a lot of things sound too good to be true. Of course, you can’t really give it as a proof of someone being not a good broker. However, when you browse on various online brokers’ websites, you start to notice a trend. For example, you will usually see that the leverage being offered to you is around 1:200 and 1:100. There are only some brokers who can offer you something close to 1:500 leverage on your trades. Even this type of leverage starts to sound unbelievable.
You have to think a lot when the broker is offering you this much leverage. The broker is either to unaware of the trading world to realize the risk of giving such a huge leverage or it has a plan to strip you of your money right on the first trade. Of course, when you are getting a huge leverage of 1:500 on your trade, you are taking a huge risk. If you succeed, this might end up being the best day in your life. However, if you fail with such a big leverage, you might have to say goodbye to your trading career right on day one. With Fresh Forex, things can go through the stratosphere pretty quickly.
Let’s take the example of the leverage you are getting with this broker first. Right on the main page of the website, the broker tells you that you can get a leverage of 1:2000 on your trades. Yes, you are wrong if you think it is a typographical error and that the real leverage is 1:200. It is clearly stated on the website that you can get a leverage of 1:2000. This means the broker is willing to give you 2000 dollars for every single dollar that you invest in a trade. Can that be really true? What is the catch if the broker is offering you such a big leverage? The more important thing is that there is no other broker who can offer you this leverage.
Let’s take a look at other things that seem to far-reaching when you compare them with what the industry has to offer generally. So, when you join the trading platform from this broker, you get a bonus for that. Once again, the broker is promising you something that will sound too good to be true. The broker says that if you make a deposit of $500 in your account, it will give you a bonus of 200%. Yes, rather than having $500 in your account, you will be having $1500 in your account. Now, if you apply the leverage that is being provided by the broker, things can go out of hands.
Yes, many other brokers have welcome bonuses as well for their trades, but none of them has something even close to what this broker has to offer. The broker is willing to offer you a bonus every time you make a deposit in your account. Every deposit of $100 or more in your account will earn you a 30% bonus from the broker. So, if you deposit $100 in your account, you will have $130 in the account eventually. These are the kind of bonuses that sound quite unbelievable. Why do they sound unbelievable? That’s because the overall trend in the industry is nothing close to it. You don’t find any other brokers who can give you something as big as this.
The 0 Pip Spread Promise
FreshForex is following the trends of the industry when it comes to luring the traders into things that are not that attractive per se. Let’s take the example of the spreads that you have to deal with once you are with this broker. So, what you want from your broker is to give you access to the trading platform and let you earn most of the profits from your trades. This is done in many ways. One way for the broker is to keep the spreads extremely tight. The other way is for the broker to not charge you any commissions on your trades.
When you look at the trading conditions from the broker, you realize that the spreads are starting from 0pip. What this means is that you will have to pay commissions on your trades because there is no other way for the broker to make money if it is not charging you any money. That’s where the promise of 0 pip falls apart. The 0 pip spreads are offered to traders who go with the most advanced accounts. In those account types, you don’t have to deal with spreads. Since there are no spreads, you have to pay the broker in the form of commissions. However, if you sign up with other accounts, the minimum spread will be 2 pips. When you look at his number you realize that this is not the tightest spread being offered to you.
There are many other brokers on the market that offer you tighter spreads. The 1:2000 leverage is also available only for those who sign up with the most basic account. If you go with the advanced accounts, you will be given a leverage of 1:500.
The Regulation Issue
You will be pleased instantly to find out that there is a separate section on the website that talks about the registration and regulation of the company. When you click on this tab, you expect the next page to contain information about the regulation of the company and its registration. Unfortunately, you only find information about the registration of the company. The registration documents have been uploaded on this page. You can click on the documents and see the zoomed in version. However, that’s the only thing you will find on this page. The broker does not talk about regulation at all.
When you are a trader and you want to sign up with a safe broker, you want the regulation information not the registration information. In this particular, you are not getting any information about the regulation of the company. From this, you can only conclude that the broker is not regulated. Even though the broker has been around for 14 years, it is not regulated properly. Or perhaps the information is not available on the website. When the regulation information is not available on the website, it can be quite dubious as well. Sometimes, the brokers are trying to hide this information to keep away from the scrutiny of the regulating authorities. As soon as a broker claims that it is regulated by some regulating body, that regulating body checks for the authenticity of that information.
The Incomplete Education
When you look at the website of Fresh Forex, you instantly realize that it is not just a forex broker. In addition to being that, it is also the platform where you can trade CFDs. These CFDs come from various financial markets of the world. Of course, there is a reason the broker is giving you access to two of the best trading platforms of the online trading industry i.e. MT4 and MT5. MetaTrader 4 is supposed to be the best trading platform for forex traders. On the other hand, if you want to trade CFDs, the best trading platform for you would be MT5. However, when you look at the education section of the website, it specifically talks about forex.
It is not pleasing to see that the broker who lets you trade so many CFDs would not provide you with any education and training on CFDs. In short, the educational material from this broker is incomplete.
Fresh Forex is a registered broker and provides you some great trading conditions. It has the best bonuses in the industry and also the biggest leverages available for new traders. It lets you trade CFDs and forex from the best trading platforms of the industry i.e. MT5 and MT4. It is also one of the most experienced online brokers on the internet today. However, with the missing regulation information, Fresh Forex cannot convince a big population of traders from around the world to join its trading platform.