Beware! OxleyFX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
OxleyFX claims to be the safest trading partner and that undoubtedly isn’t a valid statement. OxleyFX does resemble a true Forex broker, in fact, offering Standard and ECN accounts, MT4 with tight spreads, but increased leverage, which automatically means that your funds are not entirely shielded, and especially in case that you are a novice trader. Find out the pros and cons of this Forex broker in the full OxleyFX review.
OxleyFX REGULATION AND SAFETY OF FUNDS
OxleyFX is an offshore Forex broker which is fully licensed and authorized, but only by the VSFC in Vanuatu, which effectively means that no real customer protection is put in place.
Vanuatu is known to be an offshore jurisdiction, labeled as a tax haven with almost no financial regulation and lack of transparency. Recently, however, they have undertaken certain measures aimed to polish the image of the island, but much more efforts will be needed in the future. Their regulatory framework is still in its infancy phase, the only significant change is the minimum capital requirement of 50 000 USD for the Forex brokers, that was imposed as a rule. Vanuatu licensed entities are still not safe enough and bear considerable risks, clients are not protected in case a Forex broker faces difficulties to meet its financial obligations, goes bankrupt or simply disappear.
Your funds are not safe enough with OxleyFX, it’s an offshore Forex broker which is not strictly regulated and cannot provide the adequate customer protection to its clients.
Your choice should always be a transparent, legitimate and regulated onshore Forex broker, preferably in Europe, holding CySEC(Cyprus) or FCA(UK) license. These jurisdictions created the safest financial environment for your deposits and the authorized true Forex brokers will assuredly treat your funds with an utmost care. Most importantly money protection schemes were established throughout Europe, as a way to further improve the customer protection in the financial sector. Under CySEC regulation you can make a claim of up to 20 000 EUR, while in UK under FCA the guarantees are of even up to 85 000 GBP.
OxleyFX TRADING SOFTWARE
OxleyFX offers Metatrader4 accounts to its customers, Metatrader5 is not available. We easily opened a demo account and downloaded their MT4 distribution, which offers truly competitive spreads as a matter of fact. The EUR/USD spread is 0.1 pips.
What we do not like and makes us unable to recommend OxleyFX are the leverage levels. The maximum ratio is 1:500, but most importantly you are limited as to the customization. You can choose only among 5 presets, the lowest available is 1:1, while the second lowest is 1:50, avoid OxleyFX if you prefer safer levels such as 1:5 or 1:10.
OxleyFX DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is 100 USD, and the funding methods are Visa and Master Credit/Debit Cards. There is a deposit transaction charge of 4%, however, which definitely means that we cannot recommend OxleyFX.
The minimum withdrawal amount determined is 100 USD or its equivalent. The withdrawal charges incurring are harsh, a flat fee of 30 USD will be applied, and a fee of 5% will be levied on accounts that hasn’t executed a trade. The processing time is said to be 3-5 days.
No dormant account policy found and no fees for inactivity specified. In fact, there is not even a mentioning about such an important matter, which is undoubtedly a red flag, mainly because OxleyFX is a licensed company. No true Forex broker is going to treat such an important matter so carelessly!
No bonuses offered by OxleyFX and no other incentives or promotions are available. There are some MAMM and Introducing Broker accounts presented, but no further information given, but only a registration page available. This fact itself is another red flag, because it clearly shows that OxleyFX is either trying to withhold information or is simply careless. The result is the same in both of the cases and we cannot recommend OxleyFX, you should stay away!
HOW DOES THE SCAM WORK
The scam is a financial crime, which is supposed to be punished by the law, however, many of the scammers remain anonymous, operating across different jurisdictions, which makes it difficult for the law enforcement agencies to carry out their tasks. You need to learn how to protect yourself and recognize the danger as soon as you face it. There are some very common typical scam features, which you should remember, it’s for your own benefit to do it:
- Scammers withhold legal information about themselves because their enterprise is illicit! They will not publish details, which can undoubtedly prove the legitimacy of their business, because there aren’t any.
- Scammers are more often than not registered offshore, in tax haven jurisdictions with no regulations. It helps them remain anonymous and unpunished by the law.
- Scammers will always promise big and offer risk-free trades, 100% guaranteed returns, top-notch trading conditions, expert advisers and FX robots that are always correct about the market etc. A true Forex broker, however, will do exactly the opposite, explicitly warning you that FX and CFDs trading is very speculative and that there is a significant risk for your investments. Study the difference!
- Scammers are crazy about bonuses and promotions. We have to stress on the fact that in EU and UK the bonus programs are banned, and no legit Forex broker is allowed to present trading incentives as such! It is a scam if a Forex broker offers you a deposit bonus.
- Scammers will always be in a hurry, pushing you to make a deposit with them. Their impatience is an obvious scam sign, it is a scam if someone insists from you to start investing as soon as possible.
- Scammers will be aggressive, they won’t take “No” for an answer and might carry on annoying you for a very long time, days, weeks or even months.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam the people. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!