IndexFX1 review – 5 things you should know about indexfx1.com

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Beware! IndexFX1 is an offshore broker! Your investment may be at risk.

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Now here is a good old shady broker that tries hard to attract users, and arguably does so by means of an attractive website and false promises. If it sounds familiar, then you know exactly what you are up against. IndexFX1 is nothing more than your common suspicious broker, one that will sooner or later disappear, only to be replaced by a similar entity, and so the cycle goes.  What you are about to read isn’t something that we have not written before. In fact, we can easily go to any recently discovered unlicensed broker and apply the same review we wrote for it to IndexFX1. Please, do not invest unless you have read the review and have familiarised yourself with the risks.

We created an account in less than 10 seconds, but the issue came when we clicked on the login button and it produced an error page. Either the page really is broken, or there exists a hidden login area that is reserved only for the chosen user, those that are easiest to manipulate into depositing big sums of money. Either way, this is a clear sign that the broker we are dealing with is not legitimate.

Anyway, because of this, we have to rely on the website for all the payment and trading information. We advise readers not to fully trust this info, because brokers like IndexFX1 intentionally lie to users in order to play them!

With that said, let us proceed to the alleged trading instruments. These are forex currency pairs, metals, oils, commodities, indices, stocks, and cryptocurrencies.

On the account page, we learn that the minimum spread is indicated as 4 pips, showcasing how little IndexFX1 knows of FX trading. The highest acceptable spread s 2 pips. Anything over that this is considered unfavorable to users!
Further on the website, however, we find more info, where we learn that the EUR/USD spread is actually on average 1.7 pips. Again, discrepancies along different subsections of the same website are common elements of scammer brokers! And then we found that we can access a web version of the MT4 without opening an account. There we read a EUR/USD spread of around 1.9 pips. How we were able to access the web trader MT4 is beyond us, but it is obviously very suspicious.

The leverage is said to be capped at 1:500, although at some point we also saw another leverage claim putting it at 1:400.

The website of the firm is available in English, German, and Greek.

INDEXFX1 REGULATION AND SAFETY OF FUNDS

The website has a dedicated “our licenses” subpage, which turns out to be the only regulatory claims that IndexFX1 makes. This is what we learn from it.

  • The broker allegedly holds an ASIC license in Australia. Neither does the broker provide any support of this, nor is there any evidence on ASIC’s website, where a database of all regulated entities can be found.
  • IndexFX1 is a supposed holder of a license from the Monetary Authority of Singapore, which is also a complete lie, as there is absolutely no evidence of this.
  • Last but not least, users are also led to believe that the broker holds a license from Germany’s BaFin, one of Europe’s most severe regulators. Safe to say that the broker lies about this as well.

Aside from this, the company reveals nothing else of importance. The contact page reveals a plethora of addresses, none of which is accurate. They’re there for the sole purpose of deceiving users.

Another sign that definitely tells us that the broker is unlicensed is the short legal docs, which actually consist of a mix between terms of service and risk warning. At just 6 pages long and only in Turkish, it is as if though IndexFX1 has no legal documents. Thus the legal document is also unhelpful here, or anywhere else.

What other verdict can we come to, other than IndexFX1 is NOT LICENSED? The broker is, therefore, a risk to all traders.

Always look for  FCA or CySEC regulated brokers, as well as U.S based ones, or any broker that holds a proper license from a legit regulator. The main reason for this is that all money that is invested in unlicensed brokerages will be lost, so better to invest it in a regulated entity than give it to a fraudster. Most FX overseers have strict rules applied to all their regulated entities so that the brokers may not manipulate them or make things work in their favor. Some agencies even offer compensation schemes that are applied to all users of licensed brokers. These funds are applied when the brokers cannot pay their debts to clients. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.

INDEXFX1 TRADING SOFTWARE

Somehow, in an unknown move to us, IndexFX1 has been successful in acquiring the MT4, as proven by the following snip:

However, even the mighty MT4 is not nearly enough to redeem this broker and dig it out from the pit it has created for itself.

INDEXFX1 DEPOSIT/WITHDRAW METHODS AND FEES

Please be aware that in 95% of unlicensed brokers there is a clear distinction between the payment info on the website and that of in the user area. We believe the same to be applied to IndexFX1.

From the site, we learn that the depositing means are Neteller, Skrill, Bitcoin wallet, wire transfer, and MasterCard. The minimum withdrawal is said to be $100. The same methods are used for withdrawing, and there is a suspicious lack of withdrawal fee information. Withdrawal requests are processed within 24 hours.

Again, this info should be taken with a grain of salt!

In conclusion, IndexFX1  is your textbook scammer broker: lack of a license, false trading info, questionable payment methods, etc. Do not invest here!

How does the scam work?

The first step of the most popular investment scam is the ability of online ads to lure users in. Online ads that consist of alluring profit possibilities, luxury, cars, etc, are almost always ads leading to either a scammer FX site or in some cases an intermediary website where users are bombarded with even more fake promises of money.

Those who fall for these are almost always asked to provide some sort of a contact number or email address, so the scammers can start contacting them and asking them to invest.

Picking up the phone, the user will be put with the first wave of scammers, the initiators, whose job is to push for the first deposit and fixate the user in the scam. These individuals are motivated by the fact that they will take a tasty percentage out of the invested sum.

Next come the retainers, or the pro scammers sometimes referred to as “account managers”. These will stay with you for some time and pretend to be on your side. As likable as they seem, rest assured that their only goal is to take as much money as they can. They are great talkers and can easily manipulate clients through different psychological channels.

Once users wish to take out their deposit or profit, which is actually totally non-existent, the broker will start staling the request. This is the most common thing to do. Some fraudsters can stop responding to requests, while others may shut down users’ accounts or entire websites!

The crucial thing to note is that users will never see their invested capital again!

What to do if scammed?

The smartest thing to do is file for a chargeback with your credit or debit card company. MasterCard and VISA have a chargeback period of 540 days.

If you have lost money by means of a wire transfer, the first thing to absolutely do is change your bank account’s username and password. Next, we encourage readers to contact the bank and try to reason with them.

Money lost by way of crypto transactions is definitely lost. There is no way to get it back. It’s crucial to never invest in unlicensed brokers through cryptocurrencies.

And lastly, do not fall for recovery agencies or agents. In return for a sum of money these, previously unknown, groups, or person, will promise to recover your lost funds, Safe to say that they will take the commission and disappear!

Rich Snippet Data

Reviewer

TheForexReview

Review Date

2021-05-28

Reviewed Broker

IndexFX1

Broker Rating

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