TeraFX review – 5 things you should know about terafx.com

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Rating: 3.8

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

TeraFX is a licensed broker offering standard CFDs (Forex, Commodities, Indices) as well as spread betting, which is tax-free trading, but only UK clients can take advantage of it. They offer standard and ECN accounts traded on all of the MetaTrader4 and MetaTrader5 distributions. In the following review, we are going to discuss some of the brokers’ features and real-time spreads/leverage, so make sure to read it first.

TeraFX REGULATION AND SAFETY OF FUNDS

TeraFX is a brand of Tera Europe Limited, a British company located in London’s district Isle of Dogs, which is indeed one of the world’s financial centres. The license verification went smoothly, so we can confirm it is adequately regulated and your funds will be safe if you deposit. As an FCA broker, TeraFX has to comply with various customer protection rules such as clients’ accounts segregation, negative balance protection and capital adequacy requirement of 730 000 EUR, to name a few. There are other essential regulations, too, but we are going to talk about them later in the review.

TeraFX is licensed, but you can also see the high-rated EU brokers and British brokers on both lists if you are interested in trading. The European companies are well regulated, but most importantly, covered by deposit insurance funds created to protect investors’ money if things go wrong. For example, CySEC brokers’ clients can claim up to 20 000 EUR in case of bankruptcy, while the British guarantees are up to 85 000 GBP. As an FCA licensee, TeraFX is a part of the British fund FSCS, so their clients would be able to place their claims. However, we wish they don’t have to do so.

TeraFX TRADING SOFTWARE

TeraFX provides all MetaTrader4 and MetaTrader5 distributions. We accessed their desktop MT4 and encountered a EUR/USD spread of more than 2 pips, which is certainly not the best Buy/Sell difference out there. However, we were doing the assessment in the tiny market during the Australian session, so such a spread should be fine. The Buy/Sell difference naturally forms some trading costs, so the lower it is, the better for traders. So far, TeraFX’s trading conditions are good enough.

However, we’d also like to offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists while talking about software. The MTs are market leaders packed with advanced features such as Expert advisors, many indicators, and excellent charting tools. The software also includes a marketplace with more than 10 000 apps and third-party developed solutions, which is an unrivalled advantage.

The leverage is as it should- 1:30 for retail clients and up to 1:500 for professionals. As an FCA broker, TeraFX has to comply with some leverage restrictions. Namely, due to regulations, licensed EU, British and Australian brokers have to limit retail clients to 1:30 for FX majors, while Canadian brokers and US brokers to 1:50. Swiss brokers are trustworthy but not leverage restricted, so experienced, and risk-tolerant traders eligible to open an account in Switzerland can safely go for it.

TeraFX DEPOSIT/WITHDRAW METHODS AND FEES

The minimum deposit is $100, a requirement pretty much in line with the industry standards. However, many other legit brokers offer micro accounts for as little as $5, so you have loads of possibilities ahead. The funding methods are Credit/Debit cards, Wire Transfers and e-wallets, including Skrill, Neteller, Sofort, UnionPay. The broker states that there are other options, but you can get info about it only if you send a request. Out of those, though, Credit/Debit cards deposits are seen as the safest due to the chargeback rights allowing clients to dispute transactions and eventually get a refund in case things go wrong. Bear this info in mind, regardless of the broker.

Anyway, while talking about deposits, see our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred e-wallet or a trusted payment system. The high-rated companies are well-regulated, and you won’t face scammers, so you can safely open accounts.

The minimum withdrawal is $100 free of charge unless clients require a full balance withdrawal (in such a case, TeraFX charges a 25 USD one-off fee). Well, we can’t label TeraFX as costly, but the minimum withdrawal requirement is annoying. On the other hand, many reputable brokers impose no or minimal restrictions, so there are better choices when it comes to withdrawals.

The inactivity fees are tolerable, too. According to the clauses, an account becomes dormant after 6 calendar months of inactivity and won’t be charged. However, the broker reserves the right to collect fees, but the charges are symbolic- a maximum of 10 USD every 6 months.

Bonuses are not available, which is due to regulations- British and EU brokers are no longer allowed to offer trading incentives for European clients. That’s part of the MiFID2, a legislative framework the British regulator and TeraFX respectively adopted.

Overall, TeraFX is an FCA licensed broker, so it’s safe enough.

HOW DOES THE SCAM WORK

The scam usually starts with the deceitful ad, the cold call or the fraudulent social media profile, and once you get enticed, you’ll be constantly manipulated by the con artists. In most cases, the scammers will claim to manage your account and will show you winning trades at the beginning to make you believe it’s worth dealing with them. By doing so, they aim to gain your confidence and trust, which helps them in the following stages.

From there on, scammers won’t let you withdraw profits but will constantly urge you to invest, again and again, asking for much greater sums. Make no mistake about it; those criminals will try to squeeze as much as possible from you, so they’ll advise you to put all of your savings in the scheme.

You’ll probably understand what’s going on as soon as you try to get your money back. At this point, scammers will try to persuade you not to do so and will even shamelessly say that you can’t withdraw unless you deposit once more. If you are persistent and refuse to follow their instructions, they will simply cut the communication and close your account. Then, whenever fraud becomes publicly exposed, scammers will abandon the website and create new ones, carrying on with their criminal activities.

WHAT TO DO WHEN SCAMMED

Unfortunately, no one is immune to scams. If you get scammed, the first thing you need to do is to consider the secondary risks. Deactivate your credit card and contact your bank and ask for advice.

Then, report what happened to you, file a complaint, contact the authorities, call the police if you feel necessary. Seek help actively!

Remember, it’s crucial not to rush blindly to recover funds because fraudulent chargeback agencies and individuals are stalking, trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!

Share online your experience; it’s important to protect others, too. Be responsible

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