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796.com Review - Is it scam or safe?

796 Exchange Review - is 796.com scam or good forex broker?

RATING: 1 / 0 REVIEWS 796.com
796.com is an offshore broker. Your money is not safe.

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Trading Accounts

 

Account type  Minimum deposit  Maximum leverage Spread
Standard Unknown 1:100 From 2 pips

 

796 Exchange, which operates the domain 796.com is a forex, CFD and cryptocurrency broker. The website is focused mostly on the Chinese market and puts a lot of emphasis on cryptocurrencies. 

 

The Company. Security of Funds

 

Company Country Regulation
796 ELLECTRONIC TRADING Ltd. Vanuatu  VFSC

 

796 Electronic Trading limited is the company behind the 796 project. It is licensed in Vanuatu. Usually we do not recommend dealing with off-shore brokers, as these destinations often attract scammers. This is due to the relative ease, with which a license can be obtained.

 

When it comes to light conditions, Vanuatu is probably the current champion, with a capital requirement of $2,000. If you compare that to the Australian Securities and Investments Commission (ASIC)’s demand of AUD 1 million, you will understand what we mean. Furthermore, there is an account segregation policy – all client funds are kept separately from the company’s. These two rulings alone stop most scammers from attempting to register with ASIC.

 

By no means are all off-shore brokers dishonest, but the fact some of them are, leaves a stain on the entire group. 

796 focuses on the Chinese market, with huge portions of their website not being available in English. On top of that the company only accepts transfers in cryptocurrencies. This may be viewed as innovative by some, but as a lack of security by others.

 

Trading Conditions

 

Minimum Initial Deposit

There is no information on the minimum initial deposit requirement at 796. As mentioned above, deposits are only made via Bitcoin and Etherium.

 

If you want to try forex trading, with a low deposit, maybe the FCA-regulated industry leaders IG are for you. They have removed the minimum deposit restriction, allowing new clients to experiment with as little as they feel comfortable with.

 

Average spreads & Commissions

The spread at 796 starts from 2 pips on EUR/USD, but often moves up to 3, as as our testing showed. There appears to be a 1 pip commission, but we are not sure if it is included in this spread or should be added to it. No matter the case, this is a very high level when compared, given the contemporary state of the industry. Most brokers offer something in the 1.0-1.5 pip range. 

 

Do you want to view the real-time spreads, as provided by some of the world’s leading forex brokers? If so, feel free to check the comparison page we have set up here.

 

Leverage

The maximum leverage provided by 796 is 1:100. Yo may think this is a low level, especially when compared with, for instance, XM’s 1:888 offer. 

 

That being said 1:100 is more than enough for a reasonable trading system, which has some form of risk management. The main thing about leverage, which most people do not understand is the fact, you don’t have to fully implement the maximum your broker is providing. Be sure to understand how trading on margin works, before putting your capital at risk.

 


Trading Platforms

 

796 offers a web-based platform. To be more specific, they provide charts by TradingView and a proprietary execution solution. We can only say positive things about TradingView’s charting capabilities – there are lots of ways to view the price action, including some candlestick methods which are not even available in MetaTrader4 by default, like Renko and Point and Figure charts. A variety of technical indicators is also available, and while it will be some time before they catch-up to the MQL marketplace, some custom ones are also being made. Here is a preview of what 796 has to offer:

 

(796's trading platform, click to zoom-in)

 

As you can see, the instant buy/sell button is placed in the bottom right corner – a rather unusual place. The bigger issue we have, is that the charts start form March 2016. This renders them essentially useless for long-term analysis. 

 

Methods of Payment

 

At the time of writing of this review, you can only deposit via Bitcoin at 796. An Etherium wallet is supposedly also available upon request. Once your crypto-funds arrive, you have the option to convert them to USD, if you want to preserve some of the value against the huge market fluctuations in the crypto-verse. In essence your account balance can be another “trading platform”. Here is a screenshot of the account balance screen:

 

 (796's account balance screen, click to zoom-in)

 

Conclusion

 

796.com is a Vanuatu-based, China-focused, cryptocurrency oriented broker. This combination basically spells uncertainty. Trading conditions at the company are not in line with the current offers, provided by other brokers. Overall we would not recommend dealing with this company. Here are this broker’s strong and weak sides:

Pros Cons
TradingView charts Off-shore regulation
Cryptocurency support High spreads
  Charts staritng from 2016
  Only BTC/ETH as deposit method

 

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Traders` reviews for 796.com

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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