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ProofFX Review - is it scam or safe?

ProofFX review - Is prooffx.com scam or good forex broker?

RATING: 1 / 3 REVIEWS ForexBrokerz ProofFX
ProofFX is an offshore broker. Your money is not safe.

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ProofFX is an offshore broker offering three account types with leverage of up to 1:100 and a choice between MetaTrader4 and a web based platform.

 

Account type Min. deposit Max. leverage Spreads
Micro Account $2500 1:100 0,3 pips + $30/lot
Standard Account $25 000 1:100 n/a
Premium Account $50 000 1:100 n/a

 

From their presentation we also understand they offer some kind of managed accounts with 6 or 12 month business plans, promising that with a 10 000 USD investment you will get 145 519 USD in return. See for your self:

 

 

Just bear in mind that you should be especially wary when you see promotions like this. On top of that the broker is not regulated, so if you are considering depositing your finds with them better read this review first.

 

ProofFX Advantages:

 

MetaTrader4 supported

 

The single advantage we managed to come up with about ProofFX is their trading platform. MetaTrader4 is probably the best known trading solution on the market. It features over 50 integrated market indicators and some customizable trading robots or Expert Advisors, as they are called, with which you may run automated trading sessions.

 

On top of that MT4 has an excellent set of advanced charting tools so here you may check our list of brokers, supporting the platform as well:

 

>>MT4 Brokers<<

 

We should also note however that with ProofFX the platform is offered by a third party cmpany - Sharkcatcher Ltd, which is not a usual practice.

 

 

ProofFX Disadvantages:

 

No license

 

ProofFX says to be owned and operated by DT-IT Group LTD, an offshore company based on St. Vincent and Grenadines. Neither the company nor the broker however are licensed to operate on regulated markets like the European Union or Australia for example. So basically by targeting European customer ProofFX is breaking the law. 

 

And bear in mind that trading with unregulated brokers is extremely risky, because they are completely unaccountable for the way they handle your money. And what is worse, if such a broker decides to scam you and keep your funds for themselves, there is virtually no way you can file a legal action against them, because their offshore companies are more or less anonymous.

 

So our best advise in such cases is to trade only with brokers, regulated by well known institutions like the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC).

 

What is more, with a FCA broker your funds will even be insured for up to 85 000 GBP. Here you may check our list of brokers, regulated there:

 

>>FCA Regulated Forex Brokers<< 

 

Unusual withdraw conditions

 

In its Terms and Conditions ProofFX says that your right to withdraw the funds in your account depends on a certain trade volume requirement. And here we are not even talking about a trading bonus. See for your self:

 

 

ProofFX reserves the right to make deposits on your behalf

 

This literally means that by signing their Terms and Conditions, you agree to let ProofFX to unilaterally debit your bank account. We rarely see such a blatant attempt to directly steal your money:

 

 

Trading bonuses

 

You may wonder why we count trading bonuses as a disadvantage and yet the answer is quite simple. All trading bonuses come with a minimum trade volume requirement, which scammers usually use as a pretext to cancel  your withdraw requests. 

 

Managed accounts

 

As we already noted ProofFX offer some sort of 6 to 12 month business plans and we find that quite disturbing as well.

 

 

The problem is that ProofFX as almost all other brokers, legit ones including, usually act as market makers, which means that they make money whenever traders lose. And if you let a market maker manage your account, this is called a conflict of interest. 

 

High minimum deposit requirement

 

For their opening account ProofFX wants 2500 USD, which is at least 10 times the amount most brokers would usually require. And some big names like FBS and IG will let you start trading with virtually 5 USD or even less.

 

Few trading instruments 

 

Although ProofFX says to be offering more than 100 assets, when we checked their trading platform with a demo account we saw just 28 currency pairs with few minor or exotic ones like USDZAR, USDSGD, USDHKD, as well as CFDs on a couple of indices, gold, silver, platinum, palladium and oil. No stocks or crypto assets were available, so here you may check our list of brokers, trading with bitcoin CFDs:

 

 >>Bitcoin Forex Brokers<<

 

Few payment methods

 

From their presentation we understand that ProofFX are accepting payments solely with credit cards like VIUSA and MasterCard and bank wire. Popular e-wallets like Skrill are not accepted and this is notable, because of the new anti scam policy adopted by the money transfer company. According it Skrill partners only with properly licensed brokers. As we noted ProofFX has no license whatsoever.

 

High trading commission

 

When we tested the ProofFX with a demo account, we were charged a commission of 30 USD per standard lot traded. This basically adds another 3 pips to the spread and makes it completely unattractive. Here you may check our list of brokers, offering tighter spreads:

 

>> Lowest spread forex brokers<<

 

Conclusion:

 

ProofFX is a law credibility, offshore broker, which according to our expertise most probably is involved in scam. So here we will repeat our usual advise to trade only with brokers holding legit licenses from respectable institutions such as the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC).

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Traders` reviews for ProofFX

Spread

Pros

Cons

 

 

Slippage

Pros

Cons

 

 

Requotes

Pros

Cons

 

 

Price feed

Pros

Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

Scam

Randomly debited my account without any notice other than awaiting bonuses

Mat Tufui 01/09/2020

ProofFX worse swindler known

Withdrawing from ProofFX is a nighmare and not sure if possible. Every attempt to withdraw requires you to pay them a fee either lawyer handling fee(related to fraud check), transaction fee (10% of withdraw fund value)for every transferring amount to your Creditcard, Western Union, Bank wire(not sure if this is possible) or cheque etc. If a withdrawal process using say type WU transfer fails, you loose the fees you paid and they want you to pay again for next type of withdrawal process attempt which is totally unfair and unacceptable for a client since you have paid for a transfer and it has failed in their side

Most interesting point here is that even if you have fund in the ProofFX account, you need to make the 10% deposit again to the prooFX account to make any withdrawal. They will deny using your money from the proofFX account fund.

They also have some kind of insurance in trading and you can recover your lost traded money on the condition that you NOT proofFX pay 15% of lost sum. They will not tell you clearly who is supposed to pay this until you loose after which its your choice. The bigger the trading sum the bigger the out-of-pocket expense will be on you.

Summary is that, I had invested a lot of money into this account and have experienced all the above problems and have not been able to withdraw any money from my earned trades. So my sincere advice to all small or large traders is that do not waste your hard earned money by investing in this company. Its will be one-way payment trend not your way. And you cannot do anything about it.

JD 09/20/2019
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