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RedForex Review - is it scam or safe?

Red Star Forex (RedForex) Review - is redstarfx.com scam or good forex broker?

RATING: 1.8 / 3 REVIEWS RedForex
RedForex is an offshore broker. Your money is not safe.

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Trading Accounts and Conditions

 

Account type Min. deposit Min. trade size Maximum leverage Spreads (&commission)
Standard $10 0.01 1:200 From 1.6 pips
Premier Not specified 0.01 1:200 From 1.2 pips
Elite Not specified 0.1 1:200 From 0.4 pips+ $7.50 /lot
Professional Not specified 0.1 1:200 From 0.4 pips+ $5.5 /lot

 

Red Star Forex (RedForex) offers the above account types, all of which allegedly offer leverage up to 1:200 on forex trades and variable spreads on the MetaTrader 5 platform. Unfortunately, we could not verify the trading conditions announced on the broker’s website, as it does not offer free demo accounts.

 

 

RedForex Advanatges

 

MT5 (allegedly) available

The MetaTrader 5 is the latest piece of trading software released by MetaQuotes. The software developer even announced that it will stop updating and selling the previous version, MetaTrader 4, which has been the preferred choice of most traders for more than 10 years now.

 

That is why we consider the fact that RedForex supports MT5 as an advantage. This platform offers most of the great functionalities of its predecessor, and most notably – its advanced charting, plus the option to trade in futures, options and shares, in addition to CFDs and forex. 

 

>> More MT5 forex brokers <<

 

 

Low initial deposit

Although the entry level requirements for most account types of RedForex are not announced on its website, the minimum investment for opening a Standard account is just $10. This is a reasonably low deposit requirement, considering the fact that this broker is not regulated.

 

Claims to offer wide range of assets

Another possible benefit of using this broker is its rich product portfolio, which allegedly includes more than 80 currency pairs, as well as CFDs on indices, commodities, stocks and the hottest new asset, cryptocurrencies. The latter can be traded with 1:5 for leverage.

 

Reasonable leverage levels

RedForex provides leverage up to 1:200, which should be enough for most traders. Although a number of brokers provide considerably higher ratios, many countries have introduced leverage caps at lower levels – 1:50 in the USA, 1;25 in Japan, and 1:30 in Europe (as of August, 2018). The reason for such restrictive regulatory measures is the fact that high leverage levels can quickly lead to serious loss.

 

 

RedForex Disdvantages

 

Not a regulated broker

Red Star Forex (RedForex) is allegedly operated by Red Forex Limited, a company incorporated in Hong Kong. The firm may indeed be registered there, but it I not licensed by the local authority in charge of financial services providers such as forex brokers, the Hong Kong Securities and Futures Commission (SFC). The commission keeps a register of regulated entities and we checked whether RedForex is present. Here is a screenshot of the result:

 

 Click on the image to zoom-in.

 

Unregulated brokers, as well as such registered offshore, are not to be trusted and therefore we advise traders to stay away from them.

 

MT5 not freely downloadable, no demo accounts

We could not download and test RedForex’s MT5 platform, nor register a demo account with it, which is a second red flag with regards to this broker. They do not hold a valid forex broker license, nor allow potential customers to test their services without depositing.

 

Standard spreads above the average

According to the information on its website, RedForex’ spreads on EUR/USD are starting from 1.6 pips on Standard accounts, which means that average trading costs are at least 1.8 pips. Most brokers offer lower spreads for this pair, within the range of 1.0 – 1.5 pips. By comparison, major brokerage HYCM (which is licensed in Hong Kong, UK, and Cyprus) offers a spread starting from 0.2 pips on EUR/USD plus a commission of $4 /lot, which means that the average trading costs for this pair per standard lot are around 0.7 pips. You can find more information on trading costs at our dedicated page:

 

 

>>Compare the real-time spreads of top brokers <<

 

 

 Website unfinished

Another disturbing fact we noticed on RedForex’ website is "Lorem ipsum" or geeking text, which does not have any meaningful content and is only used to demonstrate the visual form of a document or web page.

 

 

Click on the image to zoom-in.

 

This leads us to believe that the service of this broker has been launched recently or the company does not bother to create a decent website, as it attracts clients by cold-calling. Or maybe both?

 

 

Conclusion

 

Red Star Forex (RedForex) appears to have certain strong sides, such as various accounts and financial instruments offered, the availability of MT5 and the low initial deposit required. Nonetheless, the two disadvantages of the broker we pointed out above are more important: the lack of regulation, as well as of transparent pricing.

  

Experienced traders will probably know this, but we feel obliged to clarify this anyway - trading with an unregulated broker is very risky. You only have their word as a guarantee of the security of your funds, and there are too many scammers in this sector

 

That is why we always advise our readers to check whether a broker is regulated prior to investing. Below, you may find a list of forex brokers licensed by the Hong Kong Securities and Futures Commission.

 

>>Trade with a broker regulated in Hong Kong <<


 

To sum up the above:

 

Pros Cons
MT5 (allegedly) available Not a regulated broker
Low initial deposit MT5 not freely downloadable, no demo accounts
Claims to offer wide range of assets Standard spreads above the average
 Sufficient leverage levels Website unfinished

 

Latest news about RedForex
No news about RedForex. Check back later.
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Traders` reviews for RedForex

Spread

Pros

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Slippage

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Requotes

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Price feed

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Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

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Summary

Pros

Cons

 

 

Scam With an Ex-Scammer Siby Varghese

I know the owner in person as we have met previously in Delhi. I bought some forex courses from him and he claimed to be a trader but later found out the truth. He is a commission junky and a fake trader. He used my dad friend William Bond who is known to be an Elliott Wave trader to form up his scam company so called Red Star Forex... They collected people funds and they formed this scam broker and at the end they scammed people with amount of 50 000$ and the company director claimed to have lost 800 000$ due to a hack. Nice one Siby !Every business you form, you always run away with people funds. What a pathetic thief! These pricks ran with people money PERIOD !

Abdi Baxter 12/04/2018

Scam

They stole my money.

Dwayne Davis 11/24/2018

this has not yet launched on 23june 2018 it will be launched

they have already applied for the license and waiting to update on website
and mt5 is free of cost , i am in there PAMM group and all is well, trusted owners ,who meet the investors often, Looking forward to be one of the leading firm in Forex industry,
regards
Mike
PAMM investor
9007-id

Mike Truman 06/22/2018
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