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Stox50 Review - is it scam or safe?

Stox50 Review - is stox50.com scam or good forex broker?

RATING: 1 / 3 REVIEWS Stox50
Stox50 is an offshore broker. Your money is not safe.

RECOMMENDED FOREX BROKERS


Trading Accounts and Conditions

 

Trading account Min. deposit Min. trade size  Max. leverage Spread
Micro  $250 0.01 1:100 3 pips, fixed
Standard  $5 000 0.01 1:200 N/A
Gold  $20 000  0.01 1:300 N/A
Platinum  N/A  0.1 1:400 N/A
VIP  N/A  1 1:400 N/A

 

Stox50 is an offshore forex and CFD Broker, which offers its clients the account types listed above. It uses a web-based trading platform instead of MT4, and actually the spreads are far from attractive. What bothers us more with regards to Stox50, however, is the lack of financial regulation and reliability.

 

In an attempt to be objective, we will start our review with a few possible benefits of using this broker.

 

 

Stox50 Advantages

 

Many CFDs available, including on cryptocurrencies

In our opinion, the only feature of Stox50 which might be beneficial, provided that the broker is not a scam, is the rich product portfolio. The broker offers trading in many forex pairs and various CFDs – on indices, commodities, stocks, as well as plenty of cryptocurrencies. The latter are being traded against USD, EUR, and GBP.

 

If you are into digital assets like Bitcoin, however, we would advise you to choose a provider from our list of reliable brokers below:

 

 

>> Regulated forex broker offering Bitcoin CFDs <<

 

 

Stox50 Disadvantages

 

Operated by an offshore company, blacklisted by CONSOB

According to the information on its website, Stox50 is owned and operated by ELRICS Brothers Ltd., an offshore company registered in St. Vincent and the Grenadines (SVG). Forex brokers in such offshore zones are not licensed, nor supervised by any governmental agency, and many of them run investment scams. That is why we advise traders to avoid offshore brokers as a general rule.

 

Furthermore, ELRICS Brothers Ltd operates DAX-300 brokerage brand and we found out that the Italian regulator CONSOB has issued a warning against this broker and the company for illegally targeting Italian and EU citizens.

 

 

Click on the image to view larger.

 

EU is a strictly regulated market and all financial services providers operating there should hold a license by an official regulator from an EU country, such as the Financial Conduct Authority (FCA) in the UK or the Cyprus Securities and Exchange Commission (CySEC).

 

MT4 not supported

Stox50 uses a web-based trading interface, which is simple and easy to use. Yet,  it cannot be compared to the industry’s leading MetaTrader4 (MT4) platform.

 

The main advantages of the MetaTrader4 are the superior charting, the support for automated trading via trading bots called ExpertAdvisors (EAs), and the programming environment, which allows for easy customization. 

 

 

>> A list of MT4 brokers <<

 

 

High spreads

When we tried out Stox50’s web-based trading platform, we found the spread on EUR/USD fixed at 3 pips, which is by no means an attractive pricing. Most fixed-spread brokers offer a spread of 2 pips for this pair, and those using floating spreads usually even lower.

 

 

Click on the image to zoom in.

 

 

>> Compare the spreads of 10 major brokers <<

 

 

Unfavorable algo trading terms & more

We always go through broker’s Terms and Conditions, as sometimes these contain some traps and clauses which are not favorable to traders. Here is what we found in Stox50’s provisions regarding Algo trading:

 

 

Besides, the broker clearly states in its T&C that it acts as a principle, or a Market Maker.

 

 

Conclusion

 

Stox50 is another brand of the company behind DAX-300, which operates without a valid forex broker license and has been blacklisted by the Italian financial regulator.  It is highly advisable to avoid unregulated brokers and choose properly supervised companies, in order to avoid falling victim to one of the many investment scams on the cryptocurrency and forex markets.

 

Unlike all unregulated, offshore companies, properly licensed brokers do guarantee the safety of your investment, because they are supervised and have to abide by strict rules, among which to file regular reports, to allow external audits, to maintain a certain minimum operational capital, to provide clients with a negative balance protection, to keep their money in segregated account, to refrain from offering trading bonuses and more.

 

Furthermore, if you are trading with a CySEC-licensed broker for example, your funds will be guaranteed up to 20 000 EUR, even if the company files for bankruptcy.

 

 

>> Wanna trade with a CySEC regulated broker? <<

 

 

Let’s sum the strong and weak sides of Stox50:

 

Pros Cons
Many financial instruments available for trade Registered offshore, blacklisted by CONSOB
  MT4 not supported
  High spreads
  Unfavorable algo trading terms & more

 

Latest news about Stox50
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Traders` reviews for Stox50

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

I get scammed by lady named vanessa

Ibrahim isah aminu 09/05/2019

Scam

Scam beware you won't be able to withdraw your money

Absal 08/21/2019

Scam

I have to all of Stox 50 Wernen !!!
They are all cheaters.
My inwestitin I can schscheindindlich into the sky shit.

Philipp Zambelli 06/03/2019
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