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VFX Capital Review - is it scam or safe?

VFX Capital Review - is vfxcapital.com scam or good forex broker?

RATING: 1 / 1 REVIEWS ForexBrokerz VFX Capital
VFX Capital is an offshore broker. Your money is not safe.

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Trading Accounts and Conditions

 

Account type Min. deposit Min. trade size Max. leverage Spreads (& commission)*
Silver $2 500 0.1 1:400 Fixed at 1 pips/ Variable from 0.5 pips
Gold $10 000 0.1 1:400 Fixed at 0.7 pips/ Variable from 0.5 pips
Platinum $25 000 0.1 1:400 Fixed at 0.4 pips/ Variable from 0.3 pips

 

*As announced on the broker’s website.

 

VFX Capital offers the above account types, all of which are commission-free and are said to offer trading with both fixed and variable spread on the MetaTrader 4 platform. Although this offer might seem attractive to some traders, we have serious concerns about this broker. Read the full review to understand why we gave VFX Capital this score.

 

 

VFX Capital Advanatges:

 

Seemingly good spreads

According to the information on its website, VFX Capital’s spreads are either fixed at 1 pips, or starting from 0.5 pips on EUR/USD (without commission fees), which is a competitive pricing. When we tried out the broker’s MT4 in demo mode, however, things turned out to be quite different. You can find more details about the spreads in the Disadvantages section.

 

 MT4 available

As we mentioned in the beginning, VFX Capital offers its services on the highly praised MetaTrader 4 platform. This piece of trading software is preferred by most traders as it is easy to use and yet, equipped with professional tools and features. Some of these include solid charting, a collection of useful automated strategies (Expert Advisors) and wide range of technical analysis indicators, customization options, and more.

 

 

>> More MT4 brokers <<

 

 

Rich product portfolio

VFX Capital offers trading in less than over 45 currency pairs, as well as wide range of CFDs on commodities, precious metals, as well as many indices and stocks. indices, stocks. Although it does not include the popular cryptocurrency CFDs, such product portfolio is quite comprehensive.

 

High leverage levels

VFX Capital provides high leverage levels, reaching 1:400, which is a nice possibility. However, such high ratios are not suitable for all types of traders, and especially for newbies, as they involve significantly higher risk of loss. Be sure to fully understand the principles of margin trading and position sizing before you use high leverage levels.

  

 

VFX Capital disadvantages:

 

Not regulated, CNMV warning

VFX Capital is owned and operated by TXW capital Ltd., a company registered on the Marshall Islands. This is an offshore zone where forex brokers are actually not regulated – no governmental agency monitors their activity. This means that the clients of VFX Capital have no legal mechanisms to protect themselves in case of fraud or broker insolvency.

 

The lack of proper regulation is a major red flag. On top of that, we found that the Spain’s National Securities Market Commission (CNMV) has issued a warning against TXW capital Ltd.

 

High spreads on demo accounts

When we tested VFX Capital’s MT4 in demo mode, we found the spread on the most liquid for pair, EUR/USD, fixed at 3 pips, which is significantly higher than the average in the sector.

 

 

VFX Capital’s demo MT4. Click on the image to zoom in.

 

If you prefer trading with fixed spreads, check out the offering of CySEC-licensed broker easyMarkets, as their spreads amount to 1 pips on EUR/USD.

 

 

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

 

 

High initial deposit required 

Last but not least, we find the entry level amount required by VFX Capital too high. While most forex brokers require $100 - $200 as a start from live account holders, VFX Capital demands $2 500.

 

 

Conclusion

 

VFX Capital offers trading in forex and various CFDs on the robust MT4 platform. Its trading conditions seem good, but when one takes a closer look, things turn out to be different. Spreads on demo accounts are a lot wider than the ones announced on the broker’s website, the minimum investment required is very high, but what bothers us is the legal status of VFX Capital. The broker is registered offshore, but seems to target EU investors, as the Spanish financial watchdog has issued a warning against it.

 

>> Forex brokers legally operating in Spain <<

 

 

 To sum up the strong and weak sides of this broker:

 

Pros Cons
Good spreads (on paper) Not regulated, CNMV warning against it
MT4 available Wide fixed spreads on demo accounts
High leverage levels High minimum investment
Many CFDs No crypto CFDs

 

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Traders` reviews for VFX Capital

Spread

Pros

Cons

 

 

Slippage

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Cons

 

 

Requotes

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Price feed

Pros

Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

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