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VowFX Review - is it scam or safe?

VowFX Review - is vowfx.com scam or good forex broker?

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

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Trading Accounts and Conditions

 

Trading account Min. deposit Max. leverage Spread
Standard  N/A N/A N/A

 

VowFX is an anonymous website that appears to offer trading in forex and various CFDs on the MetaTrader5 platform. However, whether the broker has different accounts remains unclear, and it has not disclosed any trading conditions whatsoever.

 

In this review we will try to shade some light on the broker's service, so make sure you read it prior to investing any money with VowFX.

 

 

VowFX Advantages

 

Trading on MT5, solid selection of assets

Although we don’t recommend this broker in general, they still have a few possible benefits. First of all, this is the presence of the MetaTrader5 (MT5), which is always considered a positive, simply because most traders are familiar with the platform and enjoy using it.

 

The latest MetaQuotes’ trading software has kept most of the features of the MT4 (the great charting, automated trading via EAs, and more), and also has some improvements. More specifically, the MT5 allows users to trade derivatives and exchange-traded stocks from one and the same account.

 


>> Check out the top-rated MT5 Brokers <<

 

 

Furthermore, when we opened a demo account with VowFX, we saw that the broker offers trading in more than 30 currency pairs, as well as CFDs on indices, commodities, precious metals and Bitcoin. This is a solid choice of assets, although some traders might miss the availability of stock CFDs, with which MT5 is so popular.

 

 

VowFX Disadvantages

 

No name, no address no number

VowFX has not provided any corporate information on its website – no company name, no number, no address. Lack of such essential information is a big red flag since you don’t know who will be dealing with your money. In spite of this, the broker claims to be regulated in New Zealand and Australia.

 

 

Click on any of the images to view larger.

 

Yet, going through the register of Australian financial services (AFS) license holders and New Zealand’s Financial Service Providers register we found no mention of VowFX. This straight out is a warning sign and inclines us to question the broker’s legitimacy.

 

With no regulatory oversight we can’t be certain about the company behind the operation and whether it will fulfill its obligation towards clients. So, clients of VowFX are open to all kind of risks, the most common of which is they might never get to withdraw any money.

 

Trading conditions not announced

On top of the missing corporate information, VowFX has not announced any relevant trading conditions, not even the minimum initial deposit required. So, potential clients are unaware of the trading costs, the leverage levels provided, transfer fees, etc.

 

We always view the lack of information as huge negative, and advise investors to always be as informed as possible before deciding to trade with a brokerage. That said, we managed to open a demo account with VowFX, which leads us to the next point.

 

Zero spread, no commission

When we tested VowFX’ MT5 in demo mode, the benchmark EUR/USD spread was as low as 0.0 – 0.1 pips on EUR/USD, and no commission fee applied.

 

Click to view larger.

 

If trading costs are the same in live trading environment, there is no way for the broker to be profitable. Hence, we assume that the lack of commission fees and the tight spreads on demo accounts are just a trick to attract customers.




>> Compare the spreads of some top brokers in real time <<

 

 

Conclusion

 

VowFX is a MT5 forex broker that seems to target mainly Asian clients. Considering the lack of adequate company information and regulation, and the rest of the disadvantages listed above, this broker is most likely involved in some sort of investment scam.

 

That said, we suggest that you select a forex provider regulated by a reputable financial agency, such as the Australian Securities and Exchange Commission (ASIC), for example. The latter requires licensed financial services providers to meet certain capital requirements (at least $ 1 million) and to comply with various internal procedures for risk management, accounting and audits. Besides, forex brokers regulated in Australia are required to keep clients’ money in segregated accounts and report to ASIC on a regular basis.

 


 >> Trade with a broker regulated in Australia <<

 

 

To sum up the above in a few words:

 

Pros Cons
MT5 available No name, no address no number
Good selection of assets Trading conditions not announced
  Zero spread, no commission

 

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Traders` reviews for VowFX

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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