FxUnited offered catchy service; its provisions and packaging were just like that of many professional brokerage services. In 2017, the broker happened to close down after so many complaints about its brokerage services. This article reviews some of the services it provided, and it also mentions the things to look out for before trading with a broker to avoid being in the hands of fraudulent brokers like FxUnited.
FxUnited is an unregulated broker that is owned and operated by United Global Holdings Limited. I was unable to verify the whereabouts of the company or any information as to how to locate them. There are clear indications that it was a fraudulent broker, but I believe it is worth looking through some of its features to identify other brokers of its kind quickly.
The company provided support and services to traders and investors, and it helped many of its clients to reach their financial goals with its rewarding financial trading opportunities.
Even though there are many unregulated brokers, their location and how to get them are usually precise. The reverse was the case with FxUnited as it hid the information about its whereabouts from the public, which is a major indicator of its being a scam broker.
The broker shut down its operation in 2017 and is no longer active, but this might also be temporary as there is a possibility of the broker rising again or a similar broker coming up with the mind of defrauding people. Hence, the need for this article.
FxUnited was established on an entrepreneurial vision to provide traders with simple and intuitive interaction with the forex market. It provided 24 hours assistance giving traders access to the view of various trading analysts, providing tight spreads for its premium ECN account, commission-free trading, and more.
It had a mission of helping customers achieve their financial objectives and building passive income, and the vision of impacting people to grow their wealth and achieve financial freedom. In trying to fulfill its goals, it provided more than 80 currency pairs, CFDs, and commodities like Gold, Oil, Crude Oil, and its services had attracted close to 100,000 people by the time it was closing down.
|Sign up and additional bonus|
Provision covers different types of traders
Copy trading robot is available
|Not regulated |
Closed down its services
Many fraudulent cases
About $250 million theft
Who is FxUnited for
The services provided by FxUnited covered different types of traders and various aspects of trading. It offered two account types with similar deposit values but two different spread values. The account with a larger spread value could be useful for swing and long-term traders, while the tighter/zero spread values could be suitable for scalpers and day traders.
It provided a demo account that traders could use to practice, and upcoming traders could also perfect their skills using it.
It also offered a copy trading program under cover of a CGAT account. The copy trading program promised monthly returns of as high as 12%. The program seemed to be useful for traders who do not have trading experience or those who want a robot to handle their trading activities for them.
In summary, FxUnited services were suitable for newbies (who were still learning), short and long-term traders, and those who want someone else to handle their trades for them for different reasons.
With this kind of service, it could be surprising to some people who got to know that the broker was a scam to see such. They would have thought that having these services would equate to having a safe trading atmosphere. Such an assumption is a bad one.
Sign-up bonus: those who opened a new trading account got a 30% bonus on their initial deposit. FxUnited also gave an additional deposit bonus of up to 100% of the deposited amount on another deposit.
The broker was keen on offering high bonus values to impress and attract many retail traders.
Is Fxunited Safe?
Fxunited was deregistered as a financial service provider in New Zealand in 2017 amidst various accusations that the site had been failing to grant clients withdrawals. Another report has it that it was challenged by the Financial Markets Authority of New Zealand for operating without any license, and the broker had been falsely claiming that New Zealand FMA endorsed it.
Since its collapse in 2017, five out of the people connected to the fraudulent activities have been arrested. The broker defrauded more than 70,000 clients of an amount estimated to be around $250,000 million.
The broker accepted clients from the U.S, but the legality of such an act was questionable since it did not have proper regulation for such access.
One of those things that also made the activities questionable was that it did not have any representative offices in any other part of the world. There might be a conflict of interest in such a situation. Financial brokerage companies set up offices in several countries to gain the trust and confidence of retail traders.
There are thousands of comments on the internet about this broker being fraudulent and how it has scammed a lot of people.
All I have mentioned have shown that proper research needs to be done before settling down with a broker. Strong regulation is a top criterion in choosing a broker, and nothing should be bent for that.
Offering of Investments
FxUnited offered various instruments that its clients could utilize in making money. These instruments included the forex market, the stock market, precious metals, and futures. The possibility of entering all these markets to trade and utilizing leverage allows traders to make an unlimited amount on this platform.
FxUnited offered more than 80 forex pairs which contained all the major pairs, crosses, and many other minor and exotic pairs to forex traders. It also provided stocks from different countries and some metals and commodities.
This service pattern is also typical of what many reputable brokers offer, and it is not enough reason to trade with such a broker or a similar broker.
|Forex: Spot Trading||Yes|
|Currency Pairs (Total Forex pairs)||80+|
|Social Trading / Copy-Trading||Yes|
|CFDs instruments||forex, stocks, commodities and futures|
Commissions & Fees
The minimum deposit was $25 for both the Standard and Premium accounts. Such an amount would have attracted traders with small accounts. It also offered maximum leverage of 1:200, which helped reduce the amount of equity build-up and served as a form of risk management for aggressive traders. The 1:200 is surely a good one for conservative traders.
It had a minimum order size of 0.01 like many other brokers and did not charge swap or rollover fees.
A drawback in its pricing was that the standard account, a market maker and had STP-like regulation, had a minimum spread of 2.8 pips. These spreads were indeed higher than the industry average and are not healthy for day traders and scalpers.
The premium account was a zero pip account and was suitable for scalpers and day traders. It offered ECN services and charged a little commission per trade.
This ECN provision seemed great because it offered such services with just a deposit of $25 and did not charge swap fees at all.
Even though the standard account offered extravagant spreads, the ECN qualities made it cheap to trade with the broker.
|Minimum Initial Deposit||$25|
|Average Spread EUR/USD – Standard||0.3|
|All-in Cost EUR/USD – Active||0.3|
|Minimum withdrawal||Not found|
Platforms & Tools
Like most forex brokers, FxUnited offered the world’s most used trading platform – the Metatrader 4. It was created to be user-friendly with trading servers that reached all over the world. It offered the options of making large deposits and offered different types of bonuses.
The broker had dedicated trading terminals for PC and Mac. Traders who did not have access to a devoted trading desktop computer could also use the Webtrader platform. The Webtrader did not provide tools for extensive technical analysis like the MT4 did.
CGAT account: Capital Gain Auto Trading account is an investment offered by FxUnited. It promised a fixed return of 12% monthly and a cumulative return of 144% per year through automated trading.
The broker created this copy trading program for those who would not like to manage their accounts themselves but prefer someone else to manage their money. For the CGAT account, the broker assured the security of the capital invested without clearly stating how it was to carry that out.
A professional and experienced trader would know that in forex or CFD trading, past results do not guarantee future successes. Claiming to guarantee capital no matter the loss seems like a greedy statement to lure newbies into its fraudulent scheme.
|Virtual Trading (Demo)||Yes|
|Desktop Platform (Windows)||Yes|
|MetaTrader 4 (MT4)||Yes|
|MetaTrader 5 (MT5)||No|
|Charting – Indicators / Studies (Total)||Not found|
|Charting – Drawing Tools (Total)||Not found|
|Charting – Trade From Chart||Yes|
|Order Type – Trailing Stop||Yes|
Research and Education
I could not get information on whether the broker had education or research tools; that also does not matter. The broker might have had such tools, which tempted novice and innocent traders to think they are interested in their trading success. If such a broker had such tools, it would have been only for a cover-up. A broker that never made public its location defrauded over 70,000 clients and absconded with about $250,000 could not have meant well from the beginning.
The broker supports MT4 mobile trading platform; it is available for iOS, Blackberry, and Android phones. The iOS version could be downloaded from the App Store, while Traders could download the Android version from the Google Playstore. The platform offered market execution on all its platforms with a relatively lower number of slippages. The broker also connected trade terminals to servers for fast execution.
|Mobile devices||apple, android, Blackberry|
|Features||allow making trade, watchlist, charting, alert, etc.|
Safety in trading should always be the priority. I highly recommend that investors trade with only reputable brokers that have built a reliable reputation over the years. These brokers must operate with necessary and reputable licenses and have to comply with the strictest authority rules.
You should not consider a broker like FxUnited for retail trading, as it can only end in tears and disappointments.
Overall rating : 2/5