|Supported Platforms:||MT4, web trader|
|Minimum Deposit:||200 EUR|
|Types of Assets:||FX, commodities, indices, shares, cryptocurrencies|
|Site Grid||www.europecapitalgroup.com www.europestocks.com|
Warnings From Financial Regulators
After Brexit, all the companies that wanted to continue operating in the UK needed to opt for the FCA license. However, many of them did not do so and just kept working with the UK clients. Therefore, the FCA issued a warning against several brokers including EuropeFX and confirmed the broker no longer has an authorization to provide CFD trading in the UK.
Getting Started with EuropeFX
Traders with EuropeFX have access to a relatively standard range of assets. CFDs are available also on stocks, indices, and commodities. There is also a variety of forex pairs available. The forex spreads are very favorable, as low as 0.1 to 0.4 pips. However, this is, unfortunately, too good to be true. On top of spreads, EuropeFX charges a hefty commission on all forex lots.
EuropeFX Trading Platforms
The Australian financial regulator ASIC is currently investigating the operations of EuropeFX. They have placed an asset restrain order against the broker, severely limiting their operations within Australia. Above all, this investigation centers on transparency and marketing practices. There are many online user reviews of EuropeFX that allege the broker to disclose the risks inherent to trading CFDs inadequately.
Beyond this investigation, the UK’s FCA has rescinded permission for EuropeFX to trade CFDs within the UK. As a CySEC registered broker, they enjoyed passporting rights with the UK, allowing them to do business with UK citizens. As of June 2020, the firm may no longer sell or market CFDs to the UK residents. EuropeFX bears the mandatory risk disclaimer for CFDs on their website but in a very obscure position. This ban was part of a sweeping effort by the FCA that removed the passporting rights of many online brokers.
The broker has four different types of accounts. These are bronze, silver, gold, and platinum. The minimum deposit for the bronze account is €1,000, ten times the typical minimum deposit for online brokers. The platinum account requires €10,000 and offers various premium services like in-house forex experts and reduced lot commissions.
Negative User Reviews
In conclusion, EuropeFX gives traders access to the dangerously high leverage of 1:200. In the EU, the legally mandated maximum is 1:30. Higher leverages allow new traders to lose more at once, and they often don’t understand this until it’s too late.