Our financial fraud law firm specializes in the European, French and Cypriot legislation. Therefore, our experts try to help all victims of Forex through actions against shady brokers. On Forex-type trading platforms, there are often disputes between brokers and traders. We’re here to help and keep you informed. In this article, we have analysed the Forex 24 broker. Now find out whether it is a scam or not, and also our opinion on it.
I / Who is the Forex 24 broker?
Forex 24 is a brand owned and operated by Lydya Financial Ltd, a Cypriot Investment Company (CIF) regulated and supervised by the Cyprus Securities and Exchange Commission (CySEC) with License number CIF 300/16 and company registration number HE334292.
Forex 24 is, therefore, a regulated online trading broker that operates from Cyprus. According to their website, their address is: 5 Nikou Kazantzaki, George Court, 1st Floor, Ayios Theodoros, 8035 Paphos, Cyprus.
The broker provides traders with the popular MT4 trading platform for trading multiple instruments including forex, metals, indices, commodities, energies, stocks, etc. Traders supposedly have access to a range of trading and learning tools, as well as a customer support team to help them.
Forex 24 operates in multiple countries, but the brand does not accept clients from the following jurisdictions: United States, Canada, Iran, Iraq, Sudan, Japan, Syria, Afghanistan, North Korea, Uganda, or Yemen.
II / Forex 24 warning
According to the firm’s point of view, the broker seems to be compliant with the incorporation of the company. Indeed, we have access to different license numbers depending on the country (see the image below).
We also have access to the risks that trading platforms can entail: “Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. ”
Therefore, Forex 24 warns users about the various risks that may exist. This speaks well for the broker, because, conversely, many competing brokers do not want to display such information on their website. As consumers, however, you should know that it is very rare to make a fortune with trading platforms. Brokers usually sell you unattainable goals, promising you wonders.
In the case of Forex 24, you are warned about the risks involved. To better understand the risks of trading platforms, we invite you to read carefully the article in Le Parisien, which explains how the French were victims of trade fraud worth 4.5 billion euros, lost in 6 years.
The infographic below summarizes the trade scam:
III / How does Forex 24 work?
To open a Forex 24 account, you have the opportunity to choose between three options: bronze, silver and gold. Obviously, the more options, the higher the price.
We notice on the website that the spreads are usually high: 2.8 pips for bronze, 1.7 pips for silver and 1.2 pips for gold. The website states that spreads may increase depending on market conditions. We advise you to be vigilant if you still want to use this trading platform.
Unlike other competitors, Forex 24 charges a commission on each account.
In terms of payment, you can only use 4 payment methods: Visa, Mastercard, Bank Wire and Skrill. You can see the conditions in the image below:
However, below the table, it is stated that in the absence of trading activity, Forex 24 reserves the right to charge its clients additional fees.
The website says that you can open a demo account for free. Forex 24 then tries to gain your trust with a demonstration where trading is easier than with real accounts. However, when we wanted to check the terms of this free account, it showed error 500. Is this intentional?
IV / Our opinion on the Forex broker 24
Although, everything indicates that it is a regulated broker authorized in various countries in which it operates, and that gives reliability when using the trading platform, we believe that you should remain vigilant regarding Forex 24. Indeed, some pages in the French language version are still in English. The broker takes commissions as well as fees for an inactive account, but also the spreads are high.
Can we say that Forex 24 is a scam? No, because there is no official evidence. However, as a network of law firms specializing in financial fraud, we urge you to keep in mind your investment and the advice you can get from it.
If you have questions about Forex trading platforms, please do not hesitate to contact us for more information.