Many people are searching for online brokers these days because they want to try their luck in the financial markets. Considering that there are a horde of opportunities available for making money, it is quite normal for people to want to take advantage. The only problem is that finding a broker to help you has become a major challenge. The sheer number of choices available can result in confusion because there is a possibility that some of these could be scams as well. Fraudulent brokers have also become common and everyone wants to avoid falling into their trap.
You have to do your due diligence in order to find out the truth and the same is applicable in the case of Intel-FX, which is one of the names you will come across in your search. Is this a good broker or just another scam? Let’s uncover the truth in this Intel-FX review:
Regulation and Licensing
If you take a look at the location of Intel-FX, you will come to know that they claim to be based in the United Kingdom. It is one of the most secure markets and any brokers operating in this region are required to get licensing from the Financial Conduct Authority (FCA). Getting licensed by the FCA is no piece of cake, as there are a number of requirements that have to be fulfilled and these can be extremely challenging. Plus, it is not just about obtaining a license, as the brokers also have to report to the FCA regularly to show they are legal. Thus, trading with an FCA-regulated broker can guarantee safety.
Even though Intel-FX does have an address in the United Kingdom, you can easily find out that they are not regulated by the FCA. They are not licensed to provide their services in the UK, so either they don’t have an office there or are operating illegally.
Terms & Conditions
The purpose of introducing Terms & Conditions is to convey to traders about what to expect in terms of rules, policies and fees when they are using a broker’s services. If you go through those of Intel-FX, you will find some issues under the Non-Deposited Funds section. First off, there is no way to distinguish between Deposited and Non-Deposited Funds and no clear definition has been provided. The policies state that bonuses can be offered on these funds to the clients and they can also be cancelled at any time.
Likewise, there may also be conditions that traders may have to fulfill in order to withdraw them. To put it simply, Intel-FX can prevent you from making withdrawals and claim all your money, so you will be left empty-handed.
There are positives and negatives associated with leverage offered by a broker. The higher the leverage, the more profits you can make, but losses can be equally higher. This has prompted many regulatory authorities to limit the leverage that brokers can offer and the Financial Conduct Authority (FCA) is one of them. They have set a cap for the leverage that brokerages can offer to their clients, which is 1:30. Yet, you will see at Intel-FX that they are offering their clients leverage as high as 1:500. How are they doing so when they are based in the UK? This clearly indicates that you are dealing with an unlicensed and scam broker.
This is one of the features offered by Intel-FX, which it uses to attract clients. After all, it is offering the MetaTrader4 (MT4) trading platform, which is considered one of the top ones in the market. But, it should be noted that this shouldn’t be reason enough for anyone to sign up with them because there are other glaring issues with the company.
Taking into account the lack of regulation, the shady bonus policies and the high leverage, it is obvious that Intel-FX is not a good broker and is mostly likely a scam.