The worst rated offshore FXTRADING.com broker review of the year, according to the 2024 Global Financial Evaluation Transparency Report, was awarded a combined rating of 1.2/5 (out of 5) on Trustpilot with an 85% user complaint rate. Mainly due to concerns over capital security and order execution. The figures are as follows: withdrawal failure rate of the platform 42% (industry average < 2%), average processing time up to 27 days (compliance platform average 1.5 days), slip point probability > ±10 points is 38% (ASIC regulated platform is 0.3%). For example, in March 2024, a user withdrew $50,000, which was received after 89 days, and eventually recovered the money with ASIC intervention.
Low ratings are due mainly to regulatory violations and capital risks. FXTRADING.com is not handled by any conventional regulator (e.g., FCA, ASIC), and client money is not kept separate (segregated account execution percentage 0%), resulting in a loss rate of over 95% of customer funds when it goes bankrupt in 2023. According to ASIC’s probe, the site exploited the illicit provision of 1:1000 (ESMA cap 1:30), resulting in a risk of customer liquidation of 91% (industry average 32%). In 2024, ASIC fined it A $12 million and banned it, but earlier 3200 clients had incurred losses of $170 million.
Negative reviews are also caused by technical glitches and manipulated data. The platform’s MT5 software has > 500 milliseconds order execution delay (compliance platform < 50 milliseconds), and in 2024 was vulnerable to tampering with historical transaction records (e.g., changing the slip value of a user’s losing trade from +15 to +2 points). Under third-party audit firm FX Audit, the actual median EUR/USD spread is 3.5 points (promoted 0.8 points), and concealed commissions contribute 45% to revenues (industry average 18%). For example, when User A bought XAU/USD (gold) in January 2024, the spread became as wide as the advertised 0.5 points to 8.2 points due to one single loss of more than $20,000.
False advertising and user cheating are the subject of complaints. FXTRADING.com puts fake ads on social media such as Facebook with “50% monthly revenue,” but Cambridge Analytica reports its users have a median annual income of -68% (n = 1,500). The class action lawsuit of 2024 revealed that the website cheated customers by creating false regulatory licenses (e.g., ASIC AR license number 123456) and fake headquarters locations (claiming to be London, UK, but registered in the Marshall Islands). FTC statistics show that “fraudulent” titles account for 79% of its complaints from customers (industry mean is 6%).
Industry comparison and evaluation variance highlights the danger. In WikiBit broker review, FXTRADING.com’s lowest rating is 1.8/10, much lower than the industry standard of 7.2/10. Primary indicators: segregation compliance with funds (0% vs. industry’s 98%), speed of order execution (latency > 500ms 82% vs. industry’s 5%), rate of customer complaint resolution (3% vs. industry’s 89%). The FCA-regulated Pepperstone Trustpilot rating stood at 4.7/5 for the same time period, failure to withdraw rate was 0.2%, and slip point > ±2 points probability was as low as 0.3%.
Low reputation is validated through user behavior metrics. J.D. Power data, FXTRADING.com 3-month customer retention rate is a paltry 12%, well below the 65% industry benchmark, and user transaction frequency reduced from 15 / month during the first month to 2 / month during March. Its average LTV customer life cycle value was -$4,200 (industry benchmark + $1,800), with the negative figures arising due to high loss and Margin calls (Margin Call trigger rate 92%).
Short and sweet, FXTRADING.com’s broker review score is low due to infractions of systems (misuse of funds, unregulated) and technical faults (slip manipulation and latencies). Investors need to look for platforms that are regulated by FCA, ASIC, etc., with a rating score of > 4.0 (such as IG Group’s rating score of 4.6) and verify security through audit reports and regulator numbers.