ETX Capital Is Why Im Broke

50 Words on – Why you can go Broke with ETX Capital?

Apparently, ETX Capital – just like many other brokers out there – has some issues with gaps and slippages, especially during volatile market conditions. Users have complained about being taken out of a trade that was nowhere near the Stop Loss or about gaps that weren’t seen on other brokers’ platforms. Although price gaps can get you broke, the fact that different brokers have slightly different pricing is not out of the ordinary (they have different liquidity providers so their quotes sometimes differ when high impact news hits the market).

 

How to Avoid Going Broke With ETX Capital

  • Try opening an account on their ETX Trader proprietary platform because according to them, on this platform you can’t lose more than your account balance (you will never end up owing them money).
  • Always monitor your account to see if trades open out of the blue.
  • ETX Capital offers big bonuses which will tie your money to their platform until a certain trade volume is reached. Do not accept such bonuses.
  • If you accept a Bonus (yes, it’s appealing sometimes), make sure you understand all the strings attached.
  • Read their Terms and Conditions thoroughly. This applies to all brokers you want to open an account with.
  • Make constant withdrawals at least until you are certain their withdrawal procedure works as it should.
  • Keep your leverage in check. If price gaps past your Stop Loss and you are overleveraged, you will be hit big time.

 

 

The Good, the Bad and the Ugly Speak

Hear No Evil, See No Evil, Speak No Evil Hear No Evil, See No Evil, Speak No Evil

The clients of ETX Capital are surprisingly quiet. With ETX taking over Alpari’s clients (UK), you would expect some heated discussions, a lot of media exposure, but nothing like that is happening, at least at the time of this writing. On forexpeacearmy.com [1] (which is one of the biggest user review oriented forums) just 13 people posted their opinion and on fxempire.com – another mainstream website – just 6 people commented [2]. Of course, the lack of tons of comments could be also viewed as a positive thing because when people have something to complain about, they surely do so. They go online and start spilling their guts, sometimes cursing and swearing, calling the broker a scam in any way they can. But ETX Capital clients are either satisfied with the service provided by their broker or they really have a Zen attitude and don’t want to mess up their good vibes by arguing online. The ones that do comment have mixed opinions (just like always), with most of the complaints being related to the SNB day: Jo from New Zealand explains how three trades were opened on his account and does that with enough details, without raging and screaming [1]. Mindaugas from Lithuania [1] says he made a good profit of 20K euros on SNB day but the broker wiped it completely on the next day. Stan from UK was in a similar situation. How does this work: if I lose I lose and if I win you wipe my profits?!?

On the other hand, one of the guys who leave positive reviews sound like this: “…I am in trade with ETX MARKETS Until 1 year never has problem I am very happy with this broker one of the best broker in the world.” (bulut, Belgium [1]). The best in the world… and that’s about the only positive comment. Sorry but I cannot trust this guy. I’m not saying he is an affiliate of ETX Capital or that he is paid in some way by them, but come on…

 

Hello, Anybody Home? Hello, Anybody Home?

While reviewing ETX Capital I needed some clarification regarding some of their offerings so I figured the fastest way to get it was to contact Live Chat support. That’s when their Bad side – more like a downside maybe – showed itself: they don’t have a live chat feature. Of course this can be viewed differently depending on the person: some people prefer e-mail support because it feels more professional and usually the answers you get on e-mail are from a person higher in the hierarchy of the company than a chat representative. And come on, be honest: how many times you contacted chat support and the guy could barely speak English, giving you evasive answers and actually confusing you more than clearing up things. Yea, it happened to me, so the fact that ETX Capital doesn’t have chat support is not such a big deal but nonetheless, I think they should add this feature in the future because sometimes people want a dialogue, not a monologue. Also, some might think that not having such a basic function shows lack of professionalism.

 

Ex-Alpari (UK) Clients, Rejoice. Ex-Alpari (UK) Clients, Rejoice.

ETX Capital is owned by Monecor (London) Ltd., a company authorized and regulated by the British Financial Conduct Authority (FCA) with register number 124721. The fact that you are dealing with a London based company offers extra confidence and transparency – better than having your money somewhere in Bangalore or Saint Vincent and the Grenadines, right? On top of that, they have been offering online trading since 2002 so they should know what they’re doing but there’s another thing that I find much more interesting: ETX Capital bought the client base of Alpari (UK). Maybe this is not important to all of you but I am sure that ex-Alpari clients received it as great news. Here’s the short story: following the Swiss National Bank Bomb and almost historical CHF movement, Alpari (UK) suffered huge losses and entered bankruptcy, being now under special administration of KPMG LLP, a limited liability UK company (KPMG is a global network of firms that provide Audit, Tax and Advisory services in 155 countries). The thing is that getting your money out of a firm that is under “special administration” can be a hassle (even if they are a member of the Investor Compensation Fund). Enter ETX Capital! Once they’ve bought Alpari’s client base, all funds can be transferred from an Alpari account to an ETX Capital account. In other words, traders don’t have to go through all the complicated procedures and paper work to get their money, they can start trading right away with ETX Capital.

 

 

Editor’s Note – Is ETX Capital a Scam?

They are in business for more than a decade and are regulated by the British Financial Conduct Authority and I don’t think this regulatory body would allow a scam to operate for that long. If the FCA says they are not a scam, who am I to say they are? Some people say they had their profits erased on SNB day but I learned a long time not to believe everything I hear on the Internet; at best, they are half-truths.

 

Would I Trade With ETX Capital?

Nah, I don’t see why. Honestly, I didn’t find anything that could make me open an account. I spent a lot of time on their website, studying their conditions and looking at what they have to offer and I couldn’t find anything spectacular. However, if you are an ex-Alpari (UK) client, this could be just the broker for you, but if you’re not, I am sure you can find a better broker.

 

References

  1. FPA on ETXCapital
  2. ETXCapital user reviews on FXEmpire

 

Have We Saved You From Going Broke?

  • Steve Canesso

    Horrible broker unless you never want to withdraw money. It took more than two weeks, over 20 emails, a cancelled transaction (thank you xe.com) and 5 phone calls to get them to transfer the money to me. This is after taking 15 GBP for not making a trade. I also lost over $160 USD due to the exchange rate change from the cancelled transaction to the one I was finally able to make. No apologies, just slow response and terrible service.

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