86fxtrade Forex Broker

86fxtrade Forex Broker - Complete Information Guide

1. Broker Overview

　　86fxtrade is an online trading platform that specializes in forex, cryptocurrency, and CFD trading. Established in 2021, the broker claims to be headquartered in the United States, although various sources suggest that this information may not be accurate. The company is believed to be privately owned and operates under the name P240 Ltd.

　　The primary market served by 86fxtrade includes retail traders looking for access to various trading instruments, including forex pairs, cryptocurrencies, and CFDs. The broker offers a range of account types tailored to different levels of traders, from beginners to more experienced investors. However, the companys legitimacy has been called into question due to its unregulated status and the absence of verifiable information regarding its operations.

　　Key milestones in the company's development include its launch in 2021 and the subsequent warnings issued by regulatory authorities, notably the Malta Financial Services Authority (MFSA), which added 86fxtrade to its list of fraudulent financial companies in August 2022.

　　The business model of 86fxtrade appears to focus on retail forex trading, offering various account types with differing minimum deposit requirements and trading conditions. However, the lack of regulation raises significant concerns regarding the safety of client funds and the overall integrity of the trading environment provided by the broker.

2. Regulatory and Compliance Information

　　86fxtrade claims to operate under multiple regulatory frameworks, including the Malta Financial Services Authority (MFSA), the United Kingdom Financial Conduct Authority (UK FCA), and several others. However, investigations reveal that the broker is not registered with any of these authorities, and the claims regarding its regulatory status are misleading.

　　The specific regulatory numbers mentioned by 86fxtrade include:

• MFSA License No.: IS/56519
• UK FCA Registration No.: 595195
• BaFin Registration No.: 131055
• AMF Registration No.: 74397
• CNMV Registration No.: 3354
• Danish FSA Registration No.: 9221

　　Despite these claims, the MFSA has explicitly warned that 86fxtrade is not authorized to provide any investment services, nor is it a registered company in Malta. This lack of regulation means that clients' funds are not protected by any legal framework, making it a risky choice for investors.

　　Furthermore, there is no evidence to suggest that 86fxtrade participates in any investor compensation schemes, which would typically provide a safety net for clients in case of broker insolvency. The absence of KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance measures further exacerbates the risks associated with trading through this broker.

3. Trading Products and Services

　　86fxtrade offers a variety of trading products, including a selection of over 70 forex currency pairs, CFDs on indices, commodities, stocks, and cryptocurrencies. The broker claims to provide access to a wide range of markets, which is appealing to many traders.

　　The forex pairs available include major, minor, and exotic currencies, catering to different trading strategies and preferences. Additionally, the broker offers CFD products across various asset classes, allowing traders to speculate on price movements without owning the underlying assets.

　　However, the frequency of product updates and the introduction of new trading instruments remain unclear, as the broker does not provide detailed information on its website.

　　In terms of services, 86fxtrade primarily targets retail traders but does not appear to offer institutional services or white-label solutions. The absence of asset management services is also noted, which may limit the broker's appeal to a broader range of clients.

4. Trading Platforms and Technology

　　86fxtrade claims to support the MetaTrader 5 trading platform, which is widely recognized in the industry for its advanced trading capabilities. However, user experiences suggest that the broker primarily offers a proprietary web-based trading platform, which lacks the sophistication and reliability of established platforms like MetaTrader.

　　The broker does not provide a mobile application for trading, which limits accessibility for traders who prefer to trade on the go. The trading execution model is not clearly defined, with indications that it may operate as a Market Maker rather than an ECN (Electronic Communication Network) or STP (Straight Through Processing) broker.

　　Technical infrastructure details, such as server locations and the overall technology stack, are not disclosed, raising concerns about the broker's operational transparency. Additionally, the lack of API access for automated trading further limits the trading options available to clients.

5. Account Types and Trading Conditions

　　86fxtrade offers a range of account types designed to accommodate different trading needs. The following account types are available:

• Basic Account: Minimum deposit of $300, spreads starting from 1.9 pips.
• Starter Account: Minimum deposit of $1,000, spreads starting from 1.5 pips.
• Deluxe Account: Minimum deposit of $2,000, spreads starting from 1.2 pips.
• Executive Account: Minimum deposit of $3,000, spreads starting from 1.2 pips.
• Gold Account: Minimum deposit of $4,000, spreads starting from 1.2 pips.
• Premium Account: Minimum deposit of $5,000, spreads starting from 1.9 pips.
• VIP Account: Minimum deposit of $75,000, spreads starting from 1.5 pips.
• VIP Luxury Account: Minimum deposit of $150,000, spreads starting from 1.2 pips.
• Silver Platinum Account: Minimum deposit of $350,000, spreads starting from 1.2 pips.
• Gold Platinum Account: Minimum deposit of $500,000, spreads starting from 1.2 pips.
• VIP Gold Platinum Account: Minimum deposit of $750,000, spreads starting from 1.2 pips.
• Gold Luxury Platinum Account: Minimum deposit of $1,000,000, spreads starting from 1.2 pips.

　　The leverage offered by 86fxtrade is up to 1:100, which is higher than the regulatory limits in many jurisdictions, indicating a potential violation of trading standards. The minimum trading lot size and overnight fees are not clearly outlined, leaving traders uncertain of the costs associated with their trades.

6. Fund Management

　　86fxtrade supports a limited range of deposit methods, primarily focusing on cryptocurrencies such as Bitcoin and Ethereum. The minimum deposit requirement varies by account type, with the lowest being $300 for the Basic Account.

　　Processing times for deposits are not explicitly stated on the broker's website, and there is no mention of deposit fees, which could lead to unexpected costs for clients. Withdrawal options are also restricted, with a lack of clarity regarding withdrawal processing times and any associated fees.

　　Given the broker's unregulated status, it is crucial for potential clients to be cautious with their funds, as the likelihood of facing withdrawal issues is high.

7. Customer Support and Educational Resources

　　86fxtrade provides several customer support channels, including telephone, email, and potentially online chat. However, the effectiveness and responsiveness of these channels have not been verified through user feedback.

　　The broker claims to offer support in multiple languages, but specific languages supported are not listed. Educational resources available to clients include webinars, tutorials, and eBooks, aimed at enhancing trading knowledge and skills.

　　Market analysis services are also offered, including daily market analysis and news updates. However, the depth and quality of these resources remain uncertain, as they are not extensively detailed on the broker's website.

8. Regional Coverage and Restrictions

　　86fxtrade primarily targets markets in the United States, but due to its unregulated status, it may not accept clients from various jurisdictions. Specific countries or regions where clients are not accepted are not clearly outlined on their website.

　　The absence of a clear regional presence and the lack of transparency regarding operational offices contribute to the overall uncertainty surrounding the broker's legitimacy.

　　In summary, the 86fxtrade broker presents numerous red flags regarding its regulatory status, trading conditions, and overall transparency. Potential investors are strongly advised to conduct thorough research and consider safer, regulated alternatives before engaging with this broker.