Looking for more information about ThorFX? Discover why we don’t recommend this forex broker in our comprehensive ThorFX review.
While the initial impression of the ThorFx website may seem convincing and professional, it’s crucial to do more research before making any decisions. Upon closer review, it’s glaring that the website lacks transparency, lacks a legitimate forex license, and exhibits features commonly associated with scams.
If you are contemplating the idea of engaging in forex trading, including pairs, indices, shares, commodities, precious metals, and cryptocurrencies, based on the enticing conditions highlighted in the presentation, it is advisable to reconsider.
This ThorFX review will equip you with information that will help you make the right decision before signing up with the broker.
Who is ThorFX?
ThorFX is operated by Thor Markets LLC, a company officially registered in St. Vincent and the Grenadines since 2020. It’s important to note that this location is associated with fraudulent activities.
The broker prides itself on its advanced trading platform equipped with the latest technology, ensuring rapid trade execution through an ECN & STP hybrid model. The platform offers a diverse range of assets, including Forex, Stocks & Indices, Commodities, and Crypto.
ThorFX allows a minimal deposit of $10, a minimal lot size of 0.01, and a maximum leverage of 1:500.
Traders using ThorFX can select from four types of trading accounts:
- Standard account: Starting at 0.8 pips, with a commission of $7 per lot.
- PRO account: Starting at 0.4 pips, with a commission of $8 per lot.
- VAR account: Starting at 1.2 pips, with no commission fees.
- Mini account: Starting at 1.0 pips, with a commission of $1 per lot.
Regulatory Status
Examining the regulatory standing of an online broker is crucial to assessing its reliability. It is advisable to prioritize this aspect for your safety. When evaluating ThorFX, which claims affiliation with a licensed UK-based company, it’s essential to delve into its regulatory status under the Financial Conduct Authority (FCA).
The FCA is globally recognized for its stringent standards. Using the license number provided by ThorFX on its website to check the FCA’s online database reveals that a company is indeed listed.
However, a significant discrepancy arises when you realize that the trading names and domains associated with the listed firm do not include ThorFX.
A search for ThorFX in the FCA register yields no results. What does this imply? It suggests that ThorFX may be engaging in a clone scam, where it utilizes the credentials of a legitimate, regulated brokerage to present itself as such, despite lacking genuine regulatory approval.
Failure to verify these details might lead you into a deceptive situation. The fact that ThorFX is misrepresenting its regulatory status and exploiting another entity’s details is disconcerting. Always exercise caution and thorough verification to avoid falling victim to such deceptive practices.
Tricks Offshore Brokers Use
Let’s consider the various strategies that unregulated forex brokers (like ThorFX) often use to exploit unsuspecting individuals and siphon their hard-earned money.
High withdrawal requirement bonuses
Trading bonuses can be enticing, especially when promoted by dubious websites. However, these seemingly lucrative offers often come with strings attached.
Typically, a minimum trade volume requirement is imposed, preventing you from making any withdrawals, regardless of your trading performance. To safeguard your finances, it is advisable to steer clear of unregulated brokers altogether.
In addition, always read the fine print, especially concerning trading bonuses or promotions.
Fake profits and withdrawal fees
Scammers are known to impose exorbitant withdrawal processing and handling fees, coupled with so-called “profit fees.” These fees are levied each time you request a withdrawal, irrespective of whether the request is approved.
These fees can exceed 20%, a figure that is nothing short of outrageous. It is crucial to scrutinize the fee structures of any platform to avoid falling victim to such practices.
Guaranteed returns
Any broker guaranteeing returns or promoting risk-free trades is likely engaging in deceptive practices.
Legitimate and regulated brokers are obligated to provide transparent information, including warnings about the inherent risks associated with trading leveraged instruments.
Such warnings emphasize the high probability of losing your invested funds. Therefore, exercise caution and be wary of promises that sound too good to be true.
Trading Platform
Upon reviewing the information on the ThorFX website, one significant feature is the availability of the MT4 trading platform.
The MetaTrader platforms are well-known, especially among beginners, for being recognized as some of the best in the market. Renowned for their innovative technology and robust trading tools, MetaTrader platforms promise a seamless trading experience.
ThorFX seems to align itself with this reputation by offering access to the MT4 platform. However, upon closer inspection, it becomes apparent that ThorFX doesn’t actually provide its own trading platform.
Instead, the link on their website redirects users to MetaQuotes, the developer of the MT4 platform, where one can download a trial version independently.
This situation raises concerns, as it implies that ThorFX lacks a proprietary trading platform for its clients. A broker not offering a core element necessary for conducting trades can be unsettling, as it seems to hinder the broker’s ability to fully facilitate trading activities for its users.
Trading Conditions
ThorFX’s trading conditions are a cause for concern, thereby making one doubt its legitimacy as a UK-based brokerage. One glaring red flag is the leverage ratio, which soars to 1:500, a deviation from the FCA’s imposed limit of 1:30 for brokers.
This discrepancy raises questions about ThorFX’s adherence to regulatory standards and its commitment to providing a secure trading environment.
When we analyzed ThorFX’s offerings, we discovered that the promised spreads are another area another red flag. Starting at 2 pips, these spreads are more than twice as high as those typically provided by standard brokers.
High spreads can have a substantial impact on potential profits, making it necessary for traders to scrutinize and reconsider the cost-effectiveness of trading with ThorFX.
Equally disconcerting is the minimum deposit requirement set by ThorFX, which stands at a staggering $1,000. This is four times higher than the industry standard of $250, presenting a significant barrier for potential traders.
The stark contrast in minimum deposit requirements between ThorFX and established industry norms raises questions about the broker’s customer-centric approach and accessibility for a broader range of traders.
Furthermore, the industry landscape reveals a trend where many brokers are allowing traders to open accounts with minimal initial deposits, sometimes as low as $10. This trend is driven by intense competition within the market, emphasizing accessibility and inclusivity.
In light of this, ThorFX’s insistence on a substantially higher minimum deposit appears out of step with prevailing industry practices, warranting caution from prospective clients.
Deposit and Withdrawal Methods and Fees
ThorFx encourages accepting payments through debit and credit cards, along with various cryptocurrencies such as Bitcoin, Litecoin, Dogecoin, Ethereum, USD Tether, and Ripple.
However, it’s crucial to note that the acceptance of credit cards couldn’t be verified. There’s a common issue with dubious websites like ThorFx attempting to deceive users into depositing funds in cryptocurrencies, presenting a significant risk.
If you deposit funds in Bitcoin or other cryptocurrencies on an unregulated platform like ThorFX, retrieving your funds becomes nearly impossible due to the irreversible nature of crypto transactions. Moreover, you can’t ascertain the true owner of the Bitcoin wallet receiving your funds.
On the other hand, if you use VISA or Mastercard for deposits and encounter any issues, you can still recover your funds through a chargeback with the issuing bank. This is important when dealing with offshore platforms like ThorFx, known for potential scams.
Although the minimum deposit requirement is as low as $10 or $25, it’s crucial to remember that dealing with unregulated entities like ThorFX carries inherent risks, regardless of the minimum deposit amount.
Feedback from Customers
Numerous customers expressed dissatisfaction with the trading conditions and customer support provided by ThorFX. They raised concerns about elevated commission fees and wider spreads.
In addition, there were complaints about the lack of responsiveness from ThorFX when it comes to addressing support tickets. One customer even felt that the broker did not take account services seriously, especially after clients had funded their accounts.
Source: BrokersReview
CNMV’s Warning
On November 13, 2023, the Comisión Nacional del Mercado de Valores (CNMV), which oversees financial market activities in Spain, issued a caution to the public regarding ThorFX. The CNMV stated that the platform lacks authorization to offer investment services.
Conclusion: Is ThorFX a Legitimate Forex Broker?
Considering that ThorFX provided false information about its registration and did not secure proper authorization, there are significant risks involved in engaging in trading on this platform.
Moreover, numerous traders have expressed dissatisfaction with this broker, suggesting the possibility of fraudulent activities. It is strongly recommended for investors to be cautious of dealing with this unregulated broker.
To safeguard against potential scams and financial losses, it is crucial to conduct thorough research, read client reviews, and verify the credentials of a broker before getting involved in any trading activities.
If you have any information about ThorFX, its administrators, or its facilitators, please reach out to us.
