TNFX Broker Review
Are you ready to trade? There is no doubt that trading can be quite profitable when you have some knowledge and background. If you also have the funds to invest, it is time for you to start looking for a broker. A broker is a stepping stone into the market because they give you access to the assets and trading software you need for getting started. You have to create an account with the broker, which means share your personal information, and you also have to deposit funds, which means your finances are also in their hands. Therefore, the choice of a broker cannot be taken lightly.
You have to select the right broker for getting all the perks, but there are also scams that can wipe out your investment. Distinguishing the scams is not easy because they also have almost the same offerings as that of reliable brokers, but there are some tells that you can use for identifying them. One broker you will come across is TNFX. It is an offshore forex brokerage, which is based in St. Vincent and Grenadines. This broker offers trading on the MT4 trading platform and three trading accounts are provided. The trading conditions also seem quite attractive, but should you trust it?
First, let’s take a look at the positive aspects of TNFX. First and foremost, the broker gives you the option of opening a demo account for testing its services. As far as the spreads are concerned, the broker claims to be competitive in this regard and it does seem right. The spread on the most liquid currency pair i.e. EUR/USD is around 1.3 pips, which is in accordance with the industry average. However, there are some good brokers in the market that offer lower spreads. TNFX has also offered leverage of around 1:400 to allow its clients to open large positions.
But, this is not such a good idea for inexperienced traders because they can get into trouble. Another positive aspect of TNFX is that it is offering its clients’ access to the MetaTrader 4 (MT4), which is the most popular trading platform in the market currently. It has gained recognition amongst traders all over the world because it is customizable, reliable and also easy to use. It is equipped with a wide range of built-in technical indicators, advanced charting package, extensive back-testing environment and automated trade options (EAs).
You will come across a lot of brokers that make all kinds of claims on their website when it comes to financial regulation, but TNFX has turned out to be quite unique in this regard and not in a good way. According to the broker, it is regulated in Saint Vincent and Grenadines (SVG), Dubai and Iraq and it claims that it has applied for a license in Cyprus. To make matters even more confusing, the Terms and Conditions of the broker mention another company i.e. TNFX Global Limited and Belize’s financial regulator IFSC is also mentioned.
However, the fact is that the broker is owned and operated by a company based in Saint Vincent and Grenadines called TiranForex. It is a renowned off-shore zone and the SVG Financial Services Authority (FSA) has explicitly mentioned that it doesn’t provide licensing to financial services provider and doesn’t oversee any Forex companies or brokerages. It is safe to conclude that TNFX is not regulated in SVG. Moving onto other regulation claims, it should be noted that the Dubai Financial Services Authority (DFSA) supervises the Forex brokers in the country and not the government, as TNFX claims.
Likewise, it is the local Securities Commission that oversees financial providers in Iraq instead of the Ministry of Trade, as mentioned by TNFX. None of these regulatory agencies, including the Cyprus Securities and Exchange Commission (CySEC) has ever issued any licensed to this broker. This means that the people behind this brand are simply misleading investors by claiming to be regulated and legitimate brokers. In reality, they are not bound by any government regulators, which means that those that sign up with TNFX will be exposing themselves to substantial risk. If you have any legitimate grievances down the road, you will have no one to ask for help.
When it comes to the banking methods supported by the broker, TNFX has provided the traditional options of bank wire and credit cards and modern methods like e-wallets. But, it should be noted that Skrill seems to be missing from this list as they have an anti-scam policy and do not work with unregulated brokers. You will not find any information regarding withdrawal fee in the Terms and Conditions mentioned on the website. But, you will discover that the broker charges a mild dormant fee for accounts that remain inactive for 3 months. No other policies have been discussed.
Another feature of TNFX that comes off as a red flag is the high initial deposit requirement of the broker. You have to deposit $300 when you want to open an account with the broker, which is higher than what most other brokers demand. The standard initial deposit requirement is not more than $250 and in some cases, brokers don’t have any deposit requirements at all. Therefore, the fact that it does have a deposit requirement and that too higher than the market average, should be considered a warning. As TNFX is not licensed, you don’t get any assurance in terms of security of funds and you are not eligible for any compensation either.
Hence, your investment will undoubtedly be at risk. You should bear in mind that the trading world is full of scammers who are trying to rip off naïve investors at every point. Most of these brokers are either presenting misleading trading information or don’t provide any information at all. TNFX has chosen to mislead people and has provided incorrect information on its website. It has also incorporated some features and conditions to distract investors in trusting the broker even though it is not licensed and regulated anywhere.