IronFX

Fake Claims and Infamy Reputation

IronFX is the trading name of Notesco Limited. It is based out of Bermuda. It is registered in Bermuda but is not regulated by any reputed regulating body of the region itself. The terms of business excerpt states the same.

Terms and Conditions of IronFX stating its unregulated
IronFX is an unregulated forex broker, making it an unreliable choice for any trader

Registration means that the company has submitted all of the documents about its existence as a business conducting organization. While a regulation for broker companies means that it will be working under the supervision of the regulating authority for providing brokerage services to the traders from the same area. For example, if a company is regulated by the UK’s Financial Service Authority (FCA), it is considered regulated for the traders from the UK only while for the traders from the USA, it will be considered as an offshore broker company only.

IronFX is an offshore broker operating from Bermuda. While the company mentions that it is regulated under various respectful regulatory bodies, it is missing in the terms of business of the company. The terms of business clearly mention that the governing laws are the Laws of Bermuda only and it is not regulated under the Bermuda market.

The Company Dissolved in Cyprus

In my IronFX review,  I have tried to search the details of the company and have found several astonishing facts. The Department of Registrar of Companies and Official Receiver, under the Republic of Cyprus, Ministry of Commerce, Industry, and Tourism declare the status of the IronFX as dissolved.

IronFX dissolved in Cyprus
IronFX is dissolved in Cyprus

A Red Flag by British Columbia Securities Commission

The British Columbia Securities Commission (BCSC) is based out of British Columbia (Canada). It is headquartered in Vancouver and is responsible for the securities legislation and administration. The BCSC has already notified the citizens of British Columbia that IronFX has no jurisdiction to do trade with the BC citizens and the traders from the region must not get involved with the company.

Illicit Extracting of Traders from China

The Chinese Government in the year 2018 caught the IronFX representatives for their fraudulent dealings in China. The persons were presented for a criminal trial in Shanghai Pudong District Court. In the meantime, a Chinese journalist has already run an undercover operation against the IronFX. As if now, no traders from China are neither interested nor allowed to do any proceedings with IronFX. The news came about the swamping of the regional office with the Chinese traders. The reason for the same is believed to be the complaints of the customers in withdrawing money from their trading accounts. It has been 6 months to a year that the Chinese traders are not able to get their money back from the company.

The Fine Settlement with Cyprus Securities and Exchange Commission

Notesco Limited claims to be regulated by CYSEC. Cyprus Securities and Exchange Commission (CySEC) imposed a fine of 2,000 Euro as IronFX failed to submit the yearly audited financial statements to the authority. This fine has been imposed after CySEC has issued a first warning to the company regarding a delay in abiding by the compliances. The CySEC is the Cyprus based financial regulation agency.

IronFX fine details to CySEC
IronFX had paid a fine of 2,000 Euros to CySEC

The Notesco Financial Services Limited has been registered as a limited EEA Authorized by the UK FCA but it is with a different address and different name. 

Notesco Financial Services Registration Information
Notesco Financial Services (Parent of IronFX) has Contradicting Info

Things would have been easy to judge for any trader, had the company mentioned the regulating details clearly in its terms of business.

Trading Services and Accounts

The company is dealing with Forex, CFDs, indices, futures, metals, and shares. The various types of live floating accounts provided by the company are as under.

  1. Micro Account: The minimum initial deposit for the micro account is set to $100. It is higher than the competitors’ minimum deposit which is as low as $50. The leverage is flexible up to 1:1000. While there are no specific services provided by the company, the trading conditions are not clear.
  1. Premium Account: The minimum investment limit of the premium account is 10 times higher than its predecessor. It is set to a whopping $1,000. It is noteworthy that nothing more in the name of services as given in the micro account is provided to the trader.
  1. VIP Account: Another 10 times rise in the minimum deposit will land you in the VIP account of the company. The spread is cited to start from 1.4 pips and leverage remains the same.
  1. Zero Fixed Account: Do you need an account with a spread as low as 0 Pips? Sadly, this is not as it is committed to being. The spread is committed to being 0 pips but it goes up to 3 pips. While the minimum deposit is set as high as $500, leverage is reduced to 1:500. 
Account types available at IronFX
Different Account Types present on IronFX – Image 1

The various types of ECN/STP accounts provided by the company are as mentioned below.

  1. No Commission Account
  2. Zero Spread Account
  3. Absolute Zero Account

The minimum deposit for all of the accounts is set to $500, which is almost 5 times higher than the competitor’s ECN/STP model. Leverage also, remains the same as 1:200 but is subjected to change according to the kind of trading one does. The only difference is in the spread which is 0.3 pips for absolute zero, 1.7 pips for no commission account.

IronFX account types image
Different Account Types on IronFX – Image 2

So, a total of 7 accounts are provided by the company. A demo account with unrealistic trading conditions is also available. While the floating accounts are set at high minimum deposit accounts, the leverage does not go as expected. In the STP/SCN model, there is only the difference in spreads, which basically can’t be considered as different accounts. The traders face slow execution of trades while dealing with the company accounts.

The use of MetaTrader4 as the trading platform came as no surprise to us. Powered by analytical tools, it is free of cost trading platforms. The electronic trading platform designed by the MetaQuotes Software Corporation is the most complete trading platform available in the broker industry. It is best of analyzing the market and auto trading using its trading signals. For IronFX, traders gripe about the random freezing of the platform, thus resulting in losses to the traders.

Money Swindling by IronFX

The terms of the business policy claim that the commission charged by the company is liable to be changed at any time without any notification to the account or the trader.

IronFX Shady Policy Screenshot
IronFX has full control over the funds of its traders

The company provides bonuses and promotions under three different categories. The 100% sharing bonus scheme will not be valid unless you deposit a minimum of $500 in your trading account. The 20% iron bonus scheme is limited to an amount of $2,000 only. The 40%power bonus scheme is limited to a deposit of $4,000 only. It looks more like a profit-making scheme than any bonus to the customer. Noted herewith is that the customer can not withdraw the bonus money. The sole purpose of this money is to promote aggressive trading.

The deposit and withdrawal conditions are not specified by the company. Neither there is any mention of the withdrawal fees or the deposit fees. It deepens the fact of the undisclosed fee charged by the company.

The time taken by the company for withdrawal requests starts from a month and ends with a wait of up to 6 months. The support team, when contacted, always gives the same reason for high trading traffic to the traders. Also, the quality of advice is highly unprofessional. 

Social media accounts of the company are tiredly updated. There is a rush of promotional offers and no watchful information is provided over the social media accounts. The company has failed to extract the potential of social media and kept it as a low affair dull task only.

IronFX Review Conclusion

IronFX is not allowed to extend services to traders from the USA, Cuba, Syria, Sudan and North Korea. Dribbling information, high response time, counterproductive classification of accounts, spreads going above average, and absence of integrated cryptocurrencies, make it a substandard trading acquaintance.

So, all in all, my IronFX review doesn’t recommend their services in any case. You should look for some other forex broker.

References:

2.5 Total Score
An Illegal Enterprise, definitely Not Recommended

Numerous regulatory authorities have taken action against this broker, it is clearly not a reliable choice for a trader. You should stay away from IronFX.

2.9Expert Score
Trust
2.3
Support
2.4
Reputation
4
Experience
3
2User's score
Trust
1
Support
3
Reputation
3
Experience
1
CONS
  • Fined by CySEC for shady practices
  • Unregulated
  • Unspecified Payment Conditions
  • Excessive Deposit Requirements
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2 Comments
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  1. A new scam has just been revealed a few weeks ago by a former British journalist for the BBC, it is the Forex broker Iron FX …

    A little background on the Iron FX scam

    Tens of thousands of investors all over the world have had their money stolen in a massive Ponzi scheme by a Cypriot broker. The whistle was blown by former employees who worked in the most sensitive department. They exposed staggering managerial incompetence, crony political corruption and finally the mass theft of investor funds to plug gaping holes in the company’s balance sheet.

    The journalist invested around £500 with Iron FX which he then converted into £3,500. But when the investor tried to get the money back last year, the broker froze the money completely. They could not be withdrawn as the company has serious liquidity issues. And the scenario has multiplied all over Europe!

    Iron FX is now in trouble, but the man who runs it has a long arm. He counts on heavyweights among his political friends like the President of Cyprus. The latter even inaugurated the opening of the company’s global headquarters in 2013.

    Here is a new broker who joins the ranks of scams domiciled in Cyprus.

    Mind-blowing as it sounds, with a market as volatile as Forex and commodities, Iron Fx has never had a risk management department. When you consider that they can redeem astronomical sums every day in seconds and offer huge bonuses to attract new customer, without such a department to guarantee a minimum of security, things seem pretty fishy!

    With a broker of this size, there are no separations of client funds either. It is common legal practice in many countries to prevent the broker from using client funds for their own purposes. Client’s money is always supposed to be safe, and posts on the Iron FX website say so, but nothing is further from the truth.

    In the case of IronFX, the client’s money is collected in a single account which is used to pay large bonuses and sponsor football clubs like Barcelona AFC.

    And after?…

    Numerous complaints have been filed against Iron FX for these violations of the law. Regulatory authorities do not move much…. A fine of € 335,000 was nevertheless imposed, but none of that money went to the looted investors. Everything seems to protect the financial system, but not the investors.

    According to the former BBC journalist in Germany a certain Patrizia Viviani is trying to coordinate all legal attacks against the broker in Europe, Asia and America. But she faces many threats …

    To conclude

    Customers faced with such practices are unfortunately not ready to review their money …

    what are the solutions?

    Avoid this broker.
    Approach the regulatory authorities of the country concerned to file a complaint … but don’t rely on it.
    To conclude, it is therefore better to anticipate and be attentive to see where you set foot with a broker, rather than regret afterwards. Big bonuses at the entrance are tempting, but you have to take a good look at everything else to avoid getting trapped later.

    Also, avoid being tempted by highly leveraged accounts. Without leverage, returns in the currency market are too low to be significant …

  2. 1
    Trust
    10
    Support
    30
    Reputation
    30
    Experience
    10

    Is the IronFX broker a scam? YES !
    The answer is yes, for me, there is no longer any doubt about the IronFX broker. can place it in the category of forex brokers to be avoided and those who have no qualms about defrauding individual investors and professionals as well as the affiliates with whom they have worked for many years. Some traders paid the price and sometimes lost several thousand euros with IronFX. I was an affiliate with IronFX. In other words, I was supposed to get paid for referring people to this broker. However, this fraudulent broker scammed me too!

    Complaints from traders about the IronFX broker
    My doubts about IronFX started a few weeks ago, when we received several testimonials from traders by e-mail, telling me about their mishap with this broker and the fact that he seemed not to want to pay them anymore. Some of these traders had a few thousand euros in their IronFX trading account (sometimes a lot more) and their withdrawal requests were no longer processed by the broker, I tried to help these traders but my communications with some managers of the IronFX broker, with whom I have been partners for several years, have not made it possible to recover the money from these traders.

    IronFX no longer pays traders and affiliates
    When I realized that all this was not normal, I immediately stopped promoting the IronFX broker on my website and remove the broker and its links from my forex broker review. The broker IronFX therefore seemed to no longer pay the earnings of its traders and it seemed that this broker who was once a no-problem broker had become a con artist.

    I had a trading account at IronFX, and I wanted to test and withdraw the amounts of money that were available on this trading account. The money accumulated in this account included some old commissions as well as gains made in trading. I have attempted multiple withdrawal requests for these sums of money over the past few weeks and it turns out that the withdrawals were never successful.

    My fears about IronFX turned out to be real and we are now convinced that the IronFX broker is a scam, that it is swindling its clients but also its long-time partners. The broker has cut off all communications with me. It no longer responds to emails or messages.
    Avoid the IronFX broker scam! That’s all I can say for now.

    - CONS: scam unresponsive support
    Helpful(0) Unhelpful(0)You have already voted this

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