Scam Warning: Investing in NewFX may Put Your Money at Risk

Are you new to forex trading? Please bear with us while we warn you about the risk of signing up with scam brokers who are always on the hunt. Undoubtedly, finding a trustworthy broker in the crowded forex market can be challenging, especially for beginners. This article demonstrates how phony brokers like NewFX defraud customers and turn their trading experience into misery.

NewFX - A Quick Overview

NewFX (https://www.newfx.us/) is a forex and CFD brokerage firm based in the United States. The company offers trading services across multiple financial markets, such as forex, commodities, stocks, indices, and cryptocurrencies. Claiming reliability and openness being its strong suits, the broker advertises to have been around for about ten years and have a significant presence worldwide. The company also brags about its reliable trading platform and competent employees. Besides keeping clients' funds in segregated bank accounts, the broker claims to employ the latest SSL encryption methods. In addition to English, the broker serves clients in over ten regional languages. Clients can reach the company over the telephone, email and live chat. 

Is NewFX Regulated?

No! NewFX is not regulated. The broker claims to be operating under the brand name of New Finance LLC. However, it hasn't shared any information on its website to confirm if it is properly regulated and possesses the necessary regulatory permission to provide financial services. On the website, the page containing the certificate doesn't open either. 

What Do Users Say About NewFX?

NewFX does not have a much following among investors. Customers who had dealt with this sham company have written evaluations complaining about the broker's unethical behavior of taking clients' money and disappearing. 

What Makes NewFX A Scam Boker?

The non-regulated status of the broker is the foremost factor that makes the broker untrusted. Further, the company has a history of frequently changing its domain names. The company formerly operated under the domain name https://www.newfx.trading and https://www.newfx.co. The broker asserted that it was governed by the MFSA, Malta's regulatory body. When the MFSA and numerous other EU license providers issued an official warning, the company changed its domain to newfx.us and stated that it would no longer accept customers from the EU. 

After becoming aware of being exposed as a fraudulent setup, the company disappears without notifying its clients or making good on any of the unclaimed payments. Then it returns to the market with a new domain to fool around with people once again. 

How NewFX Defrauds Clients?

NewFX follows the same approach as many other scam brokers do. For instance, the company calls customers and asks them to make deposits. The broker entices clients with lucrative investment deals and promises unrealistic returns over a short interval. However, after receiving funds from clients, it neither answers calls nor responds to emails. 

What If I Already Have Deposited Funds With NewFX?

We suggest you withdraw your funds immediately before the broker shuts down its domain, leaving you empty-handed. Essentially, do not ever trust a company with a poor track record, multiple warnings, and reported withdrawal issues. 

Bottom Line

Although the forex market is flooded with scam brokers like NewFX, a little diligence can save you from falling into their traps. Always signup with a regulated broker since a broker's regulation empowers you to recourse if anything happens unexpectedly. Also, do not forget to check the broker's reliability score with independent review websites like BrokersView to assess whether or not the broker is worth your investment.