31FX Review: Scam Broker?

31FX Review
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Summary

31FX is an unregulated, offshore broker who tries to woo investors with attractive features. You’d do well if you avoided them. In the meantime, check out these trading tools and invest in one of them if you want to change your life.

Welcome to the 31FX Review. 31-FX is a broker offering Forex and CFDs trading including a variety of Crypto currencies on the popular CTrader platform. The broker’s website can be accessed through this domain 31-fx.com and if you want to know whether or not this is your ideal broker, I implore you to read this 31FX Review.

31FX Review

31FX is an entity owned and operated by JRV Market Ltd. JRV Markets Ltd is operating from the British Virgin Islands and the bad news is that this company does not hold a license to operate a Forex and CFDs trading business.

31 FX is therefore a risky broker to trade with because they will most likely fail to follow industry standard rules as stipulated in the regulators guidelines.

31FX review

The reason why you should opt for brokers who are regulated by more reputable regulators such as the FCA, CySEC or ASIC is because their members often follow ethical rules that favor their traders.

If you are trading with a broker that is regulated by either the FCA or CySEC, you can rest assured that the law requires such a broker to adhere to the requirements of keeping their operational capital at EUR 730 000 at all times.

On the other hand, Australia’s ASIC requires that their brokers must maintain a minimum operational capital of at least 1 million AUD.

So this offers some peace of mind, which unfortunately you won’t be able to enjoy should you decide to trade with a broker like 31FX.

31 FX review – account types

There are 6 different types of trading accounts here. They are listed below for your quick reference.

31FX account types

One of the things you can love about 31FX broker is that they are offering high leverages of up to 1:1000.

This allows aggressive traders to start small and make big profits in a short time, although you should be careful because excessive leverage can be harmful to your account. It is like double-edged sword and could be a way for 31 FX broker to temp the beginners and make them lose their funds.

» Read this article on leverage requirements for various account sizes.

As an experienced trader, I always keep my leverage around 1:200 and seldom change it. I have been doing this for 4 years now. So I can tell you that in as much as 1:1000 is really attractive, don’t go for it unless you are ready to suffer the consequences.

So my pick would be to go with the other accounts that provide laser leverage such as Basic (1:100), Bronze (1:100), Silver (1:100), Gold (1:400) or Platinum (1:500).

Spreads

31-fx.com claims that they are offering spreads of 0.1 pips in all accounts. I refused to believe so. This has prompted me to test their demo account with a pair like EURUSD.

The spreads for this pair came to 0.2 and they had not included commission yet. I don’t believe 31-fx.com and if you want brokers who offer tight spreads and won’t cheat you, invest with these regulated ones. 

Variety of trading instruments

This broker offers a good variety of Crypto CFDs for trading which include Bitcoin, Ethereum, Litecoin, Dash and Ripple. In addition to this, 31FX offers a special type of Crypto trading account requiring a minimum deposit of $500.

On top of this, 3FX has made it possible for their clients to make deposits and withdrawals in a variety of ways. They support Visa and MasterCard, e-wallets like PayPal and ePay, Bank wire and even BTC.

31FX review – why this is still not a good broker

I think this broker is offering a wide range of beneficial features so as to overshadow the fact that they are not regulated.

Many traders looking for convenience would easily fall for 31 FX broker because of the features which they offer.

The first thing that you have to worry about is the fact that they are not regulated, and secondly, this broker offers their basic account with a minimum deposit of EUR 500.

In my opinion, this is too high for a broker who is unregulated. And even if they were regulated, what would a trader wanting to start with $100 do?

Other accounts offered by 3FX even require a minimum deposit of EUR 150,000. This is unusual and if we think of it in terms of a broker who isn’t regulated, sending these amounts would definitely get you in trouble when it comes to requesting payouts.

Conclusion

They certainly offer many advantageous features including cTrader platform, which many brokers still don’t have. 31FX seems to have a plan for attracting traders whose brokers don’t offer these features.

The problem is that they are unregulated and they also require such a high investment even to open a basic account. Do not forget that 31FX is also an offshore broker and you know all the risks.

Meanwhile, I encourage traders to explore these Forex trading tools and if possible invest in any of these. If you are a trader, they’ll change your life.