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Safumax Review – is it scam or safe?
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Trading Accounts and Conditions
|Trading account||Min. deposit||Max. leverage||Spread|
|Standard||N/A||1:100||6 pips, fixed + $50 /lot|
Safumax is an unregulated forex and CFD broker that appears to offer a single trading account type and trading on the good old MetaTrader4. The broker has not disclosed its trading conditions, but after we tested their platform in demo mode, we can assure you that they are not in the least favorable to traders. You may find more details about Safumax and its offer in the review below.
MT4 available, solid leverage
Although we didn’t rate this broker high, they still might have some advantages. For example, Safumax provides up to 1:100 in leverage, which is a solid ratio.
Besides, the broker supports the ever popular MetaTrader4 (MT4) platform. The MT4 is preferred by most traders, because it is user-friendly and reliable, supports automated strategies, and offers advanced charting with a number if build-in technical analysis tools. cTrader also has a large set of advanced charting and market analysis tools, such as a number of chart timeframes, technical indicators, trend lines, Fibonacci levels, market depth, etc.
No legit license
The broker says to be owned and operated by SAFUMAX Group Limited, and provides a contact number in Hong Kong. Yet, we couldn’t find any address, nor a mention whatsoever of regulation, at least in the English version of their website. So we can safely conclude that this broker is not regulated, which a major red flag.
The lack of credible regulation brings together with it uncertainty regarding the most crucial aspect of a forex broker – the safety of the clients’ funds. Also, brokers that don’t hold a legit forex license are not entitled to operate on any regulated financial market, such as the EU, US, Australia, New Zealand, Hong Kong, etc.
Blacklisted by the FMA
However, it seems that Safumax targets investors in New Zealand, as the local Financial Markets Authority has included the broker in its warning list. The regulator expressed concerns that Safumax Group Limited (SGL) is operating from a false address, and its website contains misleading information that the broker is a licensed entity and regulated in New Zealand, which it is not the case.
Trading conditions not clear
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Although it has an English version of the website and FCA authorization, Safumax seems to target mainly Chinese clients. So it maybe a language issue, but we weren’t able to find any information on trading conditions. This leaves a bad impression and always lowers the credibility level of forex brokers.
Excessive trading costs
Safumax has not announced any spreads on its website, but when we tested its demo MT4 we found the benchmark EUR/USD spread fixed at 6 pips, which is at least triple the size of the average in the industry. On top of that, a salty commission of $50 applies, which means that the trading costs for this pair are around 11.0 pips per standard lot traded.
Click on the image to zoom in.
Below, you can find a list of credible brokers offering far more attractive spreads.
Limited product portfolio
When we tried out Safumax’s MT4 in demo mode there were around 10 forex pairs available for trade, as well as gold, Hong Kong 50, China A50, and Crude oil. Most brokers offer a lot more currency pairs and wider range of CFDs, also including stocks, indices and cryptocurrencies like Bitcoin. If you are keen on trading the cryptocurrency markets, we have drawn up a list of some brokers offering Bitcoin CFDs which are reliable and recommended.
Safumax is low credibility broker that doesn’t share much information about the company behind it, nor about its trading conditions. Yet, we discovered that their trading costs are excessive, and that it was blacklisted by the financial authorities in New Zealand.
Trading with unregulated brokers carries high level of risk, as investors’ interests and funds are not protected. What is worse, most brokers operating without valid licenses are often involved in some sort of investment scams. If you are looking for a reliable Hong-Kong forex broker, you may check out our list of licensed companies below.
And finally, here are the highlights of the present review of Safumax:
|MT4 available||No legit license|
|Solid leverage||Blacklisted by the FMA|
|Trading conditions not clear|
|Excessive trading costs on demo|
|Limited product portfolio|
FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.
XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.
FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.
FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.
FBS is a broker with cool marketing and promotions. It runs an loyalty program, offers a $100 no-deposit bonus for all new clients outside EU willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.
FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.
HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage – one of the highest in the industry.
How to spot a fake, fraudulent or scam website
We’re urging the government to ensure companies safeguard us all from scams.
Safeguard us from scams
Fraud is now at record levels, and while there are sensible steps we can all take to protect ourselves, an unfair burden has been placed on the public.
Join us in calling on the government, regulators and businesses to do more to safeguard us all from scams.
Eight ways to spot a fake, fraudulent or scam website
It can be difficult to spot a fake, fraudulent or scam website. Fraudsters are extremely cunning and good at creating convincing websites.
Take these eight simple steps to test whether a website is legitimate or not.
1 Double-check the domain name
A lot of fraudulent websites will use a domain name that references a well-known brand or product name. But won’t be the official website.
For example, website domains such as www.ipadoffers.net or www.discountnikeclothes.com should raise alarm bells.
You should also be cautious of domains that end in .net or .org, as they are rarely used for online shopping so may have been acquired by questionable organisations.
2 Is the offer too good to be true?
When you see very low prices with ridiculous discounts, you should be a bit suspicious. If prices seem too good to be true then, sadly, they probably are.
Scam websites use low prices to lure bargain-hungry shoppers to quickly sell fake, counterfeit or non-existent items.
You can use our tips for spotting a scam to help you identify if something is actually a good deal or simply a con.
3 Never pay by bank transfer
Alarm bells should ring if you are asked to pay for something online via a bank transfer.
If you buy something that turns out to be fake or non-existent with a credit or debit card, you do have some rights to get your money back.
But if you pay by bank transfer, there’s very little you can do to get your cash back.
4 Browse the website
Take a couple of minutes to double-check the site. Maybe visit the homepage or the ‘About us’ pages and read the text there.
Watch out for poor English, such as spelling and grammar mistakes, or phrases that don’t sound quite right.
It could mean the site isn’t genuine and was put together by someone abroad looking to make a quick profit.
You should also check that the website lists any contact information.
Reputable and legitimate companies will always list ways to get in touch with them; if the website doesn’t have a ‘Contact us’ page, it could well be fraudulent.
If the site does have ‘Contact us’ page but only offers a form to fill out, be wary as this could also be an indication of a dubious website.
Any company offering goods or services should list a place of business, as well as a phone number or email address through which to contact them.
If none of this information is available, you should treat the website as highly suspicious.
5 Check the returns policy
If the company is selling a product online, it should have a shipping and returns policy listed on its website.
If it’s a real company, it should tell you how and where to return a faulty item.
6 Read some online reviews
Look at reviews across a number of sources, such as Trustpilot, Feefo or Sitejabber, which aggregate customer reviews.
Don’t look at just one review website – check several to avoid being influenced by .
You should also check the company’s social media pages for recent activity and to see what other people are posting on their social channels.
Spot a fake review
Use our top tips to spot a fake review:
1. Are there lots of oddly similar reviews?
It should be a red flag if you notice a similarity in the reviews across several websites.
Reading through reviews, you might notice a whole set that use similar word groupings and writing style.
This often means the reviewers are either copying information or that the reviews were all written by the same person.
2. Are the reviewers all very new?
Watch out for reviews from new accounts. Some of the reviews should be from long-standing members of the site.
You might find the person has reviewed hundreds of websites, which gives them more credibility than someone who’s only reviewed one site.
3. Is the review non-factual or overly factual?
Facts are important in a review; don’t trust a review if facts or actionable information is light on the ground.
Similarly, a review that gives no personal opinion at all may well be a fake – and in any case, it’s not a great deal of help.
4. Can you only find very few reviews?
In this case, it’s probably best to give any suspicious website a miss.
7 Can you trust a trust mark?
Research carried out by ANEC, a European consumer organisation, found that seven in ten people say they’re more likely to use a website with a trust-mark label or logo.
But with more than 50 different trust-mark labels and logos in use across Europe, and many countries also not using them at all, they are not always a sound way of judging whether a website is trustworthy.
Also, just because a website appears to carry the logo of a reputable trade organisation, it still doesn’t necessarily mean the website is genuine.
If you’re in doubt, you could always contact the trust-mark company to check.
8 Look for a padlock
A padlock next to a website’s URL means the site is encrypted, so what you do on on it – such as browse or make payments – can’t be intercepted.
Most websites now have this feature, so if you notice a site doesn’t have one it could be a red flag.
But equally, scammers are able to forge or buy these padlocks so seeing one doesn’t always mean a website is safe.
Checking for a padlock should always be combined with the other checks we’ve recommended.
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Why are Scam reviews the most important read ?
First of all research is the first and one of the most important things we have to do in our struggle for online financial independence, to jump head first at promises made by unfamiliar people and webpages maybe exciting and also could be profitable but chances are we will fall victim to a scam, hence the scam review part prior to the jump part.
The internet is the highway of information and opportunity, there are a lot of information and opportunity but with every gold rush there are yearly millionaires but also frustrated coal miners.
We have to keep in mind in our search what is logical and what seems to be a scam, we all know if it quacks like a duck, walks like a duck its probably a duck, so always read the scam reviews if we see a web page, with no real information to back it up, nobody did the due diligence to check the facts and empty promises are being made by a voice on the screen we should all have to stop for a minute and think twice about what this duck really is.
Like all other ventures there are guideline and actual laws depending on the country you live in, regulations on financial instruments and so on.
If were looking to start investing we should definitely check if a certain brokerage has its regulation based on the country we reside in, its one of the first and most important checks we can make and a fairly easy one.
Second, we do want to look further since most of us do not have the knowledge to daily trade and make our living from it for expert advisors or algorithmic trading software, here as well there is a big difference between empty promises and a real potential for a second income or even potentially a main one.
My friends please read the scam reviews, only then you can find a great algorithmic software like the BITFX or a licensed broker like we have in our trusted section.
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How to Spot a Fake or Scam Website
Shopping on a fake website could result in your personal or financial information being stolen or your device becoming infected with a virus or malware. Knowing how to spot red flags is crucial but simple once you know what to look for. We’ve got tips, tricks, and tools for checking a website’s legitimacy below.
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