Finotec Trading UK Limited runs the brokerage Finotec.com, which is operating out of London. The broker’s website claims that the company is a trusted partner to professional traders since 1998. Finotech offers a trading platform for Forex and CFDs in addition to managed trading accounts. They are also open to fund managers as well as introducing brokers.
But in as much as Finotec is regulated by the FCA, it does not appear to implement the quality of service that professional traders expect of them. A mountain of complaints really affected this broker’s reputation between 2006 up until 2011. As a result, we feel that they are not fit to compete with other Forex and CFDs brokers who we recommend in this list.
While looking for the most recent feedback, we noticed that these reviews stopped coming from traders after 2013, which is a very strange thing considering that Finotec is still active in the business of brokerage and investing. What might have happened?
Finotec.com Review: Background details
Finotec Trading UK Limited is in charge of a couple of other domains including a website that offers spread betting.
Some of the websites under this company’s name include YCM-Invest.com, Finotrade.com (now redirecting to finotec.com) and NoaPrime.com. Noaprime.com is now a Chinese pornographic website (this is what we saw as at the time of writing this review).
This is quite embarrasing as we have to ask ourselves what a financial services company has in common with the adult industry and why they made the decision to redirect finotrade.com to the current domain.
We consider it a red flag because most of the time when a decision is made to redirect a website from one domain to the next, it is often to clean a reputation that is destroyed already.
What the company does not know is that the evils will still follow them regardless of where they go on the internet.
FinoTec trading services
The brokerage segment of this company operates just like a typical Forex and CFDs broker. They offer Forex pairs for trading (both major and minor pairs), exotics, CFDs and Oil. The broker is however very greedy as they demand a minimum deposit of $25,000.
They advertise spreads starting 0.0 pips, which means they could be charging extremely high commission on trades.
It is not know what kind of leverage the company is offering at the moment. However, we know that they run the popular MT4 software and a Web xTrader platform.
The investment management segment of their services offers money management to high networth clients only. They tell us that the company is using self-learning algorithms, big data and market sentiment facts. However, they are not telling clients what returns to expect or what fees the company will deduct.
The investment management service is also advertised alongside a £500k deposit insurance protection to entice new clients to sign up. New clients must apply and acceptance or rejection typically depends on how much the client has or is willing to invest. The questionner is finacially intrusive as it wants to know upfront how much liquid assets the client has.
The client would be locked out as soon as Finotec determines that the client is broke.
Finotec Review: The dirty side which they don’t want you to know
In as much as they pretend to be sophisticated and reliable, the company is offering shitty quality of services.
First of all, they closed down their Cyprus office. This is a red flag because if they are legit, they should have given reasons why.
There are accusations of company locking out clients and not attending to phone calls or emails.
The trading platform is also sort of unreliable as orders are occassionally closed very far above or below the market price. This is the number one reason why professional traders lose money to market makers.
While the company claims to care for its customers, some users have said this is the exact opposite as Finotec is only interested in your money and no relations thereafter.
That aside, there are claims that some customers are occassionally losing money to this broker.
They also lie that the company is regulated by the FSA. But when I researched, I found a dead link, meaning Finotec does not have an FSA license.
What to do if you’ve been scammed by this company
You can claim your money back by filin a chargeback. The form is readily available and you can also live chat on the side of the screen. Consultation is free with no obligation but help is sure ultimately.
Finotec appears to be an organized fraud that is even registered with the FCA. It seems that these complaints have not reached the FCA just yet. Whatever the case, I urge the trading community to avoid this broker altogether. If you have had a bad experience, please drop your comments below.