Rating:
Well-experienced traders want to learn as much as possible about the broker when they want to choose one. For those, who have ever considered trading with Novox FX it is a very hard task. One cannot find information about the broker as for some reason it chooses not to disclose itself too much to the traders. You cannot find many Novox FX reviews or comments made by the customers of the broker. That could mean two things – either Novox FX is a very new brokerage or it is a scam broker that tries hard not to reveal itself, or maybe both. This is why we decided to have a closer look and bring the features and the service of the broker to the light.
Novox FX is a trading name of the company Novox group which consists of several companies. The Group was established in 2014, but the information when Novox FX brokerage started operating is not available. The broker offers Forex, commodities, stock index to the customers. The broker does not say who can open an account there, but since the website is available in Chinese and Japanese the broker targets Asia mostly. However, it also has an office in London.
The fact that there is not much information about the broker might mean that we have a case of Novox FX scam. Other facts are strengthening this assumption as well. The most disturbing thing is that the information that the broker has on the first page of the website is simply not true and it takes some time to find it out.
Revealing Novox FX scam
Making Novoxfx.com review was like an investigation. On the website, the broker tries it hard to give you the idea that it is one of the best brokerages in the world. It is under the multilateral supervision that excludes the possibility of any wrongdoing from the broker’s side. It has funds security in an international bank, ultra-low spreads, high-efficiency execution, superb customer service and multiple honorary awards. What else do you want in the broker? Sadly these statements are not even close to reality.
Regulations
The broker claims that it is regulated and is under the supervision of three regulatory bodies -CySEC, ASIC and FSCSVG, it is part of Novox Fraud, the broker provides this information to make traders believe it is a legit broker. As mentioned above the broker is operated by the Novox Group. Novox Group has two companies – Novox Capital Ltd and Novox Global Limited. Novox Capital Ltd is registered in Cyprus and is regulated by the CySEC. However, the regulation does not cover Novox FX as the broker website is not listed in the approved domains.
Novox Global Limited is registered in Saint Vincent and Grenadines and is locally regulated. Since the NovoxFX.com is not an approved domain by CySEC, it means the broker does not have any right to operate in the EU. As Saint Vincent and Grenadines is offshore territory the license does not give the broker the right to operate in other countries. Moreover, we all know that traders should stay away from the brokers that are regulated offshore since it is a long time haven for the scam brokerages. Being regulated by ASIC is also not a true statement. Novox Group has another company Novox Group PTY LTD which is an authorized representative of Cardiff Global Markets PTY LTD which is regulated by ASIC. Moreover, on this broker’s website, there is no remark about Novox FX. In the end, the broker has misleading information about regulations which raises the question can Novox FX be trusted?
There is no information what awards does the broker really has which is also suspicious. First of all, if the broker has “many awards” they should be on the market for some time already and would have some reviews. Moreover, the broker does not disclose what are these awards and who gave it. After all, every single broker can easily write on the website that they have many awards. Hence, it must be just a trick to lure inexperienced traders into Novox FX scam.
Novox FX account types and spread
With the broker, one has a choice of three account types:
- Standard account. The minimum deposit for this account is 200 USD and spreads start from 0.25pips
- VIP account with the minimum deposit of 5,000 USD and spreads from 0.20 pips
- The professional account where the minimum deposit is 10,000 USD and spreads start from 0.12 pips
This way spread looks really ultra-low and might form a very positive Novox Fx opinion. However, the real number is shown in the Forex information where the broker lists currency pairs. Spreads there start from 21 pips, which is lowest for the standard account. There is a huge difference between the spreads the broker presents now and the actual spreads.
Novox FX Customer service
So far nothing that the broke claims appeared to be true. Let’s take a look at the high-quality customer service. There are three ways one can get assistance from the broker. Live consulting, email and phone. The website states that live consulting is available 24 hours however the button that should open the chat does not work. That does not speak well for Novox FX rating. The number indicated is from Saint Vincent and Grenadines only and is not very comfortable to use to anyone from the other countries. Last but not least, the broker has indicated the email which is the only way to get support from Novox FX. However, email is the least convenient way for this if someone has an urgent issue. Moreover, you can never know when the broker will respond if it will reply at all.
Novox Limited Ltd scam
While making Novox FX review I came across to the interesting facts about the company that operates the brokerage. Novox Limited Ltd is a well know company in the trading sector that is associated with several binary options platforms. The parent company of Novox Fx, Novox Limited was running OptionBit, Option888, ZoomTraderGlobal, and ZoomTrader at different times. It was also connected to other brands like SafeMarkets, and OptionStarsGlobal. All these binary options platforms were eventually closed or banned due to the wrongdoing. For example, OptionBit was often accused by the customers for manipulating the market and withdrawal problems. Novox Limited was fined and warned by the Cyprus financial watchdog, CySEC several times for multiple violations and failures to meet the regulatory requirements. The reasons include:
- Providing financial services to the customers when these services were not authorized by the regulator
- Providing false, confusing, and/or misleading information about financial trading in order to make them deposit funds with the broker
- Failing to act according to the best interest of the customer
- Giving the personal information of the customers to the third party
- Not providing any information about the risks that come with investing in Binary options and promising high profits to convince customers to invest money.
This list goes on and on. It is hard not to think about Novox Fx scam when the parent company has been fined for all those things. Moreover, even though the company was fined several times CySEC still did not revoke its license.
Can Novox FX be trusted?
Summing up, I cannot think of a reason why the broker can be trusted, on the other hand, there are a lot of reasons why traders need to avoid Novox FX at all cost. First things first, the broker is providing misleading information to lure the customers. It does not have proper regulations (if it has any at all), does not have a right to operate in Europe, or Japan but still does so. The broker sugarcoats the service it is providing and states that have ultra-low spreads and high-quality customer service when actually spreads are considerably high and online chat does not work at all. Novox FX Forex broker completely lies about the awards and last but definitely not least, is a brokerage operated by the company that had numerous warnings from the regulator. When there are a lot of good international brokerages, it is hard to imagine any trader that chooses Novox FX as his/her broker. It is one of a kind broker that needs to be avoided at all cost.