Fantex is a Forex broker that displays a lot of concerning signs. They don’t have regulatory status and their policies are somewhat biased. The leverage provided by them is capped at 1:30 which is a good sign, but the other trading conditions imposed by them are confusing and some are questionable as well.
Anyone who wants to open an account with them should put in $250, but if you want to go for sophisticated account types, then the entry barrier is very high and ridiculous too. Forex markets provide immense leverage and are open for 24/5. It is one of the most liquid trading instruments ever and the kind of potential it has is unprecedented. However, none of the things mentioned above implies success.
So, you need to be very careful if you are planning to begin your journey in this sector. Choosing a broker is an important task for every trader and as far as this platform is considered, keep reading our review to find out everything about them.
Fantex Regulation and History
Fantex is owned by Felicity Group LTD, the firm is located in the Commonwealth of Dominica. By definition, they are unregulated and the financial laws in the region they are based in are very flimsy. A lot of unregulated brokers love places that offer them leniency because it enables them to get away with the tricks they pull to transfer wealth from client’s pocket to theirs.
Brokers who are regulated by regulators such as the ASIC, FTC are all reputable and they uphold strict guidelines and ensure highest security of the funds. Moreover, to prevent the retail side from taking on any sudden shocks or mis-happenings, they even offer compensation funds.
Your money is not safe with Fantex and the odds are against you regardless of the angles you look at it. So, if you have deposited with them, then withdraw it immediately or else the chances of losing it will increase significantly. After all, you can’t be too careful nowadays, right?
Customer Support
Every brokerage does it’s best to win over their clients by offering the highest form of hospitality. They all understand that to retain the clients the user feedback loop is necessary and they give utmost attention to create favorable circumstances that feel like win-win situation for all the parties involved.
This broker doesn’t seem to uphold the morals and approaches mentioned above. They haven’t shared any details about their contact information and the only way to get in touch with them is via the contact form available on their website. The standard time required by them to follow up on any query is unknown and given their nature, it will be nothing short of a miracle, if they respond within 24 hours.
Their hesitation towards sharing their details is very disturbing and it proves that they have something to hide. Now, ask yourself, is this the broker you want to associate yourself with?
Does it Support MT4?
MT4 is the retail traders favorite application as it provides a ton of features and functionalities. Unfortunately, this broker doesn’t support MetaTrader and automated systems are also unavailable with them. In simple words, users won’t be able to use any form of trading solutions such as the Expert Advisers, bots or copy trading services.
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For any beginner, the conditions associated with this broker would act like a deal breaker and people who are on the experienced side would never dabble with web platforms like the ones offered by Fantex. Moreover, the charting tools and templates are also not that customisable and clients can’t add any custom indicators as well. The fact that the default platform is inadequate for the majority of traders is undeniable and as such, it should be something you should never underestimate.
Charting Solution
Traders spend most of their time being glued to the screen. Many experienced traders usually use more than one screen as that enables them to watch graphs of various assets without having to play with the tabs. Clearly, charting is a very important aspect for every trader and without it, it is almost impossible to employ technical analysis.
This platform as we have mentioned before in this post doesn’t support MT4 instead it offers a web based trading interface that contains Tradingview charts. Tradingview is an exceptional tool and it offers a lot of extra functionality compared to other alternatives in the market.
However, if you plan on using their service uninterrupted in any way, then be prepared to pay for it and the subscription plans they have are pretty expensive as well. So, be prepared to shell out hundreds of dollars on a monthly basis if you want access to quality charting tools and metrics.
Fantex User Feedback
Unregulated brokers do not adore the concept of client feedback because at the end of the day, it will expose their real nature to the outside world. They do their best to eradicate information about them online and they will go to great lengths to manipulate the available data too.
Regulated brokers don’t have to worry about the things their clients say because for the most part, the feedback will be good and even if there is some kind of fault on their side, they will rectify and act on it quickly thereby addressing the issue.
Fantex broker is not on the radar of any trading related forums on the web. To paraphrase the reality, they have either controlled the flow of information very well or they don’t have enough web traffic to begin with. Both of the scenarios mentioned above are not good for the end customers and as such, you should not ignore any of the signs they exhibit.
Referral Program
Most brokers enable people with access to web traffic to monetize their abilities by featuring a referral program. The marketers just have to redirect traffic to specific platforms and whenever a person referred by the marketer makes a purchase, they get a kickback for it. This platform doesn’t appear to feature any kind of referral programs or IB offers.
If you are interested in working with them on a commission basis, then you have to contact the support team to know about their policies and stance regarding the marketing aspect. It is indeed strange to see a broker who is not transparent about their marketing department and their strange stance on most matters gives a wrong impression to the public.
Account Management Services
Fantex offers a range of account management services in the form of trading signals, analysis reports and via dedicated account managers. Note that dedicated account managers are only available to certain account types only and the kind of value they bring to the table is speculative at best. They have not published any kind of reports on their trading signals.
In other words, it is impossible to quantify their data and as such, we strongly encourage everyone not to follow it. Unregulated firms always offer account management service and make it seem like an enticing opportunity to make money. However, sooner or later the clients will start losing money due to the conflict of interest that is present in the core operational model and there is no denying that.
Moreover, think about it for a moment, if their signals are really that good and if they are always right, why are they offering it to someone else instead of making billions of dollars for themselves? Easy money claims are always hard to resist, but if you make the mistake of slipping into their web of lies, then chances are you will suffer a grand loss in a blink of an eye. Unless and until they present you with proof, do not trust their words and simply wait for more data to show up.
Account Types and Trading Conditions
This platform offers 4 account types, the amount required to get started with them ranges from $250 to over $50,000. Things like charting tools, negative balance protection and leverage are all the same for every account type. However, the key benefits of choosing an expensive account type is to unlock personalised trading services and signals.
Though, we cannot comment anything about the performance of the so called dedicated account managers, we can assure you that their goal is not to earn you easy money. So, don’t fall for the account management traps and at any point of time if you feel uncomfortable, then walk away from the deal.
Remember, they can’t force you to invest more under any circumstances. The only good thing about them is their leverage cap which stands at 1:30. You might have seen brokers that offer upto 1:1000 leverage, but note that those kinds of numbers are way too high and it isn’t suitable for everyone.
Deposits and Withdrawals
Minimum deposit amount as we mentioned before is $250 and the acceptable payment methods include wire transfer and credit cards. The minimum withdrawal amount is $50 and the information about fees wasn’t mentioned anywhere on their website. Transactions are said to be processed within 3 to 5 working days and their KYC policies are also pretty standard.
They do offer bonuses for new clients which is borderline unethical. We advice all our audience not to accept any promotional packages as they will all carry hidden conditions. After all, there is no such thing as truly free, right? If the withdrawals are withheld or not processed, then the clients can’t do much about it unless they know their way around accounting laws.
Other Services
There are a few things that are good about this platform and they are as follows.
News Section – News regarding all the markets can be found on their homepage. Regardless of the kind of asset class you are involved with, you can get all the relevant information at a single place and that is a huge thing in our books. Moreover, it is free as well.
Economic Calendar – The volatility spikes whenever there are high impact news events are present. As a trader it is very important to know about the latest events in the market and the economic calendar plays a big part in doing so. It features all of the necessary information along with other metrics which are tweakable. All in all, it is a helpful tool which will assist you in making quick decisions.
Standard Policies – Brokers are always on the lookout for fraudulent activities that might result in money laundering. Obviously, they don’t want to be on the wrong side of the law which is why they give utmost preference to finding irregularities as early as possible. This broker also does a very good job of preventing illegal activities to a certain extent and their KYC policy in specific is flawless in every way.
It is nice to see genuine efforts put in by this broker to keep their balance sheet clean and it certainly earns them respect for strictly following the law in this regard. Their website does use SSL layer encryption and their privacy policy also does not feature anything that can fall in the category of something that can be seen as a potential threat.
Fantex Review Conclusion
Fantex broker is not a trustworthy entity and they don’t bring anything new to the table too. The spreads they charge is unknown, the policies are pretty vague and the customer support is unacceptable. The default platform is also not that good and they haven’t earned any customer feedback as well.
So, look elsewhere if you want to find a reliable broker and if you have lost money to them, then get in touch with us to discuss the options at your disposal. All you have to do to reach our team is fill in the contact form on our website.
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