EagleFX review – measuring the broker’s pros and cons
Similar to our Forex broker overviews in the past, we tried to approach this EagleFX review with as much neutrality as possible. Although we’ve been more or less convinced that this company is fraudulent and does not represent anything the Forex market stands for, we’re still ready to give it the benefit of the doubt and dedicate a full-scale review of their services.
Just like we’ve started to use this method on our other reviews of scammers, today we will be reviewing EagleFX as a scam brokerage first, and then going through their trading conditions as if they weren’t a scam at all. This will be used to determine if there’s a pattern for trading conditions that scammers use, or if this company is still worth to trade with if we’re wrong about them being a scam.
EagleFX review – legal documentation
When it comes to finding legal documentation on EagleFX’s website, it’s safe to say that they have it all categorized quite well. The only thing that we couldn’t find information on was the regulatory license of the jurisdiction the brokerage operates from.
Needless to say, this was the first instance when we started having the EagleFX scam doubts as any legitimate brokerage would be trying to focus on showcasing their registration license, its number and the regulator where it can be found with.
The only indication about the broker’s location was found at the footer of the website, where it’s mentioned that they’re registered in the Commonwealth of Dominica.
This is where we were absolutely convinced in EagleFX’s scammy nature. Even if the company showcases its jurisdiction and it turns out to be the Commonwealth of Dominica, they still need to be avoided at all costs. The reason is that this country does not regulate Forex brokerages. Sure it allows them to register locally, but there is no government agency that takes responsibility for the firm’s operations.
This is why we always shy away from calling shady brokerages a scam if they have a legitimate license. This is because even if they do defraud you of your funds, the regulator that licensed them is always required to compensate for the lost funds. In EagleFX scam case, there’s no such thing to be expected. Once you register and deposit, there will be no physical or legal way to get the money back with the help of a government agency.
Let’s imagine they’re not a scam
Now, in order to do our new review format due to justice, we need to steer this EagleFX review into a new direction. Let’s imagine that we never mentioned the previous paragraph and all the legal situation with the company is all fine and dandy.
Would they be a good choice based on their trading conditions? Or would be a middle-class Forex brokerage that is not worth the effort or the price tag? Let’s find that out.
EagleFX leverage and spreads
In order to determine whether or not it’s profitable to trade with a Forex brokerage, it is essential to look at their leverage and spread options.
Leverage determines how much you can expect to multiply your deposits to participate in the Forex market at a professional level without committing too much of your own finances. The spread, of course, is to determine how much of your profits will be going directly to the Forex brokerage.
Luckily, our EagleFX review shows that the leverage offered on Forex pairs is 1:500 at maximum capacity and the lowest we could find was 1:100 on cryptocurrencies.
Unfortunately, we couldn’t find any information about the spread range for EagleFX, but they mention that it’s floating, meaning that it can change based on the exchange rate. However, we found out that EagleFX Forex broker is commission based. They charge $6 per lot RT, which is already a big disadvantage. Pair that up with potentially wide spreads and you get most of your profits flooding towards the broker’s pocket rather than your own.
EagleFX withdrawals and deposits
There were some pros and cons as well that we found in the EagleFX withdrawals and deposits department. To be specific there was one huge advantage that we need to focus on and that’s the absence of fees on both methods of handling funds on the platform.
The second benefit is that the minimum deposits are quite low at $10, but we couldn’t find any information if this was just based on one account type or all of them. In fact, we couldn’t even find out if there are multiple account types, but judging by how they promote the deposits, it’s safe to say that there’s only one option, which is quite disappointing.
When it comes to depositing and withdrawal methods on EagleFX though, were a bit taken aback. Deposits can be processed through several methods such as Credit/Debit Card, Wire transfer and Bitcoin, while withdrawals can only be processed via Bitcoin. It’s quite the ordeal for traders who have no interest in cryptocurrencies.
The good news about this is that the minimum withdrawal is quite low, at $10 with no underlying maximum amounts.
Overall, had we not determined the EagleFX scam at the beginning of this review, the withdrawal and deposit methods would be a big plus.
Can EagleFX be trusted?
Let’s get back to the data we gathered at the beginning of this review. Yes, EagleFX is definitely a scam and no enticing offers would sway our decision in any meaningful way. The absence of a legitimate license and the catering to US citizens is a massive red flag when it comes to Forex trading.
In fact, just because EagleFX caters to US traders is evidence enough to brand it as a scam simply because they don’t have an NFA or CFTC regulation.
But all the scam evidence put aside EagleFX does come across as an above-average Forex brokerage. Had they not been such an obvious scam, we might even be recommending you to try them out right about now.