Review of 31FX
31FX is an unregulated Forex broker that offers the cTrader platform. The company persistently reiterates on its website that the firm is based in the UK, more specifically, at Canary Wharf. It looks like the company hides behind this claim, when in fact the company doesn’t offer any details about where the business incorporated or what the legal name of the company is.
The 31FX website is very well made and offers a lot of helpful information. There are many legal texts on the website, such as AML Policy, KYC Policy, Terms and Conditions, yet it’s hard to say who these contracts are with as the counterparty is simple a brand name that is not associated with any corporate entity or person.
There isn’t a great deal of meaningful information available about this forex broker. While the company does genuinely offer the cTrader platform, we don’t know much else.
31FX offers several trading accounts, where leverage up to 1:1000 is offered. The highest leverage account, known as the Diamond account is only available with a €150,000 deposit, which is a strange requirement considering most brokers offer lower leverage to accounts with higher balances due to the higher risk they present.
Depending on your account size, the company offers different advantages, such as Financial Portfolio Structuring, Zero management fees, VIP Services and other features. These benefits are features we haven’t seen advertised at other brokers and it’s not clear what they are.
Is 31FX a Scam
The Financial Conduct Authority (FCA) has issued a warning against 31FX to inform investors that they are not authorised to offer financial services or products in the UK. The FCA states in the warning that some firms act without authorisation and some knowingly run investment scams. While the regulator did not conclude if the company is running a scam or not they did state that based on the information they hold, they believe 31FX is carrying on regulated activities which require authorisation.
Other Forex Broker scam websites have singled out 31FX due to a number of red flags and trader complaints.
31FX Review Conclusion
The company does appear to be active and regularly posting on its social media profiles. Compared to other brokers, it’s not clear what the advantages of 31FX are, especially considering the risk of trading with an unregulated broker.
In general, we don’t condemn all unregulated brokers as scammers. Regulation is complex, expensive and prohibitive to brokers. However, it’s very hard to tell the difference and unregulated companies are always at risk of losing bank accounts, payment methods or being shut down completely. If you choose to open an account with 31FX we always recommend caution and we don’t encourage using this broker.