STOX50 is a unregulated broker based on St. Vincent and the Grenadines. They offer five account types with a leverage of up to 400:1 and a web based trading platform.
The selection of trading instruments is not bad – over 50 forex pairs with many exotic currencies like Indian Rupee, Singapore Dollar, Turkish Lira, South African Rand, Swedish Krona, Russian Ruble, Polish Zloty, Norwegian Krone, Mexican Peso, Hungarian Forint, Hong Kong Dollar and Danish Krone, as well as CFDs on a variety of crypto coins including Bitcoin, Litecoin, Dash, Ethereum, Ripple, Ethereum Classic, Bitcoin Gold, Monero, Verge, Cardano, Stellar, Siacoin, USD Tether, QTUM, Lisk, Golem, Tron, Waves and Bitcoin Cash. And there are also CFDs on gold, silver, platinum and palladium, oil, natural gas, commodities, stocks and indices.
The spreads we saw on their web based platform however did not impress us. The benchmark EURUSD spread floated between 3 pips and 3,3 pips and this is more than twice the levels, traders usually expect with a standard account.
Still, our main concern with STOX50 is their regulatory status – basically they do not have a license.
STOX50 regulation & safety of funds
STOX50 is owned and operated by ELRICS Brothers Ltd., a St. Vincent and the Grenadines based company, that does not have a license to provide financial services on regulated markets. It is true that STOX50 say they do not accept traders from the USA, Japan, Australia and New Zealand, but they do not mention anything about the European Union, which is also a well regulated market, where it is illegal for unauthorized companies to offer financial services.
Just keep in mind that trading with unregulated brokers has always been associated with an extreme risk of getting scammed. That is because unlike properly licensed brokers, unregulated brokers are not accountable for the safety of their clients’ funds.
On top of that brokers, regulated by respectable institutions like the Financial Conduct Authority (FCA) in the UK or the Cyprus Securities and Exchange Commission (CySEC), are even required to participate in client compensation schemes. For example, if you trade with a FCA broker your funds will be guaranteed up to 50 000 GBP, while with CySEC brokers your insurance will cover 20 000 EUR.
STOX50 deposit/withdrawal methods and fees
The minimum deposit requirement with STOX50 is 250 EUR, and that is more or less what other brokers would ask you for as an initial investment.
And although STOX50 accept payments with credit and debit cards like VISA and MasterCard, they do not allow withdraws with cards. Otherwise they accept payments with bank wire and some e-wallets, which however they do not bother to specify on their web site.
Also be aware of any trading bonuses that might be offered to you. Actually STOX50 says to be offering a trading bonus of between 25% and 150%. Such a bonus, however is linked to some special withdraw conditions. Before you will be allowed to withdraw you will have to reach a minimum trading volume of at least 3,3 standard lots for every 10 USD you have accepted as a bonus. That means, if you have accepted a bonus of let say 300 USD, you will not be able to withdraw until you have traded at least 10 000 000 USD.
And one final note. The broker offers something called “Algo trading service”, which is basically a managed account, which has a 25% service fee and where you agree not to withdraw your funds for at least 6 months.
The so called managed accounts are extremely controversial, because brokers like STOX50 are market makers – in two words, they profit when you loose money. Naturally, if you let them manage your account they will have the incentive to mismanage it.