There are several facts you should be cautious about. We managed to outline them in the Zenfinex Review.
Just a short disclaimer – we’re not saying that Zenfinex is a bad trading brand. All we want to do is point out the difference between the onshore and offshore domains in which Zenfinex operates, and the risks associated with the latter.
Zenfinex is the trading name of the Zenfinex Group, based in the UK. This entity comprises several subsidiaries, which we listed in the table above.
This particular review will focus on the difference between the UK domain and the offshore domains from Seychelles & Saint Vincent and the Grenadines (SVG).
The Zenfinex Ltd company is registered with the UK’s Financial Conduct Authority (FCA), reference number 816055. This entity has been operating under tight regulation since 2019. Thus, we’re not worried about this Zenfinex regulation. The FCA implements nearly identical rules as the European Securities and Markets Authority (ESMA).
However, the ones that raise suspicion are the offshore subsidiaries, the reason being that SVG and Seychelles’ regulators do not issue Forex trading licenses.
The key difference is the broker’s website domains – the FCA-regulated domain is http://www.zenfinex.co.uk while the offshore subsidiaries operate using https://www.zenfinex.com.
This review covers the Zenfinex trading brand, which is engaged in Forex, crypto and CFD trading. The offshore branch of Zenfinex mainly provided services to traders from the UK, Malaysia, Vietnam, Colombia, and Lebanon.
As mentioned, the offshore domains have no Forex regulation in place. Offshore requirements for companies are nowhere near as strict as they are onshore.
For example, the FCA requires brokerage companies to show a minimum operating capital of 730,000 GBP whereas SVG’s FSA requires a significantly smaller amount.
Also, onshore brokers enable clients negative balance protection, segregated funds, a compensation scheme (e. g. up to 85,000 GBP), and leverage restriction (1:30).
We found one official warning issued against Zenfinex, its offshore domain, to be precise. This warning came from the Malaysian SC in 2022.
It seems that we were right in the previous paragraph. Based on our research, Zenfinex provided services in several countries outside the UK. Here’s the list:
To reiterate, the Malaysian SC issued a warning against Zenfinex’s offshore branch. If you have any issues with this broker, let us know.
The reviews of Zenfinex we found on Trustpilot and similar sites are mostly positive. It seems there aren’t any complaints against the broker online.
However, it could imply that Zenfinex hasn’t made the wrong move yet. Avoid the broker’s unregulated offshore domains and it should be fine.
In terms of trading platforms, Zenfinex included a nice selection. The broker offers three different platforms – MT4, MT5 and ZenConnect.
ZenConnect is a mobile app that can be combined with MT4. This software is available for Android and iOS on Google Play and App Store. The MT platforms can be downloaded directly from the website.
These two have been around for a while. In the meantime, they established themselves as arguably the greatest trading platforms in the world.
MT trading platforms offer a wide range of cutting-edge tools such as automated trading, instant execution, a customizable interface, multiple timeframes, sophisticated analytical options, live market reports, etc. MT4 and MT5 are available for both Android and iOS.
“Chat, copy and trade,” that’s the slogan here. ZenConnect is a mobile app that can be combined with MT4.
It offers in-depth market analysis, automated copy trading, and a sleek user-friendly layout. Basically, ZenConnect is a neat copy-trading mobile app that bring numerous benefits.
Zenfinex offers over 500 trading instruments including FX pairs, CFDs on popular assets and crypto coins. The only disadvantage is that the broker didn’t include shares.
The trading costs of Zenfinex seem pretty favorable. For example, the Standard account’s spread for the EUR/USD pair starts from 1.3 pips with zero commissions.
On the other hand, the PRO account’s spread starts from 0.1 pips for the same pair but Zenfinex charges 3.5 $ per side per 100,000 traded. The division here is essentially raw vs. fixed spreads.
Here’s a quick overview of Zenfinex’s trading accounts:
The leverage cap is the same for all accounts – 1:500 for FX pairs and 1:100 for CFDs. Here you know undoubtedly that you’re dealing with an offshore broker.
In the UK, the FCA imposed a leverage restriction of 1:30 for retail clients. High leverage is extremely risky, especially in volatile markets.
Zenfinex offers a free demo account. The broker didn’t specify how long you can use the demo account though.
Nevertheless, it’s a useful option for you to see the platforms and trading conditions. Just be careful when switching to a live account and investing real money.
Zenfinex’s partnership programs include an affiliate program, introducing brokers, and white labels. They run on one common principle – you find more people who want to open an account with Zenfinex and trade. In return, you get a cut.
All of these are designed to “tighten” your connection to Zenfinex. However, many “partnership” programs turned out to be a Ponzi scheme, so be careful.
Zenfinex included a wide range of different payment methods. Some depend on the country where you reside, so we have:
The minimum deposit is 50 $. Deposit fees vary for each funding method (around 2-3%). The Zenfinex withdrawal policy says that most methods are fee-free except for cards (3.5 $ per transaction), Skrill (1%) and Webmoney (2.8%).
To sum up, Zenfinex Ltd is an FCA-regualted company with offshore subsidiaries that lack strict regulations. So, if you want to open an account with this broker, it’s best you choose the onshore domain.
If the broker violated any terms and conditions, please let us know. If you’re having withdrawal issues, we can help you there as well.
Global Fraud Protection’s experts specialize in bank chargebacks and advanced crypto-tracing software such as CipherTrace.
If this broker steals your money, contact us for help. The easiest and fastest way to book your free consultation with us is via Online Chat.
If you do decide to invest, make sure you’ve chosen the onshore domain because it is regulated by the FCA.
Yes. Zenfinex offers a demo account for both MT4 and MT5 trading platforms.
Yes. The broker has its own ZenConnect mobile trading app available on App Store and Google Play.
They are if you invest in the UK branch because the broker will then segregate your funds and you’ll be entitled to compensation according to the FCA’s rules if something goes wrong with the company.
If you do decide to invest, make sure you’ve chosen the onshore domain because it is regulated by the FCA.
Yes. Zenfinex offers a demo account for both MT4 and MT5 trading platforms.
Yes. The broker has its own ZenConnect mobile trading app available on App Store and Google Play.
They are if you invest in the UK branch because the broker will then segregate your funds and you’ll be entitled to compensation according to the FCA’s rules if something goes wrong with the company.
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