Is OsmosisFX a Legitimate Broker?

What did we find from the OsmosisFX website?

Trading environment and conditions - OsmosisFX claims to be a financial trading platform founded in 2012 that can open the gate to financial freedom for its clients. Cryptocurrencies, currency pairs, precious metals, and indices are the trading instruments the broker claims to offer traders. With the MT5 trading software, clients can trade using different types of devices. The broker's self-proclaimed user-friendly trading platform has several features, including real-time market data, charting tools, technical analysis indicators, and more.

However, BrokersView found that the broker's website was created in February of this year. Did the broker operate and promote its business without a website between 2012 and January 2023? OsmosisFX's founding date is in doubt.

Deposits and Withdrawals - OsmosisFX states that the company does not charge a deposit fee but does charge 2% of the amount withdrawn as a commission. However, it doesn't list any optional deposit/withdrawal methods besides cryptocurrency wallets. The commission rules are not available on its website.

An international financial broker? - OsmosisFX claims to be an international financial broker based in New York, USA, with branches in Europe, New Zealand, Hong Kong, and Singapore. The laws in these regions require financial service providers to be registered and regulated with the Central Banks in Europe or other financial regulators and to operate their business by the law, subject to regulatory requirements.

BrokersView searched the National Futures Commission (NFA) portal but did not find an exact match for OsmosisFX, while the two similar search results were "not NFA members." This suggests that OsmosisFX is not authorized or supervised by the US regulator and should not be providing financial intermediary services to the residents. We also searched for financial regulators in the regions where OsmosisFX claims to have branches and found that the company is not supervised in any of these places.

Customer Support - The broker provides little contact information to users and does not appear to have social media accounts. Aside from an online form and an email address, there is no other way for customers to reach the company's team. Moreover, the only two ways of contacting the company also puts the client in a very passive position, making it difficult to get in touch or communicate with the company if they do not receive a written response from them.

"Policy" - The Policies on the OsmosisFX website are divided into several sub-categories. Each link does not contain the full terms, but only a brief description of some of the terms. It is worth noting that under "Governing Law," the broker expressly states that it is "governed by the laws of the United States,"

However, as we said earlier, the company is not supervised by US financial regulators, so the authorities have no guarantee that the broker is indeed complying with US laws.

On top of that, the information on the broker's website is sketchy, and many of the terms that must be disclosed to users are not available.

Trader Complaints

Although the broker claims that it believes that transparency and open communication are the keys to long-term cooperation with its clients, these two factors are also lacking. Based on the bad reviews from clients, it seems the broker doesn't want to establish a long-term relationship with its clients.

This month, BrokersView received complaints from two customers about OsmosisFX. And the users who filed the complaints are not the only ones unhappy with the broker.

Multiple users claim they were asked by the company to pay taxes on their withdrawals.

User Jeff BHARDWAJ submitted a withdrawal request on July 21st of this year but was asked to pay a 10% personal income tax, without which he would not be allowed to withdraw his funds.

Another user, Julia Abrahan, said she learned about the company through WhatsApp, deposited more than $210,000, and paid an additional $150,000 in taxes in OsmosisFX. However, the money is currently being held on the platform, and she has been waiting for over a month but failed to get it back.

She also said that the company's staff told her that OsmosisFX was having financial problems and recommended that she spend $20,000 on a VIP membership to speed up the withdrawal process.

Whether it's asking for taxes or recommending so-called paid VIP memberships, these are not the practices of a regulated broker.

While some users say they are happy with OsmosisFX because they have made money with the company and withdrawals have gone smoothly, more users have commented that they had problems withdrawing their money. It seems that a number of them were not able to get their money back.

At the same time, some of the reviews caught our attention - instead of telling about their trading experience with OsmosisFX as others have done, some reviews claimed those who accuse the company of being a scam are lying. User Josiah Mcmillan also claimed that disgruntled users who can't afford to invest in the company are jealous, and that's why they're calling OsmosisFX a scam. As a third party, we have no way of knowing how these users can tell if others are lying.

OsmosisFX is not trustworthy since it is not supervised by financial regulators, regardless of whether other traders have made money with it or not. And a forex license is the basis for legitimate brokers to conduct business.

BrokersView reminds you

In short, OsmosisFX is not a regulated Forex broker. Since no laws guarantee the company operates in compliance with regulatory requirements, traders are not legally protected from investing their money here. 

For the safety of your money, do not trade with OsmosisFX.