Beware! This is an offshore broker! Your investment may be at risk.

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IgnisFX is a forex and CFD broker, offering a variety of currency pairs as well as CFDs on spot metals and commodities. The broker say they soon will be offering crypto CFDs too. With its Standard Account spreads are advertised to start at 1,2 pips, while with the Pro Account – at 0,8 pips. The maximum leverage is caped at 1:100 and the broker supports MetaTrader4 trading platform. However, there is no information in their website about their minimum deposit requirements.

IgnisFX regulation & safety of funds

The company behind IgnisFX is Ignis Group Limited. In their presentation, however, we were not able to find any information about who they actually are – where the company is based or if it is regulated by a financial authority in some way. On top of that even contact details are missing – there is no physical address or a phone, just a Gmail address, which honestly, does not look very serious for a company, providing financial services.

Have in mind that the single most important factor for the safety of any investment on the forex market is the proper regulation of the broker. All reliable brokers have a license by a well respected financial institution such as the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the UK or the Australian Securities and Investments Commission (ASIC).

Basically, in recent year most legit brokers flocked to those three institutions, because of their balanced regulatory regimes – strict enough to provide security to traders and flexible to provide brokers with enough room to develop their businesses.

CySEC and FCA in the UK require brokers to insure traders capital by participating in client compensation schemes. With CySEC brokers for example, if something goes wrong, traders can receive back up to 20 000 EUR of their capital. With a similar scheme, backed by the FCA, traders can be compensated with up to 50 000 GBP.

IgnisFX deposit/withdrawal methods and fees

IgnisFX is not very informative about the payment methods they accept, so we can not discuss that. Just have in mind that with most brokers you can deposit or withdraw funds with major credit or debit cards like VISA and MasterCard, e-wallets like Skrill, Neteller and PayPal and a bank wire transfer. Some brokers even accept payments with Bitcoins.

How does the scam work?

Scammers may tray to trick you in different ways. The most widely used scheme on the forex market, however, usually goes like that:

It could be on the internet or on TV, but you will happen to watch a professionally edited, stylish video telling the story of common people like you, who got fabulously rich by investing on the forex market. The stories will be quite convincing and chances are that you will want to learn more.

That is when you will complete a simple registration form, leaving your e-mail and probably your phone. And next, you will receive a phone call by an expertly sounding “financial adviser” form a “cutting-edge”financial company, who will offer you the chance to invest with them and get instantly rich.

Actually the adviser will ask you for just 200 USD – a modest investment, whit which you will start making money right away. And believe me, your first trades will go great – you will probably double the money in your account within a couple of hours – 100% profit! However, do not fool yourself that you have made great trading decisions. The scammers just manipulated your trading account. That is when you will receive a second call – this time by a “senior account manager”, who will basically tell you that if you want to start making real money, you will have to invest significantly more – 10 000 USD. And again, chances are that you will invest those money by the end of the day.

Here tings get interesting. Your trades may continue to be in the green and within a week probably you will be advised it will be a wasted opportunity if you do not deposit even more capital in exchange for even better trading conditions with a special, premium, VIP account.

And everything will look fine until you tell them you want to withdraw some money. They will surely say “Yep, no problem” and will ask you to send them copies of your ID and a proof of address – your electricity bill for example – because of the ant-money laundering regulations. In this way, if you have provided them voluntarily with your personal information, they will have a much stronger case, in case you file for a charge back with your bank or card provider.

And than probably they will find some clause in the Terms and Conditions, you have agreed with by signing up with them, that requires you to reach certain rather large trade volume before you qualify to withdraw. And you will not receive any money back. Basically, if you insist on withdrawing your trades will go into the red and soon a margin call will happen and the funds in your account will evaporate.

Here we should not as well that some scammer may even try to trick you to install a Team Viewer so that they can help you with the installation of the trading platform or with the funding of your account. If you follow their advise, you may be sure that they will copy your credit card number and bank details, and they will try to steal money form you directly.

What to do if scammed?

In the unfortunate event that you have been scammed, be sure to immediately contact your bank or credit card provider and file for a charge back. Unfortunately, that may work only within a 6 month period. Scammers know that well and most probably will try to retain you for that period.

In case you have given them your credit card number or the password for your online banking, or you have just installed a Team Viewer as they have requested, be sure to immediately block your card and change the password for your online banking.

And finally, if you have lost money to scammers, do not waste even more with the so called “Recovery Agencies”. You will be required to make an upfront payment and you would not receive any service. Those companies just take advantage of desperate traders, who have fallen victim to scammers.

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