Beware! This is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Brokerz.com is a st. Vincent and Grenadines-based CFD brokerage owned and operated by Brokerz ltd. Potential clients have at their disposal a leverage of 1:100,the MT4 trading platform and a diverse range of trading products. The spread of 3 pips on EUR/USD is twice the industry average and higher than what we would call acceptable. The minim deposit is the standard $250.
Brokerz regulation & safety of funds
Brokerz does not state any sort of regulatory status on its website and this isn’t surprising, having in mind that Financial Services Authority of Saint Vincent and Grenadines does not regulate forex. This makes the country an attractive locaton for would-be scammers. All this seriously hurts the brokers legitimacy and opens up potential clients to a number of risks.
The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.
Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.
Brokerz deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw through Barclays, Visa, HSBC, Mastercard, Citibank. Much preferred by traders options such as PayPall and Skrill are missing. We read that there is a dormant fee in the Terms and Conditions. Inactive for more than 45 days trading accounts will be charged a monthly fee of $100.
How does the scam work?
One of the reasons regulation is so valued in the trading world is because scamming, unfortunately, happens quite often and the regulatory status of a brokerage acts as a sort of guarantee that traders may feel secure about investing. Nevertheless, well-informed traders should know how a typical scam works:
Almost certainly you have had pop-up ads waving “quick money” at your face while browsing the internet many times. One day, out of curiosity you decide to follow it up, and a nice-looking website shows up asking you to register. After sharing your personal information, a call from a broker will undoubtedly come, a broker with a once-in-a-lifetime opportunity for you. After a few minutes of him gabbing about it , you decide to deposit some $200-250. And just like that – the scammer snatches a nice $50 commission from the initial deposit.
However, brokers are surely aware they can get more out of you. They redirect you to the “retention” where next in line scammers begin working you into putting even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what is left of your account.
However, now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, the scammer will begin pleading with you to wait it out, six months at the most. The angle here is simple – remove the last cover you may have – filing a chargeback with your bank. If six months expire, that option is closed and your money is gone for good.
What to do if scammed?
We wish no trader has to consider such circumstances, however, in the dire case you are scammed – it is much better knowing what available options you have in front of you:
You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit, as was noted above.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate and ready at anything to somehow recover their losses. They will say that in exchange for an up-front payment, you will get your money back, but no such thing will occur!