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.
FX Stockbroker is a CFD forex brokerage, based in the UK, with a wide range of trading products. It provides the MT5 trading platform, has a spread of 1.8 pips on EUR/USD and extends traders the generous leverage of 1:400. The spread is a bit high, but all the rest of the trading conditions offered by the brokerage are certainly an advantage for potential clients. Furthermore, the minimum deposit is especially low – traders need to risk the meager sum of $1 to get a taste of real-money trading with FX Stockbroker.
FX Stockbroker regulation & safety of funds
Through the information on the brokers website we learn that the company behind it -ACM Group LTD is registered with the FCA with a reference number 441689. However, after further research on our part we discover that the broker brand FX Stockbroker does not figure among the authorized brands of the company. This seriously damages the brokerage’s credibility and opens up its potential clients to a number of risks.
Prestigious regulatory bodies such as the FCA or NFA force a broker to comply with a number of strict rules that lower the possibility of fraud and give assurance for the safety of the clients funds.
One such rule is the segregation of accounts which forces the brokerage to handle the finances of the clients separately from their own and greatly lowers the risk of 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 scam traders.
FX Stockbroker deposit/withdrawal methods and fees
FX Stockbroker accepts crypto-currencies and brokers may deposit or withdraw funds through their wallet. Accepted cryptos are as follows: Bitcoin, Ripple, Doggecoin and Litecoine. Clients may also withdraw or deposit via wire and bank transfer. Withdrawals may take 3 to 5 days to process.
How does the scam work?
Unfortunately, the risk of fraud permeates through every trade in forex. Always putting brokers under scrutiny for their regulatory status is a good enough prevention, however, we believe that traders should also be knowledgeable about the different ways of scamming. Here is how it would typically unfold:
Through clicking an ad with promises for fast money, you will end up in a website where registration will require you to give your address, email and phone number. After sharing your personal information, brokers will begin calling you, telling you to invest with them and reap huge profits. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
The scam, however, continues and what follows is called the “retention”. Senior scammers will now begin addressing you on the phone and explaining all the benefits that are hiding in further investing with them. After you decide to go for it, you may even win on a few trades and go up by, say, a couple thousand. Naturally, you will begin wanting to close the account and cash out as quickly as possible.
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?
A scam could happen to anyone, including you, and, in such a case, it would be best to know what options are still available to you. That way you’ll be certain you won’t panic and make an additional mistake. Here are the available options:
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 change it asap!
So-called “recovery agencies” should not be trusted! Such agencies target scammed and vulnerable traders in an attempt to further swindle them into giving away their money. They will require from you an “up-front payment” in order to get your money back, but no such thing will happen!
