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.
High FX is a forex CFD brokerage, based in St. Vincent and the Grenadines, owned and operated by Epsilon Media Services Ltd. On it’s website we read that the minimum deposit for the most basic account comes at $250 and that the brokerage provides a spread of 3 pips on EUR/USD which is double the industry average. Furthermore, the leverage extended to traders is generous and goes up to 1:400. Such high leverage will soon be rare in the forex trading world due to newly-put regulations by the European Union.
High FX regulation & safety of funds
High FX does not state any sort of regulatory status on its website which should not come as a surprise if we take notice of its address The authorities in St. Vincent and the Grenadines do not regulate forex trading and because of this – SVG is an attractive location for offshore brokers. All this constitutes a major security concern 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 scam traders.
High FX deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via a wide range of payment options – Credit/Debit card, Bank Wire Transfer, Neteller, Visa, Maestro, Mastercard, Skrill, Delta, Cash, WebMoney. We read in the Terms and Conditions that clients may withdraw once a month free of charge, but that any additional withdrawal will be charged a fee of $30.
How does the scam work?
Among the best criteria for judging a brokers legitimacy is definitely access to information. Scammers are hesitant to share much of their information, because precisely there inconsistencies and irregularities may appear which expose the whole set-up. Here is what you should know about the scam:
In most cases through clicking a tempting ad with promises for fast money, you will be redirected to a website such as Bitcoin Kiwi System or CryptoRobo where registration will require you to give your address, email and phone number. Your personal information will be immediately shared with brokers in call centers who are just waiting for juicy leads. After a few minutes hearing them talk, you decide to deposit some $200-250. And just like that – the scammers take a 25 per cent commission from this initial deposit.
After the first-in-line have a go at you, senior scammers take you up and push you to invest even more. You may even be swayed and further give it a shot. At this point, regardless whether you are in the red or not, you probably begin to consider closing the account and getting back your money.
However, now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, they will know its time to redirect you to the “recovery people” where further stalling will continue. The angle here is simple – remove the last guard you may have – filing a chargeback with your bank. If six months or more pass after the initial deposit – that option is closed for good.
What to do if scammed?
Unfortunately, much of the forex trading world is overshadowed by the huge numbers of scammers. All a trader may do is be well-informed and, in case he is the subject of a fraud – stay calm and not panic! The chance for panic is greatly reduced if you are prepared for such a situation. Here are the available options for scammed traders:
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 retrieve their funds. They will say that in exchange for an up-front payment, you will get your money back, but no such thing will occur!