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.
BBM Trade is a Marshall Islands-based CFD forex brokerage with a wide range of trading products. It provides the MT4 trading platform, has a spread of 2 and a hald pips on EUR/USD and requires a minimum deposit twice the industry average – $500. The spread is a bit high, but all the rest of the trading conditions offered by the brokerage are truly favorable, including a generous leverage of 1:500 which is a rarity among legitimate brokers.
BBM Trade regulation & safety of funds
BBM Trade does not state any regulation on it’s website and this should not come as surprise since Marshall Islands is not exactly known for it’s iron-clad regulatory framework. The brokerage is registered offshore – Marshall Islands being among the most favorite locations for scammers – and as such, no compliance to regulatory standards is needed. All this constitutes a major security concern for potential clients of the broker.
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 a requirement for a starting capital of € 730 000 which weeds out scammers, since they do not have such liquidity.
BBM Trade deposit/withdrawal methods and fees
Potential clients of BBM Trade may deposit or withdraw via credit/debit cards, bank/wire transfer, Skrill and Neteller. There is no explicit mention of fees in the Terms and Conditions of the brokerage, but we do come across the much disturbing sentence – “The Company is not obligated to disclose or provide to the Client any detailed information or evidence about fees, taxes, costs, and other expenses incurred by the Company in connection with the services provided to the Client.” This is highly alarming and indicative of BBM Trade’s obvious ill-minded intentions.
How does the scam work?
Unfortunately, every trade in forex is overshadowed by the possibility of scamming. The best prevention is being as well-informed as possible – here is a how a typical scamming operation would go about:
By clicking on an ad with promises for fast money you will be redirected to a nice-looking website such as Crypto Code or BTC Prestige with a high-budget trailer. The video will convince you to register and give away your address, phone number and email. Minutes later your personal data will be sent to a number of brokers who’ll begin calling you with trading offers. After a few minutes on the phone with them you decide to deposit $200-250. And as effortlessly as that – the broker gets a commission of $50 from your initial deposit.
However, the scam is not over and more is to follow. After your opening deposit, senior scammers take you on and begin persuading you to invest even further. After, perhaps, even winning a bit, you will want to close the account and call it a day.
Unfortunately, closing the account won’t turn out to be as simple as you would like, or as easy. You’ll most probably be redirected to the “recovery department” where yet another representative will have some other trading opportunities to share with you. His game is pretty simple – he has to mislead you into waiting six months or more so that you may not file a chargeback with your bank and get your money back. That possibility forever closes when six months pass after the initial deposit with the broker.
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.
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!
Scammed traders should take notice not to trust any so-called “recovery agencies”! Such agencies prey on vulnerable traders with talk of recovering their money in exchange for an “up-front payment”. After receiving the payment, the trader won’t hear from them again.