Beware! 31 Forex is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
31 Forex is an offshore brokerage with very surprising trading conditions. The leverage is among the highest we have seen and comes at 1:1000 which is unheard of in the regulated part of the forex trading world. Furthermore, the brokerage states to offers spreads as low as 0.2 pips and requires a minimum deposit of $500 which amounts to twice the industry average.
31 Forex regulation & safety of funds
31 Forex is owned by the company JRV Market Ltd, registered in the British Virgin Islands – another favorite location for scammers. We find no mention of a license in the brokers website and that shouldn’t shock us if we have in mind the brokerage’s address. Furthermore, the absurd leverage and the even more absurd spread inclines us to question the brokerage’s intentions. Such suspicion is further warranted, because credible regulation is lacking.
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.
Vide Forex deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via MasterCard and VISA, e-wallets like EPay and PayPal, bank wire and even Bitcoins. We do not find troubling withdrawal conditions in the terms and conditions but that is no guarantee that there aren’t any at all. We must remind readers of all the ways a trader may test the brokerage’s intentions. Traders are advised instead of risking a bigger amount with no certainty to always invest only the minimum deposit initially. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays unmask the scammers.
How does the scam work?
Unfortunately, taking part in forex trading also means exposing yourself to a substantial risk of fraud. You might as well be prepared, because scammers will make an attempt on you regardless of how informed you are. Here is how a typical scam would unfold:
In most cases through clicking a tempting ad with promises for quick and easy profits, you will be redirected to a website like Crown Signals or Top-Algo Trade where registration will require your address, email and phone number. Your personal information will be immediately shared with brokers in call centers who are just waiting for fresh leads. After a few minutes on the phone listening to the whole prepared brokers pitch , you decide to deposit some $200-250. And just like that –a 25 per cent commission gets wrested from the initial deposit by the broker on the phone.
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 advantages 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 take away your profits.
Unfortunately, closing the account won’t turn out to be a walk in the park. The “recovery department” will take you and 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. That way you’ll be certain your reaction will be adequate and on spot.
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!