Beware! PrimeX Club 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.
PrimeX Club is a Russian forex brokerage. On its website we read that the brokerage provides a web-based trading platform and the spread offered is 3.6 pips, more than twice the industry average. Furthermore, traders have at their disposal a generous leverage of up to 1:200. Such a leverage will soon not be possible for regulated Russian brokers, because the country has decided to follow Europe in setting a maximum leverage of 1:30.
PrimeX Club regulation & safety of funds
The brokerage is owned and operated by the company ООО “СПЕЦИАЛЬНЫЕ КОМПЬЮТЕРНЫЕ СИСТЕМЫ”. The brokerage, however, does not mention anything on the website regarding its regulatory status which inclines us to believe that is simply missing. Having that in mind we must say that clients of the brokerage may be open to a number of risks while trading.
Prestigious financial regulators 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.
PrimeX Club deposit/withdrawal methods and fees
Potential clients of the brokerage do not have many available payment methods. They may only deposit or withdraw via VISA, MasterCard and bank wire. Popular options such as Neteller or Skrill are missing. In the broker’s Terms and Conditions we could not find any mention of nasty fees or withdrawal conditions, however, that is no guarantee there aren’t actually any! Having that in mind, we do suggest traders always double-check their brokerage as best as they can. They may do so by attempting to withdraw a small amount, if there is an unexpected delay or fees, then your safe bet would be that the broker is a scammer.
How does the scam work?
Forex trading is immensely popular, the average daily trading volume exceeds $5 trillion, and what scammers see is a great potential for misleading newbie traders and getting a hold of their funds. That is why traders should always be diligent when deciding with whom to trade, and we believe they should also be prepared for the typical scamming operation.
Cheesy websites such as Bitcoin Millionaire Pro or Crypto-unlocked are emblematic of this scam. Most likely, through clicking on one of those pop-up ads promising fast and easy money you will get redirected to them. They will try to persuade you to register and give away your address, email and phone through some offer of a new product – TradeCryptoRobot, for instance, purports to track minor-differences in prices across many currency-exchanges. After sharing your personal information, however, brokers will begin calling you, urging you to invest with them. After a bit of chit-chat, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
However, more is to follow. After your opening deposit, senior scammers take you on and push you to invest even further. After, perhaps, even winning a bit, you will want to close the account and call it a day.
After stating that you wish to withdraw your money, they will know its time to redirect you to the “recovery people” whose job it is to further stall you. The angle here is simple – they do not want you 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 such a situation does not take you by surprise. 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 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!