Beware! BormanCorp 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.
BormanCorp is a forex brokerage based in the Marshall Islands. Potential clients are provided with a web-based trading platform and a diverse range of trading products. The spread on EUR/USD is 3 pips which is twice the industry average and clients are further extended a generous leverage of 1:200.
BormanCorp regulation & safety of funds
The brokerage is owned and operated by the company Board LTD. The Marshall Islands is a favorite destination for would-be scammers due to its very liberal laws regarding the registering of companies. The government does not even require for someone to be physically there in order to register a company. Such a loophole has surely been noticed by many ill-minded brokers and utilized. The brokerage also states on its website that it provides the MetaTrader4 platform which “is available for download after registration”, however, after registering with them we come upon a standard web-based trading platform. Here is a screenshot:
Furthermore, among the available information on the website we read that the brokerage offers a leverage of 1:500, but after calculating it through the demo account – it turned out only 1:200. Such irregularities, coupled with the clear lack of regulation, inclines us to state that potential clients of the broker are open to a number of risks, and we further suggest to only trade with legitimate brokerages which fall under the oversight of credible regulatory bodies.
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 swindle traders.
BormanCorp deposit/withdrawal methods and fees
Potential clients of the brokerage have a wide range of payment methods before them. They may deposit or withdraw via Visa, MasterCard, Bitcoin, Skrill, Neteller, wire transfer, PaySafe, QIWI Wallet, Yandex, AstroPay, Commodo, WebMoney. In the terms and conditions we came across quite a few very troubling provisions. The brokerage openly states there is a withdrawal procession fee of 3.5 per cent (or flat $30 for withdrawals under $300), a “profit clearance fee” of about 5-8 per cent depending on the profit, a monthly maintenance fee of $20,an iron-clad $100 penalty fee for not verifying your account properly and a dormant fee for inactive accounts. We must admit we have not come across such a huge variety of fees and we expect traders to stay away from the brokerage unless they are eager to see into how many little pieces can their funds be cut up.
We must also emphasize that traders should not trust at face-value brokerages, especially those lacking credible regulation. They must first make sure not to invest more than the minimum required of them, so that they don’t lose a larger-than-necessary sum if the broker turns out to be a scam. Furthermore, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Scammers will usually have such hidden.
How does the scam work?
Besides judging the brokerage beforehand through the info given on its website, a valuable piece of information in the trading world would be precisely how a scam would go about. Here is a description of the typical three steps:
A click-bait ad about fast money will take you to a website like The profit formula or Bitcoin Millionaire Pro where registration will require you to give your address, email and phone number. Calls from broker will follow, telling you to invest with them and reap huge profits. After a few minutes on the phone with them, you decide to deposit some $200-250. Little do you know that from that initial deposit the broker on the phone takes a nice fat piece as commission.
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.
Closing the account will prove to be a difficult task. The “recovery department” will take you and yet another representative will have some other trading opportunities to share with you. He will attempt to stall you in order not to file a chargeback with your bank right away. That possibility forever closes when six months pass after the initial deposit with the broker.
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!