Beware! PCRFinancials is an offshore broker! Your investment may be at risk.
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PRCFinancials is a CFD forex brokerage that provides the MT4 trading platform for its clients. Traders are extended a leverage of up to 1:1000 and may choose from a wide variety of trading products, including cryptos. Not much else is clear about the trading conditions of the broker.
PRCFinancials regulation & safety of funds
PRCFinancials is owned and operated by the company Galaxy Capital LTD which is supposedly based in Bulgaria. We find no mention of regulatory oversight on the brokers website and after checking with the online registries of respectable regulators – we can confirm that the company does not hold a license to provide financial services in Europe. Furthermore, another unregulated brokerage – PrimeX Club – has an identical website, but is supposedly owned and operated by a different company in Russia. The lack of regulation in itself opens up potential clients of the brokerage to a number of risks that can be otherwise avoided, furthermore, such irregularities only confirm our suspicion.
Traders may minimize risks by trading only with brokerages that are overseen by prestigious regulatory agencies, such as the UK’s FCA and CySec, which require compliance with a number of strict rules that give significant assurance for the security of the clients funds.
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.
PRCFinancials deposit/withdrawal methods and fees
Potential clients of the brokerage are extended a very poor choice of payment methods. They may deposit or withdraw only via Visa, MasterCard, bank and wire transfer. Popular options such as Skrill or Neteller are missing. We did not find any explicitly stated worrisome withdrawal requirements in the broker’s Terms and Conditions. However, only reading through the brokerage isn’t assurance enough.
Traders should take notice that there are a number of safety-checks they may try with the brokerage, instead of trusting it at face-value. Firstly, they must always invest only the required minimum deposit, so that there is certainty about the legitimacy of the brokerage before risking a bigger amount. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. If they do – traders may rest assured that they’re dealing with a scammer.
How does the scam work?
One of the best trust-builders in the trading business is the regulatory status of a brokerage. It distills confidence and almost completely removes the risk that the brokerage might be a scam. Nevertheless, we may not always rely on regulation, especially in cases such as this where the brokerage is from countries which do not regulated forex trading, or as with this brokerage – when there is an absolute lack of information about the brokerage itself and the company behind it. That is why traders should be informed about the ways of scamming:
Almost certainly you have had pop-up ads waving “quick money” at your face. One day, curiosity gets the better of you and a nice-looking website such as CryptoCFDTrader or Bitcoin Millionaire Pro shows up asking you to register. After sharing your personal information, a call from a broker will undoubtedly come, a broker with a once-in-a-lifetime opportunity for you. After a few minutes of him going in great detail about it , you decide to deposit some $200-250. And just like that – the scammer snatches a nice $50 commission from the initial deposit.
However, brokers are surely aware they can get more out of you. They redirect you to the “retention” where next in line scammers begin working you into putting even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what is left of your account.
Now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, the scammer will begin pleading with you to wait it out, six months at the most. What they aim at is barring you from filing a chargeback with your bank. If six months expire, that option is closed and your money is gone for good.
What to do if scammed?
We wish no trader has to consider such circumstances, however, in the dire case you are scammed – it is much better knowing what available options you have in front of 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 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 recover their losses. They will say that in exchange for an up-front payment, you will get your money back, but no such thing will occur!