Beware! FXT 24 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.
FXT 24 is a forex brokerage based in the UK. Potential clients have at their disposal a web-based trading platform and a diverse range of trading products. The required minimum deposit is $500 which is twice the industry average and clients are extended an extremely generous leverage of 1:1000 – among the highest we have seen.
FXT 24 regulation & safety of funds
There is a lack of clarity regarding the company behind the brokerage and it seems to be operating outside of UK. We could not find any mention of a company address nor a regulatory status on the brokers website. Furthermore, it turned out that the Spanish regulator CNMV has issued a warning regarding the firm in question and states that it is operating illegally. This inclines us to believe that potential clients of the brokerage may be open to a number of risks.
We further urge traders to only do business with brokerages 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.
FXT 24 deposit/withdrawal methods and fees
Potential clients of the brokerage have a very limited payment methods available to them. Traders may deposit or withdraw only via Visa, MasterCard, bank/wire transfer and Bitcoin. Popular options such as Skrill or Neteller are missing. Going through the website of the brokerage we could not find any mention of procession fees or withdrawal conditions, but this is by no means a guarantee there aren’t any. We always remind traders to take notice about the many 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-creators 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 and traders should be informed about the ways of scamming:
Almost certainly you have had pop-up ads waving “quick money” at your face while browsing the internet many times. One day, you simply click on it and a nice-looking website such as Bitcoin Blueprint or Bitcoin’s wealth 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 gabbing about it , you decide to deposit some $200-250. From those few hundred bucks the broker gets a fat commission.
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!