Beware! Genesys Fund is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
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Genesys Fund is a forex brokerage based in the Cayman Islands. It provides the MetaTrader4 trading platform and a wide variety of trading products. Clients are extended a generous leverage of up to 1:200, but the minimum deposit is a bit excessive – traders are required to invest a minimum of $1000.
Genesys Fund regulation & safety of funds
There is substantial amount of problems regarding the brokerage. The company behind the brokerage is said to be Genesys Private Fund, supposedly based in the UK, however, on the website we also read that it is regulated not by UK’s regulator, but by the Cayman Islands Monetary Authorities. The problem here is that the Cayman islands is an offshore location with no credible regulator and such a statement by the brokerage is divorced from reality. All this compels us to state that clients of the brokerage may be open to a number of risks.
Traders may minimize the risk by investing only in 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.
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.
Genesys Fund deposit/withdrawal methods and fees
We couldn’t gather from the brokers website what payment methods are available for potential clients, but in the terms and conditions we did come across the disturbing provision – “(GENESYS PRIVATE FUND) reserves the right to change its fee structure at any time at its sole discretion.” We must remind traders that a legitimate brokerage should have no such provision, nor charge any procession fees.
Traders are also always 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 means agreeing to a certain amount of risk in your dealings. Scammers are scattered all over the trading world and you might as well be prepared, because they’ll make an move 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 Bitcoin Millionaire Pro or CryptoCFDTrader 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.
What comes next is the so-called “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!