Beware! Chrono FM 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.
Chrono FM is a CFD forex brokerage presumably from St. Vincent and the Grenadines. It provides a web-based trading platform and an extremely generous leverage. Traders are extended a leverage of up to 1:200. Furthermore, there is a wide range of trading products from which to choose and a spread of 3 pips on EUR/USD. The minimum deposit is $250 which is just about the industry average.
Chrono FM regulation & safety of funds
Chrono FM does not state any sort of regulatory status on its website and there is some uncertainty regarding the brokerage. The website states that the brokerage is owned both by Pentacle Group LTD with a registered address in the SVG and a Bulgarian company by the name Sanata Group EOOD. Besides obviously lacking a license, we come upon a warning issued by Italian regulator CONCOB about the firm. The statement by CONCOB reads that the company is ordered to cease providing financial services without adequate authorization. Such clear-cut signs of trouble should give us reason enough to suspect the brokerage and doubt its intentions.
We urge traders to exclude such risk in trading by only associating with brokers regulated by prestigious regulatory agencies, such as the 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.
Chrono FM deposit/withdrawal methods and fees
Going through the brokers website we did find some disturbing provisions in the terms of the brokerage. There is a withdrawal which varies according to the payment method and goes as follows – $50 for wire transfers, $25 for credit cards (plus a procession fee of $10) and again $25 for ePayments but with no procession fee. These figures are needlessly high and cast doubt about whether the brokerage makes money only through skinning traders with fees.
We must also remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
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:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or The bitcoin miner where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back. Furthermore, due to the high instances of fraud – both Visa and MasterCard have taken upon themselves to circumvent scammers in forex trading. Backing up their intentions – MasterCard has already increased the previous time period of six months for filing a chargeback to a year and a half and Visa is expected to follow suit in December.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
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 to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!