Beware! Fidelis CM 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.
Fidelis CM is an offshore forex brokerage registered in St. Vincent and the Grenadines. It provides the MT4 platform and an extremely generous leverage. Traders are extended a leverage of up to 1:400. Furthermore, there is a wide range of trading products from which to choose and an extremely favorable spread of 0.9 pips on EUR/USD which is significantly below the industry average. The required minimum deposit is only $5 which is also very favorable.
Fidelis CM regulation & safety of funds
According to the website the brokerage is owned and operated by Fidelis Capital Markets Limited which is registered in St. Vincent and the Grenadines. It even claims to be regulated by the local Financial Services Authority (FSA) even though it is widely known that the government of SVG does not include forex trading, as well as binary options within its regulatory framework. The brokerage is simply attempting to mislead gullible newbie traders. The broker is not regulated and we suspect potential clients will be open to a number of risks.
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.
Fidelis CM deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via Visa and MasterCard, Neteller, WebMoney, Skrill, Yandex, Qiwi and Fasapay, as well as with a bank wire. We also come across a number of withdrawal conditions and fees. There are procession fees for withdrawals below $5000 which vary from 0.5 per cent to 8 per cent depending on the payment method. The lowest procession fee is for FasaPay – 0.5 per cent – and the highest of 8 per cent is for withdrawals via Yandex. Furthermore, withdrawals via Skrill and Neteller are not charged by any fees. We must say that the brokerage is quite open with its withdrawal conditions which isn’t something commonly seen with scammers.
In fact we 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 Crypto Cash 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!