Beware! CandidFX is an offshore broker! Your investment may be at risk.
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CandidFX is a forex brokerage allegedly registered in the UK. From the website we learn that it provides the MT4 trading platform. The broker gives no further information regarding its trading conditions, besides the minimum deposit. The brokerage requires a minimum deposit of $5000 to start trading which is very excessive.
CandidFX regulation & safety of funds
Candid FX is registered in the Free Trade Zone of AK (Ras Al Khaimah). Ras Al Khaimah is one of the Emirates that make up the UAE and it has a special area for economic purposes. The brоkerage further claims to be regulated by the zone itself which is quite strange. Researching the region we actually read that forex brokerages have to comply with the regulatory standards of the Central Bank. Seeing as there is no mention of such regulation in the terms of the brokerage, we can safely conclude that CandidFX is not subject to any regulatory oversight whatsoever. There is also no test-drive available for the trading platform which is quite worrisome and a typical sign of a scammer. What is even more eerie is the London contact address that the brokerage has put up on its website. Too much irregularities have sprung up while researching the brokerage. All this inclines us to state that potential clients may be open to a substantial risk.
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.
CandidFX deposit/withdrawal methods and fees
As was mentioned above – there are many irregularities with the brokerage and we could not even gather what the available payment methods are. Going through the brokers website we did not come across any troubling provision (because there aren’t any terms and conditions!) but that is still no guarantee that the brokerage isn’t hiding any under his sleeve – this is precisely why 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?
Information is a pretty solid criteria for judging a brokers legitimacy. Scammers would not share much of their information, because precisely there inconsistencies and irregularities may appear which expose the whole set-up. Precisely this happened while reviewing the website of CandidFX and the information presented there. Another valuable piece of information is 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.
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. The high instances of fraud have provoked both Visa and MasterCard to take effective measures against scammers in the business. Keeping true to 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.
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!