Beware! 60OP is an offshore broker! Your investment may be at risk.
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60OP is a Forex brokerage registered in the Marshall Islands. It provides the MT4 trading terminal and an extremely generous leverage of up to 1:200. Furthermore, there is a wide range of trading products from which to choose and a required minimum deposit of $100 which is about the industry average.
60OP regulation & safety of funds
According to the website the company behind the brokerage is registered in the Marshall Islands by the name Gramin and gives the standard address we have seen countless times from offshore brokerages. Marshall Islands is a favourite destination for shady brokerages due to the country’s liberal laws regarding the registering of a firm. They do not even require a physical presence in order to register a firm and receive a “registered address”. Furthermore, it should go without saying that 60OP does not fall under any regulatory oversight whatsoever. The brokerage further claims that the billing and “other services” is done by a company registered in the UK. This piece of information is probably stated on the website simply in order to have an UK address in the description.
The brokerage, however, provides traders with an impressive web-based trading platform which has a wide range of trading options. It’s charting is quite nice and crisp and there are all sorts of analytical tools and indicators at the disposal of traders. However, the spread that we saw through a demo account is at 2 pips on EUR/USD which is about half a pip above the industry average. Here is a screenshot:
However, even though we are impressed by the web-based platform and the trading conditions, there is a lack of information. We couldn’t gather what the required minimum deposit is, nor what the maximum leverage extended to clients may be. Furthermore, the offshore location of the brokerage inclines us to suspect that potential clients of the brokerage may be open to 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.
60OP deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via Visa, MasterCard, Maestro, Bank wire, Skrill, Neteller. In the terms and conditions of the brokerage we did find a dormant account fee which will be charged after half an year. The fee is the size of $60 a month which is quite excessive in our view. Furthermore, we find the troubling provision which states that “the company is entitled to receive fees from the clients of its services” without further clarity as to what fees the provision refers to. A legitimate brokerage should not have such a high dormant account fee.
We always advise traders to 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?
Unfortunately, the possibility of a scam looms over almost every trade in forex, especially if you are dealing with an unregulated brokerage. That is why we believe traders should be acquainted with the methods of a scam. Here is how it would typically go about:
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. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in Forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half with their rival Visa 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!