Beware! The55thFx is an offshore broker! Your investment may be at risk.
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The55thfx is a binary options brokerage which gives conflicting corporate information. Potential clients have at their disposal a web-based trading platform and the required minimum deposit is $500 which is twice the industry average and excessive in our view.
The55thfx regulation & safety of funds
The brokerage gives an US address but stays silent when it comes to the name of the company presumably owning and operating the broker brand.
This is a sign of trouble because anonymity is quite common when it comes to scamming. Clients that have fallen victim to a scam perpetrated by anonymous brokerages have no legal options afterwards. Furthermore, the company, strikingly, even though registered in the US, claims to be licensed and regulated by Cysec. Here is a screenshot:
Binary options trading is not included in any European regulatory framework and, furthermore, after checking with the online registry of Cysec – we can confirm that the brokerage does not fall under the regulatory oversight of the Cyprus authorities. The brokerage does not provide a test-drive to its platform but we, nonetheless, were able to register and get a look at it. It cannot be called functional and there is no option for trading – all in all, the whole set-up has scam written all over it. Having in mind the complete lack of regulation, as well as a clear-cut sign of a trouble, we advise traders not to risk it with the brokerage.
Furthermore, we urge traders to minimize the risk in trading by taking up on their offers only brokers regulated by prestigious agencies, such as the UK’s FCA and CySec, 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.
The55thFx deposit/withdrawal methods and fees
We could not gather from the website of the brokerage the available payment methods for potential clients. The55thFx does not even have terms and conditions. This isn’t surprising having in mind the anonymity of the brokerage.
We always remind traders to take notice about the many safety-checks they may try with the brokerage, instead of trusting it at face-value. Firstly, they must always invest only the required minimum deposit, so that there is certainty about the legitimacy of the brokerage, before risking a bigger amount. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. If they do – traders may rest assured that they’re dealing with a scammer.
How does the scam work?
One of the best trust-creators in the trading business is the regulatory status of a brokerage. Solid regulation is extremely important in business because it distills confidence and almost completely removes the risk that the brokerage might be a scam. Nevertheless, we may not always rely on regulation and traders should be informed about the ways of scamming:
Almost certainly you have had pop-up ads waving “quick money” at your face while browsing the internet many times. One day, you simply click on it and a nice-looking website such as Bitcoin Blueprint or Bitcoin’s wealth shows up asking you to register. After sharing your personal information, a call from a broker will undoubtedly come, a broker with a once-in-a-lifetime opportunity for you. After a few minutes of him gabbing about it , you decide to deposit some $200-250. From those few hundred bucks the broker gets a fat commission.
However, brokers are surely aware they can get more out of you. They redirect you to the “retention” where next in line scammers begin working you into putting even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what is left of your account.
Now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, the scammer will begin pleading with you to wait it out, six months at the most. What they aim at is barring you from filing a chargeback with your bank. If six months expire, that option is closed and your money is gone for good.
What to do if scammed?
We wish no trader has to consider such circumstances, however, in the dire case you are scammed – it is much better knowing what available options you have in front of you:
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 switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate and ready at anything to somehow recover their losses. They will say that in exchange for an up-front payment, you will get your money back, but no such thing will occur!