Beware! FX Suit is an offshore broker! Your investment may be at risk.
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FX Suit is forex brokerage registered in Bermuda. It provides the MetaTrader4 trading platform and an extremely generous leverage. Traders are extended a leverage of up to 1:500. Furthermore, there is a wide range of trading products from which to choose and a spread of 1.7 pips on EUR/USD which is a bit above the industry average. The required minimum deposit is only $5 which is among the lowest we have seen in forex trading.
FX Suit regulation & safety of funds
The company behind the brokerage is registered with the name – Salvax Limited. The company is based in Bermuda which is an UK territory overseas in the North Atlantic ocean. It also owns and operated the broker brand NavitasMarkets. The government of Bermuda does not regulate Forex trading. We can safely conclude that the brokerage does not comply with any regulatory rules. An offshore location always brings with it unnecessary risk for traders because in case of fraud they have no authority for complaints, nor access to any sort of financial compensation scheme.
However, in order to be impartial – the brokerage does in fact offer the MetaTrader4 platform which is the foremost trading terminal at the moment and it also provides clients with a test-drive. Here is a screenshot:
Through a demo account we could see a spread on EUR/USD just above the industry average of a pip and a half. On it we could see that clients are extended a leverage of up to 1:500 which is absurdly high and only possible due to the offshore location of the brokerage. ESMA August 2018 designated a leverage cap of 1:30 for all Forex brokerages operating in countries that are members of the European Union. Furthermore, the brokerage offers quite a variety of currency pairs ranging from Brazilian Real, Singapore Dollar, Norwegian Krone, Swedish Krona, Danish Krone, Hong Kong Dollar, Hungarian Forint, Polish Zloty, Czech Krona, South African Rand, Mexican peso, Turkish Lira, Russian Rubble and Chinese Yuan. However, even though the brokerage provides the MetaTrader 4 platform and quite an impressive choice of trading instruments, the offshore location and the lack of regulation inclines us to suspect that clients funds may not be safe with FXSUIT.
Having in mind all that was outlined above – we suspect potential clients may be exposed 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.
FXSuit deposit/withdrawal methods and fees
We do see the same variety of payment methods with FXSuit as we do with the trading options offered. Potential clients of the brokerage may deposit or withdraw via the standard Visa and MasterCard, as well as popular e-wallets such as Skrill and Neteller, FasaPay, as well as DotPay. Furthermore, there are withdrawal fees for the different payment gateways.
Withdrawals via credit/debit cards are charged 2 euro per transaction while withdrawals via bank wire are charge-free. E-wallets Skrill, Neteller and FASAPAY are incurred the following fees respectively: 1 percent, 2 percent and 0.5 percent. DotPay is also charge-free. Such fees aren’t excessive by any account but due to the lack of regulation we cannot be sure whether the brokerage doesn’t have any other surprise fees in store for clients.
This is precisely why we always 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.
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 growth of scammers that are spawning everyday in forex trading has forced both financial services giants Visa and Mastercard to step up and take action. MasterCard has already increased the previous time period of six months for filing a chargeback to a year and a half, effectively bypassing the “recovery department” part of the scam, and its rival Visa will follow suit in December.
If, however, you have provided the broker with your credit card number and CVV code, 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!