Beware! The BullFX is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
The BullFX is a Vanuatu-registered brokerage which provides the MetaTrader 4 platform. The brokerage requires a minimum deposit of $1000, which is a quite above the industry average and certainly a disadvantage for traders. The BullFX provides clients with a wide range of payment methods, including many e-wallets. The spread on EUR/USD is a bit above the industry average of a pip and a half and clients are extended a generous leverage of 1:200.
The BullFX regulation & safety of funds
Through the website of the brokerage we learn that the company behind it is registered in Vanuatu by the name The Bull Prime Limited with a business registration number 014720 and an address Govant Building, Port Vila, Vanuatu.
The government of Vanuatu does regulate Forex trading through its regulatory body Vanuatu Financial Services Commission and we read on the website that The Bull Prime Limited is supposedly registered by the Vanuatu Securities and Exchange Commission, however, no such governmental body exists in the country.
We find no other mention of a license in the brokers website and after checking woth the online registry of the Vanuatu authorities we may safely assume that the brokerage does not fall under any regulatory oversight.
Furthermore, the brokerage provides the MetaTrader4 platform which is the foremost trading platform at the moment and preferred by more than 80 percent of traders in the Forex world. Through a demo account we could see a spread of 1.8 pip on EUR/USD which is a bit above the industry average of 1.5 pips and not really an advantage. Furthermore, clients are extended a generous leverage of 1:200. There is an impressive selection of different CFDs on currency pairs, but an absurd minimum deposit of $1000. Usually brokerages require $250 which means that with The BullFX you have to risk a lot of cash to get a taste of trading. Furthermore, the lack of regulation and the offshore location inclines us to believe that potential clients may be open to substantial risk.
We advise traders to only trade with regulated and legitimate Forex brokerage in order to exclude any risk from their transactions.
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 scam traders.
Worldwide CapitalFX deposit/withdrawal methods and fees
Potential clients of the brokerage have a more than a few payment methods available to them. They may deposit or withdraw via Bank Transfer, Credit Card, Skrill, Bitcoin and UnionPay. However, other popular payment gateways such as Perfect Money, Vload, Neteller are missing.
In the terms and conditions we couldn’t find anything troubling, however, this is no guarantee that the brokerage won’t unexpectedly charge fees once the client has deposited the thousand bucks requires. We must 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?
Scammers mostly rely on vulnerable and easily tricked people, that is why a well-informed trader is, perhaps, their most difficult target. That is why we believe all traders should be well-versed in the different ways of the scam. Here is the most popular one:
In most cases through clicking a tempting ad with promises for quick and easy profits, you will be redirected to a website like Crown Signals or Top-Algo Trade where registration will require your address, email and phone number. Your personal information will be immediately shared with brokers in call centers who are just waiting for fresh leads. After a few minutes on the phone listening to the whole prepared brokers pitch , you decide to deposit some $200-250. And just like that –a 25 per cent commission gets wrested from the initial deposit by the broker on the phone.
After stinging you for a few hundred bucks, senior scammers will take you up and begin pushing you to further invest. You may even budge and continue investing. At some point, however, you’ll probably begin to consider closing the account and getting back your money.
However, now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, it will be high time for the “recovery people” to take it from here. They will begin further stalling in any way possible in order to remove the last guard you may have – filing a chargeback with your bank. This options expires for good after six months or more have passed since the initial deposit.
What to do if scammed?
A scam could happen to anyone, including you, and, in such a case, it would be best to know what options are still available to you. That way you’ll be certain your reaction will be adequate and on spot.
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 change it asap!
So-called “recovery agencies” should not be trusted! Such agencies target scammed and vulnerable traders in an attempt to further swindle them into giving away their money. They will require from you an “up-front payment” in order to get your money back, but no such thing will happen!