Beware! Big Boss Financial 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.
Big Boss Financial is a CFD brokerage based in Saint Vincent and the Grenadines. It provides the MT4 trading platform and a spread of 1.5 pipс on EUR/USD which is just about the industry average. Clients are extended a generous, but weird leverage of up to 1:555 and the required minimum deposit is $100 which is quite below the industry average and in favor for the traders in our view.
Big Boss Financial regulation & safety of funds
There is scarcely little information about the brokerage on the website which is usually a worrisome sign since legitimate brokerages shouldn’t feel the need not to disclose their corporate details. We were only able to discern that the brokerage is registered offshore in Saint Vincent and the Grenadines which means it is not subject to any regulatory oversight because the government of SVG has multiple times publicly stated it does not oversee online Forex trading. We can thus safely conclude that Big Boss Financial does not fall under any regulatory oversight whatsoever. The lack of regulation is quite troubling because there is no guarantee of the legitimacy of the brokerage besides the word of the brokerage itself, which, when money is involved, hardly suffices. Furthermore, there is not authority to turn to in case clients fall victim to a scam. However, the brokerage does inform us about its trading conditions and it provides the MetaTrader 4 platform. Through a demo account we could get a glimpse at the web-version available. Here is a screenshot:
The MetaTrader 4 trading terminal is the foremost trading platform at the moment and preferred by more than 80 percent of traders in the Forex world. Through the demo account we could see a spread of about a pip and a half on EUR/USD which is just about the industry average. Furthermore, clients are extended a generous leverage of 1:555. Furthermore, there is an impressive selection of different CFDs on currency pairs, as well as a very low minimum deposit of just $100. Usually brokerages require at least $250 which means that with Big Boss Financial you needn’t risk much in order to start trading. However, the lack of regulation and the offshore location inclines us to believe that potential clients may be open to substantial risk.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy.
Big Boss Financial deposit/withdrawal methods and fees
As was pointed out above – there is scarce information regarding the brokerage on the website. We couldn’t find out what payment methods are available for potential clients of the brokerage. Usually, in Forex trading popular payment gateways are credit card and bank transfer, as well as popular e-wallets such as Neteller, WebMoney, Perfect Money, PayPal, Skrill.
Reading the terms and conditions we couldn’t notice any nasty withdrawal conditions, however, this should not be viewed as a guarantee. Big Boss Financial may always decide to come up with some unexpected fees once the clients has invested funds. This is why we advise traders 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?
Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Cashless PayGroup 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 angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case Big Boss Financial – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half. Visa is expected to do the same.
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.
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!