Beware! EliteFinFx 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.
EliteFinFx is a CFD brokerage. It provides the MT5 trading platform. The brokerage is supposedly based in the UK, however, further trading conditions and corporate information are unclear. Furthermore, the minimum deposit required by the brokerage is $10 which is quite below the industry average and very favorable for traders.
EliteFinFx regulation & safety of funds
Reading through the brokers website we understand that the brokerage is owned by UK-based Elite Finance Forex Limited with an address Jenny Moreno, 14-18, Wilfred Street, London, United Kingdom, SW1E 6PL.
Brokerages in the UK fall under the regulatory oversight of the Financial Conduct Authority which is one of the foremost regulatory agencies in the world. However, after checking with the online registry of the regulatory agency – we can safely conclude that EliteFinFx is not subject to any regulatory oversight. Furthermore, even though the brokerage purports to provide the MetaTrader 5 platform – there is no demo account available which we always view as a huge disadvantage. Without a test-drive of the platform we cannot get acquainted with the trading conditions of the brokerage which is probably the most crucial element of Forex trading.
Reading through the QA section of the website we come upon another eerie statement. Here is a screenshot:
It appears that EliteFinFx is offering a “managed trading platform” where they are free to trade with your money for 180 days and promise a 500% return on your initial deposit. Such a concept is deeply flawed in Forex trading and we recommend traders do not even think to fall for such a trick. All in all, the lack of credible regulation and the nerve-wracking provisions of the brokerage incline us to suspect that potential clients of the brokerage 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. With the FCA the compensation is up to 50 000 pounds, where as with CySEC it is up to 20 000 euro per person.
EliteFinFx deposit/withdrawal methods and fees
Another typical sign of a scammer is the lack of crucial information on the website. We couldn’t gather even what the available payment methods are. We also couldn’t find any troubling withdrawal fees but we must warn traders not to view this as a guarantee there aren’t any. However, we did come across a minimum withdrawal amount of $100. Here is a screenshot:
Many scammers choose not to disclose such information to would-be clients. Without proper information on the website we cannot be certain whether clients won’t be charged with any unexpected withdrawal or deposit fees once they invest.
This is why we 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?
Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scam is surprisingly simple and easy to prevent. 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 Crypto Revolt 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 EliteFINFX – 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.
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!