Beware! 247FXMarket is an offshore broker! Your investment may be at risk.
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247FXMarket is a Forex brokerage registered in the UK. It provides a web-based trading platform, not the MT5 trading terminal, however, further trading conditions remain unclear which we view with high suspicion.
247FXMarket regulation & safety of funds
According to the website the company behind the brokerage is supposedly registered in the UK, however, we are unable to discern it’s name. Furthermore, we are only given a contact address which is usually a sign of trouble. We remind readers that all brokerages operating on the territory of the United Kingdom hold the responsibility of being properly licensed by the country’s regulatory authority in the face of the Financial Conduct Authority.
Going through the online registry of the British financial watchdog we could not find mention of the company’s name which leads us to conclude that 247FXMarket is providing financial services illegally. This puts enormous risk in any dealing a trader may execute with the firm and we highly recommend traders steer clear of the broker.
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 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
247FXMarket trading software
Furthermore, the brokerage does not provide the MetaTrader 4 platform, instead there is a web-based platform. However, the MT4 is the foremost trading terminal at the moment and we always view it’s absence as a big disadvantage for the broker. Nonetheless, there isn’t even a demo account available for the web-based platform.
Besides the lack of a demo account, there isn’t any information regarding the trading conditions on the website at all which leaves us completely blind as to the offer of the brokerage. On top of all that – the QA section crashes when we attempt to open it. All this leads us to conclude that 247FXMarket is definitely shady and traders should steer clear.
247FXMarket deposit/withdrawal methods and fees
In line with the general lack of information, we are unable to discover the supported payment methods as well. We could not find any worrisome withdrawal provisions, however, we should highlight that 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.
Having in mind all that was stated above, 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?
Information is a pretty solid criteria for judging a brokers legitimacy. Scammers would not share much of their information, because precisely there inconsistencies and irregularities may appear which expose the whole set-up. A good example is this very broker and the misleading information it gave regarding its regulatory status.
After informing themselves for the brokers trading conditions – traders should be well-versed in the way of the scam:
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 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. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half with their peer Visa expected to follow suit in December.
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!