Beware! Unicorn Brokers 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.
Unicorn Brokers are offering a good variety of forex pairs, and CFDs on indices, commodities, precious metals, stocks and even crypto currencies with four account types, leverage as high as 1000:1 and the MetaTrader4 platform. And the broker says to be based in British Columbia, Canada and to be running an office in Turkey.
Unfortunately they appear not to be licensed and authorized neither in Canada, nor in Turkey, so if you are considering depositing your funds with them, better read the following paragraphs.
Unicorn Brokers regulation & safety of funds
As far as we understand Unicorn Brokers is owned and operated by Unicorn Brokers Ltd, which the broker claims to be registered in Canada, British Columbia. And they also say to run an office in Turkey. Bear in mind that both Canada and Turkey, as well as all the European Union countries and the U.S. are strictly regulated markets, where all brokers should be licensed and authorized by the respective local authorities. So we did check the registers of the British Columbia Securities Commission (BCSC), as well as the Investment Industry Regulatory Organization of Canada (IIROC), but were unable to find Unicorn Brokers there.
That means what we are dealing here with is a low credibility, unregulated broker, with which the security of your funds will depend solely on the integrity of the people, who run Unicorn Brokers.
As usual in such cases our general advise is to trade only with properly regulated brokers, licensed and authorized by respectable institutions such as the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC).
Unicorn Brokers deposit/withdrawal methods and fees
We should note that Unicorn Brokers are not accepting payments with Skrill. Why do we mention this? Because of the new anti scam policy of the money transfer company, which they adopted about a year ago. According it Skrill partners only with licensed brokers and as we already discussed Unicorn Brokers does not have a license.
Also, be aware that like most other brokers Unicorn Brokers acts as a market maker, which means they make money whenever traders lose. We say that, because from their presentation we understand that Unicorn Brokers also offers “investment services”, which basically means that they offer to manage your account. Bear in mind that if a market maker offers to manage your account, it will be in a conflict of interest, because it will have the incentive to lose your money in its own pockets.
Finally, be aware of any trading bonuses Unicorn Brokers might offer you as well. Trading bonuses in general are invariably linked to additional withdraw conditions – usually a minimum trade volume requirement, which too often scammers use as a pretext to cancel your withdraw requests.
Otherwise the minimum deposit requirement is fine – just 50 USD.
How does the scam work?
You may not have heard about the so called robo scam websites like Bitcoin Revival and Bitcoin Profit, but if you happen to visit one of those, chances are high that you may get scammed. In the general case such a website will be all about a nicely cut video ad, promising you fast and easy returns, “100% guaranteed”, if you just join some innovative trading platform, probably focused on the crypto market, that is about to “revolutionize” the trading industry. And all you will have to do in the beginning will be to leave your e-mail and phone in a simple registration form. If you do that you will be swiftly redirected to the website of a unregulated scam broker and that is how your ordeal will begin.
Your first trades with the scammers will be amazingly successful, but that will just be a part of the scam. In reality they will be simply manipulating your trading account with the sole intention to make you more susceptible to the idea of investing more. And that is exactly what “your senior account manager” will be telling you as well – if you really want to make some big money, you will surely have to invest at least 10 000 USD.
And believe it or not but at that stage most people do invest that kind of money without realizing the have been scammed until the very moment they decide to withdraw some of their funds. Than out of the blue it turns out this is not possible, because of some minimum trade volume requirement, possibly linked to some trading bonus. Of course the pretext to cancel your withdraw request might be different, but the result will be invariably the same. You will not see a single penny back.
What to do if scammed?
In the unfortunate event you have been a victim of a scam, do not waste any more time and immediately file for a charge back. The good news here is that both VISA and MasterCard currently allow their customers to file for a charge back within 540 days.
And if somehow scammers have tricked you to reveal your personal banking details, like your credit card number, security code or online banking password, immediately block your credit card and change your password.
And finally, do not rust the so called recovery agencies. They will not recover your money, but simply will make you pay them some cash in advance and basically that will be the end of the story.