Beware! BudsFX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
BudsFX says to be a top- tier provider of CFDs, offering nearly 50 currency pairs, as well as commodities, indices, and shares with a state- of- the- art trading platform, a choice of four account types and leverage of up to 1:200.
Unfortunately the broker turned out not to be regulated, and what is even more disturbing, the company behind it appears in the warnings list of the Spanish financial regulator – the CNMV. Before depositing any funds with BudsFX be sure to read the following review.
BudsFX regulation & safety of funds
BudsFX is owned and operated by Cubic Services Ltd, an offshore company based on the Seychelles. And as we noted, not only that they are not regulated by any official financial regulator, that could have given them authorization to offer financial services on regulated market like the European Union, but also Cubic Services Ltd has already been blacklisted by the CNMV in Spain together with their other brand – Global Markets. See for yourself:
As usual in such cases our best advise is to trade only with properly regulated brokers, like the ones, licensed and authorized by well respected financial institutions like the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC).
BudsFX deposit/withdrawal methods and fees
It appears that BudsFX accepts payments with credit cards and bank wire, but not popular e-wallets like Skrill. We mention that because of the new anti scam policy adopted by Skrill. According it the company partner only with properly regulated brokers, and as we already discussed BudsFX does not have a license whatsoever.
Also, be aware that BudsFX will charge your account with a 5% administrative fee if they decide, on their sole discretion, that you have not traded enough. And if that is not enough, they may charge a commission for depositing or withdrawal of funds, while reserving the right to change their existing fees and charges and introduce additional ones at any time. No legit broker will ever set such conditions and fees. See for yourself:
How does the scam work?
If you have ever wondered how so many people get scammed., you should have in mind that scammers are pretty well organized and use lots of resources. For example they employ call centers in places like the Philippines and Ukraine, and partner with the so called robo scam websites like Bitcoin Revival and Bitcoin Profit, which are especially designed to attract gullible investors. For example if you happen to visit such a website, you will be greeted by a well cut video ad, telling you the story of how easily you can get filthy rich, by just joining some innovative trading platform, that will automatically generate profits for you while you sit back and watch.
And if you do leave your e-mail and phone, right away you will be transferred to the web page of a unregulated, offshore scam broker, where with your brand new trading account you will have to deposit about 250 USD.
Now, do not be surprised by how successful your initial trades will be. In reality, your trading account will simply be manipulated so that latter you will be much more easily convinced to deposit a larger amount. And that is exactly what your senior account manager will be telling you – if you really want to make some real cash you surely have to deposit more – like at least 10 000 USD.
And as strange as it may sound, but at that stage many people do invest that kind of money without realizing they have been scammed until the very moment they decide to withdraw some of their cash. Than, out of the blue they are told they have no right to withdraw because of some minimum trade volume requirement, possibly linked to their welcoming bonus. The excuse, of course, might certainly be different, but the end result will always be the same – scammers will not be paying a single dollar back.
What to do if scammed?
Probably your best option to recover your deposit is to file for a charge back with your credit card company. Fortunately, both VISA and MasterCard currently allow their clients to request a charge back within 540 days.
And if under any pretext scammers have managed to get to your personal banking details, like your credit card number or online banking password, immediately change the password and block your credit card.
And do not trust the so called recovery agencies. They will not help you in any way, but simply will charge you some fees in advance without recovering you a single penny.