Beware! ProuFX 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.
ProuFX is presented as a topnotch forex and CFD broker,where traders can chose among well over 200 trading instruments, including 54 forex pairs, lots of stocks, indices, soft and energy commodities, and even crypto coins, with leverage of up to 1:100, a choice between four account types and a web based trading platform.
This may sound nice, but there are a number of serious issues about this broker, starting with the fact that their website is virtually anonymous, not to mention the absence of a legit license, so if you are wondering if it is safe to deposit your funds with them better read the following review.
ProuFX regulation & safety of funds
As we mentioned the ProuFX website is completely anonymous – there is no company name, no contact address, just a UK phone number, but that does not mean much – you can be in Central Asia and you can register over the internet a phone number that will start with (+44).
And bear in mind that all brokers operating on British soil, as well as all brokers operating in the broader European Union, should be properly licensed and authorized by the respective local financial authority. In the case of the UK this is the Financial Conduct Authority (FCA).
So, because of the UK phone number we decided to give ProuFX a chance, and check the registers of the regulator for any sign of our broker. Unfortunately we were not able to find ProuFX in the FCA registers.
That means what we are dealing here is an anonymous, unregulated website, that most probably is involved in scam.
Bear in mind that unlike licensed brokers, authorized by the FCA in the UK or let say the Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC), unregulated brokers in general are completely unaccountable for the way they handle your money, and quite too often are simply run by scammers.
That is why our best advise is to avoid unregulated websites like ProuFX altogether.
ProuFX deposit/withdrawal methods and fees
We understand that ProuFX accepts payments with Visa, MasterCard and wire transfers, but not popular e-wallets like Skrill, and that is interesting, because of the new anti scam policy the money transfer company, adopted a year ago. According to it Skrill partners only with licensed brokers and as we already established ProuFX is just and anonymous, unregulated website.
Also, be especially careful with any trading bonuses a unregulated broker like ProuFX might offer you. Trading bonuses always come with some additional withdraw conditions, as for example some minimum trade volume requirement, which quite too often scammers use as an excuse to cancel your withdraw requests.
Otherwise the minimum deposit requirement is set at 250 USD and that is in line with what most other brokers would also require.
How does the scam work?
Scammers use various channels to get to their victims, but more and more often they use the social networks like Facebook, Instagram and the so called robo scam websites like Bitcoin Revival and Bitcoin Profit, which are especially designed as traps for careless investors. So if you happen to land on one of those websites, you will probably watch a nicely cut video ad, where you will be made some “irresistible” offer for fast and easy returns, with a minimal investment and no risk at all. And if you do get interested an leave your e-mail and phone, in a second you will be redirected to the web page of an offshore, unregulated scam broker and will be offered to open a trading account with about 250 USD.
And do not be carried away by the success of your initial trades. The truth will be much more trivial – your account will be manipulated with the sole intention that on a latter stage you will be convinced to invest a more substantial sum – like 10 000 USD or so. And that is exactly what your senior account manage will be suggesting on the phone – you will be getting lots of phone calls by that time – if you really want to make some big money, you should definitely invest more.
And quite too many people do get into the trap and invest as much as they can, without realizing they have been scammed until the day they decide to withdraw some of their cash. Than all of a sudden it turns out they have no right to withdraw, because of some minimum trade volume requirement, probably linked to their welcome bonus. The pretext might certainly be different, but the end result will invariably be the same – scammers will cancel all of your withdraw requests.
What to do if scammed?
If you have made your payment with a credit or a debit card like VISA and MasterCard, probably you will succeed to get your deposit back by filing for a charge back. The good news here is that both VISA and MasterCard now allow their customers to do that within 540 days.
And if by any chance scammers have obtained your credit card number and online banking password, immediately change the password and cancel your credit card.
Finally, if you are approached by the so called recovery agencies, do not trust them. They will not recover you a single penny, but simply will make you pay them some fees in advance, basically scamming you a second time.