Beware! ForbsLab is an offshore broker! Your investment may be at risk.
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ForbsLab is a CFD brokerage based in Luxembourg. It provides а web-based trading platform, not the the MetaTrader 4 platform. The extended leverage to traders is 1:100, however, further trading conditions remain undisclosed.
ForbsLab regulation & safety of funds
Reading through the terms and conditions of the brokerage we discern that the website is actually operated by a company with the name Walsh Invest & Trade Ltd or Kayescent Corp which has an operational address in Luxembourg. We remind readers that Luxembourg is a member-state of the European Union and online Forex trading is duly integrated within its regulatory framework which is modeled after the ESMA guidelines. However, we find no mention of a license by the Luxembourgian authorities – thus we may safely conclude that the brokerage ForbsLab does not fall under any regulatory oversight whatsoever. Furthermore, while researching the brokerage on the web we came upon an official warning issued by the Luxembourgian financial watchdog Commission de Surveillance du Secteur Financier (CSSF). regarding the brokerage. It states that it is suspected in being involved in scam operations and further in targeting traders without proper authorization. All this incline us to suspect that potential clients of the brokerage may be exposed 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 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
ForbsLab trading software
The brokerage does not provide the MetaTrader 4 trading platform (only a web-based one) which we always consider a disadvantage since it is the foremost trading terminal at the moment equipped with features such as almost a 100 market indicators, as well as customizable trading robots. The brokerage does purport to provide a web-based trading platform. However, there is no demo account available which we always consider unfavorably since a test-drive is the most transparent way of getting a hold of the trading conditions of the brokerage. Furthermore, there is no information concerning the trading conditions on the website of broker either which leaves us pretty much in the dark.
ForbsLab deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw only via the standard Visa, MasterCard and bank wire, as well as Bitcoin, Ethereum and Bitcoin cash. Popular e-wallets such as WebMoney, Neteller, Skrill are missing.
Going through the terms and conditions of the brokerage we did come upon provisions worth noting. The brokerage required a minimum withdrawal amount of $250 which is not common practice in Forex trading and further charges a monthly maintenance fee ranging from 1 to 10 percent which we consider quite unfavorable for potential traders.
This is why 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?
Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. 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 Cashless PayGroup 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 Btcoinpro – 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!
Klaus
Ja, auch ich bin auf die Werbung bei Facebook (Höhle der Löwen) bei FORBSLAB mit 250 € reingefallen. Alles großer Betrug,müsste man ja wissen das es solche Gewinne nicht gibt (aber Gier schaltet Hirn aus ) Ist eine Anzeige wegen Betrug sinnvoll und was kann man damit bezwecken/ erreichen, wer hat damit Erfahrung und kann anderen Tipps geben wie man am besten vorgeht. Kohle ist leider nun mal weg, sollte man eher darüber nachdenken, oder was noch besser ist auf die Frau hören.
Nachdem ich eine Auszahlung beantragt hatte ist natürlich nichts passiert,die Grösste Frechheit bestand darin das man mir per E-Mail mitteilte das ich über meinen Gewinn von € 35.000 ab Februar 2020 verfügen könnte , wenn ich jetzt € 8.000 investieren würde.
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Yes, I fell for advertising on Facebook (Cave of the Lions) at FORBSLAB with 250 €. Everything big fraud, one would have to know that there are no such profits (but greed turns off brain) Is an ad for fraud sense and what can be used to achieve / achieve this, who has experience and can give other tips on how to proceed the best , Charcoal is unfortunately gone, you should rather think about it, or what is even better to hear the woman.
Of course, after I applied for a withdrawal, nothing happened, the biggest impudence was that I was told by email that I could have my profit of € 35,000 from February 2020, if I would now invest € 8,000.
Darren
Its a total Scam !!! Forbslab will invest your money and grow it quickly, ………. but its in an account that you can not access in anyway! It will all look like its going great, until you try to access a bit of the account money. It is not possible to make an account withdrawal from them . After you try to make an account withdrawal, that is when is all changes, and the point no-one will reply to your withdrawal messages, emails, or calls. Thousands of people are fighting to get their money back. Don’t be one of them and get burned. Unfortunately you can’t choose less than 1 star, because one star is way to much for this company of thieves.