Beware! BigFX 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.
BigFX is an Estonian broker, which immediately should put you in the edge, since the country is not very renowned for its financial market industry. BigFX offers a 1:100 to 1:300 leverage. We reminf users that the leverage in Europe is capped at 1:30 by ESMA, meaning that any brokerage firm offering a higher retail investor leverage than that is certainly acting above the law.
BIGFX REGULATION AND SAFETY OF FUNDS
The broker is owned by the Bigger Investments Limited OÜ parent company that is located in Estonia. However, nowhere does it say that it is regulated there. Nevertheless, in Estonia the Finantsinspektsioonacts (FI) acts as a regulatory entity for all financial services institutions, with all regulated companies being officially included in an online register. There were no results of BigFX in the registry, so we can conclude that the broker is not regulated in Estonia. Even if a company is registered in a country that does not make it licensed by its appropriate body which is crucial for any forex broker to be. So BigFX is in fact UNLICENSED, and therefore a risk to all investors.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
BIGFX TRADING SOFTWARE
We were unable to proceed with opening a trading platform because the broker requires ID verification documents, which is in fact a very good sign. However, for the purposes of this review, we will not be able to talk about the trading terminal for there wasn’t even a demo account possibility. Furthermore, the website offers no clear insight on any spreads, but gives us a leverage ranging from 1:100 to 1:300, depending on the account type the trader chooses.
There isnt even a mention of a trading platform anywhere on the website, that turned out to be quite short on information.
Unfortunatelly, we are left with no info on trading condfitions, and so we must, once again advice users not to trade with BigFX.
BIGFX DEPOSIT/WITHDRAWAL METHODS AND FEES
Soon after our initial registration, our account was blocked by the broker. This means that we had no direct access to a client dashboard from which to draw deposit and withdrawal inforamation. So, we took wjat infiration wa provided on the website. In the FAQ the minimum deposit is said to be $250, and it claims that deposits are made via credit cards, wire transfers, e-wallets, and crypto wallets. It is noteworthy to mention the folowing: withdrawals in concerned with a trading volume requirement of 200*the initial deposit. If users are to withdraw before completing this, then their withdrawals will be taxed by 10%. Furthermore, there are additonal withdrawal fees, that occur at each request: Wire Trandsfer fee is $50, Credit Card fee is $35.
We strongly advise traders to only deposit the minimum deposit, or better yet- not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
The most common type of scamming is in fact a very simple scheme that involves multiple level of commitment from both the victim and the fraudulent broker. In the following section we will dive into the individual elements that make up this scenario.
Users of the net will be lured or intrigued by the countless ads that float around the internet, mostly on popular websites such as social media hubs. These ads promise fast money, and are accompanied either by images of luxury or made up testimonials. Clicking on them redirects users to a so called robo-scam website such as xxx or xxx, where a simple registration process will require from you a telephone number and email address. We assure traders, that once these details have been shared, they will shortly get a call from the broker or brokers, on whose ad you just “stumbled”; this is when the game begins. The voice on the other end of the line will urge you to deposit in their broker some $250 (approximately), by reassuring you of the possibilities of profit, and the like.
Should you deposit, the initial scammer has just earned a hefty commission from this deposit. Now it’s time for the senior scammer to talk you into depositing more, by claiming that the only way to increase profits is to deposit more and larger sums. These second level frauds are great talkers, charismatic and influential, twisting their lies to sound like the absolute truth.
At some point or another, the trader will inevitably start suspecting something, and will want to withdrawal his/her funds.
At this point, the con artists will delay the withdrawal process by persuading you to wait, or by referring to their legal documents that cover specific withdrawal clauses- excuses vary from broker to broker This delaying process is crucial to them, for trader have a limited time to file for a chargeback with their respective bank. Once the chargeback time frame runs out, traders will have lost their money for ever.
What to do if scammed?
VISA and MasterCard users will be happy to know that have extended their charge back request period to 540 days for when online scams occur. In case a chargeback is unavailable for some reason, the next immediate route is to cancel your credit card ASAP.
Those of you who deposited using VISA and MasterCard wil be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
If any bank details have been shared, like banking pass or security code, traders should be aware that scammer will most certainly attempt to drain your account. In such a case, immediately block the account or change the password.
We also urge users to be very careful with the so called “recovery agents” that promise to recover lost money from unlicensed broker. They charge a fee for their alleged services, and will unquestionably not recover any previous deposit, basically scamming you a second time.