Finroyalty review – 5 things you should know about Finroyalty.com

Finroyalty review – 5 things you should know about Finroyalty.com

Beware! Finroyalty 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.

 

Finroyalty is an offshore Forex brokerage registered in St. Vincent and the Grenadines. It provides the MT4 trading platform but requires an exceedingly high minimum deposit of $1000. The leverage extended to traders is quite generous at 1:100, however, further trading conditions remain undisclosed.

Finroyalty regulation and safety

On the brokers website we read that the broker brand is owned and operated by a SVG-based company with the name Pro Star Ltd. Although we have repeated it many times, we will highlight again that Saint Vincent and the Grenadines is a well-known offshore zone and a preferred location for shady brokerage. We also remind readers that the government of SVG has multiple times publicly stated that it does not oversee Forex trading and thus we may safely conclude that not only is the brokerage not regulated.On top of all this we learn that the brokerage is acting as a market maker which may lead to conflict of interest if it wishes to give trading advise or manage the accounts of clients since market makers are on a profit only when clients lose money. And not surprisingly, from the terms and conditions of the broker we do learn that Finroyalty does offer managed accounts. It seems the website is nothing more than the typical market maker scam we have seen quite a lot lately. Not surprisingly, the fraudulent activities of Finroyalty have fallen under the radar of the regulatory agencies in Spain and Italy. Both CONSOB and CNMV have issued official warnings against the brokerage and suspect it in being involved in scam operations. Furthermore, trading with an offshore, unregulated brokerage hides a lot of risk. There may be commingling which means that the brokerage may commingle together the finances of the firm and the finances of the clients.

Overall, the lack of regulation inclines us to suspect that potential clients of the brokerage may be open 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.

Finroyalty trading software

Putting all this aside – the brokerage does provide the MetaTrader 4 trading platform, a big advantage for traders 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. We were not able to get a look at it through a demo account.We view the lack of availability of a test-drive as a negative feature of the broker since it is the most transparent way of discerning the trading conditions. We do read on the website that there is supposedly a wide range of trading options which is always a welcome sight, the products include CFDs on indices, commodities, stocks, and precious metals, as well as Forex currency pairs. However, without a demo account there is no way to verify it and furthermore we find no information regarding the spread which leaves in the dark when it comes to the most crucial aspect in Forex trading.

Finroyalty deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw via the standard Visa, MasterCard and bank wire. E-wallets such as Skrill, Neteller are not available.

We could not find the client agreement of the broker which is a huge blow to its legitimacy. However, often unregulated brokers such as Finroyalty offer attractive bonus promotions we remind readers that such promotions are always tied with trading turnover requirements which make it almost impossible to withdraw the funds. 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 DaxRobot or CryptoContracts 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 Traderia – 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!

Finroyalty is a CFD brokerage supposedly based in Bulgaria. It provides a web-based trading platform, not the the MetaTrader 4 platform. The required minimum deposit is the standard $250 but further trading conditions remain undisclosed.

CryptoFXOption regulation & safety of funds

The corporate information of the brokerage is quite chaotic and unclear. We could not find a company name on the webpage, however, we did stumble upon a UK address. Furthermore, while reading through the terms and conditions of the brokerage we discern that the website is actually owned by the company Orion Services EOOD and governed by the laws of Balkan country Bulgaria. We remind readers that Bulgaria 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 UK or Bulgarian authorities – thus we may safely conclude that the brokerage CryptoFXOption does not fall under any regulatory oversight whatsoever. For the sake of diligence we ran a quick search on the online registry and can confirm that the brokerage is not licensed. This leads us to conclude that trading with it may be tied with a substantial amount of 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.

CryptoFXOption trading software

The brokerage does not provide the MetaTrader 4 trading platform which we always consider a huge 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. It is also the preferred choice for more than 80 percent of the traders in Forex. Instead, CryptoFXOption presumably supports a web-based platform, however, there is no demo account available which we consider a huge blow for the legitimacy of the brokerage since a test-drive is the most transparent way of getting a hold of the trading conditions of the broker. Furthermore, there is no information presented on the website regarding the trading conditions which leaves us pretty much in the dark regarding the offer of the brokerage.

CryptoFXOption deposit/withdrawal methods and fees

Clients may deposit or withdraw via the standard Visa and MasterCard, as well as bank-wire. Going through the terms and conditions of the brokerage we did  come upon provisions which are worth noting.

There is a withdrawal fee of 3.5 percent which is quite excessive and definitely raises the cost of trading with the brokerage. Furthermore, there is a clearance fee of 5 percent, as well as an unspecified monthly dormant account fee. We consider such an amalgam of fees to be a characteristic of shady brokerages whose goal is to siphon the client’s funds once they have been deposited.

There are also withdrawal conditions pertaining to accounts that have taken advantage of the bonus promotion which are extremely vague and unclear but there are always purposefully excessive in order to impede any trader from actually receiving his money. We warn readers no to fall in the trap and not to take advantage of a bonus promotion.

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  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!

 

Rich Snippet Data
Review Date
Reviewed Broker
Finroyalty
Broker Rating
1.31star1stargraygraygray

Top Forex Brokers

Broker Country Rating Min. Deposit Website
US 5/5 $50 Click for a special offerWebsite
Australia 4.90/5 $100 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like

LincolnFX Review – 5 things you should know about Lincolnfx.capital

LincolnFX is a CFD brokerage based presumably in