Beware! 247WorldBTCFX is an offshore broker! Your investment may be at risk.
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247WorldBTCFX is a Forex brokerage supposedly registered in Switzerland. It provides the MetaTrader 5 platform with a wide range of trading products and the spread offered on EUR/USD is quite favorable at 1.5 pip which is just about the industry average.
247WorldBTCFX regulation & safety of funds
According to the website of the brokerage, the company behind it is registered in Switzerland and is even licensed by the relevant authorities. We remind readers that the country is deeply integrated within the EU without being a member-state through a series of bilateral treaties. Online Forex trading has been taken into consideration in the country’s legislation and the Swiss Financial Market Supervisory Authority FINMA is in charge of overseeing financial activities. Forex brokerages in Switzerland have to be licensed by the FINMA as 247WorldBTCFX claims to be.However, after checking the online registry of the Swiss authorities we can safely conclude that 247WorldBTCFX does not fall under any regulatory oversight whatsoever.
Furthermore, upon further research of the brokerage we uncover an official warning issued by the Italian financial watchdog CONSOB against the brokerage. It reads that it has been providing financial services without proper authorization and that it is further suspected of being involved in scam operations. Such an official warning is a major red-flag in Forex trading and we suspect potential clients of the broker will be exposed to 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. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
247WorldBTCFX trading software
The brokerage does provide the MetaTrader 4 trading platform , something we consider very advantageous for traders for several reasons. First of, it is the foremost trading terminal at the moment, secondly it is equipped with features such as almost a 100 market indicators, as well as customizable trading robots which is what makes it the preferred choice for more than 80 percent of the traders in Forex. Furthermore, even though the website is anonymous we were able to register for a demo account. We have always considered the test-drive to be the most transparent and trust-creating way of getting acquainted with the trading conditions of the broker. Among the trading products available we see CFDs on currency pairs, indices, commodities, precious metals and stocks.
However, we see a spread of just 0.1-0.2 pips on EUR/USD which is extremely low and too good to be true. No brokerage may hope to yield a profit through such a low spread which makes us question whether the actual spread isn’t in fact a lot higher and the demo version simply serves to misleads gullible traders. The leverage extended to traders goes up to 1:200 which is quite generous and common for unregulated brokerages. The required minimum deposit is at $250 which is nothing out of the ordinary.
247WorldBTCFX deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw only via the standard Visa and MasterCard, as well as bankwire, Bitcoin. Furthermore, we find no information regarding withdrawal fees or other such provisions pertaining to the funds of the client.
Many scammers choose not to disclose such information to would-be clients. Without proper information on the website we cannot be certain whether clients won’t be charged with any unexpected withdrawal or deposit fees once they invest. 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?
Unfortunately, the possibility of a scam looms over almost every trade in Forex, especially if you are dealing with an unregulated brokerage. That is why we believe traders should be acquainted with the methods of a scam. Here is how it would typically go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Cash 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 motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
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. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in Forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
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!
