Flip-Options review – 5 things you should know about Flip-options.com

Flip-Options review – 5 things you should know about Flip-options.com

Beware! Flip-Options 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.

 

Flip-Options is an offshore Forex brokerage supposedly registered in Vanuatu which gives quite unclear corporate information. It purports to provide a web-based trading platform, not the MT4 trading platform and the required minimum deposit is a bit high at $300, however, further trading conditions remain unclear.

Flip-Options regulation & safety of funds

Through the information presented on the website we understand that the company behind the brokerage is registered in Vanuatu with the name Finance Group Corp and supposedly licensed. We do remind readers that the VFSC does give financial dealer licenses to Forex brokerages, however, the regulatory oversight and financial mechanisms for compensation cannot compare with renowned European agencies such as FCA or CySEC. Nonetheless, a Vanuatu license is certainly better than nothing. The commission supports a website where you may download a pdf file with a list of all the licensees.

The company does not in fact have a financial dealer license from the Vanuatu authorities and we also point out another worrying aspect of the broker. We read that the website is operated by a second company based in Seychelles which is another offshore zone and a safe haven for scammers and the likes.

All in all, we fear that due to the lack of credible regulation 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.

Flip-Options trading software

As was stated above, the brokerage does not provide the MetaTrader 4 platform which is among the foremost trading terminals in Forex trading at the moment and its lack is something we always view as a disadvantage. Instead, there is a web-based trading platform and we weren’t able to register for a demo account. We always view the availability of a test-drive as an advantage since it is the most transparent way of getting a hold of the trading conditions of the brokerage. We did get to see the platform through a live account, unfortunately, it appears quite fake and there are no discernible trading conditions.

Flip-Options deposit/withdrawal methods and fees

Potential clients of the brokerage it appears may deposit or withdraw via the standard Visa and MasterCard, as well as Bank wire, however, popular e-wallets such as Skrill, Neteller, Bitcoin, Perfect Money, MoneyGram and Western Union.

We did find quite a few troubling provisions in the terms and conditions of the brokerage. First of, it appears that FastTradeOptions requires traders to achieve a trading turnover in order to be eligible for withdrawal which is an obtrusive measure which shouldn’t figure in the terms and conditions of a legitimate brokerage. The trading turnover amounts to an unknown figure, however, if it has not been achieved, each withdrawal will be charged 20 percent which is a hefty fee.  On top of this, the brokerage also offers bonus promotions which are always tied with withdrawal conditions that make in impossible for the trader to extract his 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 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
Flip-Options
Broker Rating
1.21star1stargraygraygray

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