Beware! TopDiamondFX 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.
TopDiamondFX is a slick and aluring broker website. These are the first impressions. The broker gave us trading conditions that are irrelevant, for reasons we shall see in the following sections.
TOPDIAMONDFX REGULATION AND SAFETY OF FUNDS
Now, the Terms and Conditions offers us no direct information concerning a regulation, only that it is registered in Italy, but not regulated there. What’s more is that the broker’s About page offers us two contradictory pieces of information.
First is an Investment Business License from the British Virgin Islands. The British Virgin Islands’ Financial Services Commission regulates the forex market, so any regulated firms should be found in the online registry of the agency. We looked into the regulator to find the name of the broker and found zero result. So TopDiamondFX is not regulated in the British Virgin Islands.
Next, is a Certificate of Incorporation from the State of Washington. One thing must be made clear: the United States is the most demanding and austere environment for forex brokers in the world. For this reason there are only a handful of brokerage firms that have monopolized the forex industry in the US. We assure readers that TopDiamondFX is definately not one of them.
With all these details laid out, we can safely conclude that TopDiamondFX is definately NOT regulated, and thus is a risk to all investments.
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.
TOPDIAMONDFX TRADING SOFTWARE
Here we are again with another broker that directly takes from a third party its charts and reproduces them as its own. The charts of the trading platform are indeed not a property of TopDiamondFX, thus any of the trading conditions are in fact irrelevant; they are only there for show. Without trading terms, a broker is not really a broker, only a facade for something else, in TopDiamondFX as scammer scheme.
TOPDIAMONDFX DEPOSIT/WITHDRAWAL METHODS AND FEES
The minimum deposit is $1. Users can deposit via bitcoin, litecoin, Western Union, MoneyGram, Ethereum, Bank Transfer, PefectMoney, Neteller. There are no depodit fees for these payment methods.
Withdrawals are made using the same deposit method. The only withdrawal fee we were able to find was a $50 Wire Tarnsfer charge.
We strongly advice 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?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
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.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.
