Beware! ForTradersFX 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.
ForTradersFX seems like every suspicious broker out there. The only thing that distinguishes is from the bunch is that it has many of the key legal documents, yet even with this impressive collection what’s important is the content. Nevertheless, the broker offers a EUR/USD spread of 2.8 pips on average, a value that is disadvantageous to everyone but the broker. The leverage is allegedly capped at 1:200.
FORTRADERSFX REGULATION AND SAFETY OF FUNDS
The broker is operated by ForTradersFX Ltd, a parent company based in the Marshall Islands. There is no other information concerning a location or a regulation for that matter. Readers should be aware that this location is known for its affiliation with suspicious brokers, most of which offer shady trading conditions. The crucial thing to note here is that the Marshall Islands have no financial regulator- a company can easily register there, but without a an agency to regulate it, said company can do what ever it wishes, which most of the time is to trick users into giving their money away. We can safely conclude that ForTradersFX is UNREGULATED, making it a risk for 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.
FORTRADERSFX TRADING SOFTWARE
Overall, the Sirix tarder offered here is a decent terminal with pending orders, one point clicking, options for chart customization, and surprisingly, copy trading. The trader is in fact attractive to look, and easy to use, and is able to accommodate to most users. Yet, with all its intricacies, it cannot compare to the MT4.
FORTRADERSFX DEPOSIT/WITHDRAWAL METHODS AND FEES
According to the user dashboard, the only real methods that allow for depositing funds are Credit/Debit Cads, Wire Transfer, and Deposit by Phone. Once we proceeded with the depositing process, the minimum requirement revealed itself as being $20. The same mehtods are used to withdraw.
Withdrawals are levied an unspecified amount, as per the Deposit and Withdrawal Policy. The same document claims that the minimum withdrawal is £3000.
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.