Beware! 247GlobalTrade 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.
247GlobalTrade says to be one of the fastest growing online trading brands in the world, offering six account types with leverage of up to 1:100 and the opportunity to trade forex pairs, ETFs, stocks, crypto currencies and digital options with guaranteed, generous daily returns.
This might sound fantastic, was it not for the fact that 247GlobalTrade turned out to be a unregulated, offshore website, with a fresh warning from the financial authorities in Hong Kong. Before depositing any funds with them be sure to read the following lines.
247GlobalTrade regulation & safety of funds
247GlobalTrade claims to be based in Los Angeles, the U.S., but in fact is owned by a series of offshore companies – the Seychelles based Affort Projects S.A., which operates on behalf of the Vanuatu based Finance Group Corp and Suomen Kerran LP about which we known absolutely nothing.
And unsurprisingly non of the above mentioned companies is licensed and authorized to offer financial services on regulated markets like the European Union, the U.K, Canada, Australia or the U.S.
What is more 247GlobalTrade appears in the latest warnings list of FinaCom – an external dispute resolution authority based in Hong Kong. You can see the warning here:
Otherwise, if 247GlobalTrade really operates on U.S. soil, they should comply with the local regulatory standards, which are pretty tough even compared to those in Europe. For example all U.S. brokers should maintain operational capital of at least 20 000 000 USD, which is basically the same amount as required for the Swiss banks. And this explains why so few brokers have a license to operate in the U.S.
247GlobalTrade deposit/withdrawal methods and fees
Talking about withdraws, be aware that 247GlobalTrade will allow you to request a withdraw only after you have covered a certain minimum trade volume requirement. And that is even without a trading bonus. No legit broker will ever restrict your right to withdraw your own deposit. See for your self:
As for the bonuses – this is a highly controversial practice banned on mots regulated markets like the EU and the UK. The general problem with all trading bonuses is that they always come with some additional withdraw conditions – a minim trade volume requirement, which scammers love to use as a pretext to cancel your withdraw requests.
Furthermore 247GlobalTrade claims to accept payments with various e-wallets like Skrill and PayPal, but when we proceeded with our registration it turned out they accept only crypto coins, bank wire and cards. Otherwise their minimum deposit requirement is 250 USD.
Also, be aware that for opening a unleveraged crypto currency CFD trading position you will be charged between 1% and 2,5% of the transaction, while for leveraged CFD crypto currency positions, the Company will charge you a commission fee of up to 5%.
Finally, as we already mentioned 247GlobalTrade is offering a Fixed income account (FIA), which in practice is a managed account, where the invested capital is controlled by “traders of the analytical department of 247globaltrade”. See for your self:
The problem here is that like most other brokers 247GlobalTrade is a market maker, which means they make money whenever traders lose. So it is all but natural that if you let 247GlobalTrade manage your funds, they will have the incentive to mismanage them and lose them in their own pockets.
How does the scam work?
Among the various channels scammers use to hook for new victims, you should be aware of the so called robo scam websites like Bitcoin Revival and Bitcoin Profit, which are basically created as traps for gullible investors. Usually such websites are all about some nicely cut video ad, where you will be told how easily you can make a pile of cash by joining some innovative trading platform, which is supposed to generate profit automatically while you sit back and watch your funds multiply. And if you decide not to miss that once- of- a- life- time opportunity, all you will have to do will be to fill a simple registration form with your e-mail and phone.
Than all of a sudden you will be transferred to the web page of some unregulated, offshore broker, where you will be offered a trading account in exchange of a 250 USD deposit.
And you might be surprised, but your initial trades will be amazingly successful and in no time your account balance will almost double. That however will be just a part of the scam as fraudsters will definitely try anything, including manipulating your account, to make you deposit as much as you can.
And that is exactly what your “account managed” will be telling you on the phone as well – if you really want to make some real cash, you definitely have to invest more – like at least 10 000 USD.
And as strange as it may sound but at that stage most people do invest that kind of money without realizing they have been scammed until the very moment they request to withdraw some of their funds. Than all of a sudden it turns out this is not possible, because of some minimum trade volume requirement, possibly linked to their welcome bonus. Of course the excuse might be different, but the end result will always be the same – scammers will not pay a single dollar back.
What to do if scammed?
If you are a victim of a scam the only viable option you have is to file for a charge back with your credit card company – of course this works only if you have paid with a credit card. Fortunately both VISA and MasterCard will allow you to do that within 540 days.
And if somehow scammers have tricked you to tell them your personal banking details like your credit card number and online banking password, immediately cancel your credit card and change your password. Also, if scammers have convinced you to install a remote control program like TeamViewer or AnyDesk, delete the program immediately.
And one final note, if you get approached by one of the so called recovery agencies, do not trust them. You will just have to pay some fees in advance without getting anything in return. Basically, you will be scammed a second time.