Beware! Share Founders is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Share Founders is a Forex brokerage supposedly based in Hong Kong. It provides the MetaTrader5 trading platform and a seemingly attractive spread of just 1 pip on EUR/USD, however, further information remains undisclosed and the legitimacy of the brokerage is put under question.
Share Founders regulation & safety of funds
From the brokers website we find out that the company is registered under the name Bitrix Tech Limited in Hong Kong. Readers are reminded that brokerages registered in Hong Kong have to be licensed by the Securities and Futures Commission (SFC) in order to operate legally in the territory of the country. After needlessly checking the registry of the SFC we can safely conclude that the brokerage is not among the list of licensees. On top of all this it appears that the SCF of Hong Kong have blacklisted Star Trader and warned traders not to contract its services. All in all, the lack of regulation inclines us to suspect that potential client’s funds may be at 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.
Share Founders trading software
The brokerage does provide the MetaTrader 4 trading platform which is something we always consider advantageous for potential clients since the MT4 is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). There is also an available test-drive which is a nice surprise since unregulated brokerages rarely offer a demo account. We do see a wide range of trading options, however, the spread for the most basic account exceeds the industry average at 2.8 pips and is quite unfavorable for interested traders.
Share Founders deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via VISA and MasterCard, Bank wire, however, popular e-wallets such as Skrill are missing. While going through the brokers terms and conditions we couldn’t find anything especially unsettling, however, we can’t be sure whether the brokerage won’t charge any unexpected fees once the initial deposit is made. This is why we remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised 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 Bitcoin Evolution or The bitcoin miner 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 achargeback 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!u