Beware! EGM Finance 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.
We had some hope for EGM Finance, yet the more we used it, the larger the pile of unacceptable aspects grew. The leverage we got was 1 pip on average for the EUR/USD pair, while the leverage is capped at 1:400 for the VIP account, and 1:50 for the Basic account.
EGM FINANCE REGULATION AND SAFETY OF FUNDS
The footer and the Terms and Conditions claim that the broker functions under the laws of St. Vincent and the Grenadines. This would have been a good thing, have not these same laws been shady and loose. In fact, St. Vincent and the Grenadines are the most popular place for offshore brokerage firms to establish their operations because of these laws. Furthermore, the country does not have a forex financial regulator, so any broker that is registered there is definitely not licensed.
Aside form that, the Terms and Conditions are filled with short clauses warning users that EGM Finance’s services are available only to those clients whose country of residence legally allows them be. This is ambiguous at best, again indicating a lack of regulatory direction.
Thus EGM Finance is UNREGULATED. Such brokers are a risk to any investment.
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.
EGM FINANCE TRADING SOFTWARE
The trading terminal offered here is the Sirix webtrader, but users can also download a desktop version of the platform.
This trader is quite decent, offering pending orders, one point clicking, options for chart customization, and surprisingly, copy trading. The interface is easy to use, and there is enough here to satisfy. However, advanced traders will be put of by its limited capacity to accommodate them.
There are commissions on crypto spreads, as follows:
EGM FINANCE DEPOSIT/WITHDRWAL METHODS AND FEES
The depositing section allows for bitcoin deposits via wire transfers or credit/debit cards. There is no minimum deposit amount.
Withdrawals should be transferred to an account in 7 days. The payment terminal does not reveal the methods uses; we assume that the user sebnds a request, and is then never reached, because unregulated brokers have the tendency to withhold your money indefinitely.
Be aware that there are fees.Not only do the Terms and Conditions mention fees all the time, but so does the Risk Policy include a paragraph on them. Yet they still remains unclear:
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.