Beware! BlackStone500 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.
You probably asked yourself, what could go wrong when trading with a broker that hold a name as daring as BlackStone500, a broker label that suggests it will live on forever. With a website that is literally too heavy for its own good, as confirmed by the obvious lag present throughout, BlackStone500 tries way too hard to invest passerby into its operations. Indeed, this firm flies high, but it’s in the detail of the execution that BlackStone500 fails to deliver. With all that text and accompanying images, only a small portion of it is in fact useful. The rest is just filler. Read the review to find out more.
It’s never a good sign when we can register in less that twenty seconds. It shows that the broker will take in just anyone, conveying a sense of desperation whilst also foreshadowing its true intentions. Once at the client dashboard, our suspicions started growing, for what we saw was a laughably simplistic dashboard, one that does not in any way compare to the display of grandeur on the website.
With that said, we did continue with accessing the trading platform which revealed a EUR/USD cost of trade of 0.6 pips, which left us quite dumbfounded, for this spread is superb. We were not able to choose our leverage cap; it was already predetermined to 1:200. We could not find a way to change the leverage value. The terminal also revealed that users can trade with the following instruments – Forex Pairs, Cryptocurrencies, Commodities, Indices, and Stocks – making this list very decent.
The client portal’s menus can be translate into Italian, English, German, Spanish, Russian, whilst, confusingly, the website is only available in English. This might be an insignificant detail, but it furthers the proof that there is something fishy going on here.
BLACKSTONE500 REGULATION AND SAFETY OF FUNDS
Here we are at the crucial part of the review, where all hands are dealt. With BlackStone500, these hands were nervously shaking before throwing in the cards.
Let’s begin form the footer. Giving us two distinct countries side by side is never a good sign. Smart Trade and Investments LTD is the supposed holding company which is either located in the UK or Canada, if we are to follow the footer’s lead. The contact us page points at an UK address, while the Terms and Conditions would have us believe that users have to be informed on local Estonian laws, suggestion a registration in the Baltic nation.
Let’s start with Canada. The great nation of Canada has one main financial market overseer, the Investment Industry Regulatory Organization of Canada (IIROC), which sets very high standards for brokers to follow, a reason for the country’s low popularity in the forex industry. We checked the online register of IIROC’s licensees, and found no result of both broker and parent company names.
Next is the FCA, which needs no introduction. This British regulator is somewhere in the top watchdogs for many reasons. Needless to say, we did not find the names of the broker/holding company in the official FCA register.
Finally, the most peculiar of the bunch, Estonia. This small European country is not the most popular forex destination, which has, consequently, made it a preferred destination for scammer brokers. The official, Estonian Financial Supervision Authority or Finantsinspektsioonacts, is the local financial regulator. Unsurprisingly, the database of regulated entities holds no results of BlackStone500.
What’s more is that BlackStone500 has not once said that it is actually regulated anywhere. It just throws unconnected information to trick its clientele.
We can only conclude that this broker is UNLICENSED, and thus a risk to all those that deposit in it.
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.
BLACKSTONE500 TRADING SOFTWARE
Once registered, we were granted full access to the Activ8 terminal.
Each assets at this platform has its own little box, which is then maximised to a separate window where the chart for the buy/sell price is clearly visible. This, copy trading strategies, and pending orders are the only additional elements to compliment the buying and selling of assets.
It’s obvious that this trading software is no match for the MT4, which is or choice of a platform, and so should yours. The MT4 is so incredibly detailed, that its learning curve can span multiple years, where as the Activ8 platform can be quite boring to deal with.
BLACKSTONE500 DEPOSIT/WITHDRAW METHODS AND FEES
The user dashboard reveals that there is only one way to fund an account, which is through XchangePro, a bitcoin purchasing gateway. It does not even look like we will receive a deposit in our trader’s account. What we think happens is that users are tricked into thinking that they are depositing, but instead, they will be buying bitcoin. This results in a mystery minimum deposit amount, if any.
Withdrawals are charged with fees, yet we do not see the connection between buying bitcoin from a third party source and withdrawing from an illicit broker. Nevertheless, her is what the legal documents revealed -Wire Transfer are charged with $50, Credit Cards have a $35 fee, e-payments are levied $25, and there is a 10% charge if the user has not executed a turn over of his/her deposit at least 200 times prior to withdrawing.The processing time is 5 days for withdrawal requests.
There is a 10% charge on any account that has been stamped as inactive. For an account to be dormant, it must have not been traded with for at least 6 months.
Bonuses plus deposits must be traded with at least 25 times in order fro the bonus to become withdrawable:
All this information is completely useless once you reach the Non-Deposited Funds clause. Essentially, this tells you that all profit is treated as Non-Deposited Funds, which are in fact not eligible for withdrawal.
This is the last nail to the coffin: BlackStone500 is clearly a scam!
Here is one of many instances when the broker absolves itself and its third party affiliates of all liabilities:
Furthermore, all claims against BlackStone500 will become obsolete after 12 moths, a clause that ties together with all of the indemnification provisions:
We strongly advise 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 will 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.