BrightFinance review – 5 things you should know about Brightfinance.co

BrightFinance review – 5 things you should know about Brightfinance.co

Rating: 1.1

Beware! BrightFinance is an offshore broker! Your investment may be at risk.

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BrightFinance is a Forex brokerage registered in the Marshall Islands. There is supposedly a web-based trading platform provided and the required minimum deposit is the industry average of $250, however, further trading conditions remain undisclosed.

BrightFinance regulation & safety of funds

The corporate information shown on the website is a bit chaotic which is a worrisome sign from the start. We read that the brokerage is supposedly owned by a company registered in the Marshall Islands registered under the name Capital Letter LTD. Furthermore, there is a second company which figures as an owner, registered in Germany under the name Capital Letter GmbH.

As was said above, the corporate information is quite chaotic. This is definitely not the first brokerage we encounter that is supposedly operating out of both an European Country and the Marshall Islands. We remind readers that brokerages in Germany have to be licensed by the local BaFin, however, we find no mention of a license and after running a check on the online registry of the financial watchdog we can safely conclude that BrightFinance does not have an European license. We further highlight that the company is obviously registered offshore. And no wonder since the Marshall Islands has become a top-destination for would-be scammers due to its very liberal laws regarding the registering of companies. The government does not even require for someone to be physically there in order to register a company. Such a loophole has surely been noticed by many ill-minded brokers and utilized. Nonetheless, it’s safe to assume that BrightFinance, irrespective of its legitimacy, does not fall under any regulatory oversight whatsoever because the government of the Marshall Islands does not include Forex trading within its regulatory framework.  All in all, there is definitely much unwanted risk in trading with the brokerage.

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. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.

BrightFinance trading software

The MetaTrader 4 trading platform is not supported which is something we always consider a disadvantage 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 a web-based trading terminal available, however, we were unable to register for a demo account which means that we have no sure way of knowing the trading conditions, and, on top of this, there is no information regarding the spread This further cements our view that BrightFinance is involved in foul play and we always recommend to readers not to risk it and steer clear from such offers.

BrightFinance deposit/withdrawal methods and fees

We were unable to uncover that the available payment metods are for potential clients of the brokerage. Usually in Forex trading traders may deposit or withdraw via the standard Visa and MasterCard, as well as bank wire and popular and preferred by traders e-wallets such as WebMoney, Skrill or Neteller.

We did not find any stated withdrawal fees either, however, dealing with unregulated brokerage we may never be sure whether they wont charge unexpected fees once the clients have deposited their funds.  There are also withdrawal conditions pertaining to accounts that have taken advantage of the bonus promotion. A trader has to achieve a certain trading volume in order to be eligible for withdrawal which is purposefully excessive in order to impede any trader from actually receiving his money. Legitimate brokerage which are regulated in Europe do not offer such promotions and even if they do, the information regarding potential withdrawal requirements is always presented straight-forward on the website, not hidden away in the terms and conditions.

Such website are also the reason we advise traders 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?

Unfortunately, the possibility of a scam looms over almost every trade in Forex, especially if you are dealing with an unregulated brokerage. That is why we believe traders should be acquainted with the methods of a scam. Here is how it would typically go about:

Through clicking an ad with promises for fast money, you will be redirected to a website such as  Bitcoin Evolution or Crypto Cash 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 motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.

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. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in Forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.

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!

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2 Comments

  1. I invested all my savings with Bright Finance but when I requested money to be sent back to my bank account they refused to take my calls or reply to texts or emails. They are a complete scam.i now have no way of recovering my money.

  2. Well, that was one way to brighten up (pun intended) lock down. Thankfully I didn’t add any more to the initial pot of £800 because there’s no way I can get it, or any of the mythical $25,000 the account is allegedly worth. Once the ‘autotrader’ was closed, a demand was made for 20% payment prior to drawdown. Seeing the trap means you can avoid it. No guarantees and I absolutely sure that 20% ($5100) would have joined the initial deposit in a black hole. I was originally directed to Bright Finance by persons unknown once my initial $250 was taken. Frank Sytner, Melvin Hills, Natalia Holmes. All of them sounded genuine but I’m doubting it now. Some pretty graphics presumably linked to the markets and fictitious trades with escalating balances? How else do you get 2,500% in 6 months? I would dearly have liked it to be true, I was planning that foreign holiday, but the dream is crushed, in spite of the protests from the ‘staff’ at Bright finance co. What else am I to think? How can I trust them? It seems many others (from this and other forums) have suffered bigger losses than me. Don’t go there. I’ll start again, this time a little less impetuously.

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