Beware! Active Brokerz 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.
If one chooses to ignore the very cool looking home page animation, one would come to the sudden realization that Active Brokerz is nothing more than an offshore firm, striving for success in unconventional ways. Yet, if you are new to the world of forex trading, you might be mesmerized by Active Brokerz’ website; even we cannot ignore that it comes with some appeal. However, novice traders should always be on the lookout for important broker elements that must be active if a company wishes to provide legitimate services and retain its clientele. Does Active Brokerz achieve this effect, or should this one be ignored? Read on to find out.
Registering was a breeze. We felt like we previously encountered the same registration apparatus, and it was not a good recollection. All of the brokers with this same widget turned out to be completely unregulated. Not off to a good start. The final result was, again, a familiar client area, its template taken from countless unlicensed firms. We wont be gathering trading conditions from the platform because it turned out that there is a major issue with it, of which we shall see in the Login section of the review. For now, just know that there are no applicable trading conditions.
As per usual, if the trading platform does us not good, then we are left with the website to provide with all spreads and similar information. Seeing the broker so far, we can presume that this will not yield accurate information. So be warned! Unfortunately, Active Brokerz is one of those annoying brokerage firms that do not disclose any trading terms. There is no accurate spread details, no max leverages, not even the instruments have been mentioned! A bad sign all around.
Active Brokerz is slowly morphing into something completely opposite of what its visual wants us to believe it is.
Users can access the website in English and German.
ACTIVE BROKERZ REGULATION AND SAFETY OF FUNDS
Here is where the mist dissipates, where light is shun on the nature of things. Active Brokerz is registered in St. Vincent and the Grenadines (SVG), as per the footer of the site, while also governed by the laws of the Marshall Islands if we are to trust the Terms and Conditions.
One thing is clear. The Caribbean nation of SVG has never regulated the forex market. It has even released official statements saying so. However, that never has stopped hundreds, if not thousands, of illegitimate brokerage firms to create a bases of operation there. Even if Active Brokerz is located there, it most certainly is not licensed there, as there is nothing to be licensed by.
The same principle is applied to the Marshall Islands. The only difference is that the influx of shady brokerages is not as high as the one witnessed at SVG. The Marshall Islands do not have a financial regulator. Again, Active Brokerz may or may not be registered there, however what is 100% certain is that it is not regulated there.
It turns out that Active Brokerz is yet another UNLICENSED broker, whose operations are aimed at carefully embezzling users’ deposits.
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.
ACTIVE BROKERZ TRADING SOFTWARE
So what is the issue with the MT4 that Active Brokerz claims to offer? The key word is “claim”, because it’s just that. The firm alleges but completely fails to deliver.
Both the Web and desktop MT4 are connected to AlgoTrade servers, obviously having nothing in common with Active Brokerz, save for the fact that both companies operate illegally.
So, in essence Active Brokerz does not have a trading platform. Technically eliminating any hope we have for Active Brokerz being a broker.
The MT4 is beyond the capacity of ludicrously illicit brokers like Active Brokerz. This terminal services the best forex brokers in the world, yet at times it finds its way, inexplicably, into the hands of totally unlicensed firms. How these companies achieve to do so we do not know, although we assume through large payments or hacks. Whatever the case is, we think that the MT4 should be solely associated with legit firms, for this platform is forex trading perfection embodied.
ACTIVE BROKERZ DEPOSIT/WITHDRAW METHODS AND FEES
So, the depositing section in the client area is broken…
The final straw has been picked. Readers should be convinced that Active Brokerz is not worth anything, not even a second of your time.
Nevertheless, the website claims that the payment gateways are Credit and Debit Cards, Wire Transfers, and alternative and third party methods like UpayCard and Moneynet (if we are to trust the website). If we are to trust the Accounts section then the minimum deposit is $250.
Interestingly enough, the withdrawal section opened without a problem, yet it gave us only a reminder that we must deposit before going on. So no help from the client area. The same Accounts page reveals that the processing time can go to 10 days which is way to much of a waiting time, not that it matter anyway. The Terms and Conditions reveal that profits are withdrawable only through bank trasnfer.
A noticeable auto trading fee follows. A paying/deposited client who has used the auto trading option/software (event though the broker has no trading software) will have to trade at elast 20 times with the software prior to withdrawing. Otherwise, the user will be issued a $100 charge.
If a user is dormant for more than 30 days, i.e the broker does not detect any account activity, a fee of $100 will be issued. When compared to other brokers, even illegal ones, this dormant account charge seems excessive.
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.