Beware! EU FX Invest 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.
Immediately upon opening Europe Forex Invest (henceforth referred to as EU FX Invest), even before reading any of the text, we got vibes of an online casino. It’s difficult to grasp this, because this is purely a subjective observation, but still. It has an “arcady” feel to it, even if it does not aim at delivering this. With that out of the way, we must say that EU FX Invest is overflowing with information, so much so that we grew tired of reading and so will you. However, with brokers you have to do a copious amount of research before deciding if this is the place for your deposit. Is EU FX Invest such a place, or should this one be left alone? Read on to discover.
Registering was a breeze, simple and fast, What we were given after that was a very simple looking client area. When you compare this place with the rest of the website, neither one compliments the other. Whereas the website is brimming with content, the user dashboard is as simplistic as they get.
We accessed a browser based trading software which gave us a EUR/USD cost of trade of 1.1 pips on average, a very decent spread. The leverage is capped at 1:400. Assets for trading are forex pairs, shares, and commodities.
The website is available in English, German, Spanish, and Italian.
EU FX INVEST REGULATION AND SAFETY OF FUNDS
There are a couple of things that we shall cover here. One is an alleged registration in the UK, in Belgium, and an incorporation in New Zealand. As you might have guessed, there is no regulatory information, as the name of these countries are casually dropped in order to trick users into thinking that EU FX Invest is a legitimate broker.
The UK address is the one we mostly depend on, however EU FX Invest is not licensed in the UK. One quick check in the FCA’s database revealed so.
In New Zealand it’s the New Zealand Financial Markets Authority (FMA) that oversees the market industry. EU FX Invest not regulated there either.
Last is the address in Belgium, where the Financial Services and Markets Authority (FSMA) is watchdog. As is with the others, the broker is in no way related to Belgium.
And anyway, judging by the look and the many provisions that we have uncovered, there is no way that this firm is regulated. Thus EU FX Invest is completely UNLICENSED, and therefore a risk to all!
Furthermore, the Risk Disclosure reveal the following statement:
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.
EU FX INVEST TRADING SOFTWARE
We accessed a web based trading terminal, that we immediately associated with other unregulated brokers. And even if we hadn’t, we still wouldn’t have recommended it,
because there is nothing to keep you busy here. There are only a handful of useful features: pending orders and some chart management.
We found a peculiar clause concerned with charges arising from the usage of the platform.
However, here the provisions mentions Algo trading services, which is either connected to algorithmic trading or to the AlgoTrader: Algorithmic Trading Software. What ever the case is, these fees will undoubtedly be deducted from a user’s account, so be warned!
EU FX INVEST DEPOSIT/WITHDRAWAL METHODS AND FEES
According to the deposit section in the client area, a user can fund an account by Credit and Debit card only, with a minimum requirement of $150, which is quite different from what the website claims. In fact the whole website is full of contradictory statements. For example, user have the option to open an account in two base currencies: EUR or USD. This we have seen while we were registering. However, the Brokerage Details subsection claims that base include GBP and JPY on top of the EUR and USD.
Customers agree, as per the T/C to deposit additional margin settlement sums upon the request of the broker. This is the first time we hear of a broker requiring its users to deposit.
Here’s another deposit requirement issued by the company. This one tackles collateral, which is applied to cover losses sustained by the trader. We find no purpose in this, but seeing that this is an unlicensed brokers, we understand their thrive for squeezing every penny out of their clients’ pockets.
There is a $3000 deposit requirement for a 100 Risk Free Trades. We do not advice users to try this out.
There is also a 300 Risk Free Trades scheme that costs a user a minimum deposit of $10 000. Furthermore, there are fees attached to these two very suspicious schemes:
The minimum withdrawal amount is $100 according to the legal docs. The processing times are up to 2 days, if we are to trust the withdrawal gateway in the client area. There are withdrawal charges as noted in the Terms and Conditions, as well as a range of other unrelated fees. What’s more is that the broker can change these fees without notice.
Here the Standard Account section reveals some charges related to VPN, Market Signals, and Auto Chart List, but not to withdrawals:
These levies are unacceptable, and are another way the broker will demand money from you!
Users are required to buy/sell at least 10 mini lots (1 mini lot is 10 000 units) for every $10 bonus money granted if they wish to withdrawal their bonus money.
In the case when the bonus amount granted to a user exceeds 25% of the initial deposit amount then, upon a withdrawal request, if the aforementioned trading volume requirement is not completed then 25% will be levied from the withdrawable amount. At least this is how we understood the following
The Refer a Friend bonus structure requires from users a minimum trading volume of $10 000 per every $1 bonus (from the Refer a Friend scheme), if they wish to withdraw any bonus money.
In the Risk Disclosure is to be found a small paragraph, containing the following provision:
Now, we interpret this in connection to the negative balance protection policy. If a trader losses more than his/her deposit, by ESMA law he/she will be protected from going negative. Yet, here is revealed that the client must be held responsible for going in this direction, which we see as the user paying additional money to balance out the negative account.
Here is the crucial provision which renders the whole EU FX Invest experience completely useless. It basically claims that all profits made from trading are not available for withdrawal:
All these are signs of a very illegal broker. This is 100% a scam.
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