Beware! MyFINSO 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.
MyFINSO seems to rely on simplicity rather than on an overload of information, and it works very well for it, delivering a seemingly proper broker, with an emphasis on less is more. However, and of course there is a “but”, our perfect little world was quickly overturned once we checked the Terms and Conditions, but more on this later. Read the review to discover all there is to know about MyFINSO.
As much as we tried, we were unable to register for the simple fact that the sign up process kept asking us for a phone number in a specific format that we did not know. However, we can say that when a broker is so focused on acquiring a phone number, it will undoubtedly attempt to contact a user to make him/her deposit, a scheme we have explained below. Anyway, in the end we were unable to open an account.
What this means is that we will be getting all trading conditions from the website, which only reveals that the are are forex pairs, cryptocurrencies, indices, and stocks as tradeable assets. Spreads and a leverage cap have not bee disclosed anywhere on the site. The fact of the unclear spreads and leverage is the first stop in a long way down for MyFINSO.
The website can be translated into English or German.
MYFINCO REGULATION AND SAFETY OF FUNDS
There are a coupe of claims here, that are of interest to us.
First of all, the footer gives us tow addresses, one in the UK and another in Germany.
The UK’s FCA has no mention of a MyFINSO, nor does Germany’s BaFin. What’s more is that it never explicitly says that the broker is regulated in either one of these countries.
Next, is a provision in the Terms and Conditions claiming that all broker-trader related disputes will be settles in the court of Estonia. That’s fine, but the name drop comes out of nowhere. And again, it doe snot say anywhere that MyFINSO is regulated by Estonia’s license issuer the Finantsinspektsioon.
Seeing that there is no other siilar information, and the fact that nowhere on the site does it say that MyFINSO is licensed, we have no choice but to deem this one UNREGULATED, and a risk to all investors.
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.
MYFINCO TRADING SOFTWARE
We confirm the presence of the MT4, which we were nevertheless, unable to open because we did not have log in credentials.
So the MT4 is out of our hand, which is a shame for this terminal is always a thrill to open and learn something new. There is a surreal amount of options and features, all allowing to tweak each user’s individual tastes and preferences until it fits. There is a reason why the MT4 is still above all other trading softwares!
Please take note that MyFINSO has the right to close a deal when the margin level falls below 20%.
MYFINCO DEPOSIT/WITHDRAW METHODS AND FEES
According to the Terms and Conditions, a client can deposit via credit or debit card, wire transfers or SEPA transfers, e-wallets, and Crypto. The Accounts page gives us a minimum deposit requirement of $250.
The minimum withdrawal amount is $50. There is a $30 fee for every withdrawal request made.
Here’s proof that there are other withdrawal fees, which are applied at the broker’s own pace without notifying the user. This specific clause is one in many that talks of fees.
The company charges a $100 maintenance fee every three months:
Before withdrawing a bonus, MyFINSO has issued a very easily doable trading volume requirement (turnover) of the bonus amount divided by 2. The user must meet this if she wants to withdraw.
Next, is a clause that claims that the broker can pass on the client’s money to a range of third parties, including other brokers and merchants. Not only is this unacceptable, but the broker will not be held responsible should the money returned to the user is less than the original amount, as a result of a third party’s insolvency. Here is the entire thing, we suggest you read it carefully, for many illicit brokers have this.
Furthermore, the broker is arrogant enough to suggest that it can hold a users’s money outside of its own home jurisdiction, essentially meaning that it can send it to offshore bank account. And of course, any loss derived from this is not to be blamed on the company.
The client agrees that the broker can make deposits and withdrawals on his/her behalf to cover settlements, among other things.
Here is a very interesting provision. Should any legal action be taken against the broker, the concerned clause in the legal documents will be excluded from the Agreement as though the provision never existed. This is very ridiculous, and another clear sing of just how illicit MyFINSO is.
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.