Beware! TheForexReview 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.
Even if PremiumBorsa is a well though off name for a forex broker, it does not hold well in the forex industry… First of all, no legitimate broker would name itself like this; the name conveys a layman’s idea of what a broker should be called. And second, as we shall see, there are far too many twist ant turns that put a distance between what ought to be and what is. Yes, the interface is easy to navigate through, and there is a certain appeals to the website’s design, which nevertheless, felt like it was rehashed from some other shady place. Read the review to see what we found out.
A very simplistic registration process is indicative of what type of broker PremiumBorsa is. After a couple of seconds, we had access to a user area, however, the we had to provide verification documents in order to access any of its features. In other words, all of the dashboard’s elements were blocked, including the trading software. This is usually a good thing, but with a shady brokerage like PremiumBorsa, this development does not work in its favor. Opening a demo account was cut short by an unknown error.
Without access to a trading platform, we must follow the website for all trading conditions. Forex Pairs, Indices, Commodities, Futures, and Share are all the assets that the broker claims to be offering. The spreads have not been revealed anywhere.
According to the Additional Risk document, a user can change her leverage to 1:500. The T/C claim that the value is capped at 1:400. Another section on the website claims the leverage to be 1:100. There is no way to know for sure. Furthermore, the company has the right to change a user’s leverage without notifying her.
The website is available in English and Italian. However, the user are is translatable in Russian, Japanese, Arabic, German, Vietnamese, and Polish, on top of English and Italian, meaning that the client area is not an original built by PremiumBorsa.
PREMIUMBORSA REGULATION AND SAFETY OF FUNDS
PremiumBorsa fall into the category of those brokers that has not mentioned any regulatory info anywhere. Even the contact info is useless. The legal documents, mention no residing country, no jurisdiction, nothing.
In more direct terms, PremiumBorsa is UNREGULATED. We are not rushing with this conclusion. As you will see, we have gathered enough proof of this in the rest of the review.
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.
Here is some food for though. The company reserves the right to share personal client info with its affiliates and business partners, of whom we know nothing about:
Next, the company will put the responsibility on the user should a technical event result in losses.
PREMIUMBORSA TRADING SOFTWARE
PremiumBorsa has given its users the MT4, which is questionable. Both the desktop MT4 and web-based version of it go under the name of PremiumSolutions. This creates uncertainty around the ownership of the MT4. What ever the case may be, the firther we go down the review, the more PremiumBorsa morphs into a complete scam.
The user may order trades via a Communication System. Should the broker make a mistake or if there is any other issue, the company will hold no responsibility if the client loses money. As to this system, we assume it’s a phone call; which goes hand in hand with the scammer nature of the broker (read the Scam section of the review for more info)
Furthermore, should the client’s margin level fall under 50%, the broker has the right to start closing down positions:
PREMIUMBORSA DEPOSIT/WITHDRAW METHODS AND FEE
There is no way to confirm payment information, because the payment area was closed to us, as we already mentioned why. Thus all payment details is taken from the website.
The minimum deposit is unknown. User can deposit via Credit/Debit cards, and bank transfers. There is a 2.5%-3% deposit fee that can be applied.
The minimum withdrawal amount is said to be $50, and there is no fee for withdrawing via credit card, as for the other withdrawal methods there are no mention of charges associated with them.
Withdrawal requests will be reviewed in the within the first 30 days of an account being opened. What happens if a user request a withdrawal after 30 days of her account being open is not indicated. A very shady provision.
Any money given to a third party is not premised to be returned in its full amount, in case the the third party client’s money holder becomes insolvent. A well hidden provision, this is. Licensed broker have a special plan to cover a user’s losses in case this happens.
The bonus must be traded in the following manner, should the user wish to withdraw any of it: the bonus amount divided by 4. This is not all that bad.
Here is the proof that there are applicable fees not related to withdrawals. The company also reserves the right to directly tax an account, without the user holding any claims against this.
The following short indemnification clause, basically reveals that the broker is not responsible for any loses that arise from the info provide by the broker:
How does the scam work?
The most common scams are quite simple and straightforward and involve a multi-level scheme that usually goes by the following scenario. Internet users are lured by the numerous ads promising quick and easy fortunes by trading in the Forex world. When they click on such an ad they are redirected to a website tailored to the continuation of these false pledges, which asks them to register with their personal information. This data is then used by the scam brokers who immediately start to work on getting them to make an initial deposit of $200 – $300 by making even greater promises of big profits.
Once the users make their first deposit, the scam brokers get a fat commission on it. Now the senior scammers enter the scene. They are smooth talkers who will not stop at anything to convince traders that they are on their way to become very rich, if only they follow their advice and deposit more money to trade with.
Sooner or later the users will start suspecting something is not right and will want to withdraw their funds. This will not prove very easy, however. The scammer will do everything to delay their requests, by persuading them now is not the right time, asking for additional documents, or referring to specific withdrawal clauses. This is also part of the scam since the con-artists are trying to delay the users from filing for chargeback with their financial institution, and they miss the time frame for such chargeback, traders will lose their money without a chance of getting it back.
What to do if scammed?
If you’re scammed you should immediately file for a chargeback with your credit card provider. Good news is that VISA and MasterCard recently extended the chargeback period to a year and a half in an effort to combat online fraud. If you deposited with bitcoin or bank wire there is not much chance.
If you provided the scammers with any bank account or credit card details, such as security codes or passwords, make sure to cancel the card and talk to your bank. Also, if you are being approached by any “recovery agencies” promising to get your money back for a fee, do not fall for that. This is a piggyback scam, using the vulnerability of recently defrauded people and their hope the fraud may be reversed, and it will not recover your funds. These so-called agents will collect their fee and you will never hear from them again.