Beware! CashExit 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.
CashExit greeted us with in one of the best ways possible, albeit very illusory. Upon arriving in at the Home Page, the first thing you will see are piles of US dollars, that are intimidatingly zoomed into. We have to admit that we felt the kook of CashExit upon viewing this, and so will many traders. This is an ingenious idea that unfortunately serves a shady purpose. What is this purpose and how is it pursued? Read the revie to find out.
The registration process is all about being fast, a sign that CashExit does not take things too seriously. What followed was a huge reveal.
Yes, this is the client dashboard, if you can call it so. As you can see, users can only wait to be contacted by the broker’s managers, which undoubtedly is a scam, similar to the one we have explained in the last two sections of the review.
There is not trading software, to trading conditions revealed, and no payment area.
Take note that CashExist can alter the margin requirement without notice, which can create very problematic situations for users.
The languages are English and Russian.
CASHEXIT REGULATION AND SAFETY OF FUNDS
The website reveals that the company is regulated by the CCRFM, or the Commission for the Control and Regulation of Financial Markets, a very generic name.
The CCRFM is not an official issuer of licenses, and is in fact a private company, basically meaning that it can hand out regulations to whomever it wishes to. Furthermore, the more we dug into the website the more we came to the conclusion that the CCRFM gives away licenses to offshore brokers. Thus we can come to the mutual agreement a license from the CCRFM does not bring any real benefits.
Furthermore, the Client Agreement states that the document is governed by the laws of Belize. There the International Financial Services Commission (IFSC) is the regulator.Needless to say we found no result of a CashExit there. Thus we can conclude that this brokerage is UNREGULATED.
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.
Please take note that the broker can share a user’s personal info with the company’s affiliates and other companies in the same group as the broker. These remain as vague as they get, so be ware. We have not attached the clause because it is way too long.
Third parties onto which the broker has segregated a user’s fund may come into insolvency. In his case the user may not be able to get back the total sum of her money.
CASHEXIT TRADING SOFTWARE
There is no trading platform to speak of, as the snip of the dashboard in the introduction showcases. Needless to say, we discovered certain things that are worth mentioning.
The broker has the right to changed or add things to the Trading Platform without notifying the user. To what extent this applies to commission, the clause does not make clear, but this provision still remains worrying.
The user is also not allowed to save, copy or download the platform, what ever that means…
There are commissions for spreads that the broker will directly debit from a user’s account, which is not at all how these things work. Furthermore, the clause reveals additional charges.
In the case of an insolvency on the broker’s side, the user’s positions may be closed which will lead to loss.
CASHEXIT DEPOSIT/WITHDRAW METHODS AND FEES
Because there is technically no user dashboard, we cannot get any payment information that is actual.
The legal docs reveal that deposits can be made via wire transfer and cards. Other info is left unrevealed.
According to the Customer Agreement, withdrawals are paid in seven days. There are seemingly withdrawal fees as revealed in the same legal doc. There are withdrawal fees; all withdrawals are charged with a 5% levy.
These payment methods, we assume, are also used for depositing. However, at this point we can only guess.
Furthermore, the company charges €50 in case the client has done no trading prior to the submission of a request; in case the client has not provided the company with ID documents; in case the broker refunds a user
In case a deposit goes wrong, and client funds send for depositing are not put into an account,the following investigation will be paid by the user.
What’s more is that the company can make overnight deposits in the client’s name.
The broker will deduct from a user’s account taxes that depend upon the client’s jurisdiction. We see this as another way to steal your money.
Much in the same way, the broker applies the same “applicable law” taxes to the usage of the trading platform.
There is also a monthly maintenance fee which is applied to each user.
The company may change its fee structure at any time without notifying the user. So that means that you can be charged at anytime for whatever reason.
Furthermore, a charge-back will issue a reimbursement to the broker by the user:
The monthly maintenance account fee is of $85, and is activated after 3 months of dormancy.
The inactivity fee structure, not to be confused with the maintenance fee, that is to be found in the Common Charges section of the website.
Bonuses have to be met with a turnover requirement of
There is also the indemnification clauses that are scattered throughout the legal docs, which basically make the broker not liable for any damage it causes the user. Here is probably the most shocking one of all:
All these are proof that CashExit is a scam, and will stop at nothing to steal your funds!
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.