Beware! Broker XP 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.
Broker XP does not convey anything special or worthy. It is an average looking broker, with a very minimal style, and a website that does not help its case.
The process of registering was very easy and simple, which is not a good sign. Usually brokers have complicated and long process of signing up. After that, we were required to deposit to officially finish the registration process. This is another instance where Broker XP is proving to be a shady firm.
However, the user dashboard look pretty good, and there are all the necessary sub pages. However, the trading platform had a major issue about it, and as a result we will not be giving any trading terms. The reason for this will be discussed bellow.
The website’s language cannot be changed, and is exclusively in English.
BROKER XP REGULATION AND SAFETY OF FUNDS
The Terms and Conditions claim that the legal docs function within the laws of the Marshall Islands. There is no other talk of a regulation to be found anywhere on the website or in the legal documents.
So, the Marshall Islands…This location, along side Saint Vincent and the Grenadines, is the most common local for scammer brokers to relocate. The reason for this is that there is no financial regulator present there. Nevertheless, the sheer number of illicit brokers there proves the point that it is extremely easy to incorporate any type of companion there, including fraudulent brokerage firms.
The main point here is that Broker XP is completely UNLICENSED, and therefore a risk to all invested capital.
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.
BROKER XP TRADING SOFTWARE
The supposed trading software is the MT4, yet when we clicked on the download button, we were given an .exe file under the name of aviantmarketing4setup.exe, Obviously this name has nothing to do with Broker XP.
There is no other platform to be used here, and so we have to conclude that Broker XP does not have its own trading software. What is a broker without its own trading terminal? A scam most likely.
Too bad though, that the MT4 is not available. The presence of this trading software is always a positive sign, even if the broker at hand is completely unregulated.
BROKER XP DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is €1000, a sum for times the average deposit! Such a deposit requirement always spells trouble.
Users can deposit via Credit and Debit cards, and rave by flutterwave. This is what the payment gateway area in the user dashboard revealed.
Deposits are charges a so called “credit” of 35% to a maximum of $1500.
Withdrawals are processed in 5 days tops according to the withdrawal policy, however the Terms and Conditions claim this time to be 14 days, and at another point in claims to repay users in 3 days. The Withdrawal Policy reveals that there are handling and processing fees on withdrawals. What these fees are has, of course, not been revealed. The dormant account fee of 10% each months comes into effect after 6 months of inactivity.
The withdrawal section reveals that a user can withdraw via wire transfer or “other” methods which have not been disclosed.
The Non-Deposited Funds clause makes a return, and is here to tell you that you cannot withdrawal your profits at all! Furthermore, bonuses are consider Non-Deposited Funds, and so cannot be withdrawn.
The classic scammer bonus is here, and as always has a trading volume requirement attached to it. Here is the structure:
Furthermore, the broker does snot allow for chargebacks! The consequences of filing for one have not been revealed, yet we assume that the broker will either close your account or/and forfeit all your money.
The broker can change the Terms and Conditions at any time without telling the user, meaning that is can add or remove what ever clauses it wishes, and apply them immediately. The indemnification clause is here to absolve the broker from all liability. In essence this clause keeps the broker away from responsibility when it causes a user to experience financial loss.
All these provisions are proof of just how much of a scam Broker XP is. If we have to conclude, Broker XP does snot allow you to withdraw your profits, which fits perfectly with the fact that there is no trading platform. There is no need to continue listing all the other major issues. What you need to know is that Broker XP is not worthy of you deposits, because it will not return your funds!
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.