Beware! Simplefintech 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.
Simplefintech is a great looking broker, with a very smooth feel to it. The website is accompanied by fluid controls, yet there is much to be said about the trading conditions and the other crucial broker elements. This review will cover these. Next, we will focus on the payment methods, which are undoubtedly one of the key things in all brokers, and it is there, as well as with the trading conditions, that you either make it or break it. If these two things are broken, then you have a shady broker at best. Please read the review to get all the needed info about Simplefintech.
Signing up was a an easy process, which led us to a simple user dashboard, that did not impress. It usual for brokers to have their own unique spin on the user dashboard expensive. and those that do achieve it are hailed for it. Those, like Simplefintech, who are unable to do so, are overlooked, and at times criticized for being too simple, and it our case shady and suspicious.
Once we created a live account, a process which took us no time at all, we encountered some issues with the seemingly proprietary trading terminal. Anyway, there we saw that the EUR/USD spread was 2 pips, which is a vlaue way to high to be profitable to any user. The leverage was capped at 1:200. User will be able to trade only with forex pairs.
The website is in English only.
SIMPLEFINTECH REGULATION AND SAFETY OF FUNDS
The footer of the site holds all the necessary information for us to get the picture. There it is clearly stated that it is in Saint Vincent and the Grenadines that this company resides from. This nation is by far the most popular home to thousands of fake brokerage firms. and even if there have been rumor circling around that there will be a reformation of the regulations there, for now the country does not issue licences to forex brokers. So Simplefintech is not regulated in SVG.
Furthermore, the website’s usage is not to be applicable to any local law that forbids its usage. This is a classic way that many unregulated forex brokerages try to trcik users into thinking that the firm is regulated.
So we must end it with the fact that Simplefintech is NOT LICENSED by anyone, and is thus a risk to all investments.
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.
As is standardized with illicit brokers, this one also will share your personal information with unknown affiliates.
In connection to this, there is a peculiar clause that indicates that the firm may use a user’s “communications” in anyway it sees fit.
Note that the legal documents by Simplefintech are short, and only the Terms and Conditions one can be seen as slightly above average in length.
SIMPLEFINTECH TRADING SOFTWARE
Interestingly, the web version of the platform did not give us any servers to choose from. When we downloaded the dashboard version of the alleged broker owned platform, we were surprised to see that this terminal is no other than the MT4. Just as a side note, the webtrader does not look at all like the MT4.
The MT4 is a good sign, always. This terminal can do all the things that all the other trading platforms can and cannot do combined. This is by far the most optimal solution for your trading needs, and you will never look at the markets the way you did before you chose the MT4.
SIMPLEFINTECH DEPOSIT/WITHDRAW METHODS AND FEES
As per the deposit section in the client area, the minimum funding requirement is $1 and is achieved only through wire transfer.
According to the odd Deposit and Withdrawal Policy, the processing times, on average, for withdrawals is 228 minutes. There is no indication on withdrawal fees. However, please note that the Terms and Conditions do mention on many occasions the presence of taxes and fees that are connected to the usage of the website and its services. However in typical offshore brokerage style, these fees have not been disclosed.
Dormant accounts are charged with a fee of $25. An account is considered dormant when there have been no active trades for the last 12 months.
We seem to have found a clause that, we think, supposes that there is no negative balance protection; the company may take money from a user’s account if he or she ows it. Furthermore, the broker may impose limits on accounts.
Simplefintech does not allow for charge-back, which are the only way to get your money back in case something happens. A user must reimburse the broker if she proceeds with a charge-back.
Furthermore, a charge-back can lead to the broker taking all your funds and closing down your account!
The broker has the right to change the contents of the website, basically to rewrite the rules, without notifying the customer.
The broker will not be held accountable for any financial losses the client experiences, as seen in the indemnification clause.
All disputes will be void seven days after their initial incidence.
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.