Beware! Northfintechfx 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.
Northfintechfx is an anonymous Forex broker withholding key information about itself. It’s linked with two separate companies, one allegedly registered in St. Vincent and the Grenadines, and the other in Singapore. Both of the jurisdictions are not transparent enough, and dealing with entities registered there might be a risky business. But the most important fact about this website and these companies is that they were officially blacklisted by the Italian financial regulator. You will find out more details in the full Northfintechfx review.
Northfintechfx REGULATION AND SAFETY OF FUNDS
Northfintechfx was officially blacklisted by the Italian financial authority CONSOB on September 7, 2020. The Italian watchdog detected them offering financial services illegally and ordered the black-out of this website. It is an official confirmation that Northfintechfx is a scam and you should avoid it.
The legal status of Northfintechfx is a boggy one. They state in their T&Cs that their services are related to and provided by NorthfintechFX Trading Services Ltd and Citigroup Global Market Singapore Pte. Both of the companies mentioned are more than just obscure. There aren’t any legal references, or anything specific to be found, anywhere.
Northfintechfx is allegedly registered in the St. Vincent and the Grenadines, a prominent offshore zone which is very attractive for shady anonymous Forex broker, because there are no rules and regulations implemented. Your funds are not safe if you make a deposit with Northfintechfx, it is an unlicensed, unauthorized and unregulated entity, which was also recently blacklisted by CONSOB and you should stay away from it! A Forex broker, which holds licenses to operate throughout different jurisdiction, abiding by the local and international law, is going to treat your funds with an utmost care. Complying with the product intervention measures that the European Securities and Markets Authority has agreed, which further CySEC and FCA have implemented, the European Forex brokers are required:
- to limit the leverage to between 1:30 (Forex majors) and 2:1(cryptocurrencies);
- to close out a customer position when the funds fall to 50% of the margin needed;
- to provide negative balance protection on a per account basis, meaning that losses cannot exceed the total funds;
- to restrict or completely obliterate the incentives offered to trade Forex and CFDs;
- to provide a standardised risk warning to the customers.
Failure to do so will result in disciplinary action such as salty fines or license being suspended/revoked.
Northfintechfx TRADING SOFTWARE
Northfintechfx offers to its clients MT4 accounts and all of the Metatrader 4 distributions- Windows, Web, Android and iOS. However, their web trading platform is provided by Zurich Corporation (lsystemstech.com), which is another controversial Forex broker, allegedly based in Singapore and Switzerland. In fact, there is a warning against them, issued by the Swiss regulator FINMA on 13.05.2019, because Zurich Corporation has pointed an address in Switzerland, but isn’t entered in the commercial register.
This is not the end, though, because a third dodgy broker appears in the mix, using the same credentials, called Zurix Corp. We suspect that all of the three- Northfintechfx, Zurich Corporation and ZurixCorp are operated by the same group of scammers, or, at least, there is a close connection between them.
Northfintechfx advertises only crypto currency trading on their Main page, but the standard FX majors are actually available. It should be noted as a red flag, because the true Forex brokers do not mislead their customers so clumsily.
The EUR/USD spread is around 2 pips which is high compared to the rest of the industry, the true Forex brokers offer a difference that is less than 1 pip, very often as low as 0.1.
Despite that 1:1000 is advertised as possible leverage level, the maximum available is 1:500, which can be adjusted. Of course, it is a discrepancy, but would you actually have expectations, when dealing with scammers! Their Dashboard, however, is pretty good, compared to other scam brokers.
Demo trading is available in their Desktop MT4 platform.
Northfintechfx DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is 0.001 Bitcoins. The favorite currency of the scammers, because the deposits in cryptos are irreversible and it’s almost impossible to get a refund.
There are three funding methods available, all of which include cryptopayments– Titan Payment, The Change and Xchangepro. If you choose among the first two you will be redirected to another page where you should make a deposit with Bitcoins. If you opt for Xchangepro, you will get an e-mail containing link, but we do not recommend to click on it!
No minimum withdrawal amount specified, and the only withdrawal method is a wire transfer. No withdrawal fees are specified.
A trading fee of 0.001% of the amount is applicable to each trade executed. Also, there is an overnight fee for positions that are not closed by the end of the trading day, which should be similar to the swap rates, but no further details are given.
There is no dormant account policy and no fees for inactivity are presented.
No bonuses or other trading incentives presented, however they do operate a referral and influencer programs. They claim that through the referral program the partners might earn as much as 10 000 USD per month, and they even show a graph! Stay away from Northfintechfx, it’s not a true Forex broker, but a multi-level marketing scam!
HOW DOES THE SCAM WORK
The number of the scammers, which have presence in the social media platforms, is rising. Facebook, Instagram and Youtube become increasingly popular among them. They will create pages and groups and will advertise free signals, referral programs, Forex expert advisors, automated trading etc. Most of the people will be tempted to believe and give it a try. There is an increasing number of online scam victims, literally the social media is filled with ads promoting Forex and Bitcoin trading, and many of these are scam. You should stay alert and be very careful with ads, people and firms who are approaching you online!
It’s a scam sign if a Forex broker accept only cryptos as funding methods and that should be remembered. They are doing it for a reason, the cryptos are perfectly unregulated, there isn’t a single authority in the world to deal with cryptos, and also the payments are totally anonymous. Once you deposit cryptos with scammers, it’s virtually impossible to get a refund! Stay away from brokers who does not accept the traditional funding methods, there is something fishy going on.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions dealing with trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!
Stay away from Northfintechfx, it is a confirmed scam!