Beware! QuantPipFX 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.
QuantPipFX has a very structured website, that is easy to get by, and is pleasure to browse through. It is too bad that our positive impressions do not cross over to the other elements of this broker. Read on to see what we mean by this.
To register one must go through a sign up process exactly like the one at FourtyFinancialsG and Golden Hrwk, both unregulated and scammer brokers. The registration process was quick and easy, after which we had to wait for some sort of approval. After some time, we gave up waiting. Thirty minutes passed, then an hour and still no confirmation mail.
This lead us to apply our usual conclusion to previous similar situations. I.e we can assume that the broker contacts users by means of a phone, where a representative of QuantPipFX will undoubtedly call you to secure your first deposit with them. Once you do that, be warned, that you are in their control. The rest of this scheme is discussed below, in the final section of the review.
For now, readers should be aware that we had no way of registering, and so will remain at the mercy of the website. The leverage is capped at 1:1000, a very dangerous value, we must say. It can bring profit as fast as it can ruin you. Trading instruments are forex pairs, indices, commodities, and cryptocurrencies.
When we read the spread structure on the website, we knew what was happening. QuantPipFX has made things in such a way, that users who wish to profit from a spread under 1.5 pips, must apply for the Gold ECN account, the acquirement of which is blocked behind a baffling $10 000 minimum deposit requirement.
As you can clearly see, the Basic account has a floating spread of 3.5 pips. This cost of trade is completely useless.
The language that the website comes in is exclusively English.
QUANTPIPFX REGULATION AND SAFETY OF FUNDS
We will be quick, and go straight to the point: there is no indication anywhere that QuantPipFX is regulated in an acceptable environment. The closes thing we have to work with is an alleged address in the UK.
We highly doubt that QuantPipFX is regulated by the UK’s own FCA, one of the best FX licencors in the industry. We did check the FCA register of licensed brokers and found no trace of QuantPipFX; and anyway, it does not say that the broker is an FCA licensee.
Thus, QuantPipFX is UNREGULATED, and probably a scam. All invested capital is at risk!
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.
Another very suspicious detail that we absolutely have to talk about is the lack of any legal documents. How can a user expect to be safe giving a company her investments if there is no binding legal document that secures her safety and that of her funds? As such, the missing legal provisions are a clear example of why QuantPipFX is illegitimate.
QUANTPIPFX TRADING SOFTWARE
Without being able to open a trading account we cannot vouch for a trading platform. However, the website gave us hope, because we can confirm the presence of the MT4.
The MT4 is the tip of the industry, the epitome of the trading experience – challenging but rewarding in the long run. The MT4 achieves its golden status by forging an experience that cannot be met by any other terminal out there. We can safely say that without this trading office the industry would be a totally different place.
However, the MT4 cannot save QuantPipFX from its scammer-like status. The presence of the MT4 is not enough.
QUANTPIPFX DEPOSIT/WITHDRAW METHODS AND FEES
Without a registration, we are left with no choice but to rely on the payment details that the brokers has written about on its website. Be advised, that nothing stops unlicensed brokers from lying on their website.
The minimum deposit is said to be $100, but as we mentioned, this amount can only give you a spread of 3.5 pips. So, to be able to profit in any way, you have to deposit a minimum of $10 000. As for the payment methods, the only source is a slide bar at the bottom of each page, where e-wallets such as Skrill, Neteller, fasapay, and exopayz keep circulating. Yet, we do not trust these to be the actual payment methods. Most illicit brokerages utilise either crypto wallets or wire transfers, sometimes credit and debit cards, and not very often e-payment methods.
We can rule out withdrawals, for there is absolutely nothing written on them. We couldn’t even finf the word “withdraw” anywhere on the website. Pretty self explanatory stuff.
As we have revealed, there were no legal documents, thus no scammer clauses to include. When this occurs, we always ask ourselves what is worse? Missing legal documentations or a whole plethora of scammer provisions. On the one side, scammer clauses will ruin a traders experience completely by introducing ludicrous fees and prohibitions. While on the other side, the sheer lack of legal clauses can be interpreted as even worse that scammer provisions, because now the broker can do as it please, without referring anyone to the legal documents. Much can be said on this; for now just remember that QuantPipFX is unregulated and a scam. All deposited funds will be lost!
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.