Beware! PolarisFXtrade 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.
PolarisFXtrade offers very little to work with. In order to write this review we had to scrape for information. The shallow trading and payment details doesn’t even begin to explain how poor in quality this firm is. Not only are there a handful of subpages, but the entire thing feels broken, forgotten, or just unfinished. The review exposes PolarisFXtrade for what it really is, and gives some helpful info at the end. So make sure you read it all.
With reluctance we approached the sign up process. The procedure was extremely easy, and we did not even have to check our email for a confirmation mail. The next step was to open the user dashboard, which we did, and what we found there was not unexpected. The client area spoke to us on many levels, and it confirmed our suspicions.
One way it did that, was by revealing, in its own way, that there are no applicable trading conditions. The reason for this will be shortly explained. What readers have to acknowledge is that spreads and leverages are out of question, and so are any trading instruments.
The company has translated its website in over 25 languages, undoubtedly using google translate. We assume so, because the drop down menu is reminiscent of Google’s translate feature, as well as there are languages whose inclusion in a forex broker makes no sense. For instance, why would you translate you FX broker site in Latin, or Hebrew?
POLARISFXTRADE REGULATION AND SAFETY OF FUNDS
It should not surprise anyone that PolarisFXtrade does not include any regulatory information anywhere on its website. We had it since the beginning that this firm is up to something that is above the legal framework.
Without the inclsuion of these crucial details, we are left with no other choice but to deem PolarisFXtrade an UNLICENSED entity, as all the following evidence (as in the review) suggests. This broker will put all your investments at risk, and will most surely not allow you to withdraw any funds.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
Another thing that must be dully noted, and as part of PolarisFXtrade illicit nature, are the missing documents. The registration process asks of us to agree to the Terms and Conditions, but provides a broken link to these legal provisions. Without a legal structure, there is nothing keeping PolarisFXtrade away from abusing its users on both a financial and persona info level. At this state, PolarisFXtrade is an illegal entity.
POLARISFXTRADE TRADING SOFTWARE
Everything else except for what we are about to say would have been quite the surprise. And for this reason, it was expected that PolarisFXtrade has no trace of a trading platform.
Some of you might get a tad bit confused, because it seems that the main page in the user area offers not one but three alleged trading terminals.
If you have been in the FX game for as long as we have, these same chart packages are continuously popping up with most scammer brokers. First of all, these are not trading softwares – you cannot buy nor can you sell any assets, you can only speculate, and in this case it seems that users will be speculating the USD/JPY as provided by the well known FXCM. Anyway, and second, these come from third party companies, and literally anyone can include them on their website as a widget.
So essentially when taking all this in consideration, PolarisFXtrade does not have a trading software. As has become the usual reaction to these types of situations, we will have to ask what type of a broker are you if you are not offering a trading software?
POLARISFXTRADE DEPOSIT/WITHDRAW MTHODS AND FEES
The minimum deposit according to the user payment area is $250, with payment gateways Skrill, WesternUnion, MoneyGram and Bitcoin. Please note that BTC deposits cannot be traced, and as such are a high payment risk option.
As per the withdrawal section, users can withdraw their funds by all the deposit methods plus wire transfer. All requests are processed immediately. However, there is no info on the minimum withdrawal amount or any fees attached to withdrawing. The fees predicament is worth mentioning. Many, if not all, unregulated brokerage companies will probably include some undisclosed fee at some point or another. This will come as a surprise to most users. Another reason for users to keep away from PolarisFXtrade.
As we revealed there are no legal documents, and as a result no scammer provisions to reference. Yet, another way you can look at it is that without clauses, PolarisFXtrade is basically allowed to do anything. So, in a way, the fact of the missing, might be worse that having fraudulent clauses. Wherever you tip this to, remember that PolarisFXtrade is unregulated and a risk to all investments! This is all that matters in the end.
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.