Beware! Colibri FX 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.
Colibri FX is a forex broker trading in forex, indices, stocks, commodities and futures. The company’s website tries to project an image of legitimacy and openness. Whether it is so or not, we are about to find out.
Colibri FX Regulation and Safety of funds
Colibri FX is operated by KRISHIL INVESTMENTS LIMITED, a company registered in UK with the Companies House. However, neither KRISHIL INVESTMENTS LIMITED, nor Colibri FX is regulated by FCA. This is alarming and it also signifies that this broker is not reliable to trade with. A company that is not regulated by one of the regulatory authorities around the world, cannot provide a guarantee for the client’s safety of funds and we always advise our readers to avoid such broker as unreliable and possibly scammers.
Potential traders should always choose a forex broker that is registered and regulated because only this way they will have a peace of mind that their funds will be safe even if the broker goes belly up. We advise our readers to research and choose from licensed brokers in the well-established jurisdictions where there are a lot of preventive measures to keep scammers out. For example, in US licensed brokers must have an initial fund of $20 million which combined with the low leverage of 1:50 for major currencies and the daily reporting on transactions is a way of preventing scammers from sneaking in and is also an excellent way of guaranteeing that traders will not engage in risky transactions. Similarly, in Europe, brokers regulated by CySEC and FCA must provide an initial capital of 730,000 EUR to be able to operate and also, they must contribute to a compensation fund. If a broker regulated by CySEC declares bankruptcy, then its clients will be compensated by 20,000 EUR per person and if it is regulated by FCA, then the clients will be compensated up to 85,000 GBP per person.
Colibri FX Trading software
The trading software offered by Colibri FX is a webtrader. Below is a screenshot of the webtrader. What you see on the left is the currency pairs with their bid/ask price. In the middle of the screen you see displayed the chart of one of the major currency pairs, EUR/USD and the price fluctuation in a given timeframe. The spread for this currency pair is 0.6 pips which is good. The leverage for the Standart account as it is shown on the account types information is 1:400. However, when you click on the currency pair EUR/USD, shows the leverage to be 1:200 and this is too high. You might be aware that high leverage can signify big win or big loss and given the fact that around 70% of traders lose in transaction, the probability of the latter happening is definitely higher. Traders, especially newbies, should be aware that high leverage does not always mean good and should avoid brokers using such high leverage.
For your information, licensed brokers in EU cannot offer leverage higher than 1:30 and we already mentioned that licensed brokers in US cannot offer leverage higher than 1:50. To avoid bitter disappointment of losing your funds, we always advise our readers to select licensed forex brokers that offer low leverage.
When talking about the web trader, you have probably noticed that this is rather a very basic trading platform. In contrast, the MetaTrader 4 and MetaTrader 5 have a lot more to offer to its traders. Both platform are considered the best among forex brokers and it is no wonder that that around 80% of the traders are using them. Both platforms come with many excellent trading tools and instruments, such as an auto trading option, a financial calendar, an app market, trading signals for a subscription fee, VPS and code base with customs scripts. The charting options of these platforms are out of this world! Among others, the trader has a choice of different chart types in terms of time frame, colours, templates, etc. The technical analysis indicators, such as Bollinger Bands, moving averages, Fibonacci retracement, etc., help traders predict the future direction of exchange and make profit.
Of course, an excellent platform on its own is not enough but when offered by a licensed forex broker, it is a basis for making informed decisions when trading and perhaps making profit as well.
Colibri FX Deposit/Withdrawal methods and fees
There are 3 different account types offered by Colibri FX (screenshot below) – Standard, Silver and Gold. The minimum initial deposit for the Standard account is $500. For the other 2 accounts, it is $10,000 and 25,000 respectively.
Deposit and withdrawal options include the same payment methods – via VISA/MasterCard, bank transfer and Bitcoin. Deposit processing time for all methods, except the bank transfer, is instant. Bank transfer may take from 2 to 5 working days. Withdrawal processing time, however, will take between 1 and 3 business days. What we found interesting and not to client’s advantage are the fees associated with withdrawals which are between 1.2% and 2.5% which we found to be rather high.
Although in Terms and Conditions there is mention that from time to time the company may offer bonuses and incentive to its clients, we did not find any clauses explaining the bonus policy. We want to warn our readers to be wary of any broker offering bonuses as they may come with difficult to fulfil requirements that may affect the client’s withdrawal or termination of contract options.
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or the social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.
ColibriFX is a scam broker,
I transfer to his trading platform 100USD (2020-11-10)
after one day of ”Playing” I get already 116USD and I wanted to see how quick they give back the money, and then started 🙂
10-15 calls that, please no, add more money and you will be rich guy 🙂
I told no, show me how you return money and then we can talk further…
and today is 2020-12-02 and still nothing, no more calls and no money 🙂
Peouple with who I was sopken was:
Natalia Kerimova & David Trofimov (fake names, for sure)
Dont be so stupid, how I was…and have a good day