Beware! BRS Futures 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.
BRS Futures is a master in disgise! Everything on the company’s website looks legit, even the regulation by FCA. However, in fact, this company is a fraud and out there to dupe you out of your money. Read on to see why.
BRS Futures Regulation and safety of funds
On the compan’s website, we find out that this broker traders in forex and CFDs on commodities, indices and shares. The website is owned by BRS Futures Limited and such company does appear in the FCA register as a regulated company. If everything seems kosher, then why do we have doubts? Because, in the account types information, you will see that this broker offers bonuses. No licensed broker in UK offers bonuses! Obviously, BRS Futures is miming a legitimate company and they are trying to scam you! Don’t trust this broker and don’t entrust your hear-earned money to them!
You need to be extra vigilant when you are selecting a forex broker to trade with because, as you can see, there are very cunning scammers who know how to twist and manipulate facts to make them look legit. Always verify facts and check twice before you make an investment. Normally, the well-established jurisdictions, such as the UK and the EU, offer the best conditions for traders. Licensed brokers from these 2 jurisdictions must have a registered initial capital of no less than 730,000 EUR and they must contribute to a local compensation fund from which traders can be compensated in case the broker goes bankrupt. Brokers regulated by CySEC invest in the local Investor Compensation Fund from which traders can be compensated up to 20,000 EUR per person. The licensed brokers in UK contribute to the local Financial Services Compensation Scheme that guarantees up to 85,000 GBP compensation per trader. These are excellent conditions that a trader can benefit from.
Other jurisdictions also provide a guarantee that scammers won’t sneak in by asking brokers to register a huge amount of an initial capital. US brokers must maintain a net capital of at least $20 million to make sure that they are well-capitalised to protect clients from unfavorable events, such as bankruptcy and others. In Australia, the initial capital is also quite high – 1 million AUD, which serves the same purpose until the protection of funds regulation comes in force in March next year.
BRS Futures Trading software
Another sign that we are dealing with scammers is that although it pretends to offer a demo account, the link to it is broken and nothing happens when you click on it.
As per the information on this broker’s website, the trading platform is the MetaTrader 4 webtrader. There is no access to it, unless you deposit funds, so we are not able to tell you what it does look like. However, if we look at the leverage which is an important feature when it comes to forex trade, we see 2 totally different pictures. In the screenshot which shows the different account types offered by BRS Futures, you see the leverage to be 1:10, 1:20, 1:30 and 1:40. For EU and UK, there is leverage cap and it cannot exceed 1:30. Furthermore, as you navigate the site you come to the following information (screenshot below):
Oh-ho! What happened? How come the leverage from normal values suddenly became 1:400? Will a self-respecting broker have such discrepancy in information? Or is it purposeful? This is another proof that this broker is a scammer. High leverage, such as 1:400, signifies only 2 things – big win or big loss. If you keep in mind that around 70% of the traders lose in transactions, what do you think is going to happen if you trade using such high leverage? You will lose your money big time!
Another sign that this broker is a scammer is the broken link for opening a demo account. The MetaTrader 4 offers such an option which is very beneficial to new traders. It gives them the opportunity to practice and gain knowledge and experience before opening a real live account. Other advantages of the MetaTrader 4 is that it offers auto trading option, an app market, code base with customs scripts, VPS and trading signals for a subscription fee. The charting options are the best and they are one of the reason why the MT4 is still very popular among forex brokers despite the ‘old’ age of 15 years. The charting package contains different chart types to choose from along with a big array of technical analysis indicators that help traders predict the future directions of exchange rates and make profit. Among those, we want to mention the Fibonacci retracement, Bollinger Bands and moving averages which seem to be the most popular ones.
Having an excellent trading platform is very important but more important is that is offered by a real licensed broker, not a scammer!
BRS Futures Deposit/Withdrawal methods and fees
BRS Futures offers 4 different account types (screenshot below) – Basic, silver, Gold and VIP. The minimum initial deposit for the Basic account is $250. For the other accounts, the initial deposits are $10,000, $ 25,000 and $50,000 respectively. We don’t know if you deem the minimum initial deposit for the Basic account to be too high or too low, but let us tell you that licensed brokers usually ask for a lot less.
According to the company’s website, to make a deposit, clients have a choice between a wire transfer, VISA/MasterCard and Bitcoin. However, when we opened an account and clicked on the deposit button, the only payment option that opened was via credit card. The withdrawal methods are the same as the deposit ones. Deposit and withdrawal processing request time depends on the payment method. It can vary from instant for Bitcoin, almost instant for credit card payment and may take 2-15 business days for wire transfer.
We found out another discrepancy in the information on the company’s website. First, it said that accounts that stay inactive for 3 months become dormant and are charged 10% fee each month. Then we found another clause, saying that accounts that haven’t been traded with for 1 month shall be deemed dormant and will be charged a maintenance fee of 99.99 EUR/USD/GBP. In addition to that it says that the fee is subject to change from time to time. We don’t know whether to laugh or to shake our head in disbelief at all the contradiction information this broker has put on its website.
Another unbelievable discrepancy in the information provided on the website is about withdrawal fees. In one place, the broker states that there are no withdrawal fees and in the other, it says that a transfer and processing fee will be charged according to the account type and it will be between 30 EUR/USD/GBP minimum or 3,500 EUR/USD/GBP maximum fee. Again, the fee I s subject to change from time to time.
That these fees are not beneficial to the clients is the least we can say in this occasion. Potential clients who have money to throw away may consider trading with this broker but if you do not fall into that category, then stay well away from it!
As we mentioned already, this broker offers bonuses to its clients. We already clarified that licensed brokers do not offer bonuses or free gifts and that the fact that this broker offer bonuses, again, is a sign for a scam. Furthermore, the bonuses which start from 50% for the Basic account and reached to 150% for the VIP account, come with heavy to fulfil requirements that can mess up the trader’s funds. Although this broker mentions that bonuses and any profit derived of it are not available for a withdrawal until a minimum trading volume is fulfilled. However, in the Terms and Conditions document, we couldn’t find what exactly this minimum trading volume is.
We advise any potential traders to be cautious of brokers offering bonuses or any free gift and better yet, not to accept any unless you know what conditions it entails.
How does scam work?
A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.
What to do if scammed?
If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.