Beware! GrahamPrime 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.
GrahamPrime is one of those Forex brokers that makes it challenging for the traders to understand what’s going on there. They pretend to offer some platform seemingly developed by themselves called GrahamPrime, but upon registration, you see that they rely on Metatrader. The modification they deliver to the traders is inactive though, meaning that you can’t actually trade with them. There are other disturbing facts we were able to unearth, and we are going to share with you what we know about in the full GrahamPrime review.
GrahamPrime REGULATION AND SAFETY OF FUNDS
GrahamPrime is an offshore Forex broker that’s headquartered in St. Vincent and the Grenadines. The Caribbean island is one of those jurisdictions that inadequately regulate its financial sector. SVGFSA- the local financial authority does not even license or regulate the Forex brokers based there, which means that the customer protections are lacking. Not surprisingly, SVG is bustling with scammers and dodgy entities aiming to rip off the traders and investors!
Your funds are not safe if you make a deposit with GrahamPrime because it’s an unlicensed, unauthorised and unregulated offshore Forex broker, that’s quite fishy notwithstanding the seemingly good trading conditions that they offer.
Regulation means safety, that’s why you should always choose regulated Forex brokers, such as the EU (mostly CySEC) or the British (FCA) ones. Europe is one of the most secured places for the funds of the traders because there are loads of stringent rules and regulations that apply if a broker wants to obtain a license. The list includes minimum capital requirements of 730 000 EUR; clients’ account segregation; personnel qualification standards and daily trading report that the brokers have to provide. But what’s most important for the traders is that there are deposit insurance funds the brokers are part of, which guarantee the safety of the clients’ funds. If you trade with CySEC brokers, you can claim up to 20 000 EUR in compensation, while the clients of FCA brokers are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate similar insurance funds, which are considered to be the last resort for the traders, in case a Forex broker fails to meet its financial obligations.
GrahamPrime TRADING SOFTWARE
Here comes the enigma! GrahamPrime claims to offer a platform that’s supposedly built by themselves, but it’s far away from the truth. Instead, they use Metatrader, but it turned out that their modification is dysfunctional! It’s obviously not a problem for them though as they carry on asking for a deposit from its prospective clients! Warning! It’s a red flag we need to note here!
The best choice for the traders are either MetaTrader4 or MetaTrader5 brokers to trade with because MT is undoubtedly the leading retail Forex platform for a reason. It features sophisticated tools such as Expert Advisors, Automated trading, Complex indicators and even a marketplace where the traders can buy or use for free third-party-developed trading solutions, as well.
GrahamPrime claims to give spreads as low as 0.2 pips, but it’s just a lie! The spread is the price that the trader has to pay to open a position. The lower spreads make the conditions better, the trading affordable, and the profit potential good. The best choice for the brokers is a low-spreads regulated broker, and the word regulated should be remembered!
Leverage– the other puzzling story here! On their website, GrahamPrime claims to offer levels as high as 1:400. Still, upon registration, you realise that you can switch to 1:1000, which is a ratio that’s going to annihilate your account much quicker than you’ve ever imagined. This piece of conflicting information has to be marked as a red flag!
The leverage is the other fundamental component, and it actually makes trading possible. It allows the clients to trade on margin, meaning they have to provide only a fraction of the sum intended to place on the market. The leverage multiplies the trading position and increase the profit potential dramatically, but comes with proportionally increasing risks. If misused the leverage might cause lightning-quick losses instead of profits! EU, UK and Australia (coming in effect in spring 2021) capped the leverage at 1:30 as a customer protection measure, disallowing the brokers to offer higher ratios to the traders. USA and Canada agreed on 1:50 as the maximum possible level.
GrahamPrime DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit with GrahamPrime is €500, and it’s more than 5 times higher than the standards of the regulated Forex brokers, which will ask for $100 on average.
The next warning sign comes with the funding methods available. The traders are limited to some unpopular e-wallets that we can’t guarantee to be safe and you can see which these are on the bottom of this section. We urge that the traders should use only standard funding methods to deposit/withdraw such as Debit/Credit cards, Wire Transfers, Skrill or Neteller. Unpopular payment systems should be avoided because a chargeback might be impossible, not dismissing the security issues, as well! Take care of your money.
The minimum withdrawal for Credit/Debit cards is $100, but $250 for Wire Transfers. The fees that apply are as follows- $25 plus $10 processing fee for cards and $50 for Wire Transfers. It’s expensive to trade with this broker because most of the legit brokers don’t limit the traders as to the amount of money they can withdraw and do not charge the transfers. The withdrawal request will be processed within 4-7 days, which is a lifetime if compared to the regulated brokers’ standards- 48 hours on average.
An account becomes dormant after 6 months of inactivity and will be subject to a monthly deduction of 10%, which is yet another clause that shows what’s the business model of GrahamPrime. The fees they charge are going to eat up your balance, bringing them profits, but it’s even worse because there are bonuses available!
A welcome bonus starting from 25% apply on the first deposit made. It actually worsens the conditions making it impossible for the trader to withdraw unless the minimum trading volume requirements are reached. The traders should execute a volume of 25 times the bonus plus the deposit to become eligible for withdrawal. It’s yet another scam clause to find, and we have to make it clear for the traders- the bonuses are not free money, but a leverage tool that further increases the risks! The trading incentives are banned in the EU and UK because this practice is considered harmful for the traders because of the associated risks.
But we have to repeat it once again- GrahamPrime doesn’t have a functional platform, so the information about withdrawals and bonuses is actually inconsistent. You are going to lose your money once you make a deposit with them!
HOW DOES THE SCAM WORK
If you plan to trade, you must learn how to detect the scam brokers as soon as you see them. While at times, it might not be as easy, there are certain things you’d better know. Many of the scam schemes are based offshore to start with. Jurisdictions such as the Marshall Islands, the Commonwealth of Dominica or St. Vincent and the Grenadines fail to adequately regulate their financial sectors and the three mentioned do not even issue Forex broker licenses. It makes it easy for scammers to quickly incorporate companies there and begin to unlawfully sell Forex products and services on regulated markets such as the Europen, American or Australian ones. Lack of regulation equals lack of customer protection and safety, so even if the broker is not ill-intentioned, the traders remain vulnerable. That’s why you should always avoid offshore brokers, regardless of the promises that they make.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and anyone can fall into the trap. Scammers are always 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 necessary 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 related to trading and investing. Seek help actively!
It’s very important not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!