Beware! IMGFX 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.
With all these awards displayed on its interface, IMGFX looks impressive enough to entice potential traders into trading with it. But is it really safe to entrust your money to this broker? We are about to find out.
IMGFX Regulation and safety of funds
First, we find out in the footer of its website that it is owned and operated by IMGFX ltd in St. Vincent and the Grenadines (SVG) which is an offshore zone for forex trade. The Financial Services Authority in this jurisdiction has issued a warning more than a year ago that it does not regulate forex and CFD brokers. Therefore this broker is non-legit, non-licensed and is possibly a scammer. We advise you not to entrust your hard-earned money to it.
Instead, you can look up licensed brokers in the well-established jurisdictions of the EU, the UK, the US and Australia where there is a good protection of traders’ funds and preventive measures set in place to ward off scammers. In our opinion, the best conditions for forex trade are with licensed brokers from the EU and the UK. They must be well-capitalised and invest no less than 730,000 EUR in the form of initial capital and deduct funds towards compensation funds and schemes from which their clients can be reimbursed if the broker declares bankruptcy. For example, if the broker is regulated by FCA in the UK and contributes to the local Financial Services Compensation Scheme, its traders can be repaid up to 85,000 GBP per person in case of bankruptcy. The amount of compensation for traders whose broker is regulated by CySec and contributes to the local Investor Compensation Fund is lower but not negligible – 20,000 EUR per person. In addition to that, brokers must report their transactions on a daily basis and keep low leverage.
In the US and Australia, there are no compensation funds. However, because they must be well capitalised and invest an initial capital of $20 million in the US and 1 million AUD in Australia, brokers from these jurisdictions also have the capacity to protect their clients in case of unfavourable events.
We urge you to do your research using the links we provided above to select a forex broker that is best for your trading needs.
IMGFX Trading software
IMGFX is a forex broker trading in forex, CFDs, cryptocurrencies, metals, stocks and indices. The trading software consists of a web trader and MetaTrader 4. Below is a screenshot of what MetaTrader 4 platform looks like as set by IMGFX. The top horizontal bar contains the buttons for the charting options which are truly amazing as they contain many charts, time frames and colours to choose from. Also, you see the button for the auto trading option. On the left-hand side of the image, you see the menu for the forex currency pairs with their bid/ask price and beneath is the navigator that leads you to the trading accounts, indicators, expert advisors and scripts. In the middle is the display of the chart or charts as their number may vary as per the trader’s needs and the fluctuation in price in a chosen time frame. Here it shows the chart of the EUR/USD currency pair and from the bid/ask price, we can calculate the spread which for this pair is 1.8 pips and is slightly higher than the industry average of 1.5 pips. This spread should be favourable to traders as the cost of transactions won’t be too high and they will manage to make a sustainable profit in the long run.
What worries us, though, in terms of how the parameters of trading are set, is the very high leverage which is 1:500 (last screenshot). High leverage signifies only two things – a big win or a crashing financial loss. Some traders get tempted by such high leverage without realising that around 70% of traders experience financial loss in transactions. Licensed brokers in the EU and the US cannot offer such high leverage due to the fact that in these jurisdictions there is a cap on leverage and in the EU it cannot exceed 1:30 and in the US, 1:50. Low leverage is one of the measures to protect traders’ funds and to prevent them from trading recklessly.
We also want to warn you that in the Terms of Trade document, the broker claims that the brokerage fees may change at any time without notice which may affect the cost of traders’ transactions.
For your benefit, we want to add some more information regarding MT4. In addition to the options that we already mentioned, there is also the code base with customs scripts, the trading signals, the app market, VPS, etc. The technical analysis indicators that include Fibonacci retracement, moving averages, Bollinger Bands, etc., help traders predict the future direction of exchange rates and make a profit. However, what you should remember is that a platform is as good as its broker is reliable. And no matter how great MT4 for IMGFX is, if the leverage is so high it will amplify your funds’ exposure to risk.
IMGFX Deposit/Withdrawal methods and fees
We found out on IMGFX that the trading accounts are 3 (screenshot below) – Classic, Trader and Premium. The minimum initial deposit for the Classic and Trader account is $50 and for the Premium account, it is perhaps a question of negotiations between the trader and the broker. We must say that the amount of the minimum initial deposit is not high. We found some discrepancy in the information regarding the payment methods. On the website, it looks like the choice is between Bitcoin, credit card and bank wire. However, after you open a trading account and attempt to make a deposit, you see that the only payment option is via Bitcoin. If you read carefully the last section in this review, you will see that payments in Bitcoin may not be the best option for you.
The same applies for withdrawals and the minimum withdrawal amount is 0.005 BTC with a fee of 1% on Bitcoin withdrawal
How does scam work?
If scammers make a movie, it will probably be called “Dream on”. They make everything sound credible and build their scam on your dreams of getting an easy and quick profit. People get duped if they decide to deposit money into one of the scammers’ schemes. What you probably do not know is that your hard-earned money goes as commission to the scammers. Next, you get inundated by daily calls. First, the scammers congratulate you for joining their business, next they try to persuade you to invest even more money. After all, the more money you send, the bigger money fall you can expect. This of course is not how things work. By the time you realise that no money is coming your way, it might be too late. All you want now is to get your money back and get out of there but the scammers have other plans for you and they won’t late get away so easily. Now they try to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
If you get scammed, our advice is to act immediately and if you have paid your deposit via credit/debit card you may still have a chance. Visa and MasterCard allow 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.
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.
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.