Finotive.net Review – 5 things you should know about Finotive

Finotive.net Review – 5 things you should know about Finotive

Beware! Finotive is an offshore broker! Your investment may be at risk.

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Looking at Finotive interface, your first impression would be that it is just any other run of the mill forex broker. It sure does have any information you could be searching for. However, we look at some key features on its website to advise you whether it’s safe to trade with it or not.

Finotive Regulation and safety of funds

Checking whether a forex broker is legit and regulated is the first thing any potential trader must do when considering trading with a forex broker. Non-legit brokers cannot provide a guarantee for the safety of your funds and trading with them is a risky endevour.

From the information available on Finotive website, we find out the it is operated by Vatachi Global Partners LTD with an address in St. Vincent and the Grenadines (SVG). This jurisdiction is an offshore zone for forex trade and there is no official regulator for forex brokers. This means that any broker from this jurisidcition, including Finotive, is non-legit. We do not advise you to trade with Finotive for the sake of your hard-earned funds. 

There are many licensed and reliable brokers around the world to trade with and if you use the links we provide you below, you will be spoiled for choice. Brokers from the well-established jurisdictions of the US, Australia, the EU and the UK are strictly regulated and they must jump through various hoops to get their license. First of all, they must be well-capitalised which means that they must deposit huge amounts of money in the form of an initial capital. The EU and the UK have the requirement that brokers must have an initial capital of no less than 730,000 EUR. Although this amount is not as high as the amount for the initial capital in the US which is $20 million and Australia where it is 1 million AUD, it is still enough to prevent scammers from sneaking in. In all these jurisdictions, licensed brokers must keep their clients’ funds segregated with tier-1 bank establishments, provide protection against negative balance and report transactions on a daily basis. These are all measures to guarantee the safety of their clients’ funds.

In addition to that, in the EU and the UK, there are in place compensation funds and schemes which provide reimbursements to clients whose brokers have become insolvent. However, the brokers must participate in those funds and schemes and deduct funds towards them. In the UK, brokers regulated by FCA deduct funds towards the local Financial Services Compensation Scheme from which their clients can be repaid up to 85,000 GBP per client in case of bankruptcy. In the EU, brokers regulated by CySec contribute to the local Investor Compensation Fund from which clients can be reimbursed up to 20,000 EUR. In the US and Australia, there are no compensation funds or schemes but by being well-capitalised brokers can protect their clients in case of unfavourable events.

Finotive Trading software

As you can see from the image below, the trading software Finotive offers to its clients consists of a web trader which is rather simplistic platform that does not offer much to its traders in terms of trading tools and instruments.

On the left side of the screen, you can see the menu for trading instruments which is open to show the forex currency pairs with their bid and ask price. In the middle is the display of the chart of one of the forex currency pairs, EUR/USD, that shows the fluctuation in price in a given time frame. From the bid/ask price for the same pair, we can calculate that the spread is 0.2 pips. Such spread is tight and beneficial for traders as the cost of transactions will be low and they will be able to make a sustainable profit.

The leverage for the same pair is 1:200. Furthermore, on the broker’s website we saw that the leverage can go as high as 1:500. Such high leverage will present risks for the safety of the clients’ funds as it will multiply the financial loss in case of unsuccessful transactions which happens to 70% of the traders. We advise potential traders to refrain from trading with such leverage and let you know that licensed brokers in the EU and the UK have the leverage capped at 1:30 and in the US capped at 1:50 which is another measure to prevent traders from engaging in risky transactions.

 

 

Finotive Deposit/Withdrawal methods and fees

The trading accounts offered to the clients are Micro, Classic, Silver, Gold and Platinum. The minimum initial deposit for the Micro account is $1,000. Such amount is too high compared to what licensed top-rating brokers would ask for, i.e., $1-5.

The payment methods consist only of payments via credit card and bank wire.

As per the company’s policy, a trading account that stays inactive for 3 months will be considered dormant and a monthly fee of 10% will be charged. Please note that charging a percentage fee may result in substantial amount being taken out of the trader’s account. In contrast, legit brokers normally charge a fixed fee not a percentage fee.

 

 

The minimum withdrawal amount for wire transfers is 250 EUR/USD/GBP and for other methods, it is 100 EUR/USD/GBP. 

Please note that the fee for a withdrawal via wire transfer is 50 EUR/USD/GBP. However, if the client wishes to withdraw the minimum withdrawal amount of 250 EUR/USD/GBP, a transaction fee of $50 will be charged. The fee for withdrawal made via credit card is 25 EUR/USD/GBP in addition to a processing fee of 10 USD/ 7 EUR / 5 GBP. For ePayments the fee is 25 EUR/USD/GBP.

The processing time for a withdrawal request may take between 2 and 6 business days. 

You may have noticed in the image with the account types information that for each trading account there is a bonus being offered that varies between 10% and 75% with the VIP account being individual. Bonuses are non-deposited funds which means that they belong to the broker and are subject to certain conditions regarding the withdrawal of the bonus amount. In this case, if a trader accepts one of the bonuses, he/she must execute a minimum trading volume of 30 times the sum of the deposit and bonus amount before being eligible to withdraw the bonus amount. Needless to say, this is not something easily achievable and traders who choose to accept bonuses and are unable to fulfil the conditions can make a big mess with their funds and withdrawal options.

Also, be advised that legit brokers do not offer bonuses and this is how you can differentiate them from the dodgy ones.

How does scam work?

No one wants to be duped by scammers, but it happens all the time because they know how to manipulate people. As they say in one popular song “sweet dreams are made of this” and this is what scammers rely on – creating in people’s mind a sweet dream of being rich! Scams usually start by unsolicited telephone calls or ads on the Internet or social media promising quick and easy profit. It is easy to fall into scammers’ trap and once you make a deposit, you are done for! Scammers won’t let you get away easily even if you realise that you are being scammed. They will try to delay you when you try to withdraw your funds by asking you to provide this document or fill out this form, etc., in order to make you miss the deadline when you can file for a chargeback.

What to do if scammed?

You need to act very quickly. First of all, if you have made a deposit using a credit card, you must immediately file for a chargeback. Fortunately, VISA and MasterCard allow for 540 day period in which you can file for a chargeback. This is the good news. The bad news is that if you have made a deposit using bank wire or Bitcoin, the chances of you getting your funds back are nil!

Another thing you can do is cancel your credit card if the scammers have your CVV code. Check your PC and erase the software that gives scammers access to your personal data.

Be careful, because even doing all that we recommended, your unfortunate experience with scammers may not be over. There are so-called recovery agents. One of those may approach you offering to recover your funds for a fee. Do not trust them and always check the legitimacy of the recovery agent and the agency.

Also, be aware that some “victims” of scam may post comments after the review, saying how they lost money and how a recovery agent helped them retrieve their funds. They will even put the contact info for this so-called recovery agent. Do not trust them either as it is another case of scam!

Rich Snippet Data
Review Date
Reviewed Broker
Finotive
Broker Rating
11stargraygraygraygray

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