Beware! Fx247option 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.
If you are looking for a scammer par excellence, look no further! All the signs are on Fx247option website – the lack of Terms and Conditions document, the button for ‘I accept the Terms and Conditions’ without an actual link, no information about trading accounts, etc. Read the reasons why you shouldn’t trade with this broker.
Fx247option Regulation and safety of funds
As per the scant information available on its website, we understand that this broker is supposedly operating from the USA. The US forex brokers are regulated by the National Futures Association (NFA) or the Commodity Futures Trading Commission (CFTC). We checked the registers of both agencies and weren’t surprised that the name of this company did not appear in any of them.
The US forex market is one of the most heavily regulated ones and the brokers must be well-capitalised and deposit an initial capital of no less than $20 million, one of the highest in the world. Being well-capitalised provides measures to protect the clients’ funds in case of unfavourable events. In addition to that, forex brokers cannot exceed leverage higher than 1:50 for the major forex currencies and they also have to report on a daily basis their transactions for the sake of providing transparency.
If you are looking for a reliable forex broker to trade with, why not research also the trading conditions in the EU and the UK where there are also regulations to provide the safety of clients’ funds and to keep scammers out. For example, the forex brokers in both jurisdictions must have an initial capital of no less than 730,000 EUR which among other things serves as a barrier against scammers. Similarly to the forex brokers in the US, they must report their transactions on a daily basis to avoid shady deals, keep their clients’ funds segregated with tier-1 bank establishments, provide protection against negative balance and keep limit on leverage which cannot exceed 1:30.
In addition to that, licensed forex brokers in the EU and the UK must participate in a compensation fund or scheme from which, in case of bankruptcy, clients can be compensated. If the broker is regulated by FCA in the UK and deducts funds towards the local Financial Services Compensation Scheme, the clients of the bankrupted broker can be repaid up to 85,000 GBP per client. Similarly, in the EU, forex brokers regulated by CySec that participate in the local Investor Compensation Fund can provide up to 20,000 EUR in the form of reimbursement per client in case of insolvency.
Fx247option Trading software
Fx247option is a forex broker trading in forex, indices, commodities, metals, oil, gas and stocks. Opening a live account with this shady broker was not an option as we did not want to provide personal or financial information and depositing money with it was, of course, out of the question. The trading software which was partly covered by the make a deposit box appeared to be a web trader with a third-party chart developed by TradingView. This is one of the cheapest and ineffective trading platforms that fits well the image of this scammer.
If you are looking for a trading platform that can enhance your trading experience, we suggest that you find a licensed broker that offers either MetaTrader 4 or MetaTrader 5. These are top-notch platforms and preferred by 80% of the forex brokers thanks to the many advantages they offer. We can mention here that both platforms are equipped with many trading tools and instruments that you may find useful for your transactions, such as an auto trading option, trading signals which can be obtained for a subscription fee, code base with customs scripts, an app market, VPS, a financial calendar, etc. In addition to that, these platforms offer a vast number of charting options that contain different charts, time frames, colours, and even the option of customised templates. We cannot omit to mention the array of technical analysis indicators, such as moving averages, Bollinger Bands, Fibonacci retracement, etc., that help traders predict the future direction of exchange rates and make a profit.
Fx247option Deposit/Withdrawal methods and fees
Fx247option does not provide information about what type of trading accounts are available to the traders nor what the minimum initial deposit is. On the company’s website, you can see as payment methods the options of paying via credit card or bank transfer. However, when you click on the deposit button, you will see that the only payment method is via Bitcoin.
Again, there is no information about the minimum withdrawal amount. Withdrawal methods include PayPal, Bitcoin and bank transfer.
What are the deposit and withdrawal fees is also unknown.
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.