Beware! ClmForex 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.
ClmForex takes the trophy for one of the most average looking brokers we have ever come across. This would not have been an issue if it were legitimate, but ClmForex definitely hides something that it wishes no one to know. Honestly, we have been doing this for so long that we can guess what type of a broker we are dealing with just by the URL of the firm. Add to that the lackluster website, the shady information, and all the empty promises, and what you have got on your hands is another one for the pile.
ClmForex account creation process was simple and very shallow. It allowed us to open a live account, or so we thought while waiting for our confirmation email for more than 20 minutes. Honestly, this is unacceptable. To wait so long will cause any user to lose interest. After the 20 minute mark, we gave up. Unfortunately, we have no choice but to take all trading details from the website.
According to the website, the trading assets are forex currency pairs, cryptos, indices, stocks, and commodities. The average spread for the EUR/USD pair is 1.2 pips, while the leverage is capped at 1:500. There is no telling if this info is true or false. Everything is usually confirmed or disconfirmed on the trading platform, but seeing that we could not open one, we have to rely on the website.
The website is available in English, Spanish, and Portuguese.
CLMFOREX REGULATION AND SAFETY OF FUNDS
The only solid piece of information that will ever come close to a regulation is a registration in Saint Vincent and the Grenadines. It’s too bad that this is all we get, because for a moment there we were ready to give ClmForex a chance because it seems to be offering decent trading conditions.
As for the Saint Vincent and the Grenadines address, do not ponder over it too much. This country is by far the most overcrowded with illegal brokers nation, for the only reason that there is no FX regulator and the laws themselves allow for a firm to be operating from there without a physical presence. For these, and more technical reasons, Saint Vincent and the Grenadines is the most popular location for illegitimate forex brokers.
ClmForex is one of these UNLICENSED brokers that aims to profit from the misfortunes of others.
Be certain that investments in unregulated brokers are almost always lost, never to be seen by the user. Always check for a license before continuing to the next step. Ideally, the FCA or CySEC regulated brokers are the most trustworthy. Under these agencies, brokers are scrutinized every month and are required to follow some of the most rigorous rules in the industry. These include, but are not limited to, segregated bank accounts for all users. Both the FCA and CySEC offer to all their brokers, who in turn cover their clientele, compensation funds: CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
CLMFOREX TRADING SOFTWARE
ClmForex’s platform situation is very ambitious. On the one hand, it claims to be offering Forex Analytics, a market analysis platform. Next, it alleges that it also comes equipped with DupliTrade, a professional software that offers copy-trading strategies on top of various other instruments. Last but not least is the supposed Trader’s Edge a resource center for traders offering a plethora of helpful tools that enhance trading.
This is all very impressive, but from our point of view, it’s all just empty promises. Without an account, and subsequent access to these platforms, we cannot confirm their existence. Furthermore, the lack of a regulation favors our argument.
CLMFOREX DEPOSIT/WITHDRAW METHODS AND FEES
Without opening an account, there is no real way to vouch for what the website reveals.
The payment methods for depositing are credit cards (5% tax), wire transfer ($20-$45 commission), Neteller (5% fee), Skrill (4% charge), Vload (3.5% + $1 merchant fee), and bitcoin (1% charge). The minimum deposit according to the website is $100, which is very reasonable if it proves to be true.
For withdrawals, users can apply for a payment through Skrill (1% commission), Neteller (2% charge), a credit card (3% merchant fee), Boleto (2% commission), wire transfer ($15 fee), and a bitcoin wallet (2% charge). It takes 24 hours for the broker to process withdrawal requests through Neteller, Skrill, and bitcoin. All other methods can take up to 5 days.
ClmForex is not a broker that you should trust. Do not deposit here!
How does the scam work?
The most popular scam that we will cover today is used by 95% of all illegal brokerages, and other fraudsters. It revolves around soliciting users into depositing, with some room for improvisation. Most users who fall for these sooner or later realize it.
Such scams work the following way: Users find certain ads online intriguing and click on them. The theme of these ads revolves around the perfect care-free life, living of investments and trades. Very alluring stuff indeed. Those that succumb to the temptation of this illusory lifestyle are redirected to a website, either the broker’s or an intermediary one (called robo-site), where they will be asked to give away their basic contact details. Through these, the scammers will start calling or sending emails to any potential investors. Conversations between users and fraudsters are usually dominated by the scammer whose only job is to initiate the first deposit.
Depositing for the first time will bring around the expert scammer, or the so-called account managers, whose sole purpose is to drain you out of all your money. They will relentlessly call, demand, and notify you of opportunities until users deposit further or realize they are being scammed.
Withdrawing from this position is almost impossible. The broker will throw at you everything it has got, its only purpose being to deny your request. Some of the most popular approaches are stalling, denying a request, closing an account, blocking an account, or shutting down the entire website.
What to do if scammed?
A chargeback is the first step towards recovery. Filing for a chargeback is easiest with your credit or debit card provider. What’s more, is that MasterCard and VISA have extended their chargeback period to 540 days.
Investments lost to the scam initially made through a bank transfer should stimulate users to change their bank password and account users’ names ASAP. The next step is to contact their bank and ask them for further instructions.
Avoid crypto deposits at all costs! These are most of the time untraceable and there is no way to get your money back.
On a final note, do not trust any of the recovery agents. In exchange for a fee, these agents will promise to refund all your lost investments. However, once you pay them they will disappear, which leaves the user an even bigger loss.