Beware! Finetero 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.
At first glance, Finetero looks just any other run of the mill broker. However, there are some interesting facts we found about the company that can make you pause and think whether you should entrust your hard-earned money to this broker.
Finetero Regulation and safety of funds
The address of the company is shown to be in Cyprus where the Cyprus Securities and Exchange Commission (CySec) regulates forex brokers. Yet, Finplex Group Ltd that owns and operates Finetero is not in its register. However, we found a company with the same name registered with the Companies House which is the registrar of companies in the UK and is an executive agency and trading fund under the Department for Business, Energy and Industrial Strategy. Although the company has a registered address in the UK, its director’s correspondence address is in Bulgaria. Such controversial information does not inspire confidence and besides, if its business is to offer financial services and investments, it should be registered with an official forex trade regulator, either CySec or the Financial Conduct Authority (FCA) in the UK. We are suspicious that it could be a case of appropriating a legit company’s name. Anyway, we strongly advise you not to join this broker in any trading activities as it may expose your funds to risk.
UK brokers are strictly regulated by FCA and Cypriot brokers by CySec. In both jurisdictions, the conditions for forex trade are quite similar. First of all, forex brokers must have a substantial initial capital of 730,000 EUR which among other things serves to prevent scammers from sneaking in. Other measures to protect clients’ funds and to guarantee their safety include keeping clients’ funds segregated with tier-1 bank establishments, provide negative balance protection, report transactions on a regular basis and keep a limit on the leverage they offer and which is capped at 1:30. The difference between the two jurisdictions comes from the fact that the compensation funds and schemes established there provide different amount of compensation for the clients of a broker gone bankrupt. UK brokers regulated by FCA participate in the local Financial Services Compensation Scheme which can disburse up to 85,000 GBP per client if the broker becomes insolvent. On the other hand, forex brokers regulated by CySec deduct funds towards the local Investor Compensation Fund which can repay clients with up to 20,000 EUR per person in case of broker’s bankruptcy.
Finetero Trading software
Finetero trades in forex, indices, commodities, stocks and cryptocurrencies. The trading software consists of a web trader which according to Finetero is a Bitcoin-based platform. In the image below, you can see what the platform looks like. On the left-hand side are shown the trading products with their bid/ask price. In the middle is displayed the chart of one of these trading products, namely EUR/USD currency pair with the fluctuation in its price in a given time frame. From the bid/ask price, we can find out that the spread is 0.6 pips which is tight and beneficial for traders as the cost of transactions won’t be too high. Also, from the information provided on the website, we could find out that the leverage offered by this broker is 1:100. Actually, this information is somewhat controversial because, in the account types information (last image), we found out that the maximum leverage is 1:30, however for the professional account, it is 1:200. Firstly, this is proof that this broker is not legit because, as we already explained, for EU and UK licensed brokers the leverage for forex currencies is capped at 1:30. Secondly, although high leverage may give the impression that it can increase the potential for making a profit, this in fact is misleading as the majority of traders lose in transactions, therefore the high leverage will only increase the scope of financial loss suffered in these unsuccessful transactions.
We also want to let you know that a web trader is not a competition at all for the top-notch trading platforms offered by legit and reputal brokers. The majority of these brokers offer to their clients either MetaTrader 4 or MetaTrader 5 which have an excellent package of trading tools and instruments that give a lot of advantage to the traders. We can mention the auto trading option, the VPS, code base with customs scripts, trading signals, the app market, the financial calendar, etc. If you add the many charting options and the array of technical analysis indicators that help traders predict the future direction of exchange rates and thus make a profit, you can understand why these two platforms are choice number one for brokers and traders alike.
Finetero Deposit/Withdrawal methods and fees
If you look at the image below, you will see that the number of trading accounts offered by Finetero is 5 – Bronze, Silver, Gold, Platinum and Premium. The information about the minimum initial deposit is rather confusing – it says that trading is available from deposits of 200 EUR but the minimum initial deposit for the Bronze account is once given as 1,000 EUR and then as 5,000 EUR. Again, such controversy does not inspire confidence in this broker.
Beware that if you leave your trading account inactive for a period of 45 days, you will be charged a monthly fee of $100 which is quite hefty. Legit brokers normally give a 6 or 12 months grace period before starting charging dormant fees.
Should you choose to use the auto-trading software but then decide to close the account and withdraw your funds before trading a minimum of 20 trades, you will be charged $100 fee.
How does scam work?
Scam works in different ways. It could be either that you receive an unsolicited telephone call or you see one of these flashy ads on the Internet or the social media promising you a quick and easy profit. Scammers will promise you the sky and the earth until you give way to temptation and deposit money. Once you give them money you get caught in the scammers’ mousetrap and the cheese in the shape of a big fat money fall is gone! It may take some time before you realise that you are being scammed. Scammers are smooth talkers and they are masters of deception. They will give you some excuses as to why the big profit hasn’t come yet and will try to lure you to make even a bigger investment because according to them, the more you invest, the more you profit. After you have been waiting for a while and you finally come to your senses, you realise that you are being scammed. All you want now is to get your money back and get out of there. However, the scammers won’t make it easy for you! They will try to delay you so that you miss the deadline for applying for a chargeback.
What to do if scammed?
There are a few things that you must do immediately – file for a chargeback if you have paid using a VISA or MasterCard. Those two payment providers allow you 540 days time frame within which you may file for a chargeback.
However, the chances are grim if you have used bank transfer or Bitcoin as a payment method. There is no chance you’ll be able to recover your money.
In such a desperate situation, some so-called ‘recovery agents’ may approach you with offers to recover your money for a fee. Be cautious as you may be dealing with another type of scammers. Always check the information about the recovery agency – make sure it is legitimate and transparent in the public eye. Also, some scammers publish personal comments after our review about how they have been scammed and how they found a recovery agent who helped them get their money back. Do not trust such comments and do not use the published contact info in them as it will lead you to another scammer!
And lastly, a reminder to cancel your credit card if you have given your CVV code to the scammers and erase any software from you PC that gives the scammer access to your personal data.