Beware! Boracircle 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, Boracircle looks like any other run of the mill brokerage and potential traders may be tempted to join the company. After all, it claims to be registered and to offer product, cost and financial advantage. So what’s not to like? However, what appears on the surface may not always be the truth.
Boracircle Regulation and safety of funds
From the information available on the Boracircle website, we understand that the Headquarters of the company is in the UK and that it is registered with FSP New Zealand, ASIC Australia and IFSC Belize. To verify this claim, we searched the registers of the above-mentioned forex brokers regulators but the name of the company did not appear in any of them. So, what this broker is trying to feed us is nothing but lies and it is needless to say that trading with it will expose your precious funds to risk.
It is not that hard to find a licensed and reliable broker to join in. We provide below some background information about the regulations for forex brokers in some well-established jurisdictions from around the world and links to top brokers that are legit and regulated.
In our humble opinion, the best trading conditions for forex traders exist in the EU and the UK where forex brokers are strictly regulated and all measures are put in place to guarantee the safety of clients’ funds. First of all, to get their license, EU and UK brokers must invest no less than 730,000 EUR in the form of initial capital. Among other things, this capital serves as a barrier preventing scammers from infiltrating the ranks of legit brokers. As you can imagine, scammers will never invest so much money for the benefit of looking legit. In addition to that, forex brokers are obliged to keep their clients’ funds segregated, report transactions regularly, conduct internal and external audits for the sake of transparency, provide negative balance protection, keep low leverage that does not exceed 1:30 for forex currencies, etc. Another big advantage is that these brokers must participate and deduct funds towards a local compensation fund or scheme from which in the case of bankruptcy clients can be reimbursed up to a certain amount. UK brokers that are regulated by FCA must deduct funds towards the local Financial Services Compensation Scheme which can reimburse up to 85,000 GBP per client if the broker becomes insolvent. EU brokers are required to participate in a local investor compensation fund which can disperse up to 20,000 EUR per client if the broker goes bankrupt.
Boracircle Trading software
Boracircle trades in forex, oil, metals and indices. The problem is that if you try to register a trading account, the only option that shows up is in Chinese without the possibility to convert into English, so if you do not speak Chinese, it is basically impossible to register. In addition to that, there is no Terms and Conditions document to explain the legalities of the agreement between you and the broker and you so to say sign up with your eyes close which understandably is not advisable.
The trading software that is offered to the clients is the MetaTrader4 trading platform which is one of the leading platforms in forex trade despite its ‘old age’ of 15 years. The popularity of the platform is largely due to the excellent package of trading tools and instruments offered to the clients among which are the auto trading option, VPS, trading signals, code base with customs scripts, the app market, etc. We should also mention the plethora of charting options which combined with the technical analysis indicators help traders predict the future direction of exchange rates and make a profit.
Below is the image of the MT4 which we managed to download, however, this is an unactivated version and the parameters of the spread cannot be taken into account. On the left is the menu for the trading products given with their bid/ask price and beneath is the navigator for the accounts, indicators, expert advisors and scripts. In the top horizontal bar are the buttons for the charting options, auto-trading and placing new orders and in the bottom horizontal bar for the app market, code base and experts.
The information regarding the spread and the leverage we found on the company’s interface. From the image below which shows the EUR/USD with its bid/ask price, we can calculate that the spread is 0.4 pips which is tight and means that the cost of transactions won’t be too high and traders will be able to achieve a sustainable profit. On the other hand, we found out that the leverage offered by the broker is rather high – 1:100 which will expose to risk clients’ funds in case of unsuccessful transactions which statistically happen to 70% of the traders and the scope of financial loss will be amplified by this high leverage. This is why ESMA regulations have imposed a cap on leverage for forex currencies that cannot exceed 1:30, as we already mentioned.
Boracircle Deposit/Withdrawal methods and fees
As we already mentioned, the Terms and Conditions document is missing from this broker’s website as well as any information regarding trading accounts.
We found out that to make a deposit, clients are required to use 2 receiving addresses for USDT. There are no other payment options.
The information regarding withdrawal methods and fees is not available either.
It is expected that such information should be readily available and easily accessible on every broker’s website. However, a fraudulent broker like Boracircle does not deem that to be necessary which is another reason not to trade with this broker.
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.