Beware! XFlowMarkets 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.
XFlowMarkets is kind of an over-the-top broker, in that it is filled with information and claims about itself, but it never is actually able to meet them when the time comes. The following review will go into detail of what XFlowMarkets really is.
We had to open an account with XFlowMarkets to make sure what the broker is really made of, for the user area of any brokerage firm is its most revealing aspect. The process of registration itself did not give us too much hope of the broker being legit, however, the resulting user area was surprisingly rich in quality. However, we came upon a huge issue that hindered our entire experience.
This issue completely changed our opinion of the broker. XFlowMarkets’s user area has no trading software. There is no download link, no way to access a webtrader. The website was also barren of any access links to any sort of a terminal. More on this grave problem in the software section of the review.
The lack of a trading software means only one thing. That none of the promoted trading conditions actually apply to the XFlowMarkets offered broker experience. If users expect to trade any sort of financial instruments with XFlowMarkets, they will be greeted by disappointment and probably by financial loss. The latter is very possible because the user area encourages users to deposit the first time they enter. XFlowMarkets lays out a step-by-step plan for newcomers, starting with an account verification and ending with a deposit. There is no “trading step”.
We discover in the user are that the leverage is capped at 1:500, but since it technically does not apply anywhere, it’s irrelevant. In fact, none of the tradeable assets and their spreads are worth mentioning, because without a trading terminal they are useless.
The website of the brokerage is available in a surprising amount of languages: English, Polish, Indonesian, Hindi, Deutch, Chinese, Thai, Russian, Malaysian, Vietnamese, and Arabic.
XFLOWMARKETS REGULATION AND SAFETY OF FUNDS
We need only go to the footer of the broker to see that XFlowMarkets is UNREGULATED.
There are three things wrong here. First of all, the FSA does not exist, as it was replaced by the FCA in the UK, an FX overseer that regulates all the UK brokers. Next is the audacious claim that XFlowMarkets is not required to hold a license in order to offer financial trading services. And third, Saint Vincent and the Grenadines does not have an FX regulator, and as such XFlowMarkets is operating there illegally.
And what’s more is that during the registration process, clients are required to accept the terms and conditions, but there is no link to these documents. It just says that the user has ticked a box that claims that she has accepted the terms and conditions without having any direct access to them! This is rather misleading, as the broker does actually have legal documents, which are nevertheless on the short side.
Investing in unlicensed brokers is basically throwing your money in vain. We urge our readers to always check for a license before doing anything. Usually, if a broker has one, it will proudly showcase it, but it’s always recommended to check with the regulator. Some of the most trustworthy license issuers are the FCA or CySEC, whose authority spans hundreds of brokers, among which are some of the world’s top. What’s more, is that bot the FCA and CySEC offer client reimbursement schemes to users who have not been paid by a regulated broker. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
XFLOWMARKETS TRADING SOFTWARE
The website is kind of overwhelming when it comes down to trading software information. The section on the MT4 is filled with links and subsections, that just refresh the website or lead to a different sub-section. For example, if users are to click on what should be a download link for the MT4 Windows version the page simply refreshes. Moreover, the client dashboard has no trace of any sort of a trading software. Unfortunately, all the evidence suggests that XFlowMarkets does not have a trading software
XFLOWMARKETS DEPOSIT/WITHDRAW METHODS AND FEES
According to the user area, the depositing methods are PayNow and a Bitcoin wallet. However, once we proceeded with PayNow, the broker opened a window and opened to us completely different payment methods: Credit and debit cards, Perfect Money, and PayTrust. The Bitcoin payment option still remains. The minimum deposit requirement is $10.
The withdrawal information that we gathered from the user area revealed to us that users can take out funds through a Bitcoin wallet and a bank transfer. The terms and conditions reveal that the broker aims to process the withdrawal request within one working day. There is a fixed $30 charge for all bak withdrawals.
What we just revealed are the true payment details, because they have been taken from the most trustworthy broker source- its user area.
Accounts that have not seen any trading activity for me than 90 days are deemed inactive. If the inactive account has no money in it, it is closed. If there is money, then the inactive account is charged a dormant fee of $30 per month. If the account is inactive for 6 or more months, then the account wl be charged $99 until it is depleted.
There is an incomplete application fee of $30 for all those users that have not verified their account within 15 days of opening it.
The broker mentions other fees and commissions, yet it does not give too much detail. This is typical of scammer brokers! The indemnification clause is there to limit the broker’s liability as much as possible. The snipped provision is an extreme example of this, where the broker holds that all losses are only the user’s fault!
We cannot find any reason to invest in XFlowMarkets. This broker is unregulated and a risk to all those that deal with it!
How does the scam work?
The first step to this very popular scam is actually one that is taken by most online scams. It has to do with users falling for fake online ads that use a repertoire of alluring elements, including money, beautiful women, expensive cars, and luxurious villas. The only aim of these fake advertisements is to induce the internet user into clicking on them.
Behind these ads is hiding either the scammer broker or an intermediary website whose aim is to introduce the user to the fraudulent broker. On either of these sources, the user will be asked to provide contact information, either a phone number or an email address.
Soon the investor will start receiving calls from a representative of the brokers, whose goal is to stimulate a user into deposit once! If the deposit is successful, then these individuals will let the user go, but sooner they will start getting more calls and emails from the expert scammers, the so-called account managers. The pro fraudsters are here to stay and will induce more deposits from the users, using manipulative tactics, psychological tricks, and pure charm. Those that give in, will sometimes unknowingly deposit huge amounts!
Once the user realizes that he or she has been scammed, it’s usually too late, however, there are some ways of getting your money back, potentially. But before that, the scam artists will try to distract you from withdrawing by either stalling the request or simply advising you against it. Some brokers, however, go the extra mile and are not afraid to shut down the user account and at times the entire website.
What to do if scammed?
The best defensive maneuver is filing for a chargeback through the client’s credit or debit card company. MasterCard and VISA have a chargeback period of 540 days.
If users have lost money by investing it through a bank, then they should change their bank account username and password first! The next step is to call the bank directly and see what they can do.
Investing in any kind of crypto is advised against. Payments made through these are untraceable and as such are lost forever.
Also, never thrust any recovery agents or agencies. These are scammers as well and will take your money. They usually appear once you have been scammed and will offer their monetary retrieval services. But before tracking your lost funds, they will ask for an upfront payment in the form of a service fee. Once this commission is paid, the recovery agent will disappear alongside your money!