Beware! FinoBrokers 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.
In this review, we’ll unveil FinoBrokers, or Fin Brokers the finest broker, as they named themselves. We intentionally won’t call this business Fin Brokers because we want to set them apart from other legit companies bearing the same name. Also, there is nothing that’s fine with this offshore entity, and we are going to show you why in the full FinoBrokers review.
FinoBrokers REGULATION AND SAFETY OF FUNDS
FinoBrokers allegedly originates in St. Vincent and the Grenadines, an offshore jurisdiction poorly regulating its financial market. Moreover, the local regulator SVGFSA doesn’t even license or control in any possible way the FX companies based on the island. As a consequence, the SVG brokers are not safe to deal with because they can carry out fraudulent or other illicit activities considered financial crimes elsewhere. St. Vincent and the Grenadines are bustling with scammers and dodgy companies mainly because of poor regulation. Your funds are not safe if you deposit with FinoBrokers because it’s an unlicensed and unregulated offshore broker and most probably a scam. We’ll show you why this business is potentially fraudulent later in the review.
Avoid them and see the EU brokers and the British brokers we suggest. We do so because the European FX companies are covered by deposit insurance funds protecting traders’ money. For example, CySEC brokers’ clients can claim up to 20 000 EUR, while the British guarantees are up to 85 000 GBP per person. Consider this fact before opening an account with a broker, and if you can open an account with a European broker, do not hesitate. Those companies are leaders in the retail FX industry for a reason.
FinoBrokers TRADING SOFTWARE
FinoBrokers offers MetaTrader4 accounts, but we couldn’t access their platform because their sign-up page war broken at the time. So, we can’t even verify that they are MT4 provider, for we couldn’t get their platform from the website either. That’s a disturbing sign, and such technical issues don’t look on Forex brokers. FinoBrokers further proves it’s an unreliable entity.
Follow the links to see these MetaTrader4 brokers and MetaTrader5 brokers because MT is the best Forex platform for retail traders. It’s reliable and features many sophisticated trading tools such as Expert Advisors and Algo trading. They also developed a marketplace where you can find more than 10 000 trading apps.
However, the spreads are said to start from 2.5 pips with their 5000+ Expert Account. The micro account Buy/Sell difference is said to be 4.5 pips, which is more than 4 times worse than industry standards- 1 pip and below. The spread forms part of the trading costs, so lower rates improve trading conditions and profit potential. Many legit brokers offer favourable conditions, some of which you can see by following the links throughout this review.
The maximum leverage is said to be 1:400, a ratio utterly dangerous for traders and investors, no matter the experience. Such a level might quickly hit your balance if you place a bad trade on the market. Retail traders tend to misuse leverage, inflicting heavy losses on themselves, so many financial authorities imposed leverage restrictions on the regulated markets.
As a result, the Australian brokers (to come in effect later in 2021) and the European brokers are limited to 1:30, while the Canadian brokers and the US brokers can’t offer more than 1:50. The Swiss brokers aren’t restricted, but there is a 20 million francs capital requirement in Switzerland, which drives scammers away.
FinoBrokers DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $100, which is actually in line with the industry standards. The funding methods are said to be Credit/Debit cards, Wire Transfers, Skrill, Neteller, QiwiWallet and WebMoney, but we can’t confirm that all of these are actually available. Anyway, the safest deposit method is Credit/Debit cards because it allows a chargeback for an extended period of time. On the other hand, Wires and Bitcoin payments are final, so it’s impossible to take your money back in case things go wrong.
However, if you have a preferred payment system, see our lists with trustworthy and properly regulated Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, QiwiWallet brokers, WebMoney brokers and Bitcoin brokers.
At this point, we have to raise another major red flag. FinoBrokers doesn’t present traders and investors with legal documents, which is substantial evidence of a scam. The absence makes FinoBrokers an illegal broker but also leaves traders and investors unaware of critical trading provisions such as withdrawal requirements, request processing time, fees, bonuses, if any etc. T&Cs, User Agreement, Client Agreement etc., serve as a contract between both parties, so do not ever trade and invest with businesses refusing to provide with legal provisions.
Overall, FinoBrokers is a shady offshore broker that doesn’t deliver a contract document, which is an argument enough to avoid.
HOW DOES THE SCAM WORK
New types of investment scams come about literally every day. However, most of the new schemes represent a modification of common fraud. These are not typical for the local markets but very similar from country to country.
Scammers usually find their victims through ads on social media or other websites, which is the latest trend. Classical tactics, such as cold calling, became less widespread as the Internet is prevalent nowadays. The offers look legit and present exciting opportunities to invest money in the Forex market. Traders are reassured that the people behind the broker have an excellent track record, promising high returns or seamless trading. They claim that there are no problems when trading with them, concealing that the FX market is utterly risky.
What usually happens is that scammers just pocket traders and investors money letting them believe they trade in a real environment. Sooner or later, clients would ask for a withdrawal, but scammers would delay or straightforward refuse to send any money back. Whenever traders persist, the guys standing behind the fraudulent broker would usually cut the communication or send a tiny amount of money. It’s also a common manoeuvre for scammers to ask for more money to sort the withdrawals out. Either way, traders are likely to lose some or all of the capital invested. At some point, when the fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment but do nothing to help you recover your losses and simply pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!