Beware! FrankfurtFX 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.
FrankfurtFX’s creators introduce this broker as a German entity that’s “today’s leading crypto trading platform”. Also, they claim to be licensed and regulated in various countries, including Cyprus, Britain and Singapore, to name a few. Well, the truth is quite the opposite- this business is a clone firm and a dirty scam. Find out why we claim so in the full FrankfurtFX review.
FrankfurtFX REGULATION AND SAFETY OF FUNDS
FrankfurtFX is ridiculously presented as a trademark of FRANKFURT BOERSE. This statement is laughable because that’s the German Stock Exchange, and they can’t in any way own a Forex broker. The foolish statement aside, FrankfurtFX is purportedly regulated in Cyprus and 4 other countries, so we started our research with the CySEC register. It was no surprise to find a warning instead of a license. The Cyprus regulator blacklisted FrankfurtFX, exposing it as a scam scheme, so your funds would be in danger if you deposit with this fraudulent broker.
Conclusively, FrankfurtFX is a clone firm that’s abusing the name of the German Stock Exchange as well as the license numbers of various other companies. Firm cloning is a productive scam strategy in which fraudsters pretend to represent authentic companies. That’s dangerous because many people actually believe in the scammers’ lies and get into the scheme, thinking they deal with trusted companies. Beware and always double-check before making any investment decisions whatsoever.
Considering trusted companies, see some EU brokers and British brokers if you are interested in trading and investing. Europe is one of the few places where traders and investors’ money are protected by deposit insurance funds, which makes the environment much safer. For example, CySEC brokers’ clients can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. Europe offers high-grade security, so you can trust the regulated FX companies operating there.
FrankfurtFX TRADING SOFTWARE
FrankfurtFX can’t deliver functional trading software. To see how bad the case is, look at the picture at the bottom of this section. Avoid this scam and see some licensed MetaTrader4 brokers and MetaTrader5 brokers. We recommend these because MetaTrader is stable software featuring advanced trading tools such as Expert Advisors, Algo Trading and various complex indicators. The platform also has a marketplace with more than 10 000 apps you can use in your strategy, so do not waste your time with sham businesses like FrankfurtFX.
As there isn’t a platform, we can’t show real-time spreads and leverage levels. However, FrankfurtFX claims to provide leverage of 1:100, a risky level that’s legally prohibited in the EU, and this offer is yet more evidence of a scam. In the next paragraph, we’ll outline some essential regulations you’d better know if you plan to trade.
The leverage significantly improves profit potential, but the risks involved are tremendous. If misused, ratios such as 1:500 can cause total loss, so many financial authorities restricted leverage usage. As a result, EU, British and Australian brokers are limited to 1:30, while the Canadian brokers and the US brokers can’t provide more than 1:50. Most of the brokers offering higher levels such as 1:100 and above are poorly regulated offshore businesses, so be cautious.
FrankfurtFX DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is absurdly big- $5000. That’s 50 times more than the regulated brokers’ requirements. The funding methods are supposedly Wire Transfers and Credit/Debit cards, but we can’t validate this information. The latter is considered safer because it allows getting a refund within an extended period of time. At least on paper.
There is no information about withdrawal restrictions or fees. The request processing time is 2 to 5 days, but FrankfurtFX is a scam, so don’t expect any withdrawals whatsoever.
FrankfurtFX has a rather unfair dormant account policy and inactivity fees. After 6 months of inactivity, the account becomes dormant and will be subject to a 10% deduction each month. That’s a typical scam clause.
There are bonuses available in general, but the additional provisions are really unjustified. If traders accept trading incentives, they have to execute a minimum trading volume of 30 times the bonus plus the deposit to become eligible for withdrawal. That’s yet another typical scam clause.
Overall, FrankfurtFX is an exposed scam, so stay safe and avoid this fraudulent enterprise.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s practically a process. In the usual scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept their fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes and so on. Their imagination is very rich, and they would invent as many stories as possible to get the deposits wanted.
But the money transfer is not an end; that’s the beginning of the actual Forex scam. Gradually, scammers would manipulate the victims and would urge them to invest more. For example, the con artists would not allow people to trade but would pretend to manage the account instead of the traders. They’d then falsify the trading results to show victims massive profits and ask for more money, promising to generate a fortune in no time. However, if the victim asks for a withdrawal, that won’t happen. Scammers would come up with a story that the unfortunate trader needs to deposit again if they’re going to pull money out. Those criminals won’t stop asking for more, whatever the situation.
In the worst case, the victim would believe in the scammers’ falsehood and deposit repeatedly. Sooner or later, though, the scam would become evident, and that would be a signal for the fraudsters to cut the communication and disappear. They would abandon the website and would create a new one, carrying on with their criminal activities.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and 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!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!