Beware! Eiro-Group 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, you are going to see the most ridiculous trading conditions that could possibly exist. The spreads offered by Eiro-Group are hilariously big, and the leverage is seemingly non-existent. Otherwise, it’s an offshore entity registered in a shady jurisdiction, which makes things even worse for traders. Find out the rest of the details you need to know about this controversial broker in the full Eiro-Group review.
Eiro-Group REGULATION AND SAFETY OF FUNDS
Eiro-Group is a suspicious broker allegedly originating in St. Vincent and the Grenadines, an offshore jurisdiction considered a tax haven. It’s well-known for the lack of adequate financial regulation, and the local authority SVGFSA does not even license or control the brokers legally operating there. As a result, the island is bustling with scammers and dodgy investment companies who want to steal as much as possible from traders and investors. Your funds are not safe if you deposit with Eiro-Group because it’s an unregulated offshore business.
Stay away from Eiro-Group and see the high-rated EU brokers and British brokers instead. Europe has created a safe regulatory environment where deposit insurance funds protect traders’ money in case of insolvency or fraud. So, CySEC brokers’ clients can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. The European FX market is secure, so don’t hesitate if you are allowed to open an account with EU or UK regulated brokers.
Eiro-Group TRADING SOFTWARE
In this section, we’ll focus on the most absurd trading conditions we’ve ever seen. First, though, the Eiro-Group’s platform is web-based and does not deliver any significant advantages compared to the MetaTrader distributions. In fact, the software is miles behind in terms of functionality, being hard to navigate, not intuitive and pretty ugly, as well.
So, you’d better see the high-rated MetaTrader4 brokers and MetaTrader5 brokers by following the links provided. We recommend these because MetaTrader is the leading retail FX platform delivering sophisticated trading tools such as Expert Advisors, Algo Trading and many complex indicators. The platform also features a marketplace where you can find more than 10 000 apps you can benefit from.
The EUR/USD spread is mind-blowing- 240 pips, which is 240 times worse than the regulated brokers’ standards. We thought it’s a joke, so we reloaded several times, but it didn’t change. The spread forms part of the trading costs, meaning that lower rates are beneficial and significantly improve the trading conditions. Most regulated brokers offer spreads as low as 1 pip and below, so 240 pips Buy/Sell difference is just idiotic. You won’t be able to make any profits whatsoever.
The leverage provided is laughable, too. The single possible level we could access was 1:1, meaning that Eiro-Group doesn’t even offer leveraged trading. The broker has created a weird trading environment, which is fishy and a solid argument to stay away. As leverage is critical in trading, we’ll mention some basic regulations and provide even more lists with brokers to choose from.
The regulations we are talking about are essentially restrictions because leverage is an utterly risky financial tool. For example, if not wisely used, levels such as 1:500 can cause heavy losses inflicted very quickly indeed. Leverage hazardous nature motivated many financial authorities to put it under control by imposing a cap on the market. As a result, EU, British and Australian brokers are limited to 1:30, while Canadian brokers and US brokers are not allowed to provide more than 1:50. Most of the high-leverage brokers are poorly regulated offshore businesses, so be cautious.
Eiro-Group DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Eiro-Group is €500, which is almost 6 times more than the regulated brokers’ requirements on average- $100. The funding methods are supposedly Credit/Debit card and Wire Transfers. Brokers widely accept both, but bank card deposits are considered the safer option because it’s possible to get a refund within an extended period of time if things go wrong.
Anyway, see some Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The high-rated brokers on the lists are strictly regulated, so you won’t come across scammers.
There is no information about withdrawal, fees or request processing time. However, if you want to withdraw but you haven’t placed a trade yet, you need to pay a penalty fee of $250, which is totally unfair. But things can get worse if you accept a bonus from the broker. In such a case, you need to reach a minimum trading volume of 500 times the bonus to become eligible for withdrawal, which is yet another truly unfair requirement. In fact, the trading incentives effectively lock the trading account in this case, and the broker as a cheeky entity automatically inserts a bonus whenever an account is opened. That’s evidence of a scam.
The inactivity fees are also one-sided. After only 90 days of inactivity, the account becomes dormant and will be charged $50. However, the clause they present is pretty incomprehensible, so it’s not clear how they collect those fees- monthly, annually etc.
Overall, Eiro-Group is a shady offshore broker offering bizarre trading conditions, so keep your money safe and stay away.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s effectively 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!