Beware! Rich-FX 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.
We are reviewing Rich-FX, a shady brokerage that’s not at all reliable. We claim so because they falsely claim to be regulated, present no legal documentation and the services they provide are questionable, to put it mildly. We believe it’s a scam scheme, and we’ll show you why in the full Rich-FX review.
Rich-FX REGULATION AND SAFETY OF FUNDS
Rich-FX is allegedly a trading name of ERFX Market Ltd; a company said to be Mauritius and Germany regulated. Well, it’s either a fictitious business or an offshore IBC that’s almost impossible to trace. Most importantly, though, we found they hold no licenses, so we can reasonably dismiss their claims as fraudulent. Your funds are not safe if you deposit with Rich-FX because it’s an unregulated broker and very likely a scam.
You’d better avoid them and consider the high-rated EU brokers and British brokers, instead. Europe is financially safe because the local authorities tightly regulate the financial markets, and it’s improbable to get scammed by licensed companies. Above all, the brokers are covered by the European deposit insurance funds inaugurated to protect clients’ deposits in case of insolvency and fraud. So, if you are a client of a Cyprus regulated broker, you can claim up to 20 000 EUR in compensation, while the British guarantees are even up to 85 000 GBP per person. It’s worth considering money protections when looking for a Forex broker.
Rich-FX TRADING SOFTWARE
Rich-FX delivers MetaTrader5 to their customers. However, there are managed accounts only and clients can’t trade by themselves. To put it simply, you would deposit money, and some people would execute trades instead of you. If you are dealing with highly reputable and well-known companies, that should be fine, but Rich-FX isn’t in this category. It’s not worth wasting your time with this shady business when there are many reliable brokers on the market, delivering high-class platforms and better trading opportunities.
To help you choose, we can offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists. MetaTrader distributions are stable and provide advanced features such as Expert advisors, many complex indicators and outstanding charting tools, to name a few. The platforms also include a marketplace where traders can browse through 10 000 apps and third-party developed solutions you can deploy to achieve better results.
The EUR/USD spread is 0.1 to 0.2 pips, which is an excellent Buy/Sell difference that makes trading affordable and significantly improves profit potential. But as already explained, some dodgy individuals would manage your money, so don’t get excited. The maximum possible leverage is 1:1000, which is a ratio that traders shouldn’t utilise due to the excessive risks involved.
In fact, leverage is so dangerous that various financial authorities worldwide even agreed on regulations to restrict its usage. As a result, EU, British and Australian brokers have to limit the retail clients to 1:30 for FX majors, while the Canadian brokers and the US brokers can’t provide more than 1:50. Still, risk-tolerant traders can consider the Swiss brokers, which are highly reputable but not leverage restricted.
Rich-FX DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Rich-FX is not specified, and it’s actually possible to fund your account with as little as you want. However, it’s only possible to get the real requirements if you contact Rich-FX over Whatsapp. That’s suspicious because those people obviously want to hide something.
The funding methods are cryptocurrencies only, which is a significant downside. The digital coin transfers are final, and it’s impossible to get a refund. The payments are also anonymous, so you don’t actually know whom you are sending money to. In terms of safety, it’s always better to fund your account via bank cards because it’s possible to chargeback up to a year and a half after the transfer.
Speaking of deposit methods, see the Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred e-wallet. The high-rated companies on the lists are well-regulated, and you won’t face scammers.
The rest of the trading provisions regarding withdrawals, fees, bonuses and so on are unknown. Rich-FX doesn’t present legal documents, so their business can be easily dismissed as illegal. Clients can’t form a legal relationship with brokers unless there is a contract signed between both parties. The absence of legal documentation is strong evidence of a scam.
Overall, Rich-FX is a shady unregulated business that doesn’t even present Terms and Conditions. You’d better avoid this suspected scam and find a better broker to trade with.
HOW DOES THE SCAM WORK
More and more swindling brokers and fraudulent websites appear 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 and repeat well-known models.
Nowadays, scammers search for victims on the Internet and social media. Classical tactics, such as cold calling, became less widespread as the Internet got prevalent. The offers scammers make look legit and present exciting opportunities to invest money in the Forex market. Traders got reassured that the people behind the broker have an excellent track record and promise high returns, seamless trading and guaranteed profits. The scammers knowingly make people believe that Forex trading is risk-free, but actually, the opposite is true.
In the usual scenario, scammers just steal traders and investors money and won’t send a dollar back. Sooner or later, clients would ask for a withdrawal, but the con artists would delay or just refuse the transaction. Whenever traders persist, scammers would find all sort of excuses to ask for more money or would simply cut the communication. No matter the case, traders are going to lose some or all of the capital invested. In the end, when 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. If you get scammed, the first thing you need to do is to protect yourself from further risk. Deactivate your card immediately, contact your bank and ask for advice.
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!
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