Beware! FinancialUnit 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 FinancialUnit, a broker allegedly located in Scotland, UK. That’s an interesting fact because there are barely any brokers residing in the country in North Britain. Anyway, FinancialUnit promises nothing short of revolutionary- the best security standards, an unbeatable platform and overall the best trading conditions available. Is it true? Well, you can find out in the full FinancialUnit review.
FinancialUnit REGULATION AND SAFETY OF FUNDS
As already mentioned, FinancialUnit is purportedly located in Scotland, UK, which means that the broker needs an FCA license to sell financial products and services legally. Well, they don’t have one, so it’s illicit, unregulated, and your funds won’t be safe if you deposit. Moreover, FinancialUnit doesn’t share much information about the business, and we also can’t validate their location. It’s an anonymous entity and consequently a suspected scam.
That said, we can offer the high-rated EU brokers and British brokers, which are regulated, trustworthy and also covered by deposit insurance funds. For example, if you trade with a CySEC broker, you can claim up to 20 000 EUR in compensation, while the British protections are of even up to 85 000 GBP per person. Make sure to stay away from unregulated brokers, and you’d better consider money protection when choosing a broker to trade with.
FinancialUnit TRADING SOFTWARE
In this section, we’ll analyse the trading software to see whether FinancialUnit can really offer the best trading environments, as it claims to do. We’ll pay attention to spreads and leverage, the latter carrying an immense risk of loss and is therefore regulated in many jurisdictions due to this fact. For example, EU, British and Australian brokers are bound to limit clients to 1:30 for FX majors, while the Canadian brokers and the US brokers can’t provide more than 1:50. Most high-leverage FX companies are poorly regulated and very likely a scam, so you have to be cautious.
So, the trading software FinancialUnit delivers is web-based and very poor indeed. It’s ugly, challenging to use, having too few indicators and undependable charting tools. Worse, though, the EUR/USD spread is highly uncompetitive- floating around 4 pips most of the time, which is a vast Buy/Sell difference compared to most regulated brokers’ offers. As spread forms part of the trading costs, the lower rates benefit traders. We can now conclude that FinancialUnit falsely claims to offer the best trading conditions. Beware!
The default leverage is 1:200 but can be increased up to 1:400, depending on the size of the deposit. As you already know, both ratios are prohibited in the UK, which once again proves that FinancialUnit is indeed unregulated and a suspected scam.
Avoid it and better consider the MetaTrader4 brokers and MetaTrader5 brokers topping both lists. The MT platforms feature advanced tools such as Expert Advisors, complex indicators, and first-class charting tools. MetaTrader also comes with a Marketplace where traders and investors can find more than 10 000 apps and third-party developed solutions.
FinancialUnit DEPOSIT/WITHDRAW METHODS AND FEES
In this section, we’ll discuss how costly FinancialUnit’s services are and what traders need to pay. The minimum deposit is $250, a requirement generally in line with the offshore brokers’ standards but twice higher than the regulated ones, which ask for $100 on average to let traders begin with real money. However, many reputable companies offer Micro accounts starting from $5, so you’d better stop wasting your time with the controversial FinancialUnit.
The funding methods are supposedly Credit/Debit card and Wire transfers. Out of both, the bank card deposit is considered much safer because it’s possible to dispute transactions and get a refund- up to 540 days after the transaction.
Speaking of funding, check some Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have trusted payment systems. The companies topping the lists are adequately regulated, and you won’t face scammers if you choose among the high-rated ones.
The minimum withdrawal amount is $500 for Wire Transfers and $100 for Credit/Debit cards, which is indeed a scam clause. No legit broker imposes such unfair restrictions, and that’s an argument enough to avoid the illegal FinancialUnit. Withdrawal or any other fees are not specified.
FinancialUnit offers trading incentives called Margin Loans, which are indeed bonuses bearing a different name. Well, that’s a misleading offer because the so-called loans certainly change the withdrawal policy for the worse. According to the clause, traders need to execute 25 times the bonus plus the deposit to become eligible for withdrawal. Essentially, the bonus locks the account, and it’s impossible to take any sum out. Beware.
Overall, FinancialUnit is an unregulated broker, and you’d better stay safe and avoid it.
HOW DOES THE SCAM WORK
Nowadays, the Internet is plagued by scammers and their deceitful offers. It all starts whenever you click on an appealing fraudulent deal and provide your e-mail and contact numbers. Scammers, as seasoned manipulators, would ring you at once and begin straight away pushing you to invest in their schemes. During the phone call, you’d be presented with bonuses, promotions, risk-free offers, Bitcoin opportunities, and anything else you could possibly imagine. Scammers would claim to work with reputable firms, banks, governments, and so on, trying to make their business looks as if legit. Those thieves lie big time and would promise you anything to gain your confidence and steal your money thereafter.
However, the first deposit is just the beginning of the game. Day by day, scammers would carry on asking for deposits. If you lost, they’d persuade you to put more money and recover the losses. If you are profitable, you’d be asked to put more money and increase the gains. The headaches start when you decide to take your money back. The scammers would do whatever it takes to discourage you and would even urge you to deposit again if you want to withdraw. The scammers’ mantra is “give me your money”, they’d push you to transfer more money over and over again for no obvious reason. Urgency is a treacherous sign, so if someone forces you to invest ASAP, that’s a scam.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is safe from scams. If you get defrauded, 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 fraudulent fund recovery agencies are trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!
Last but not least, share online your experience; it’s important to inform the public about scams. Be responsible!