Beware! Finmsk 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 Finmsk, yet another offshore broker. Well, the people running this business purposely chose to create it in a shady district with no financial regulations, and we are going to show you why. Otherwise, they offer MetaTrader4, tolerable spreads and allegedly up to 1:400 leverage (which we can’t actually verify). In fact, it is a dangerous entity, and you’ll see what we are talking about in the full Finmsk review.
Finmsk REGULATION AND SAFETY OF FUNDS
Finmsk is a brand name of AAA Global Ltd., a company registered in the Marshall Islands. The country is a non-transparent tax haven jurisdiction that doesn’t have a financial authority, let alone a regulated Forex market. The entities incorporated there are totally anonymous and don’t have to comply with any rules whatsoever, so they can freely steal clients’ money without bearing the consequences for their actions. In fact, the Marshall Islands are overcrowded with scammers precisely because of the regulation deficit, and Finmsk is one of the fraudulent schemes. We say so because it was detected by the independent NGO FinaCom– a self-regulatory body aiming to protect customers interests and enhance security in the Forex markets. They put Finmsk on the warning list, so the broker is an exposed scam, and your funds will be in danger if you deposit. You should avoid it!
Also, the same Marshall Islands company operates or is somewhat linked to other suspected scams we already came across. Follow the links to get more information about AAA Global and its trading names- GlobalTrades-FX review, SafeTrade365 review, Pro1nvest.net review, Fxgroup100 review, WORLDF1N review and Topinvest100 review. Some of the brokers in question have already ceased to exist, but make sure to avoid those.
As Finmsk is a scam, you’d better consider the high-rated EU brokers and British brokers topping both lists. We recommend those because the Europeans offer high-grade security and protection guaranteed by deposit insurance funds created to reimburse clients in case of insolvency. Thus, CySEC brokers’ traders can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. So if you are eligible to open accounts with European companies, you can safely go for it.
Finmsk TRADING SOFTWARE
Finmsk provides MetaTrader4, which is a leading Forex platform, but that’s not a positive feature. In fact, it even turns out negative because some people may mistakenly believe that the broker is a good one and put money there. Do not get tricked, Finmsk is a broker to avoid, notwithstanding the advanced software they deliver.
That said, the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists are safe and provide much better trading conditions. The MT distributions are packed with sophisticated tools such as Expert Advisors, many complex indicators, sophisticated charting tools and a marketplace featuring more than 10 000 apps. MT is definitely the best choice for traders, but not if you deal with a scam like Finmsk.
The EUR/USD spread is 1.8 pips, a tolerable Buy/Sell difference, but not the best on the market. Many companies offer spreads as low as 0.1 pips with their micro accounts, so it’s not worth wasting your time with a scam like Finmsk, which is otherwise costlier than its legit counterparts.
The other critical element of the software we are going to discuss is leverage. According to the Terms, Finmsk offers ratios ranging from 1:1 to 1:400, but we can’t validate their claims. Our account was pending, so we couldn’t create a real account, and the actual leverage remained unknown. Still, the demo account maximum leverage is 1:100.
Leverage is utterly dangerous, and most of the respected financial authorities do regulate it to reduce clients’ risks. Hence, EU, British and Australian brokers‘ clients are limited to 1:30, while Canadian brokers and US brokers can’t provide more than 1:50. In addition, most of the high-leverage FX companies are unlicensed, and we urge traders to be careful when it comes to leverage.
Finmsk DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Finmsk is not specified, so in general, traders should be able to fund their accounts with as much/little as they want. However, the broker is an exposed scam, so you shouldn’t send them a dime! The funding methods are supposedly Credit/Debit cards and Wire transfers, but we can’t validate this either.
While talking about deposits, we can offer our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The companies on top of both lists are adequately regulated, and you won’t face scammers.
The minimum withdrawal is $50, which is generally a tolerable requirement, but we consider it unfair. That’s because most regulated companies impose no or minimal restrictions, actually the right thing to do. Withdrawal fees and request processing time- unknown. Dormant policy and inactivity fees- also unknown.
Finmsk offers generous incentives, but the additional provisions indeed worsen the trading conditions. According to the clause, if clients accept bonuses, they have to execute the bonus amount divided by four in terms of lots, and they have to do it within 60 calendar days to become eligible for withdrawal. In other words, after a $200 bonus, they have to reach the minimum trading volume of 50 lots within 2 months. That’s challenging, so people have to play risky and expose their accounts to danger. Beware!
However, there are much worse clauses in the Terms, and we are going to discuss one. The broker reserves the right to rip traders off by claiming that they can deduct taxes or fees due according to regulations. Well, Finmsk itself is unregulated, so they simply leave the door open to invent charges and defraud clients!
Overall, Finmsk is an exposed scam, so you should steer clear of it.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s actually a process. In the typical 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 fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes, and so on. Their imagination is rich and would invent as many stories to get the craved deposits.
Unfortunately, the first deposit is not the end but the beginning. Gradually, scammers would manipulate victims and would urge them to invest repeatedly. For example, con artists may not allow people to trade themselves but would pretend to manage the accounts. Forged results would show victims massive profits, and scammers would ask for more money, promising to secure more gains.
However, the problem starts when people ask for withdrawals. Scammers would make excuses to refuse withdrawals and even require additional deposits to let people take their money out. Those criminals won’t stop asking for funds, no matter what. In the worst case, the victim would believe in the scammers’ falsehood and deposit again and again. However, sooner or later, the scam would become evident, the fraudsters would cut the communication and eventually disappear. They would drop the website, create a new one and carry on with their criminal business untouched, while people would be left with losses almost impossible to recover.
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 so that they can give you instructions and help, 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 to recover 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!