Beware! FutureFX 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.
FutureFX claims to be one of the best brokers globally, with a presence in many countries worldwide, including Britain, the United Arab Emirates and India. However, some of its features breach specific Forex regulations, so we can reasonably label FutureFX a suspected scam. Find out what we are talking about in the full FutureFX review.
FutureFX REGULATION AND SAFETY OF FUNDS
FutureFX claims to be a brand of a British company but at the same time introduces another offshore entity registered in St. Vincent and the Grenadines. We found it has no FCA license issued in the UK, so it’s an unregulated offshore brokerage as the regulator in the SVG doesn’t license or in any way monitor Forex brokers. That’s enough to conclude that your funds will be at risk if you deposit with FutureFX. Let us explain why.
First of all, the absence of regulation in St. Vincent and the Grenadines makes it possible for brokers to operate entirely unaccountable for their actions, meaning that they can put clients’ money at risk or downright misappropriate it getting away with the crime. Moreover, SVG is a shady tax haven with strong confidentiality laws- International Business Companies incorporated on the island are anonymous and not required to provide access to their accounts or file financial reports/statements. So, once your deposit goes offshore, money simply disappears, and you’ll have almost no chargeback options left if things go wrong.
That’s why we advocate for regulated brokers holding trustworthy licenses issued by CySEC or FCA, for example. The European brokers are forced by regulators to keep deposits segregated, which makes misappropriation impossible, helps prevent fraud, and if a broker goes bankrupt, people won’t lose their money. Also, there are deposit insurance funds in Europe put in place to protect funds- CySEC brokers’ clients can get up to €20 000 in compensation, while the British guarantees are even up to £85 000.
FutureFX TRADING SOFTWARE
FutureFX has a MetaTrader4, which is a leading platform in terms of volumes. It provides numerous advantages- automated trading, strategy testers, many indicators and charting tools and even a marketplace with more than 10 000 apps. Nevertheless, the platform can’t make a broker reliable by itself- FutureFX is still a shady unregulated entity that’s most likely a scam.
The EUR/USD spread delivered by the platform is around 1 pip, which is pretty much in line with the industry standards- $10 per lot traded. In such a case, you’d be much better off with regulated brokers, some of which are offering even lower spreads with their Basic accounts.
As for leverage, it’s up to 1:500– a risky ratio British legit brokers can’t offer any longer. So, the leverage itself proves that FutureFX is an illegal broker that’s worth being avoided.
FutureFX DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $100 allegedly via numerous funding methods, including Skrill, Neteller and Wires. However, the single option accepted by the brokerage is a direct Credit/Debit deposit in United Arab Dirhams only. In such a case, clients will generally be able to get refunded for up to 540 days, but the deposit is processed by another company which may cause some complications during the process. In any way, it’s always recommended to avoid unregulated brokers like FutureFX.
As for withdrawals and fees, the minimum is said to be $100 for free, except for certain Credit/Debit transactions that’ll be charged $100- too much. In contrast, most of the regulated brokers impose no or minimal restrictions and process the request free of charge. Even more so, the brokerage fails to specify when and why a $100 fee should be paid by customers.
Now, we need to note that the brokerage doesn’t have T&Cs, Client Agreement or any other legal document revealing the actual trading provisions. That’s strong evidence of a scam as all legit Forex companies are bound by law to provide customers with such documents that also serve as contracts between both parties. Not to mention that the brokerage intentionally hides information about its services. Avoid!
HOW DOES THE SCAM WORK
FutureFX is shady and unregulated, which makes it a suspected scam. That’s why we’ll now reveal how scammers usually work while trying to take people for a ride.
Scammers will try taking you for a ride in several ways, but basically, each scam is a repetitive process that doesn’t differ much from scheme to scheme. When they get hold of your contact numbers, they’ll reach you at once, promising to make you rich if you start investing with them. To gain your confidence and take the guard off, those criminals usually pretend to work for governments, financial authorities, banks, multinational companies etc. Scammers will be confident in what they are saying, and if you don’t recognise the warning signs, you may end up depositing. However, just then, the Forex fraud actually begins. Once they have your money, the cons will distort prices and forge fake reports to make you believe that you are on the winning side, manipulating you to start thinking big and consider more deposits.
Gradually, the fraudsters will ask you to increase the size of your investment and will make up stories claiming that you need to fund your account for whatever reasons. Sooner or later, you’ll get determined to withdraw your money, and then scammers will ask you to deposit again because, according to their words, there are taxes and fees that you should pay. At this point, you’ll probably realise that there is something wrong, and when the scam becomes too apparent, the fraudsters will simply cut the communication and disappear. Later, the whole website will be brought down, replaced with a new one so that the scammers can carry on with their criminal activities.
WHAT TO DO WHEN SCAMMED
It would be best if you first call your bank and ask them for instructions and deactivate your card to avoid getting exposed to additional risks, as the scammers may as well have obtained your details.
Then, call the police, inform the financial authorities, file complaints and don’t forget to spread the word online so that other people can find out about the fraudulent scheme. Still, it’s crucial not to rush trying to reclaim your funds as numerous scams are disguised as chargeback agencies set up to double-scam victims.
Finally, we know it’s an awful experience to get scammed, but please share your story to help protect others!