Beware! Plunox 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.
Plunox’s Webtrader is presented as offering state-of-the-art technologies that let clients benefit from a new and superior trading experience. It’s also said to be a fast, powerful, and simple-to-use tool that comes with all the features and functionalities found in all conventional trading platforms. Bold claims nonetheless, but Plunox is actually an exceptionally secretive entity that doesn’t reveal anything about itself except for a number in the UK. Plunox is dangerous, and you’ll see why in the following review.
Plunox REGULATION AND SAFETY OF FUNDS
As mentioned, Plunox conceals all the valuable information about itself- no jurisdiction, address, licenses, incorporation number etc. That comes as a red flag because these people apparently don’t want the public to know who they really are and what’s the actual purpose of the broker. Still, we researched but couldn’t find anything about Plunox, so the brokerage is unregulated, meaning that your money will be at risk if you deposit. Now, let’s see what the absence of regulation actually means.
Just a decade ago, very few countries paid any attention to the retail market, but it grew enormous and indeed became too attractive for scammers. Gradually, the Forex brokers were recognised as financial firms as they accept deposits and provide trading services. And currently, the financial authorities in too many countries license and heavily regulate the FX companies, imposing rules and restrictions aimed to guarantee ethical business behaviour and safety for the clients’ funds. In fact, unlicensed brokers like Plunox are already considered illegal and suspected scams.
Think about it. If Plunox were reliable, it would get a license to prove it has business-like intentions and would choose to operate transparently. In contrast, the broker reviewed desperately wants to remain anonymous and unaccountable while carrying out its suspicious business. Simply put, to deposit with Plunox means that you’ll send money to people with hidden identities who bear no responsibility while handling the funds. That doesn’t seem legit, does it?
That’s why you’d better find brokers authorised by financial authorities like CySEC (Cyprus) and FCA (Britain) if you are genuinely interested in trading. Both regulators require account segregation, ensuring that clients won’t lose their funds if a broker gets insolvent as deposits are not commingled with its own money. The segregated accounts improve transparency, speed withdrawals up, make chargebacks easier and generally help prevent fraud. On top of all that, European companies are covered by deposit insurance funds laid down to reimburse clients in case of unforeseen events- CySEC brokers’ clients can get up to €20 000 in compensation, while the British guarantees are even up to £85 000.
Plunox TRADING SOFTWARE
Plunox’s trading software is pretty-looking, actually, but it certainly doesn’t provide all the features the broker claims it can provide. For example, MetaTrader 4 and MetaTrader 5 comes with Expert Advisors making automated trading possible and a marketplace with more than 10 000 apps. Well, the Webtrader we accessed doesn’t provide any such advantages; even more so, its indicators and charting tools are just unreliable. Hence, we can’t recommend Plunox solely because of its substandard platform.
The EUR/USD spread displayed by the platform usually stands at 0.5 pips, meeting the standards. To put it into perspective, clients pay $5 per lot EUR/USD traded, so Plunox isn’t costly, but the absence of regulation massively outshines the seemingly favourable trading conditions. Plunox is still not recommended.
As for leverage, it’s 1:100 for the entry account and can get up to 1:400 if clients deposit more money. Both ratios are risky, but most importantly, the British regulator FCA imposes a 1:30 leverage cap, and we have to ask ourselves why does Plunox put a UK contact number on its website? What it’s actually up to?
Plunox DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $250 allegedly via Credit/Debit cards, but we can’t prove that’s the actual funding method because to do so, we had to go through KYC, and it’s out of the question to share personal details with this shady brokerage.
As for withdrawals, there is not much to discuss as the brokerage fails to deliver comprehensive information about the matter. However, the bonus policy reveals much more than expected, as it heavily affects the withdrawal conditions. Namely, clients should execute a quarter of the bonus in terms of lots in 60 days if they want to withdraw. Or, for a $200 bonus, clients should trade 50 lots (5 million USD in turnover). Too much! And actually, such a clause gives Plunox an excuse to delay or downright reject withdrawal requests. Beware!
HOW DOES THE SCAM WORK
Plunox is a shady unregulated brokerage, and as such, it’s also a suspected scam; therefore, we’ll show you what scammers do while taking people for a ride.
When fraudsters get hold of your contact numbers, you’ll be approached immediately, promised the moon and the stars. Also, to gain trust, those criminals usually pretend to work for governments, financial authorities, banks, reputable companies etc. Scammers will be confident in what they are saying, and if you don’t see the warning signs, you may end up depositing. However, the fraudulent process actually begins after you send the scammers money. Once they have the desired deposit, the cons will distort prices and forge fake reports to make you believe you are on the winning side, manipulating you to start thinking big and consider more deposits.
Then, the fraudsters will gradually ask you to increase the size of the investment and invent stories to make you deposits again and again. Sooner or later, though, you’ll get determined to withdraw some 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 something wrong is happening, 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 to inform it 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!