Beware! Unicorn Forex 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.
Unicorn Forex wants us to believe that it provides customers with supreme trading platforms and helps each one of them make their financial dreams come true. In reality, though, it’s a shady brokerage lying about everything, and we’ll discuss it in the following review.
Unicorn Forex REGULATION AND SAFETY OF FUNDS
Unicorn Forex claims to be registered in the UK and provide segregated trading accounts plus negative balance protection. Well, we can’t really prove if they keep deposits segregated, but we know for sure that the broker has no license, meaning that it can promise everything and deliver absolutely nothing in the end. As seen from the screenshot below, Unicorn Forex is not regulated in Britain, so it falsely states to be a legit broker registered in the UK- very strong evidence of a scam. Let us now explain what the implications are.
First of all, every unlicensed broker like Unicorn Forex is just an anonymous unreliable entity that’s most likely a scam. If it were trustworthy, it would get a license to prove it has business-like intentions only, but the broker prefers to remain anonymous, and we’d better ask ourselves why. Then, the absence of regulation also implies that Unicorn Forex is unaccountable as there is no authority to keep an eye on it, meaning that these people can expose your money at risk or downright steal it, getting away with it.
That’s why it’s always better to stick with companies authorised by trustworthy financial regulators like CySEC (Cyprus) and FCA (Britain). Both mentioned force brokers to keep deposits segregated local banks, thus ensuring that clients won’t lose their capital if something wrong happens. The segregation improves transparency, speeds withdrawals up, makes chargebacks easier and generally helps prevent fraud. What’s more, the European FX companies are covered by deposit insurance funds laid down to compensate clients in case of unforeseen events- CySEC brokers’ clients can claim up to €20 000 per person, while the British guarantees are even up to £85 000.
The bottom line is that you’ll lose your money to fraud if you deposit because Unicorn Forex is an unregulated brokerage fraudulently pretending to be a legit broker. That’s a scam!
Unicorn Forex TRADING SOFTWARE
Unicorn Forex comes with MetaTrader 5, which is a dominant platform packed with diverse, sophisticated tools, including Expert Advisors and a marketplace with more than 10 000 trading apps. Weirdly, though, the MT5 availability actually makes Unicorn Forex much more dangerous because many people may take it for a trustworthy broker only because of the platform. Beware!
The trading costs are also seemingly favourable as the EUR/USD spread is 1.4 pips, which is pretty much in line with the industry standards. In particular, Unicorn Forex’s clients pay $14 per lot, while it typically costs around $10 if you trade with legit brokers. Needless to say, it makes no sense to open accounts with the questionable Unicorn Forex when there are too many reputable brokers that can offer even better trading conditions.
The platform also reveals the risks involved- while opening a virtual money account, we could choose up to 1:200 leverage, and Unicorn Forex states that it can increase the ratio to 1:500 upon requests. Both levels mentioned are risky for most of the traders, but more importantly, the British FCA already imposed a 1:30 leverage cap, so Unicorn Forex single-handedly exposes itself as illegal merely by offering 1:500. That’s a scam!
Unicorn Forex DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is said to be $10 allegedly via Credit/Debit cards, Wire Transfers and Bitcoin, but we can’t validate these claims as we failed to register. But the broker is to blame for it because the sign-up page was broken, as you can see from the screenshot below. That’s a bummer, and we can’t recommend Unicorn Forex to anyone solely due to the technical errors, the other red flags aside.
Information about withdrawals and fees is not available. The broker doesn’t mention anything, and it doesn’t even have legal documentation, which makes us raise another major red flag proving again that Unicorn Forex is just a scam.
HOW DOES THE SCAM WORK
We exposed Unicorn Forex as fraudulent in this review, and now we’ll demonstrate what scammers usually do while taking unfortunate people for a ride.
So, when fraudsters get hold of your contact numbers, you’ll get a call, promised the moon and the stars if you deposit immediately. And to gain trust, those criminals will usually pretend to work for governments, financial authorities, banks, other reputable companies and so on. Scammers will be confident in what they say, so if you don’t see the warning signs, you may end up depositing fascinated by their fake commitment. However, the fraudulent game actually begins after you send the 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 continuously ask you to increase the size of the investment and invent stories to make you deposits over and over again. Sooner or later, though, you’ll get determined to withdraw some money, and then the 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 going on, and when the scam becomes too apparent, the cons will simply stop answering your calls and e-mails.
WHAT TO DO WHEN SCAMMED
It would be best if you first call your bank to inform it and then deactivate your card to avoid any 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 particular scam, too. 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!