Beware! Fortexo 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.
There are hundreds of scam companies out there trying to cash on inexperienced traders` vulnerability and lack of knowledge. Such companies might wow you with false claims but usually what they offer seems too good to be true – and it is. The moment you turn your back, scammers will make sure to strip you off of your savings. Fortexo makes no exception. A by-the-book scam broker that follows no regulations, Fortexo is one of those companies you should watch out for. Read the review to find out why.
Fortexo REGULATION AND SAFETY OF FUNDS
On the website, Fortexo goes out of its way to make you believe that they are a trustworthy broker. They claim that they “acknowledge the importance of compliance with all relevant laws, rules, regulations, policies and standards” and are “committed to having strict management discipline and first-class controls in our compliance environment.” For a company that wants you to believe that transparency, honesty and reliability are its core values, Fortexo does not provide a lot in terms of contact information or clear terms. The only way to reach them is by email and they have not provided any phone number or an address.
As for regulation, the only thing we managed to find was on the website was the broker`s registration number in St. Vincent and the Grenadines. The St. Vincent and the Grenadines Financial Services Authority (FSA) has announced many times that they do “not issue any licenses to carry on the business of FOREX Trading or Brokerage or Binary Options Trading nor does the FSA “Regulate, Monitor, Supervise or License” International Business Companies (IBCs) which engage in such activities.” Registration at this location means that the company has an address there, not that it is regulated or in any way held accountable for its actions.
Being an offshore broker does not necessarily mean that the company is a scam. Many legitimate brokers that are licensed in the EU or the UK register a company at locations like St. Vincent and the Grenadines or Vanuatu to offer more competitive conditions to customers. Because of the strict laws imposed in Europe, many brokers that are licensed there do not offer such good terms as their offshore counterparts. The common thing between all these brokers is that they do usually have a license in a country where a respected financial authority is operating. They remain legitimate brokers with offshore registrations but still pretty clear and fair terms. Scammers like Fortexo on the other hand try to fool you into thinking they are regulated while at the same time having some quite shady terms and conditions.
If you are wondering why it is important to work with a licensed broker, there are more than enough reasons. First of all, such brokers have the capital to stay afloat on the financial markets because different local regulatory bodies impose rules on the minimum amount of money a broker must maintain. The number varies between €730 000 for the EU and the UK and $20 million for the US. Secondly, these brokers are obligated to participate in compensation funds. Think of it as a fee every licensed broker has to pay to ensure that if one of these brokers goes bankrupt, clients could get a hefty compensation – €20 000 for Cyprus-regulated brokers and £85 000 for ones in the UK. Scammers on the other hand do not meet such basic requirements and it would be fairly easy for them to run off with your money without any talk of compensation.
Fortexo TRADING SOFTWARE
Fortexo uses the established platform MetaTrader 4. MetaTrader is praised for its multiple useful functions from the access to pre-programmed Expert Advisors that track markets and trade automatically to the option of developing your own trading algorithms. While MT4 is indeed a great option for trading, there are far better brokers out there that use it and we suggest we check them out instead. Here is what a typical MT4 terminal looks like:
Fortexo TRADING CONDITIONS
Fortexo offers five different account types with deposits varying from $1000 to $50 000. When accessing their MT4 terminal, we got the opportunity to deposit $250 instead. This is exactly the type of inconsistency we would expect from a shady scam broker. And besides, an initial deposit of $1000 is far too big considering the fact that legit brokers could set up an account for tiny amounts of money – as little as $1 in some cases.
Fortexo offers leverage of 1:500 which is obscenely high. Permitted leverage varies between 1:30 in the UK and EU, and 1:50 in the US. Regulators impose laws on leverage to protect inexperienced traders – the higher the leverage, the bigger the danger of losing a lot of money. You should consider that when a scam broker tries to tempt you with promises of such huge trading potential.
Fortexo DEPOSIT/WITHDRAWAL METHODS AND FEES
What we found most outrageous when reading Fortexo`s Terms and Conditions, was the clause stating that “When replenishing a trade account with any card … the Client agrees not to lodge a request to the bank to charge back the payment which has already been credited to the trade account or to the provider of a credit/debit bank card, both during and after the use of the Company’s services.” This is probably a condition at all because they know you will be filling for a chargeback as soon as you figure out that you are dealing with scammers.
The mention of bonuses – between 15% and 75% depending on the type of account – does not help Fortexo`s case. No legitimate broker would offer you a bonus as those are strictly forbidden by all reliable regulatory bodies. Fortexo is quick to elaborate in the Terms and Condition that you cannot actually withdraw such bonuses OR the money you gained on account of them. As it would be pretty hard to estimate how much money you made on account of the bonus specifically, this clause is pretty ridiculous.
The deposit and withdrawal methods are a few – Visa, MasterCard, bank transfer and the online payment platform OK PAY. But as this is not a legitimate broker, you should think twice before depositing any money with them.
HOW DOES THE SCAM WORK?
Such scams work in a simple but effective way. You see a banner or an ad on the Internet and get redirected to the scammer’s website where you get all sorts of promises for earning money the fast and easy way. You get led on by fake license numbers, satisfied customer testimonials and grand words. So you provide your contact details – an email and a phone number.
The moment this happens, the first wave of scammers come into play. You get bombarded with phone calls and emails asking you for a deposit. So you send that deposit and with time, you might start to see that you are turning a profit and wonder if you should invest bigger sums. This is in fact a deliberate trick because the scammers are trying to milk you as much as possible before you figure out something is not quite right.
The problem emerges when you try to get access to your money. The scammers might come up with different reasons why that cannot happen like making up more and more additional taxes. They might claim you cannot draw money because of some clause in their Terms and Conditions which is why you should always read those carefully and know what you are agreeing to. Finally, they might ask you to verify your account by sending them your picture next to a personal document or proof of address – something legitimate brokers also do as soon as you open an account with them. But in case you are dealing with frauds, this is done just so they can prove that you are indeed their client. In this way, they can claim that you have invested all your money voluntarily and make it impossible for you to demand a chargeback later on.
WHAT TO DO IF SCAMMED?
You should contact your bank or credit/debit card provider right away and ask for assistance. If you have used a credit/debit card to deposit, you could file for chargeback within 540 days. In case you were using a cryptocurrency, there is virtually no way to get your money back. If you have given scammers access to your computer or your banking details, you should make sure to change any passwords right away. You can also contact authorities and try to inform as many people as possible about the scheme you fell victim to.
Finally, you should never trust any companies that promise you a quick way to get your money back. Such “recovery agents” might ask you for a fee to retrieve your investment and run off as soon as they have received that fee. Often enough, they are the same people that scammed you in the first place.