Binacryptofx review – 5 things you should know about binacryptofx.com

Binacryptofx review – 5 things you should know about binacryptofx.com

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Beware! Binacryptofx is an offshore broker! Your investment may be at risk.

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Binacryptofx claims to be a multi-award winning forex and CFDs broker, operating in some of the leading global financial hubs. Careful inspection, however, reveals that this is not a real broker, but a shameless clone of one. Binacryptofx is a scam site and should be avoided.

BINACRYPTOFX REGULATION AND SAFETY OF FUNDS

Binacryptofx claims to be a trade name of TopFX Ltd, a broker registered in Cyprus and licensed by the Cyprus Securities and Exchange Commission (CySEC):

There is even a link to the license of CySEC, but it immediately shows that Binacryptofx is not among the brands and domains used by this company:

But identity theft doesn’t end there. The Binacryptofx also uses the TopFX’s Seychelles registration details, but claims they actually apply to Australia. This claim is unconvincing even at first glance because they left the flag and the name of Seychelles:

Moreover, Australia’s financial regulator is called the Australian Securities and Exchanges Commission (ASIC), not the “Financial Services Authority of Australia” as Binacryptofx claims.

A check of the Seychelles Financial Services Authority (FSA) registry confirms that TopFX uses domains for its offshore operations that have nothing to do with Binacryptofx:

But Binacryptofx’s audacity doesn’t stop there. Links to the Terms of Business, Privacy Policy and other legal documentation lead directly to one of the legal broker’s websites, the fondex.com.

This isn’t the first brazen TopFX/Fondex  clone we’ve encountered. In fact, there are a whole string of such websites, behind which, in all likelihood, are the same scammers – MegaFXTrading, CoolCrypto, Bitswapfx and probably more.

When you start trading in the financial markets, you have to be very careful not to fall for such scammers. You should carefully verify if you are really dealing with  licensed brokers that are truly regulated by institutions such as CySEC.

There are many advantages to working with such brokers because they must comply with all the requirements of the he European Securities and Markets Authority (ЕSМА). They must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. Whenever clients deposit money in their trading accounts, it is kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy.

All brokers licensed in Cyprus are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency. Cypriot forex brokers are required to report their clients’ transactions on a regular basis. This requirement is designed to improve investor protection and promote market integrity and transparency.

BINACRYPTOFX TRADING SOFTWARE

Binacryptofx claims to offer trading software called cTrader, with versions for desktop, browser and mobile devices.

However, the links to download the software only reload the index page of the website. After creating an account and logging into the client portal, it becomes apparent that the Binacryptofx do not have any kind of trading platform – instead, there is only a simple chart of current bitcoin prices taken from the TradingView website:

Legitimate brokers typically offer clients the most widely used platforms in the industry, MetaTrader 4 (MT4) and (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

BINACRYPTOFX TRADING CONDITIONS

One of the ways in which the Binacryptofx website differs from the website of the legitimate broker it imitates is the trading conditions listed. Binacryptofx claims to offer only one account with “raw” spreads of 0.0 pip. A “dynamic commission starting from 2.5” per side per standard lot. But it is not specified 2.5 what. such ambiguities in wording are typical of fraudulent schemes. Since the Terms and Conditions that the website links to are actually those of the legitimate broker, not the scammers, the client has no idea what terms they are agreeing to when they create an account.

The Binacryptofx  website also mentions leverage up to 1:500:

This exceeds many times the levels allowed in the jurisdictions in which Binacryptofx claims to operate. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. The CySec, like all EU regulators, limits leverage to 30:1 for trading in major currency pairs and even lower levels for more volatile assets. The same rules currently apply to Australia.

Binacryptofx also claims to offer a deposit bonus – a practice that is also prohibited for brokers operating in the EU or Australia.

BINACRYPTOFX DEPOSIT/WITHDRAW METHODS AND FEES

In the deposit menu, the only options available are cryptocurrencies:

Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or FasaPay.

HOW DOES THE SCAM WORK

The online space is full of ads promising easy money. They sound too good to be true, because they are not – they are outright scams. Many of these fraudsters pose as brokers and take advantage of the general public’s ignorance of the capital markets.

If you give your contacts to one of these scammers, they will start convincing you that they will multiply your money, with nothing required of you but to sit back and take profits. If you agree to an initial investment of a few hundred dollars, they will start persuading you to invest more and more.

But you will never get the promised profits or the money you deposited. Scammers have many ways to ensure this. First of all, they are hidden behind offshore companies, not subject to controls and regulations. For the money transfers they use shady payment platforms, direct bank transfers or cryptocurrencies that make recovering money very difficult and often impossible. The terms and conditions are always riddled with traps that also block your ability to withdraw your money, such as prohibitively high minimum trading volume requirements or withdrawal fees amounting to tens of percentages of your funds.

WHAT TO DO WHEN SCAMMED

Recovering money you have given to fraudsters is difficult and often impossible. Fraudsters always want you to provide them with documents such as a copy of your ID and proof of address so that they can claim that it is a legitimate transaction, agreed voluntarily between both parties. If the transaction is made by credit or debit card, you can request a cashback and hope for the best, but transactions via wire transfer or cryptocurrencies are not refundable.  It is important not to trust online offers from people who offer to recover your money in exchange for an upfront payment, because this is also a well-known scam.

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