Forbschain review – 5 things you should know about forbschain.com

Forbschain review – 5 things you should know about forbschain.com

Rating: 1

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

RECOMMENDED FOREX BROKERS

Forex.com

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

 

Forbschain claims to be a regulated broker offering trading in currencies, indices, stocks, commodities and cryptocurrencies. However, the reality is different – it’s a completely anonymous website designed to scam you out of your money.

At the time of writing this review, the Forbschain’s website lacks basic functionality, primarily the ability to register an account. It is possible that this fraudulent scheme has been abandoned or paused because it has now come to the attention of regulators. But even if it is activated in the future, under no circumstances should you trust your money to the people behind this shady website.

FORBSCHAIN REGULATION AND SAFETY OF FUNDS

Nowhere on the website or in the Terms and Conditions is it made clear which legal entity is behind the Forbschain. That in itself is a big enough red flag – clear information about the name and registration of a company is a must for any legitimate business.

The Forbschain provides a contact address in Luxembourg:In order to operate from Luxembourg, a broker must be licensed by the local regulatory authority, the Commission de Surveillance du Secteur Financier (CSSF). However, we do not find a license for the Forbschain on the CSSF website, but a warning that the Forbschain offers investment services without authorization:

The text of the Forbschain’s Terms and Conditions states that the agreement with the client is subject to the laws of Estonia:

We were unable to find any information about Forbschain on the Estonian Financial Supervision Authority ‘s website, so even if the unnamed firm behind Forbschain is registered in that country, it is not registered as a broker.

If you want to trade on the financial markets using the services of a European broker, you should approach one of the companies licensed and supervised by respected regulatory authorities such as Cyprus Securities and Exchange Commission (CySEC) or Financial Conduct Authority (FCA) in the UK.

As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.

FORBSCHAIN TRADING SOFTWARE

On its website, Forbschain claims to offer a specially designed web trading platform. However, stock images of the industry’s most popular software, MetaTrader 4, are used for illustration.

Because our attempts to register an account with the Forbschain were unsuccessful, we were unable to determine whether any trading platform was available at all. But since Forbschain are undisputed scammers, the availability of trading software would not have made them any more trustworthy.

There are more than enough licensed brokers offering clients the MT4 experience and/or the newer version of the software 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.

FORBSCHAIN TRADING CONDITIONS

There are three types of accounts described – Silver, Gold and Platinum. The minimum deposit is 250 USD. You should note that you can open a micro account with many legitimate brokers for an even lower amount.

The spread listed on the website is up to 1.5 pips, which is comparable to typical industry levels. It is strange, however, that a more favorable spread is listed for the Starter Account than for the Gold Account. A maximum leverage of 1:30 is indicated, which is actually in line with the restrictions imposed by the The European Securities and Markets Authority (ESMA).

The Terms and Conditions mention bonuses and other incentives provided to the customer. This however contradicts the ESMA regulations – brokers are prohibited to lure clients with bonuses and promotions.

Forbschain claims to offer clients transparent procedures and competitive pricing, and that there are no hidden fees or commissions. But there is no reason to believe anything written on the Forbschain website.

FORBSCHAIN DEPOSIT/WITHDRAW METHODS AND FEES

The FAQ section of the website claims that the Forbschain accepts “various deposit and withdrawal options such as multiple electronic payments, multiple credit cards, and bank wires”. It is claimed that we can see a full list of available payment methods if we open a link, but the corresponding link is missing. Due to the inability to create an account we could not confirm what payment methods Forbschain actually uses.

The same FAQ section states that there is no minimum amount for withdrawal. but the Terms and Conditions say otherwise – that the minimum withdrawal amount is 250 USD by bank transfer and 100 USD by other methods. There is also a withdrawal fee of 50 currency units.

And more importantly, “а levy of 10% of the withdrawal amount will be charged to any withdrawal from an account that has not executed more than 200 in turnover:

It doesn’t specify 200 what – it could be 200 lots, or 20 million currency units. Such vague clauses in the terms and conditions are deliberate to block requests to withdraw funds from the account.

In addition to this, there is another minimum volume requirement if the customer has received a bonus. In such a case, the withdrawal requires that the client has traded 25 or 30 times the bonus amount plus the deposit – different values are listed in different places on the website.

HOW DOES THE SCAM WORK

Stories of people getting rich from cryptocurrencies tempt many to try their luck in the financial markets. But you have to be very careful not to fall into the clutches of the many scammers lurking in the online space. These scammers only pose as brokers and lure you in with promises to take on the confusing aspects of investing for you.

If you make contact with such scammers they will first convince you to give them a small initial sum of a few hundred dollars. They may even fool you for a while that your investment is generating incredible profits to convince you to give them a larger amount. But your money won’t really be invested. And when you try to withdraw your supposed profits or even your deposit, you will find that it is impossible.

The scammers may tell you that all your investments have been lost by a sudden change in the market. Or they’ll point you to clauses hidden in their Terms and Conditions that say withdrawing your money is only possible after you meet impossibly high minimum trading volume requirements. And they can simply disappear because these scam sites hide behind fake names and offshore companies that are not subject to rules and regulations.

WHAT TO DO WHEN SCAMMED

If you find yourself a victim of scammers, you should inform the relevant authorities in your country and spread the word online to warn other potential victims. However, the chances of getting your money back are not high.

If you used a credit/debit card for the transactions, you could ask for a chargeback. However, such requests can be disputed if you have provided the fraudsters with proof of identity such as a copy of an ID. Under no circumstances should you trust people on the internet who claim they can recover your money for an upfront fee. These too are certainly scammers.

Top Forex Brokers

BrokerCountryRatingMin. DepositWebsite
US4.99/5$50 Click for a special offerWebsite
UK, Cyprus, Belize4.94/5$5 Click for a special offerWebsite
Australia, Cyprus4.93/5$100 Click for a special offerWebsite
UK, Australia4.85/5$50 Click for a special offerWebsite
Cyprus, SVG4.8/5$100 Click for a special offerWebsite
New Zealand4.65/5$1 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *