YUM Forex review – 5 things you should know about yum-forex.com

YUM Forex review – 5 things you should know about yum-forex.com

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

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YUM Forex claims to be a leading independent Forex and CFD broker operating in some of the most highly regulated jurisdictions in the world. However, fact checking shows that YUM Forex is not authorized to perform the services it claims to offer. By all appearances, this is another bogus broker aiming to scam inexperienced people out of their money.

YUM FOREX REGULATION AND SAFETY OF FUNDS

YUM Forex is owned and operated by YUM Group Global Limited. You can’t even tell from the main page of the website where this company is based. The “About Us” section states that this company was founded in the United Kingdom. The registration details of the trading platform used by YUM Forex also list a UK address. However, there is no authorised company with this name in the database of the UK regulator, the Financial Conduct Authority (FCA):

But YUM Forex claims it is licensed not in the UK but in the US. To operate as a forex broker in the United States, a company must be registered as a futures commission merchant and foreign exchange dealer with the Commodity Futures Trading Commission (CFTC) and to be a member of the National Futures Association (NFA).

The NFA register shows that although there is a company called YUM Group Global Limited it is not a member of the NFA and is not subject to NFA oversight. This company is only registered with exemptions for commodity pool operator and commodity trading advisor, which prevents it from providing financial services in the U.S. This is a tactic often used by financial fraudsters to simulate credibility.

When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.

You should only trust legitimate brokers operating in one of the established financial centres like the UK, EU, USA or Australia. There, the activities of brokers are controlled by powerful regulatory bodies such as UK’s Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Commodity Futures Trading Commission (CFTC) in US or Australian Securities and Exchanges Commission (ASIC). Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.

In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.

YUM FOREX TRADING SOFTWARE

Although it is a fake broker, YUM Forex uses a real trading platform – MetaTrader 4 (MT4). The presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers have trading software to fool their victims that their money is being invested.

Registration with YUM Forex  requires an invitation code and attaching a copy of ID – atypical requirements, especially given that YUM Forex themselves are effectively anonymous. We were therefore only able to test the functionality of the platform with a demo account:

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.

YUM FOREX TRADING CONDITIONS

Legitimate brokers offer different types of trading accounts tailored to the needs of clients with different investment preferences and intentions. On the websites of genuine brokers, one can also find detailed information about the trading conditions – order execution method, tradable instruments available, minimum deposit, spread, commissions, etc. Such information is not available on the YUM Forex  website.

The website mentions only one trading parameter – a leverage of 1:100. This in itself is evidence that the YUM Forex  could not be a legitimate broker operating in the United Kingdom or the United States. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets. In the US, the maximum limit is slightly higher at 1:50.

YUM Forex  also lacks proper legal documentation. Instead of Terms and Conditions or a Customer Agreement on the website we find brief “trading rules”. These specify only the right of YUM Forex to unilaterally judge client trades and transactions as “abnormal”. In such cases the company will have the right to deduct the profit and commission generated by the abnormal transaction of the account, and detain 5% to 30% of the principal as the abnormal transaction handling fee. This is not a standard practice at all, but a typical fraudulent ploy to ensure that you cannot get your money back.

YUM FOREX DEPOSIT/WITHDRAW METHODS AND FEES

No payment methods are specified on the YUM Forex website. As mentioned, account registration is not possible without a code, which scammers probably provide when luring their victims. Therefore, we are unable to ascertain what payment methods YUM Forex is using.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller. Fraudsters mostly use cryptocurrencies because these transactions do not allow refunds.

HOW DOES THE SCAM WORK

There are many scammers lurking on the internet, luring people with promises of easy riches. These scammers arouse the curiosity of their potential victims through online ads, videos, comments and other content on social networks. Often the initial hook is get-rich-quick tips that link to websites and mobile apps of fake brokers or fake investment firms. After clicking on the ad or downloading the mobile app and having given their contact details, the victims are usually swiftly called by fraudsters presenting a concrete “investment proposal”.

These scammers are very aggressive and often even try to persuade the victims to allow them to take control of their computer remotely in order to make certain money transfers. The fraudsters also try to convince the victims to invest increasingly higher amounts of money. They also make promises of repayment in exchange for one last money transfer. This is a technique to collect even more money from their victims. When you try to withdraw your money, your request is blocked by hidden conditions and huge fees. Fraudsters can also simply disappear because they hide behind fake names and offshore companies.

WHAT TO DO WHEN SCAMMED

First of all, it is important that you do not try to recover your money by trusting people who claim to offer such a service for an upfront fee. These are also 100% scammers. If you used a credit or debit card for the transactions to the scammers, you could ask for a chargeback. But such a claim could be disputed if you provided the scammers with a copy of an ID or proof of address. Scammers usually get their victims to use cryptocurrencies that don’t allow refunds. In any case, it is advisable to inform the relevant financial authorities in your country and spread the word online to warn others not to fall into the same trap.

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5 Comments

  1. I realized that I was deceived yesterday.
    Unfortunately, I lost nearly 900,000 yen.
    I pray that there will be no more victims.
    ——————
    昨日騙されていると全て悟りました。
    残念ながら、90万円近く失いました。
    更なる被害者が出ない事を祈ります。

    1. what happened with u

  2. did you deceived in yum-forex.com ? how this happend

  3. If someone contact you from those numbers: 852-9159-9987, 424-786-0478 and 719-289-7624, dont believe them and immediately block them, they are scammers and they want you transfer money this scam forex site.

  4. Can someone tell me if this company is a scam.

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