Beware! ApexSignal 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.
ApexSignal claims to be an internationally regulated broker, who is “totally different from its competitors trying to achieve something special starting with the website design, trading platform, and extremely functional”. The truth is literally the opposite – this is an anonymous, unlicensed and extremely low quality website that lacks even basic functionality. We are dealing with a typical fraudulent scheme targeting people with no experience in financial markets.
APEXSIGNAL REGULATION AND SAFETY OF FUNDS
There is no way to know who is behind ApexSignal – nowhere is the name of the owning company mentioned, there is no legal documentation such as Terms and Conditions or Customer Agreement. Even the supposed US business license we see on the website doesn’t name a legal entity, just the brand.
This license is of course fake. First of all, such a “business license” is not sufficient for a company to operate as a broker in the United States. The broker must be registered with the Commodity Futures Trading Commission (CFTC) and to be a member of the National Futures Association (NFA). But there is no “ApexSignal” in NFA’s database:
In the contact menu we see an incomplete address, which is presumably in the United Kingdom, another highly regulated jurisdiction. The same partial address is used by many other identical scam websites, such as Kionfxtrade.
As might be expected, ApexSignal is not listed among the companies authorized to provide brokerage services by the UK Financial Conduct Authority (FCA).
Before you start investing money in financial instruments, you should make sure that you are working with a licensed broker. Depending on your location, it is advisable to choose a company that is regulated by an institution such as CFTC, FCA, Australian Securities and Exchanges Commission (ASIC), or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
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.
APEXSIGNAL TRADING SOFTWARE
While the new account registration feature works, you can’t log in until your account is approved. There is a “Live Trading” section on the website that is empty. The other websites identical to ApexSignal that we have reviewed also do not have trading software. This clearly shows that this is a scam aimed at people with no knowledge of the forex trade.
Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (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.
APEXSIGNAL TRADING CONDITIONS
ApexSignal claims to offer trading in all major asset classes. As we have seen, ApexSignal has neither the license nor the software necessary for this to be true. But the website also does not provide comprehensive information about the terms of this trade. However, the sketchy information available provides further evidence that this is not a licensed broker operating in the US or UK.
Leverage up to 1:500 can be selected when registering an account. On the website, we also see a table, according to which the leverage for forex reaches 1:500 and for cryptocurrencies – 1:100.
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. In the EU, UK and Australia, the maximum allowed leverage is 1:30 for trading major currency pairs. Leverage for trading cryptocurrencies is limited to just 1:2 in the EU, and in the UK crypto derivatives trading is prohibited. In the US, the maximum leverage allowed is 1:50 for forex and 1:5 for cryptocurrencies. ApexSignal also claims to offer referral bonuses, which is prohibited to regulated brokers.
We see two different statements on the size of the minimum deposit – 1000 GBP or 500 USD. In both cases this is an insultingly high level. Most licensed brokers allow setting up an account with amounts of 100-200 USD, and often less.
APEXSIGNAL DEPOSIT/WITHDRAW METHODS AND FEES
The homepage claims that ApexSignal works with over 20 payment systems, but the FAQ section specifies that only Bitcoin and Ethereum wallets are used for deposits and withdrawals. Cryptocurrencies are the payment method of choice for financial fraudsters because they allow for anonymity while not allowing for refunds.
The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet withdrawal terms.
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.