Beware! Finansys FX 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.
Finansys FX is obviously not anywhere close to legitimate – the broker’s whole presentation is extremely plain, and the website looks like something that was created at the dawn of the Internet. This is not the biggest problem with this broker – they are an unregulated offshore company that offers unclear conditions and would not even allow us to set up an account right now. Such brokers always turn out to be scammers sooner or later – prevention is key here so the best thing you could do is stay away from the broker altogether.
Finansys FX REGULATION AND SAFETY OF FUNDS
Finansys FX is based in the Marshall Islands – which immediately makes us less willing to trust the broker.
This is a country that does not even have a financial regulator, let alone one that licenses forex brokers. Moreover, setting up a company there is very easy – you can do it over the Internet and would not even have to visit the country. Offshore companies are also not subject to any sort of transaction reporting requirements – money transferred to such locations does not leave a paper trail which enables all sorts of illegal activities such as tax evasion, money laundering, and all other sorts of fraud. We have the perfect setup for a scam here – it is no wonder that the Marshall Islands is a favorite location for scam brokers.
Our advice would be to turn to a licensed UK or EU broker instead. Such brokers maintain a high standard of service and conduct business in a fair and transparent manner because they are obligated to. Strict authorities monitor the activities of all licensed brokers and require regular reports on their activities. There are minimum operational capital requirements – this way, the broker proves its financial stability and long-term approach. The sum is at least €730 000 but potentially higher for brokers with many clients. Client money is always kept in segregated bank accounts – this speeds up withdrawals, and proves that the broker would not be able to reinvest your funds elsewhere, knowingly or unknowingly. All UK and EU brokers also participate in compensation schemes – if such a broker goes bankrupt, each of their clients could receive a compensation of up to £85 000 in the UK and €20 000 in the EU.
Finansys FX TRADING SOFTWARE
Finansys FX offers a web-based trading platform – or at least this is what they claim. The website malfunctioned when we tried to open an account and as a result, we could not test out the broker’s platform, or see what sort of trading conditions it actually offers.
At any rate, most such web platforms are far cheaper and inferior in every possible way to advanced software like MetaTrader 4 and MetaTrader 5 – these are the currently most popular platforms in the industry, beloved by many traders. Both versions of MT offer a variety of technical indicators, tools like VPSs, Strategy Testers, and Expert Advisors that trade in automatically as well as the possibility to create your own trading bots and indicators, the chance to set signals for prices going up or down, a market for add-ons, etc. Many great brokers offer one or both versions of the software – trade with one of them instead.
Finansys FX TRADING CONDITIONS
Without access to an account, we would have to believe the information Finansys FX has provided on the website when it comes to trading conditions. The Terms and Conditions the broker offered were only a few paragraphs long and did not contain any essential information about commissions and additional non-trading fees, or a Bonus Policy (although the broker does offer bonuses).
Be extremely careful when such unreliable brokers mention the word “bonus” – for most of them, bonuses are just a means of adding clauses to the Terms and Conditions that would later prevent clients from withdrawing their money, including profits and deposits. That is why bonuses have long been banned in multiple jurisdictions. There is nothing wrong with receiving bonus money – but when such promotions are offered by scammers there are certain strings attached.
The minimum deposit Finansys FX asks for is $250 – which is not too bad but far better brokers would be willing to open an account for far less, even for as little as $5 sometimes.
The maximum leverage this broker claims to grant access to is 1:1000 on forex majors – and although offshore brokers can freely offer any leverage they want, trading with such high ratios could turn out to be very dangerous. Trading with high leverage could lead to huge profits indeed – but it could also result in much bigger losses. Always be careful with your settings to avoid unfortunate turns of events.
Finansys FX DEPOSIT/WITHDRAWAL METHODS AND FEES
Without an account, we could not make a deposit with Finansys FX ourselves. We saw the logos of Visa, MasterCard, Bitcoin, and Litecoin on the website so we can only suppose that these are some possible deposit methods. In reality, such scammers would usually only accept cryptocurrency deposits – since such payments are completely irreversible. In contrast to that, Visa and MasterCard both allow chargebacks within 540 days of the transaction – contact your card issuer to ask for assistance in getting such a chargeback.
HOW DOES THE SCAM WORK?
In this day and age, such scams are far more frequent than you would think. With the rising number of people willing to invest in the forex market, the number of scam brokers has increased drastically. It is important to learn how such scams work in order to spot them and avoid them. Scammers are rarely very imaginative so you would not find a lot of deviations from the following scheme.
In your search for a broker to start trading with, you stumble upon one who promises particularly great conditions. Or maybe you were not even looking for a broker but have heard stories about people getting rich by trading and are tempted to see what all the fuss is about. This particular broker promises fast effortless profits, enormous promotions, and an all-around great trading environment. So you fall for it and provide the scammers with your email and phone number.
The moment you do that, you will start getting calls from the broker asking you to invest – the scammers will be persistent and promise you all sorts of tempting profits. If you give in and deposit, you will be asked for increasingly bigger amounts – and you will gladly deposit because, at this point, you would probably be seeing profits.
The problems will start once you try to withdraw those amazing profits – all sorts of additional fees and clauses in the Terms and Conditions will prevent you from doing so, or result in huge losses of capital. At some point, you will understand that you are being scammed – but the scammers will be long-gone by then.
WHAT TO DO WHEN SCAMMED?
Prevention is key in such situations. Make sure that you choose a reliable brokerage with a solid reputation, and always check the registers of the responsible authorities to make sure that all of the broker’s regulatory claims are true. Do not trust offers that are too good to be true.
If you have, however, already deposited with a scam broker, make sure to look up chargeback options as soon as possible. Both Visa and MasterCard, for example, allow chargebacks within 540 days of the transaction. Getting your money back if you have deposited via cryptocurrency or bank transfer, would not be possible. You should make sure to change all banking passwords, and remove any software the scammers had you install from your computer. They might have you believe that you should install some sort of remote access software to help you trading, or with technical issues but that is a lie – they just want access to your banking accounts.
Make sure to notify authorities about the scam and share your story with as many people as possible – this would prevent such scams from spreading.
Finally, do not trust anyone – usually calling themselves a “recovery agent” – who offers to retrieve your money for a fee. This is just another type of scam.