Varietyfx review – 5 things you should know about varietyfx.net

Varietyfx review – 5 things you should know about varietyfx.net

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

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If the Varietyfx website is to be believed, this is a multi-regulated and multi-award winning forex broker. But the Varietyfx  is actually a vivid warning that we should not believe everything we see on the internet. Closer inspection reveals that this is a typical scam website. If the Varietyfx is distinguished by anything at all, it is in the attempt to confuse its potential victims with the sheer volume of false and misleading information on its website.

VARIETYFX REGULATION AND SAFETY OF FUNDS

The first red flag that tells us it would be a mistake to trust the Varietyfx with our money is that it is not clear who is behind the website. The reason is not that there is no information, but that there are too many contradictory claims about who is the owner of this alleged broker and where he is located.

On the home page we see the statement that the website is managed by the Varietyfx Corp , a company authorised by the Securities Commission of the Bahamas. It is claimed that Varietyfx Corp is a subsidiary of Varietyfx PLC, which in turn is authorised and regulated by the Financial Conduct Authority (FCA) in the UK:

The contact sub-section states that Varietyfx has offices in Switzerland and the United Kingdom:

But in the section “About us” we find a third version – that Varietyfxhas a license from Australian Security and Investment Commission (ASIC) under the name Varietyfx Australia Pty Ltd, and from Vanuatu Financial Services Commission under the name Trademax Global Limited. The name of the latter company is familiar to us from the review of another fake broker, UltimatePristineFx.

On top of all that, the website lists an address in another offshore zone, Saint Vincent and the Grenadines (SVG):

A fact check shows that all these claims are lies. Varietyfx is neither licensed by the aforementioned leading financial regulators nor registered under that name in the listed offshore areas where there are no broker regulations in place. In fact, the UK FCA database contains an explicit warning that Varietyfx is a fraudulent website and is not authorized to offer financial services and products:

Before investing money in the financial markets, make sure that the broker you choose is indeed licensed by an institution such as FCA, 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.

VARIETYFX TRADING SOFTWARE

Varietyfx claims to offer a wide selection of trading software – its proprietary platform as well as the industry’s most popular platforms, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). But like the claim of multiple licenses, this does not hold true.

After registering an account we find no trace of MT4 and MT5, nor of the advanced Varietyfx platform. Instead, in the “trading room” we see only a poor imitation of trading software.

This imitation consists of a simple chart with current prices, taken for free from the data provider TradingView, and a non-functioning buy and sell menu. This menu lacks the options to place orders needed for forex trading. Instead, it appears to be designed for binary options trading, which is prohibited in all regulated jurisdictions in which Varietyfx claims to be licensed. When attempting to use the menu, a warning pops up stating that the “feature is under maintenance”.

You could always use the services of a regulated broker, the vast majority of which offer clients MT5 and MT4. This will enable you to use the advanced features of these platforms without fear of being scammed. These platforms are preferred by the majority of brokers around the world because of their powerful automated trading capabilities, including Expert Advisor bots and customized scripts for backtesting trading strategies.

VARIETYFX TRADING CONDITIONS

Since Varietyfx has neither software nor a license for trading, it is of little significance that it does not provide any information regarding the terms of trade. This is just further proof that you are dealing with a scam.

The websites of legitimate brokers offer detailed information about the trading conditions they offer. Brokers usually offer different types of accounts tailored to the needs of traders with different experience and capital. Many leading companies in the industry allow you to start trading with a very low initial deposit, often under 100 USD.

VARIETYFX DEPOSIT/WITHDRAW METHODS AND FEES

We weren’t surprised to find only one payment method on the Varietyfx deposit menu – cryptocurrencies. Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like Skrill, PayPal, Neteller or Sofort.

Varietyfx does not provide access to Terms and Conditions or other legal documentation. This means you don’t know who you are dealing with and what the terms are. Scammers use hidden fees and unfeasible terms to ensure you can’t get back the money you made the mistake of giving them.

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.

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