Beware! ProsperityFX 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.
ProsperityFX is a broker that offers good conditions and relatively low prices, a great trading platform, and access to a variety of markets. However, this broker is far from problem-free – they are unlicensed and based in an offshore location, and favors crypto payments. ProsperityFX might just be an offshore broker – or a dangerous scam. And since the lines between the two are usually thin, we would advise you to stay away from the broker unless they are able to prove with absolute certainty that they are reliable at some point.
ProsperityFX REGULATION AND SAFETY OF FUNDS
ProsperityFX is a broker who looks far more decent than most scammers these days. It might even turn out that they are not running a scam. However, we could not ignore the fact that the broker is unregulated and based in a popular scammer haven – St. Vincent and the Grenadines. The financial authority of this country only monitors the banking sector and does not regulate forex brokers or issue licenses – which is the reason behind the huge number of St. Vincent and the Grenadines-based scams. Moreover, money transferred to such offshore locations basically becomes untraceable since there are no transaction reporting requirements – which means you would never be able to track down your money if you have been scammed.
Not all brokers based in this country are scammers – some are branches of big, established brokerages regulated elsewhere. If this is the case, the broker has probably opened its offshore office in order to offer more attractive terms to clients. But ProsperityFX is an offshore broker by default – they do not have any sort of license, and are not supervised by any financial authority which means that you would have no guarantees that they will be conducting business in a fair and transparent manner.
If you choose to work with a broker licensed in the UK, the EU, or Australia instead, you will be entitled to countless protections. Such brokers have to meet many requirements in order to obtain a license and are under the supervision of some of the strictest authorities in the world. Licensed brokers have to maintain a certain minimum capital of €730 000 for brokers in the UK and the EU, and A$1 million – this money proves the broker’s financial stability and long-term approach. Client money must be kept separated from the broker’s own funds in segregated bank accounts – this measure keeps your investments safe in case of unfortunate events and proves the broker would not be able to use your money for its own financial operations. Negative balance protection is a must – you can never lose more money than you have in your account as a retail client. Additionally, UK and EU brokers are obligated to participate in compensation schemes – which means that if a licensed broker goes bankrupt, each of their clients would be entitled to a compensation of up to £85 000 in the UK and €20 000 in the EU. Compensation funds do not exist in Australia – the biggest difference between jurisdictions.
Choosing a licensed broker you are sure is essential – there is no other way to be certain that you will be treated in accordance with all laws.
ProsperityFX TRADING SOFTWARE
ProsperityFX offers access to the renowned trading platform MetaTrader 4:
This powerful software does not need an introduction and is a good choice for beginners and professionals alike. Its intuitive, user-friendly interface makes it quite accessible while the many features it offers are bound to satisfy every trader. You would be getting access not only to a full charting and analysis package but also to some additional tools such as Expert Advisors, VPSs, a Strategy Tester, signals (and the possibility to subscribe to signals set by others), a market for add-ons, and much more. However, there are more than enough licensed brokers who can offer not only the platform but also the safety of a solid license – work with one of them instead.
ProsperityFX TRADING CONDITIONS
The trading conditions ProsperityFX offers are actually quite decent – however, since the broker is not very reliable we would advise you to take everything they say with a grain of salt.
Let’s take a look at the condition this broker supposedly offers. You could deposit as little as $10 but the prices for an account start from $25 for the Micro account. The price of the Standard account is $50 – which is quite affordable and in line with the prices of most low-cost brokers.
However, this is far from the only broker who can offer you such competitive prices.
The spreads were, as promised, around 0.8 pips on EURUSD on the Standard account. This is actually great but consider the fact that the broker charges an additional commission of $7 per lot – which adds a bit to the spread. The price of a pip per lot is usually $10 which means this adds an additional 0.7 points. A spread of around 1.5 pips – the end result – is quite standard and could still result in decent profits – however, established brokers like XM or OctaFX can offer numbers even under 1 pip.
The maximum leverage ProsperityFX grants access to is 1:500 on forex majors. And while offshore brokers are free to offer any leverage they would like, we always advise caution when it comes to leverage – trading with such high rates could indeed lead to decent profits but it could also lead to much bigger losses, especially for inexperienced new traders.
ProsperityFX DEPOSIT/WITHDRAWAL METHODS AND FEES
ProsperityFX supposedly accepts deposits made via a number of cryptocurrencies instead – Bitcoin, Ethereum, Litecoin, Dogecoin, and Ripple. Credit and debit card payments are also possible but only through Bitcoin This is a red flag – scammers often prefer you to deposit in crypto since such payments are both irreversible, and anonymous. You would never be able to get a chargeback on crypto payments. That is why we would advise you to stick to more conventional payment methods like credit or debit card unless you are absolutely sure you can trust the broker.
ProsperityFX charges some common fees – the problem is that they reserve the right to change those fees without prior notice. This is not a common practice – legitimate brokers always inform their clients about changes in the Terms and Conditions.
HOW DOES THE SCAM WORK?
Scam brokers are becoming more and more of a constant feature in the world of financial frauds – which means that more and more people are losing their hard-earned money by depositing it with such unreliable companies. We advise readers to always turn to licensed enterprises and thoroughly check registers. Let’s take a look at how such scams usually work and how you can protect yourself from them.
You stumble upon a broker who seems to offer fast, effortless, sometimes guaranteed profits – and decide that there is no harm in opening an account with it to see what it has to offer. After all, you have heard stories of people earning a decent income by trading – why not be one of them. You would not have to deposit, not immediately. But the moment you provide the broker with your phone or email, they would not leave you alone before you do so. You will be promised all sorts of great things – after all, these are people who scam people for a living and who are well-accustomed to convincing. The initial deposit might not be big – but you would be asked for more and more money with time. In some cases, you might even see that money grow – but that is nothing more than a trick that usually involves some sort of platform manipulation.
A time will come though when you will want to withdraw money – and you would not be allowed to do so. The broker will claim that you have not fulfilled a clause in the Terms and Conditions, that there are additional taxes, and that you are obligated to wait a certain time before withdrawing. At this point, you will understand that you are being scammed – but the broker will disappear as soon as they discover they can no longer milk you.
WHAT TO DO WHEN SCAMMED?
The first thing you should do is change all your banking passwords, and uninstall any remote access software (if you have installed any). After all, you would not want the scammers to have any sort of access to your bank account so they could drain it.
Do not trust any so-called “recovery agencies” who ask you to pay a fee so they could track down the broker and retrieve your money – this is a whole other type of scam targeting desperate people. What you should do instead is inform the actual financial authorities, and look into chargeback options – both Visa and MasterCard, for example, battle scams by allowing chargebacks within 540 days of the transaction.
One final thing – it is important to share your story with as many people as possible. The more people know about this sort of scam, the fewer people will fall victim to it. Unfortunately, such stories rarely get a happy ending – which is why prevention is key.