Beware! Proloxy.com 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.
Proloxy.com’s website is smooth and understandably attractive, but there is a hidden reason to the broker’s existence that we have revealed in this review. Unfortunately, the website serves only as a façade to what we are about to reveal. Read on to find out the true meaning behind Proloxy.com.
The registration was easy, and we accessed a web trader relatively fast. There we found out that the available trading assets are commodities, cryptocurrencies, forex currency pairs, indices, and shares. The EUR/USD spread is fixed at around 1 pip, while the leverage is 1:200. Not to lie, these are decent trading conditions. But it’s all a waste, unfortunately.
PROLOXY.COM REGULATION AND SAFETY OF FUNDS
The legal documents claim at one point that users are required to adhere to their local laws in order to access the website of Proloxy.com. However, that makes no sense because it is the broker tat must adhere to local regulations. The user by defulat adheres to his or her local laws.
Returning to the legal docs, they state that the the broker complies with the European Union (EU) and European Economic Area (EEA) laws on data protection and privacy under the General Data Protection (GDPR) Regulation (EU) 2016/679. The only thing that this tells us is that Proloxy.com thinks of itself as a EU broker, meaning that it must hold a EU-based license. But no matter how many times we looked into it, the firm never came out on the search list of regulators in the European Union.
The last section of the legal documents take a drastic turn and reveals that, actually, Proloxy.com is a Saint Vincent and the Grenadines-based broker that abides by all local laws. That is to say that it goes by a set of very permissive laws, and no regulatory rules since the nation does not have an FX license issuer. So, even if true, this claim really doe snot change the fact that Proloxy.com is unregulated and a risk to all clinets!
Always aim to invest in regulated brokers, and not illicit ones. It may not be easy to distinguish them from one another, but there is a way to make the process much easier. The crucial point is to check the legitimacy of the broker’s regulatory or registration claim. If nothing’s there, you close the site and move on to any European, UK, US, or Australian broker, or any other with a legal status. Being regulated is not just encompassed in a simple permission to offer FX trading service. It comes with a ton of responsibilities, most of which are concerned with the way the broker treats its users. Misconduct on the side of the broker either results in financial penalties or in total closures of the brokerage website in question.
PROLOXY.COM TRADING SOFTARE
The broker advertises the MT, but instead we are granted the following software. The company directly lies to its users!
There is no denying that this is a pretty good web trader. We always try to look on these thinks as objectively as we can, and this software really is not that bad. As far as terminals used by unlicensed entities go, this one can pretty much be put in the top three. There are useful features, chart customization options, and other small details that can help clients out. A good starting point for any novice user, but not to be used here with this shady broker.
PROLOXY.COM DEPOSIT/WITHDRAW METHODS AND FEES
From the client portal it is revealed that the payment methods are credit cards and debit cards. There are also three crypto wallets in the payment area that don’t serve as payment methods, but are just there should the user decide to send money to them. We find no reason why the client would want to do that.
There was no way to get a minimum deposit from the user area. The website claims that the minimum deposit is $10 000, which seems ridiculous to us and not at all a common requirement.
The withdrawal area reveals absolutely no withdrawal information. The user sends a literal request to the broker asking it for approval to withdraw. The client must state a reason and amount. And there is no guarantee that the user will be able to withdraw after that.
As for the withdrawal policy, it states that the minimum amount for cards is $100, and for bank is $250. It takes 10 days to process a request, and there are supposedly no payment fees.
After all we revealed, it’s safe to say that Proloxy.com is not worth the risk.
HOW DOES THE SCAM WORK
Scammers use a couple of tricks that make up a big scheme that has not changed since its inception, meaning that it’s fairly easy to avoid it.
The fraud starts when the broker contacts the user, who has unknowingly provided his or her contact details in the past through some seemingly innocent channel.
Communicating with the broker might seem like a pleasant experience as the other side sweettalks its way to your wallet. The reason why most frauds target non-trading audiences is because they are more susceptible to this kind of verbal manipulation. Otherwise, users might start receiving emails with unbelievable good investment deals, none of which are actually lucrative.
The tipping point is the first deposit that scammers are so eager to sell. After this first investment, the user has fallen into the clutches of the fraudster. Either he will be pushed to invest more by false promises of further “profit”, or the client will want to get back his initial deposit, a request to which he is told that further investments are needed.
On whichever side of the coin you the user is, she will most likely never be able to withdrawal. All withdrawal requests will be denied for a plethora of equally ludicrous reasons.
WHAT TO DO IF SCAMMED
Once scammed, your safest bet is a chargeback. Contact your credit or debit card company and move on from there. It’s good to know that MasterCard and VISA have a chargeback period of 540 days.
Bank investments are more difficult to reimburse but not impossible. Most banks have some sort of strategy for dealing with lost capital, so the client’s best bet is to contact her corresponding bank and proceed from there according to the bank’s plan of action. We also recommend that users change their bank account username and password if defrauded.
As for crypto investments, it is unfortunate to say but there is no real way of getting lost money back through these channels. All crypto investments are untraceable, and there is no telling where the investor’s funds will end up.
Don’t trust recovery agents or agencies. These are either independent scammer looking to charge users “service fees”, or extensions of illicit broker schemes.