Beware! Ficex 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.
The Ficex website greets us with the claim that this is “unbelievable trading system”. And indeed, there is nothing on this website that is believable. Ficex differs from most scams we have encountered, but there is absolutely no room for doubt that we are dealing with a scam. Let’s take a detailed look at the signs that it’s in your best interest to stay away from Ficex.
FICEX REGULATION AND SAFETY OF FUNDS
The first thing to look for in a forex broker’s website is which legal entity runs it, where it is based and what regulatory oversight it is subject to. Licensed companies are also required to provide a comprehensive set of legal documentation.
Ficex claims to be owned by a company named Ficex Financial Services Limited that is authorised by CySEC – Cyprus Securities and Exchange Commission.
But when we search for Ficex Financial Services Limited in the Cyprus regulator’s database we find nothing. When we search for the licence number given by the Ficex, we find that it belongs to a completely different company, Notesco Financial Services Ltd, using completely different domains:
Using details of legitimate companies is a trick often used by financial fraudsters. When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.
Ficex also does not provide access to Terms and Conditions, Customer Agreement or other legal documentation as required by law by licensed brokers. Therefore, we do not know who we are really dealing with, nor what the terms of the deal are.
Invest your money only after you have ensured that your chosen broker is indeed licensed by a solid regulatory institution like CySEC.
There are many advantages to working with such brokers because they must comply with all the requirements of the European Securities and Markets Authority (ЕSМА). They must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. When clients deposit money in their trading accounts, they are kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy.
All brokers licensed in Cyprus and other EU countries are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency. EU forex brokers are required to report their clients’ transactions on a regular basis. This requirement is designed to improve investor protection and promote market integrity and transparency.
FICEX TRADING SOFTWARE
Most of the Ficex website is occupied with boasting that it offers trading platforms that can run on all devices and operating systems. The software referred to is Mobius, a basic platform that we have seen used more often by scammers than legitimate brokers.
We have not been able to confirm whether Ficex does indeed have this or other trading software because the new account registration form is not functional. Such lack of functionality is common among low-effort scams.
If you use the services of a licensed broker, you will get the opportunity to use established software with advanced features such as 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.
FICEX TRADING CONDITIONS
When you visit the website of a legitimate broker you will find proposals for different types of trading accounts suitable for investors with different preferences, as well as detailed descriptions of trading parameters – minimum deposit, order execution method, tradable financial instruments, leverage, spread, swap, commissions, etc.
Nothing of the sort can be seen on the Ficex website. There we find only promises of low spreads, which have no real meaning given the fraudulent nature of this website.
A minimum deposit of USD 20 000 is specified:
Elsewhere on the website, we see an even higher minimum of 50,000 EUR for US customers:
Even leaving aside that only brokers licensed in the US can serve citizens of that country, the amounts stated are absurdly high. Most legitimate brokers allow you to start trading with a minimum deposit of 100-200 USD, and often even less.
Ficex also promises guaranteed and high returns – something no real broker can or will promise you. In fact, regulated brokers are required to warn clients of the high risk of loss associated with trading financial instruments.
FICEX DEPOSIT/WITHDRAW METHODS AND FEES
Ficex claims to allow deposits with Wire Transfer, credit cards and PayPal, but we have not been able to confirm this. Scammers of this type typically advertise conventional payment methods, but direct their potential victims to cryptocurrency transactions and shady payment processors. This deprives the defrauded of the opportunity to claim a refund.
Since Ficex does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.
HOW DOES THE SCAM WORK
Many people have a desire to invest in the financial markets but lack the necessary knowledge and experience. This makes them a potential victim of the many internet scammers posing as brokers and investment intermediaries. These types of scams have exploded alongside the cryptocurrency boom.
If you trust such a website and give them your personal information, you will be contacted by experienced scammers who will entice you with promises of easy profits. The scammers usually offer to take over all aspects of investing for you, sometimes even prompting you to install remote access software on your personal computer. After investing an initial low amount, they will convince you that you are already making incredible profits and urge you to invest more.
But you will never get the promised profits, nor will you be able to get your money back. If you want to withdraw funds from your account, you will find that you have suddenly lost everything in the market, or that you have to meet impossibly high traded volume requirements, or that you have to pay huge fees. It is also possible that fraudsters simply disappear because they hide behind fake names and shell companies in offshore areas that are not subject to any control and regulation.
WHAT TO DO WHEN SCAMMED
One of the few options to get at least some of your money back in such a situation is to ask for a chargeback. But this is only possible if you have used a credit or debit card for the transaction. Scammers typically use cryptocurrencies or dubious e-wallets that make it impossible to get your money back.
Under no circumstances should you trust people and websites that promise to magically refund your lost money for an upfront fee. This is also a well established scam. You may even fall victim to the same scammers again.
