OBFX review – 5 things you should know about obfxgt.com

OBFX review – 5 things you should know about obfxgt.com

Rating: 1

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

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OBFX gave us reasons to be suspicious from the get-go. The reason is that this supposed award-winning forex broker uses a brand and logo very similar to a scam website we have reviewed – Obfx Global.

We have every reason to believe that OBFX is just a new reincarnation of the old scam. Fact-checking has left no room for doubt that this is not a licensed forex and CFD broker you could confidently trust with your money.

OBFX REGULATION AND SAFETY OF FUNDS

Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licences it has and which regulators oversee its activities. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.

OBFX does not disclose the company behind this website and does not provide access to Terms and Conditions and other documentation required by law. This excludes OBFX  as a licensed financial services provider.

If you don’t know exactly who you are dealing with and what terms you are agreeing to when you sign up for an account, it would be very unwise to put your money on the line.

OBFX claims to be based in London, United Kingdom.

This is not possible because the UK has strict regulations on financial service providers. Such an anonymous website could not legally operate as a forex broker there. There is no licensed broker using this trade name or domain in the UK Financial Conduct Authority (FCA) database.

Before investing your money in financial instruments, it is imperative to make sure you do so through a licensed intermediary and not one of the many scammers lurking online. If you want to trade on financial markets without being scammed, you can turn to some of the legitimate brokers that actually operate from established financial hubs like the UK.

These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the Financial Conduct Authority. They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.

OBFX TRADING SOFTWARE

The more sophisticated fake brokers use trading software to deceive their potential victims that their money is being invested. But this trading is entirely fictitious. In most cases, the scammers use rudimentary web-based platforms, but OBFX is one of the rarer cases where advanced software is used – MetaTrader 5 (MT5). Here what it looks like:

You could always use the services of a regulated broker, the vast majority of which offer clients MT5 or the still very popular 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 customised scripts for backtesting trading strategies.

OBFX 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.

On the OBFX  website we find only sketchy information about the parameters of the alleged trade. But this limited information provides us with further evidence that OBFX could not really be a licensed broker operating in the UK.

The clearest clue to this is the claim that leverage between 1:100 and 1:500 is offered.

High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.

The stated minimum deposit is 500 USD – an extremely high and disadvantageous level. Many licensed brokers require a minimum deposit of 50-100 USD, and some even offer Micro and Cent accounts with a symbolic deposit of just 1-5 USD.

In the trading platform we see a very low spread of less than 0.5 pips, but this should not tempt you. As stated, scammers do not offer real trading, and due to the lack of legal documentation it is unclear what hidden commissions and fees there may be.

OBFX DEPOSIT/WITHDRAW METHODS AND FEES

The website claims that the OBFX accepts a wide range of payment methods as you will find with licensed brokers – credit/debit cards, bank transfer, POLi, Skrill,. Neteller, FasaPay.

But in the deposit menu itself the picture is quite different – there we see only cryptocurrencies.

This is typical of scammers. Cryptocurrencies are their payment method of choice because it does not allow the defrauded person to ask for a refund or chargeback. If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.

Since OBFX  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

While browsing the interwebs there is a significant chance you will come across comments, videos, social media pages that promise easy ways to passively make money. If you follow the links you will be taken to websites claiming to be legitimate brokers or investment firms. And if you take the next step and make contact with the people behind these websites, you will be contacted by slick and experienced scammers who will lure you in with promises of easy profits. For a while they will convince you that your investment is generating impressive returns and you need to pour in even more money to make sure you don’t miss out on this once in a lifetime opportunity.

However, the attitude towards you will be changed if you want to withdraw your money. Suddenly, it will turn out that your investment makes losses and you even owe money to the fake broker for unexpected fees and expenses. They will show you clauses hidden in the Terms and Conditions, according to which you can only withdraw money after you have traded an impossible minimum volume, or that you will have to pay withdrawal fees of 20%, 30% or even more. When you try to hold them accountable you will find they are using fake names and shell companies in shady offshore jurisdictions without any regulatory oversight.

WHAT TO DO WHEN SCAMMED

Your options to recover your money are limited. If credit/debit cards were used for the transactions, you have the possibility to request a chargeback. But most scammers insist that you send them proof of identity and address with which they can dispute that the transactions were legitimate. Fraudsters also predominantly use cryptocurrencies, where refunds are impossible.

You should also be aware that there are many scammers who offer to recover your money for an upfront fee. You should not trust such offers. It is better to contact the relevant authorities in your country and warn them about the activities of the scammers.

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