Beware! Forextreasures.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.
Forextreasures.com is just another scam website that asks for your trust but does not offer trustworthiness in return. Opening an account with the broker without a reference code was impossible so we cannot say a lot about trading conditions. However, the broker’s website is badly put-together and uninformative – all you will get are false claims about the broker being licensed by respected authorities. Depositing with such an enterprise will surely lead to losses for you – so avoid them at all costs.
Forextreasures.com REGULATION AND SAFETY OF FUNDS
Forextreasures.com makes some quite brave claims when it comes to regulation and licenses. While the company is supposedly based in Jakarta, Indonesia, they are supposedly licensed by some of the strictest financial regulators in the world. The FCA (the UK), ASIC (Australia), and FSCA (South Africa) were all mentioned. Not only is Forextreasures.com is not licensed by any of these regulatory bodies – a quick register check confirmed that – but they had also attracted the attention of one of them with their activities. The first thing we found when we Googled the broker’s name, was an FCA warning:
If a regulator like the FCA considers a broker to be dangerous, you should take their opinion into account – a warning like this most probably means that the broker is running a scam.
In order to be regulated, a broker must have been granted a license by a reputable governmental financial authority such as UK’s FCA, Cyprus’ CySEC, or Australia’s ASIC. Such brokers have to meet tons of requirements before being able to offer complex financial services and do treat clients in a fair and transparent manner. Everything should be done perfectly legally – otherwise, there is a huge probability for such brokers to get a huge fine. Licensed companies have to prove they are financially stable by maintaining a certain minimum capital – €730 000 for the EU and the UK, and A$1 million for Australia. The number can be much higher for brokers with many clients and could reach multiple million euro. Additionally, EU and UK brokers are obligated to participate on compensation schemes which means that if your broker going bankrupt, you could still receive a compensation – up to €20 000 in the EU, and up to £85 000 in the UK depending on the size of your investment. Negative balance protection is ensured – if you are a retail client, you could never suffer losses greater than the amount of money you have in your accounts.
Forextreasures.com TRADING SOFTWARE
Forextreasures.com asked us to provide a Sponsor ID in order to open an account with them. Since we did not have such a reference number, we could not access a client area or a trading platform.
This is a trick scam brokers often use – they prefer to distribute reference numbers via e-mail or phone and only open accounts for certain clients. This way, the scam can remain under wraps for a longer period of time. In the meantime, you will find that most legitimate brokers try to advertise their services as much as possible and often offer demo accounts.
Better look up brokers who offer powerful trading platforms such as MetaTrader 4 and MetaTrader 5. The MT software has been around since 2006 and has built the reputation of the best platform in the world of trading because of its relative ease of use and the many tools it features. Clients would be able to get access to preprogrammed trading bots (Expert Advisors) that track markets and trade automatically, the possibility to create custom scripts, VPSs that could keep your EAs operating even when your computer is off, customizable signals that could be set for prices going above or below a certain level, a market for add-ons, etc. Don’t hesitate to try out one or both of these amazing platforms – with a reliable, licensed broker.
Forextreasures.com TRADING CONDITIONS
Forextreasures.com did not provide comprehensive information about trading conditions and account types. The broker mentioned that we would be able to trade with leverage of 1:500 but that is about all the information we got. Still, this is enough for us to say that this could not be a broker licensed by the FCA or ASIC. Brokers in the UK and Australia are banned from offering leverage higher than 1:30 to their retail clients. This is because trading with high leverage could lead to huge losses if you are not careful and do not have enough knowledge and experience.
If you would like to trade with high leverage, check out some brokers who can offer higher rates legally.
Forextreasures.com DEPOSIT AND WITHDRAWAL METHODS AND FEES
Since we were not able to open an account with Forextreasures.com, we were also not allowed to make a deposit and see which deposit methods are available. We were also unable to learn anything about additional fees since the broker did not really offer Terms and Conditions. Our advice is to not deposit with such obvious scam brokers in the first place – that would be a huge mistake that would lead to financial losses.
HOW DOES THE SCAM WORK?
You might think that not many people fall for such scams, but you would be dead wrong – some scams are quite elaborate and have managed to fool a lot of people. That is why it is important to know what to expect and look for in order to spot a scam broker from a mile away.
The scam starts with an ad on the Internet promising you an easy gateway to forex trading or investing – the only thing you would have to do is open an account with the broker. You know that there are people who trade for a job and that even regular Joes manage to earn a nice side income through trading and wonder why not the same, there is no harm in trying. So you give in and provide the scammers with your contact details.
This is the moment when you will start getting constant calls and emails asking you to deposit – even if you have only opened a demo account. At some point, since everything seems legitimate, you do deposit and, in the beginning, things might be looking great. The profits you were promised come soon but you should remember that it is easy for scammers to manipulate platforms to make it look like you are turning a profit. But you will be asked to keep on investing – and you would have no problem doing that because you will be smooth-talked into it by people who scam others for a living.
But when you try to withdraw, you will start running into different obstacles – obscure clauses in the Terms and Conditions preventing you from withdrawing, additional fees and taxes, and weird procedures. At some point, you would not be able to deny the fact you have been scammed – but it will be too late. The scammers will disappear and stop answering your calls and emails and leave you wondering what to do.
WHAT TO DO WHEN SCAMMED?
So, what can be done in case you have already deposited?
Be prepared that there is a rather high chance that you would never see your money again. There is, however, still hope to retrieve it especially if you have deposited with a credit or debit card – both Visa and MasterCard allow chargebacks within 540 days of the transaction. Moreover, there are some things you absolutely have to do in order to avoid further losses of money.
Change all passwords and banking details you have provided the scammers with and remove all sorts of remote access software if you have installed such. Some scammers would promise to help you trade or resolve different problems if you only install such software – their actual agenda is to get access to your computer and all your passwords and information.
Don’t trust any so-called “recovery agents” who offer to retrieve your money for a fee – this is just another type of scam targeting desperate scam victims, often conducted by the same people that are behind your “broker”.
Make sure to notify authorities and try to share your story online, or with your acquaintances – the more people know about such scams and how they function, the lower the success rate they will have.