Poweroy Limited review: 5 things you should know about poweroyfx.com

Poweroy Limited review: 5 things you should know about poweroyfx.com

Rating: 1

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

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Poweroy Limited is an offshore broker that lies about being regulated. In fact this firm does not have any license or permission to offer online trading services. It also doesn’t display anything about what’s most important for traders – payment methods, trading platform and trading conditions. Apparently customers have to trust their claims without any further details – which would be a huge mistake if you ask us. Read the following review for more details on why we think Poweroy Limited is not to be trusted.

Regulation and Safety of Funds

On its website Poweroy Limited claims to be headquartered in London, the United Kingdom and to also have some branches in the US and Australia. So far so good. The issue came when we realized this company doesn’t mention anything about holding a forex license or being regulated in the UK or Australia. Sure, Poweroy Limited does mention something about being registered in the US National Futures Association (NFA) but as you’ll see very soon this is yet another lie.

Let’s start with the fact that the company is based in the UK. Every broker situated there must hold a license and be regulated by the local Financial Conduct Authority (FCA). We searched FCA’s register but couldn’t find anything about Poweroy Limited. Take a look:

Obviously this is an offshore broker that operates without the permission of the relevant authority.

Let’s see what’s the deal with their regulation in the US and Australia.

Forex brokers in the US must be members of the National Futures Association (NFA) and also should be regulated by the Commodity Futures Trading Commission (CFTC). After we looked at NFA’s website it was clear already that Poweroy Limited isn’t a member. The funny part here is that the broker posted the same message on its website – probably hoping that people would see the logo of NFA but won’t take a closer look and actually read what it says. See for yourself:

The same message can be seen on Poweroy Limited’s website in the section “regulatory”.

As for their CFTC’s regulation we can assure you that Poweroy Limited is not present on the list (not that it mentions anything about it). Being regulated by CFTC is mandatory for all brokers in the US but apparently Poweroy Limited doesn’t obey the rules.

Finally, after checking the register of the Australian Securities and Exchanges Commission (ASIC) it became clear that Poweroy Limited isn’t authorized by them as well.

At this point it’s more than certain that Poweroy Limited is an offshore broker that operates against the law and is not supervised by any institution. Not only that but this broker bears all signs of an outright scam, since it openly lies about being regulated and all.

We highly recommend not to trust such offshore firms as you put your funds at risk at least to say. Better turn to trusтworthy and regulated brokers with proven reputation. Doing so you make sure not only that your money is safe, but also to benefit from very good trading conditions for real.

All brokers who wish to offer trading operations must be granted a license from the local authority. The relevant regulator on the other hand has some very strict requirements that the brokers have to meet.

First of all there is a minimum capital requirement – for EU and the UK it’s 730 000 EUR and for the US it’s an impressive amount of 20 000 000 USD. This serves as a guarantee of the broker’s financial stability.

Also all regulated brokers are obligated to take part in a compensation scheme, meaning that customers can be issued a compensation from a certain institution in case of broker’s insolvency. The amount in the UK is up to 85 000 GBP, whereas in the EU it’s up to 20 000 EUR.

Poweroy Limited also claims to participate in a compensation scheme, but we highly doubt it, since this broker openly lies about being regulated and has all signs of scam possible.

Trading Software

On its website Poweroy Limited claims to offer TradingWeb as their trading platform. This is a basic trading software that provides some useful tools and indicators, but certainly can’t compare with more advanced platforms like MetaTrader 4 or MetaTrader 5.

No more information is to be found about TradingWeb. However if you take a look at the bottom of their home page, you may notice the logo of MetaQuotes – the founder of MT4/MT5. This is very bizarre, since Poweroy Limited claims to offer a completely different trading platform. It seems as if the broker uses MetaQuotes’ name in an attempt to look trust-worthy – something it entirely fails in.

In order to register on their website Poweroy Limited requires an ID image to be uploaded. Since we don’t trust this broker at all, we didn’t want to take the risk and provide such personal information and this is exactly what we advise you to do. Therefore it’s clear that we couldn’t register and don’t know for sure what trading software they offer. Note however that most scam brokers like Poweroy Limited tend to lie about what platform they use or what payment methods they accept just to convince you to open an account as soon as possible.

On the other hand most reputable brokers usually rely on more sophisticated trading platforms like MetaTrader 4 and MetaTrader 5. They are proven to be the best piece of software for trading purposes nowadays and have been downloaded by millions of people so far.

MetaTrader 4 and MetaTrader 5 happen to be the most popular trading platforms around the world. Both brokers and traders praise them for a good reason, mainly because of how secure and stable they are. You can always rely on them to execute your orders promptly and efficiently. Not only that but all the essential information such as transactions and your IP address is encrypted.

MetaTrader 4 and MetaTrader 5 have some outstanding features but the best one according to traders are the Expert Advisors. These bots have one particular task – to search for certain conditions and to start trading the moment they find them. A truly unique feature that only MT4 and MT5 can brag about.

MetaTrader 4 and MetaTrader 5 are perfect for beginners as well for more advanced traders. You can keep your knowledge up to date with a variety of educational resources and daily forex news. They are also very easy to navigate – you don’t need any previous experience in order to use them. MT4 and MT5 can be downloaded on different devices like PCs, smartphones and tablets.

Unfortunately not long ago Apple removed both of them from its AppStore so MT4 and MT5 can’t be downloaded on Android devices anymore. We really hope this measure is temporary. As for the users that have already downloaded the app, they can continue using it but without any future updates or upgrades. MetaTrader 4 and MetaTrader 5 can still be installed through Google Play Store.

Trading Conditions

Poweroy Limited doesn’t provide much information about its trading conditions. Despite its claims to be absolutely transparent and honest, this offshore broker clearly hides something. It’s really difficult to find any useful information on the website apart from the common claims that every other broker says.

Finally in the FAQ we found out that Poweroy Limited offers a leverage of 1:100 – 1:500. This is way too high without a doubt – every experienced trader would tell you that it’s too risky and there’s a great chance of losing your money. In fact the leverage in the EU and the US is limited to 1:30 and 1:50 respectively, so you better stick to it.

Yet, if you still want to trade with high leverage, we suggest looking at some of the offshore subsidiaries of reputable forex brokers here.

The amount of the spread also isn’t clearly stated. We managed to gather some details however – Poweroy Limited mentions its base spread to be as low as 0. In the Frequently Asked Questions they also claim to offer floating spreads as low as 1 point. Now, in general any spread less than 1 is considered very advantageous, because it comes with lower costs, spreads between 1 and 2 pips is also fine for trading. Whereas any spread higher than 2 is too costly. However, given the fact that Poweroy Limited isn’t regulated and doesn’t follow any rules and guidelines, we don’t have any reason to believe them. It’s very probable that the information on their website is fake and once you register you may find much higher spread. So be cautious and just don’t deal with Poweroy Limited.

As for the minimum deposit that Poweroy Limited accepts, it is not clear as well. In one place they only mention that the size of your investment is not important – and that’s all. As a whole the information on the website is very chaotic and difficult to riddle.

Just as you know, most of the reputable brokers tend to offer a minimum deposit of 250 USD or even less – sometimes you can open an account with 10 USD.

Deposit/Withdrawal methods and fees

Poweroy Limited doesn’t provide any information about what payment options it accepts. There are only bold claims but nothing useful in particular. Most scam brokers like Poweroy Limited try to convince you into opening an account with them without giving you any sufficient information about their trading conditions, platform or methods for payment. This is an awful practice – it’s very likely that you will thereafter end up being scammed.

Bear in mind that most regulated brokers tend to accept a variety of payment methods. You can see traditional methods like bank transfer, Visa/ Mastercard, popular e-wallets like Skrill, Neteller, PayPal, or different crypto coins.

Be careful however, because a lot of the scammers usually ask for crypto currency transactions in particular. This is done with only one reason – crypto payments are proven to be 100% irreversible, so you can’t overturn the process once the transaction is completed. They are also absolutely anonymous, therefore you don’t really know to whom the wallet actually belongs.

How does the scam work

Never underestimate online scammers as they happen to be unexpectedly inventive and come up with different ideas on how to deceive people literally every day. Most importantly, remember that offshore brokers don’t have any intention to actually invest your money and don’t care about your prosperity. Their only goal is to make you invest as much as you can and then drop out of sight completely (with your money of course). There are some techniques that are a red flag, so if you come across them, just flee as fast as you can.

Firstly, scammers would try to reach out to you via email or phone, so providing such information carefree is not a good idea. If they succeed in getting this material however do expect a lot of phone calls and emails that contain their promise to double your investment – “risk-free” indeed.

They might also guarantee a very high return on investment without any hard work from your side. This sounds ridiculous already – any investment on the forex market holds more or less risk and requires some knowledge. In fact regulated brokers are obligated to post a warning about trading risks on their websites.

The next step in scammers` fraudulent practice is to manipulate their trading software and make it look as if your funds are being invested and you make huge profits at the same time. This is also a lie with no doubt. Scammers just want to make you invest a “little more” again and again and will take advantage of you as much as they can.

They might also offer some kind of welcome bonus just to make you get in the game. Note that such bonuses come with strings attached – a very high volume requirement you certainly won’t be able to achieve. Not only that but reputable brokers in the EU are restricted from offering such bonuses or promotions exactly because of this malicious practice.

Unfortunately most people realize that all of the above is a lie when it’s too late. Once you try to withdraw any funds from your account you will find out that this is impossible. First however scammers might ask for a certain fee upon the withdrawal request – 10% or even 20%. Note that most reputable brokers don’t ask for a fee at all. Anyway, there’s no point in paying this fee, because even if you do, you still won’t be allowed to withdraw your money. Therefore you may end up losing everything.

What to do when scammed

Certainly there are some Dos and Don’ts when it comes to online scam.

Your first move has to be to turn to the bank that issued your credit or debit card in case you paid with one and file for a chargeback in 540 days. If you have used Skrill, Neteller or PayPal you can also open a dispute. Unfortunately crypto transactions are irreversible and anonymous as we already said, so they are not eligible for a chargeback.

It’s also 100% sure that you shouldn’t turn to people on the internet who suggest restoring your stolen funds in exchange for a certain fee. These people are most probably also fraudsters, so don’t take the risk of losing even more money!

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