Beware! Zigber is an offshore broker! Your investment may be at risk.
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Zigber is an offshore broker which claims to be based in St. Vincent and the Grenadines – a scam heaven, as this country doesn’t regulate the forex brokers at all. At this point there are some things that are 100% sure – first this broker doesn’t have a forex license and is not authorized to offer online trading services. Therefore you certainly can’t trust a firm that doesn’t follow any rules or guidelines. Zigber also lies about offering the industry standard MetaTrader 4. If all of the above-mentioned isn’t enough to turn you down on investing with this shady firm, then keep reading the whole review for more details about zigber.com.
Regulation and safety of funds
On its website Zigber claims to be situated in St. Vincent and the Grenadines and displays some basic information like address and email. It also operates under the business name of Belana Group LLC. It also specifies that Belana Group LLC is a company registered under the Laws of St. Vincent and the Grenadines with registration number 1630LLC2021. Nothing more is said about this company however.
No matter what the story is about, it is a fact that Zigber is based in a country where forex trading activities are not regulated in any way and brokers usually offer their services without a license. Local authorities clearly state that they don’t oversee the operations of forex brokers. Such authority is for example the Financial Services Authority (FSA) in St. Vincent and the Grenadines which displays this message the moment you visit their website:
As you see Zigber offers forex trading services without being obligated to meet any requirements and with no authority to supervise its actions. This makes this particular broker very tricky as you don’t know for sure if what it claims is true or not. Usually scam brokers prefer to be based in countries like St. Vincent and the Grenadines exactly because of the freedom they have. The absence of actual laws about forex trading only serves as an excuse for them for not having an actual license.
This being said, we don’t think that Zigber is a trustworthy broker – just don’t invest there and don’t risk your funds!
There’s a reason for a broker to be licensed in order to operate on the market. Local institutions usually have very strict requirements that all brokers have to meet in order to be authorized. For example in the EU a broker must be regulated by one of the official authorities, according to the country it is based in. All regulators on the other hand must follow the guidelines set by the European Securities and Markets Authority (ESMA). As you see it is not that easy to be granted a license. Let’s see some of the requirements for brokers around the world.
Most importantly there’s an initial net capital requirement, which states that every licensed broker must have a certain amount of minimum capital. In the EU the amount is 730 000 EUR for most of the countries, Germany being an exception with 750 000 EUR. In Australia brokers must meet a capital requirement of 1 000 000 AUD, whereas in the US it’s even more – 20 000 000 USD. This amount serves as a guarantee for the company’s financial stability and is not to be used for its operational needs.
Moreover in most of the countries licensed brokers must participate in compensation schemes which ensure clients for up to a certain amount in case of the broker`s bankruptcy. Given the fact that regulated firms are financially stable, as we pointed out, some kind of insolvency is very unlikely to happen. However having such a guarantee for your funds is always welcome. For instance traders in the UK can be compensated for up to 85 000 GBP, while those in most of the countries in the EU can be issued for up to 20 000 EUR. There are some countries like Greece and France which offer higher compensation – 30 000 EUR and 70 000 EUR respectively. Unfortunately the US and Australia don’t participate in such compensation schemes – something that we hope will soon be changed.
Last but not least, all regulated brokers are obligated to keep their customers’ funds in segregated accounts, apart from their own capital, where they will be safe from any kind of misuse or fraud. Zigber also claims to offer segregated bank accounts, as well as negative balance protection, but given the fact that this broker isn’t regulated and all, we simply don’t trust anything it may say.
On its website Zigber claims to be offering MetaTrader 4 as its trading software.
After we registered however it turned out that this statement is as far from the reality as possible. You can see the trading platform they offer below:
As you can see this chart is not MetaTrader 4 at all. This is probably their own platform, but without the essential tools and indicators which MT4 has. In fact it’s very amateour and can’t compare even to simple web-based platforms. If you value the safety of your funds, just don’t invest here!
Bear in mind that most scam brokers lie about offering MT4 or MT5 just to gain your trust and make you register. It’s not fair at all, but this is the way fraudsters act unfortunately.
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.
Zigber also claims to offer three different kinds of accounts – standard, premium and VIP. Below you can see more details about the first two of them:
You can see a leverage of 1:30 for the standard account. On its homepage Zigber also says to offer a maximum leverage of 1:500. Be aware however that a leverage of such value is very risky and leans more to a gambling experience rather than an actual trading. In fact in most of the countries there’s a leverage cap for retail traders exactly because of the above-mentioned risk. In the EU and Australia the leverage is limited to 1:30, whereas in the US it’s 1:50.
Yet, if you are willing to take the risk and want to trade with high leverage, we recommend choosing some of the offshore subsidiaries of reputable forex brokers here.
Nevertheless, the fact that Zigber offers a leverage that is considered acceptable and safe for trading, doesn’t make it reputable or reliable. We simply advise you to stay away from this broker, for the reasons stated above.
As for the spread that Zigber offers, it’s not stated anywhere on the website. On their platform we can see a spread of 0.2 pips, which is also fine for trading. Again, the fact that this broker offers a spread that is acceptable, doesn’t make it credible. Don’t forget it doesn’t have a forex license and is not authorized by any jurisdiction.
Zigber also doesn’t specify the minimum deposit it requires in order to start trading. Usually most reputable brokers ask for 200 – 250 USD, that is considered a standard amount for the sector. Sometimes you can open an account with even less deposit – 10 USD for example.
Deposit/ Withdrawal methods and fees
On its website Zigber doesn’t say which payment methods it accepts. After we registered and made an attempt to deposit a sum we were asked to fill in some personal information – names, address, contact information etc. After that we received a message saying that in order to perform a deposit we have to contact our Account Manager directly or Zigber’s support team. For this reason we can’t confirm for sure what payment options a trader would have.
Just remember that scammers usually prefer cryptocurrencies and demand on using them as the only possible payment method. There’s a very simple explanation for this – payments with crypto coins such as Bitcoin, Ethereum or Tether are proven to be absolutely irreversible and anonymous at the same time. This means that once the transaction is complete, there’s nothing you can actually do. In short you don’t know to whom the wallet belongs and you can’t over turn the process, so your money is gone for good.
Payments with Visa/Mastercard or bank transfer on the other hand are very often to be seen with reputable brokers. E-wallets like Skrill, Neteller and PayPal are also popular options. All of them give you the possibility to file for a chargeback (credit/debit card) or open a dispute (e-wallets) in case you have been a victim of online scam.
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 scamed
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!