BE22 review – 5 things you should know about be22.com

BE22 review – 5 things you should know about be22.com

Rating: 1

Beware! BE22 is an offshore broker! Your investment may be at risk.

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The BE22 website urges us to “cooperate with the world’s number one broker for guaranteed success”. Sounds like a good idea, but there is one significant problem. BE22 is not the number one broker in the world – it’s not a real forex broker at all.

This anonymous website is in fact a typical scam scheme targeting people without sufficient experience and knowledge of trading financial instruments. In this review we will look in detail at how you could identify this and similar scams.

BE22 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.

BE22 is completely anonymous – the website does not reveal which company is behind this alleged broker and does not even provide a contact address.

There is a link to the Terms and Conditions on the homepage of the website, but the text is different from the Terms and Conditions we agree to when we register for an account. In both cases, the documents do not state the name of a legal entity and do not specify an applicable jurisdiction.

So we’re neither sure who we’re dealing with, nor do we know exactly what the terms of the deal are. This is not a good situation at all when our money is on the line.

If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the Commodity Futures Trading Commission (CFTC) in US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).

Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.  In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.

BE22 TRADING SOFTWARE

After registering an account we get access to a rather basic web trading platform. We’ve seen the exact same software implemented by numerous fake brokers we’ve encountered.

It should be noted that the presence of some kind of trading software is no guarantee that this is a genuine broker. Financial scammers often use trading platforms to fool their victims that their money is actually being invested. However, this trading is entirely fictitious and the money goes directly into the scammers’ pockets.

If you use the services of a licensed broker, you will get the opportunity to use established software with advanced features and versions for all types of devices and operating systems. The most widely used trading platforms in the industry are 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.

BE22 TRADING CONDITIONS

On the BE22 website, we see a list of supposed trading account types, but their descriptions only specify a minimum deposit of 250 USD. The deposit menu itself sets a minimum of 130.

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.

Many leading brands offer beginner traders Micro and Cent accounts with a symbolic minimum deposit of just 5 USD or even 1 USD.

Leverage of 1:200 is set in the trading platform. Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses. A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States.

The platform shows a very low spread, close to zero, and the website claims that BE22 does not charge commission. But one set of Terms and Conditions describes a “clearance fee” ranging between a minimum of 1.50 and a maximum of 5.00 currency units per trade. Such a price makes trade extremely unprofitable. Genuine brokers do not charge such a fee.

BE22 DEPOSIT/WITHDRAW METHODS AND FEES

The BE22 website promises the ability to deposit and withdraw funds via credit cards, wire transfer and unnamed e-wallets. But at the time of writing this review, BE22’s deposit menu was not active. Experience has shown that scammers of this type advertise conventional payment methods but steer their potential victims towards cryptocurrency transactions. The reason is that this deprives the defrauded of the opportunity to claim a refund.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including established e-wallets such as PayPal, Skrill, Neteller or iDeal. If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.

In the two different sets of Terms and Conditions we found typical scam traps. If the account has received a bonus, withdrawing funds requires meeting minimum traded volume requirements.

According to one document, the requirement is 30 times the bonus plus the deposit, and according to the other document, the accumulation of a certain number of trading points is required. Fraudsters use such clauses to block any withdrawal requests. Regulated brokers are prohibited from offering bonuses and promotions.

If you are allowed to withdraw money at all, the transaction is subject to an outrageously high fee of 3.5%, but no less than 30 USD. Genuine brokers usually do not charge deposit and withdrawal fees.

BE22 also charges a monthly account maintenance fee of 20 currency units – another thing legitimate brokers don’t do.

HOW DOES THE SCAM WORKS

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.

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