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

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FFIN Corp is one of the many scam websites that try to convince you that they represent regulated forex brokers. Due to the existence of numerous such scams, careful fact checking should always be done before putting your money on the line. In this review, we will take a look at the clues that reveal that FFIN Corp is not the trustworthy broker it claims to be.

FFIN CORP REGULATION AND SAFETY OF FUNDS

The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities. But the availability of such information does not guarantee that it is not false or misleading.

FFIN Corp claims to be based in the UK and to hold licences not only from the UK’s Financial Conduct Authority (FCA) but also from regulators in two offshore jurisdictions, Belize and Mauritius.

But the text of the Client Agreement lists another offshore zone, Vanuatu, as the applicable jurisdiction.

The contradiction is not the main problem. A check of the records of all regulators shows that FFIN Corp is not among the authorised brokers in the UK or the listed offshore jurisdictions. If such a legal entity exists at all, it is not a licensed financial services provider.

When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.

If you have decided to invest in financial instruments you have a choice of much more trustworthy options than FFIN Corp.

Depending on your location, it is advisable to choose a company that is regulated by an institution such as 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, and AUD 1000 000 in Australia.

FFIN CORP TRADING SOFTWARE

FFIN Corp uses a web-based trading platform. Here is how it looks like:

While this platform has the basic functionality to place orders, it cannot compare to the capabilities provided by MetaTrader 4 (MT4) and MetaTrader 5 (MT5). It is no coincidence that these platforms have established themselves as the industry standard.

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.

It should be noted that the presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers use rigged trading software to fool their victims that their money is being invested.

FFIN CORP TRADING CONDITIONS

On the FFIN Corp website we find a description of three types of trading accounts. The parameters given provide us with further evidence that this could not actually be a UK based licensed broker.

First, FFIN Corp claims to offer cryptocurrency trading. But the FCA prohibits brokers from offering trading in crypto derivatives.

FFIN Corp also states that it offers leverage between 1:100 and 1:500.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 same rules currently apply to Australia.

Another such evidence is FFIN Corp’s claim that it offers a Deposit Bonus. Regulated brokers are prohibited from offering bonuses and promotions. Scammers often use promises of supposedly generous bonuses to tie their potential victims to extortionate terms.

If you are nevertheless willing to take the risk of high-leverage trading and want to take advantage of bonuses, promotions and prize games, the best option is to use the services of offshore brokers operating under an established brand.

The minimum deposit required by the FFIN Corp is 150 USD. For the same amount or often less, you could open a trading account with a reputable broker, including some of the world’s leading brands.

In the trading platform we see a low spread of less than 1 pip. This is a competitive level, but as stated, the trade offered by such scammers is fictitious.

FFIN CORP DEPOSIT/WITHDRAW METHODS AND FEES

Like most financial scammers, FFIN Corp only allows cryptocurrency transactions.

Cryptocurrencies are the payment method of choice for most financial scammers. The reason for this is that on the one hand cryptocurrencies provide a degree of anonymity and on the other hand they do not allow the defrauded person to ask for a refund.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as Skrill, Neteller, Sofort or GiroPay.

If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.

The FFIN Corp legal documentation does not provide clear information on deposit and withdrawal fees and conditions. It is stated that withdrawals can be made no earlier than 20 banking days after deposit. Genuine brokers do not impose such conditions.

HOW DOES THE SCAM WORKS

Scammers who promise easy money without any effort are nothing new, especially on the internet. But given the excitement around bitcoin and cryptocurrencies in recent years, malicious actors have run rampant more than ever, capitalizing not only on people’s desire to solve their financial woes with a magic wand, but also ignorance and misunderstanding of how blockchain and complex financial instruments actually work.

If your curiosity is stirred by one of the many flashy websites promising easy riches, and you provide your contacts, you will soon be contacted by skillful and persuasive scammers who will convince you to start with a relatively small and “risk-free” investment. If you agree to this, you will be transferred to even more skilled at convincing scammers, who will persuade you to invest even more. Any money you give to such people is money you are unlikely to get back.

Any attempt to withdraw deposits or alleged profits will be hampered by numerous and significant fees, as well as harsh and often prohibitive conditions written into the terms and conditions – such as high trading volume requirements, unexpected “taxes”, or withdrawal fees as high as 10% or even 20% of your funds.

WHAT TO DO WHEN SCAMMED

Recovering money you have given to fraudsters is difficult and often impossible. Fraudsters always want you to provide them with documents such as a copy of your ID and proof of address so that they can claim that it is a legitimate transaction, agreed voluntarily between both parties. If the transaction is made by credit or debit card, you can request a cashback and hope for the best, but transactions via wire transfer or cryptocurrencies are not refundable.  It is important not to trust online offers from people who offer to recover your money in exchange for an upfront payment, because this is also a well-known scam.

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