Beware! FX Corp 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.
FX Corp seems to be an offshore scam that tries to scam people without actually giving them a good reason to invest. This is not a broker that offers a functional trading platform – or good trading conditions. Opening an account with them is not only a mistake – it is pointless since you would not actually be able to trade.
FX Corp REGULATION AND SAFETY OF FUNDS
FX Corp claims to be based in Samoa – but did not actually provide an address. In fact, the only contact information the broker provided was an e-mail. They also did not mentioned anything about being licensed which means that they are probably not. Regulated brokers usually make a big deal out of letting you know everything about all of their licenses. After all, a license by a respected regulator is the best way to prove one’s legitimacy and reliability. Needless to say, dealing with a broker that chose to remain fully anonymous is not a great decision – you would not have any idea about who you are working with, or if you would be treated in a fair and transparent manner.
Turn to a broker licensed in the UK, the EU, or Australia if you want to be sure your broker is following the law strictly and that there is a reputable financial authority looking out for you. UK and EU companies have to maintain the capital of at least €730 000 in the EU and the UK and A$1 million in Australia to prove that they are financially stable and can survive a financial crisis. European brokers are also obligated to participate in compensation schemes – every broker has to pay a sort of fee to ensure that if they go bankrupt, clients would receive a compensation – €20 000 for EU-regulated brokers and £85 000 UK ones. Client deposits must always be kept separate from the broker’s own funds in segregated accounts – so you can count on shorter withdrawal periods and more security since the broker could never reinvest your money in something else.
There are a lot of legitimate brokers offering great terms – so dealing with scammers like the ones at hand is simply not worth it in any way.
FX Corp TRADING SOFTWARE
FX Corp claimed that it offers access to FX6 – “the world’s most popular trading platform” we have never heard of. In the broker’s words, the platform combined “an intuitive user interface with a customizable feature-rich environment” and provided “everything a trader needs to chart assets, place orders and manage positions”. That platform was supposedly available both in a desktop and mobile version. However, when we tried to download the desktop version, we ran into a problem – we were only able to download some sort of file that displayed the broker’s homepage. We were not offered access to any sort of functional software we could use for trading which is fairly problematic – it means that you would not actually be able to trade with this broker. And since the whole point of brokers is to be able to trade, this means that working with FX Corp is quite pointless.
The best platforms in the industry are currently the one created by MetaQuotes – you could choose between two platforms, MetaTrader 4 and MetaTrader 5. Both versions of these platforms offer a ton of possibilities and features – from the platforms’ famous Expert Advisors and the VPSs that keep trading bots operating even when your computer is not on to the ability to set up signals or subscribe to other traders’ signals for a small fee. MT4 and MT5 can offer everything a trader might need – both beginners, and more advanced customers.
Do not hesitate to try one or both platforms instead of wasting time on scammers that have nothing to offer you.
FX Corp TRADING CONDITIONS
FX Corp did not provide a lot of information about the sort of trading conditions it offers – but without an actual trading platform, such information is irrelevant and useless anyway. You would not be able to trade with this broker, as we mentioned – what good do promises of high leverage, tight spreads, and affordable trading accounts do in that case?
The broker tries to tempt clients into investing by stating that you would be able to start trading by depositing as little as $1. That is indeed very affordable – but there are many legitimate brokers that would ask for the same small sum in order to open an account for you. Check out some great offers in our list of forex brokers offering trading accounts with low minimum deposits.
FX Corp DEPOSIT AND WITHDRAWAL METHODS AND FEES
FX Corp only accepts deposits made in the cryptocurrency Tether. This is quite the red flag – it is only scam brokers that would urge you to use this specific payment method and not offer any alternatives. All crypto transactions are final – once they have passed through, they cannot be reversed which means that you would not be able to get a chargeback. They are also anonymous – they can only be traced down to a wallet address but not to a specific person or organization. That makes them a perfect option for scammers that want to steal your money.
Legitimate brokers usually accept a wide variety of payment solutions – credit/debit card, wire transfer, electronic payment options like Skrill and Neteller, and even crypto. However, they would always give you a choice which payment solution to use.
HOW DOES THE SCAM WORK?
Such scams are rarely very imaginative and usually follow the same old tried-and-tested scheme. They are, however, still extremely successful which is why it is important for you to know how they function to be able to detect and avoid them.
Usually, it all starts with an ad on the Internet and the promise of fast, effortless profits. Such scammers know how to present themselves in the best possible light. They will make bold promises and use big words to impress you – and cover up the fact that they are usually anonymous, and lack vital things like license and legal documentation. The moment you provide them with a phone number and e-mail address, the scheme is set into motion.
The scammers would not leave you alone before you deposit. Keep in mind that these are professional liars that scam people for a living – they are well-versed in the art of smooth-talking. You will probably deposit gladly after you hear about all the great things they supposedly can offer you. In the beginning, it might even seem like you are making decent profits. At that point, you will probably be eager to deposit more money to make even bigger profits.
The moment you try to withdraw, however, things will get complicated. The broker will claim that you cannot withdraw yet because of certain clauses in the Terms and Conditions, or because you will be charged outlandish additional fees. At some point, you will probably get suspicious and try to contact the broker and ask to get your money back. At this point, it will already be too late. The scammers will stop answering your calls and messages and simply disappear with your money.
WHAT TO DO WHEN SCAMMED?
The first thing you should do is contact your bank to let them know that you have been scammed, and change all your banking passwords. This way, the scammers would not be able to additionally drain your account. Remove any remote access software they had you install. Although such brokers claim that you need programs like AnyDesk or TeamViewer so that they can help you with their platforms or even with trading, their goal is different. With the help of such programs, they can access all your personal information and banking systems and steal even more money.
If you have deposited with Visa or MasterCard, contact your card issuer to ask for a chargeback as soon as possible. Both of these card providers try to combat scams and allow chargebacks within 540 days of the transaction. Getting your money back if you have deposited it in another way would be much harder.
Notify the financial authorities in your country to let them know about the scam and share your story with as many people as possible. This way, fewer people will fall victim to such schemes.
Last but certainly not least, do not trust any recovery agencies. Such “agents” ask for a fee to track down the people that scammed you and retrieve your money. However, this is just another type of fraud targeting desperate people. As soon as you transfer money to the agency, that money will disappear too. Often enough, such scams are conducted by the same people that robbed you in the first place.
