Beware! ConventusGroup 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.
ConventusGroup has a website that plays on peoples’ expectations. It is clearly incredibly limited in quantity, but it does put a aesthetically pleasant front. This is a technique used by scammer broker to attract as many users as possible. Is this what ash happened with ConventusGroup? Read the review to find out.
Once the sign up process was over, which took some seconds to do, we were redirected to a web trading software that acted as a the main page of the user’s personal area. The platform gave us a EUR/USD spread of 0.4 pips, while the leverage was capped at 1:400. The trading assets are commodities, forex pairs, cryptocurrencies, ETFs, indices, and shares.
The languages are English, Russian, Spanish, German, French, Italia, and Japanese.
CONVESTUSGROUP REGULATION AND SAFETY OF FUNDS
Here is all the regulatory information that we were able to find on this broker.
The Financial Services Commission of British Virgin Islands, as all financial regulators, has an online registry of all regulated forex brokers. ConventusGroup was not not to be found in the registry, and so is not regulated by this agency.
As for the CySEC alleged license, readers can rest assured that CySEC is not licensing ConventusGroup. Not only is the broker in no shape for a CySEC rregulation, but the watchdog itself has no trace of ConventusGroup in its database.
Furthermore, the International Financial Service Commission in Belize is also not a licensor of this broker.
Even without checking each of the regulators’ databases, ConventusGroup does not cover even the basic requirements for being labeled a legit broker.
Needless to say, there is no further license related information on the website, not in the legal documents.
This is definitely another UNREGULATED company, that preys on users whose forex knowledge is not yet to the level of detecting scams. Do not invest in this broker.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
One thing to mention, is that this broker shares an uncanny similarity to another previously reviewed illegal broker that goes by the name of AvexCapital.
CONVESTUSGROUP DEPOSIT/WITHDRAW METHODS AND FEES
According to the deposit section in the user are , the minimum deposit is, in fact, non existent. This is because the only way to deposit in an account is through a bitcoin gateway. In fact, it’s not even a deposit mean. Users just send money to some unknown place, and will probably never get their accounts filled with the money they spend. This is what we discussed with AvexCapital.
As for withdrawals, they are also processed through a bitcoin wallet. Withdrawals are charged with 320 Satoshi (the smallest unit of a bitcoin, 100 millionth of a bitcoin) per bite. There is no telling what the processing times are. The only thing we know is that withdrawals can be applied for after 15 days after the initial deposit.
There might be other fees for making payments, but also for other services from the website. This is an unregulated broker, and as such is expected from it everything, like charges for unnecessary services. Remember, illicit brokerages do everything they can to take as much money from its users as possible.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.