Beware! Future-FX 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.
Future-FX(.org), or Future Management Systems, had us going from the beginning. It is equipped with a decent website and seemingly superb trading conditions. Yet, we return to the talk of never judging the book by its cover. And in the beginning, we were guilty of this, but sooner rather than later we realized what we were doing, and quickly came to our sense. Read the review to find out what we discovered.
To sign in, the user must pass through a simple registration process that took some 10 seconds to complete. The client dashboard is nice and all, but is essentially nothing to special. We were able to open a trading software, with what seemed to be a live account.
The EUR/USD spread is 0.4 pips, while the leverage did not go further that 1:100. The trading software gave us the ability to trade with the following tools: forex currency pairs, indexes, commodities, and cryptocurrencies.
The website comes in English, but some sections were translated automatically in Russian.
FUTURE-FX REGULATION AND SAFETY OF FUNDS
The company is allegedly located in Saint Lucia, and island nation in the Caribbean pool, a location that is associated with illegitimate forex brokers. The reason for this is that the nation does not have a forex broker licensing body, and so all kinds of brokerage firms can settle there and offer services, that are, in the end, unregulated.
As there is no other information concerning a regulation or similar, we have no other choice but the following conclusion: Future-FX is UNLICNESED, making it a risk to all those that invest in it!
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.
The situation with the legal documents is confusing. There are two sets of documents. One of them is PDF based, while the other is pure text on the website. On the PDF side there is nothing to be worried about, however the Terms of Service on the website gave us some shady clauses.
No legitimate broker would ever confuse its users like this. This is hard evidence that Future-FX is not regulated. From now on, all clauses will be taken from the Terms of Service.
FUTURE-FX TRADING SOFTWARE
Future-FX has managed to get a fully functioning MT5, that is also available as a web trader.
The MT5 is by far the most advanced user trading experience one can get today. It surpasses the MT4 in many ways, and in so doing does the impossible: it offer a more refined experience that the previous MT4. Here are some of the key pros of the MT5: more chart indicators, advanced market depth feature, more order types, netting and hedging options, EA’s, improved back-testing, and more.
FUTURE-FX DEPOSIT/WITHDRAW MEHTODS AND FEES
The minimum deposit requirement is unknown. The user payment area did not allow us to continue with any sort of payment. As you can see, the broker has indicated that the minimum value cannot exceed zero. We do not know how to proceed here; it’s as if the broker does not want us to deposit.
Hover, this makes sense when considering the following clause that we discovered. It states that all deposits may be supplemented and/or reduced at the broker’s discretion and without warning. This can have some significant consequences, so we advice you to always check on this.
For now, we do not know what the real minimum deposit is, nor what the payment methods are. The website claims the minimum to be $3000, while the alleged payment gateways are Visa, Mastercard, Maestro, and Wire Transfer, all having a 3% commission. We do not vouch for this information.
Withdrawals are said to be done via the same aforementioned methods, and are also charged a 3% commission. The minimum withdrawal request is $50. Prior to withdrawing, a user must do at least 5 independent trades, or they will be issued a 5% commission.
Here is a clause that delicately reveals that the broker will issue fees. Although some of the fees we will discuss here, something tells us that there might be others. So, be vigilant about these.
The dormant account fee makes a return. Here, users have to pay a 5% charge, or a minimum of $25, if they have not traded for more than 90 consecutive days.
Upon receiving a bonus, the user must complete a specific trading requirement before withdrawing it. The turnover is 10 lots for every $1 bonus received. However, this might seem a small amount but it definitely is not. One lot equals to 100 000 units, or in this case dollars. So, technically, the requirement is $100 000 in trading for every dollar of the bonus. This amounts to an almost impossible volume requirement.
The legal documents, when all put together are incredibly long and complex, and we confess that we may have missed some clauses. However, this should not matter to much, because as we said, the broker is unlicensed and therefore should not be invested with.
However, when compared to other unlicensed brokers, Future-FX is definitely more calm and contained. There is even a glimmer of hope for this firm, should it take seriously and that the legal road.
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