Beware! TrueFXMarket 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.
Do you know how many misleading names we have encountered before TrueFXMarket? Names suggesting that the broker bearing them is the number one gold, or commodity, crypto trading firm in the industry. What about FX? Hundreds of brokers have “forex”, or some variation of it in the title, leading both us and users to believe that it is worthy of an investment. Is this broker worth your time and money, or should it be ignored like thousands before it? Read on to find out.
To register, a very familiar process must be completed. Our concern is that the process of signing up is associated with unregulated brokerages. What followed was a user dashboard in the shape of a trading software. There, the EUR/USD spread was 0.1 pips, which is perfect, yet we do not trust it. There must be some sort of commission, no matter if the broker speaks of it or not. The leverage is capped at 1:100.
The website is available in English only.
TRUEFXMARKETS REGULATION AND SAFETY OF FUNDS
The Terms and Conditions reveal that the company’s main servers are located in Bulgaria. At the end of the T/Cs, the broker confirms the company to be functioning under Bulgarian laws. However, and most crucially, nowhere does it say that it is regulated by the local overseer.
Financial Supervision Commission (FSC) is the Bulgarian equivalent of a financial regulator, yet it does not enforce the rules that have become a staple of the legitimate FX business. So, many shady firms use the country as their base of operation or have subsidiaries that cover some sort of vital function for the company (for instance, payment transaction, or customer support).
Furthermore, what we have next is a common clause utilized by unregulated brokers. The provision claims that it is the user who should check if he or she can legally trade with TrueFXMarket. Putting the responsibility in the user’s hands is a common practice among unregulated brokers.
It is the firm’s own initiative to get a decent regulation!
Anyway, it is obvious that TrueFXMarket is UNLICENSED, and therefore a risk to all investments.
There is only one thing left to do! All user who are interested in trading Forex or CFD, are urged to do so only with the real regulators of the industry. Some of the most renowned and secure are the FCA and CySEC. These regulators act upon a set of rules that have been put into a legal framework with the local governments, and that is why users should trade only with brokers regulated by them; once a broker is granted a license from one of these watchdogs, they immediately adapt these legal frameworks as their own rules of conduct. What’s more is that the FCA and CySEC make it is obligatory for all brokers under their gaze to participate in financial compensation schemes; 85 000 pounds per person for FCA, and up to 20 000 euros CySEC.
TRUEFXMARKETS TRADING SOFTWARE
The web based trading software here is rather basic, even if it over some trading options.
The following is the short list of features that the software offers: of live TV, live news feed, pending orders, time frames, and some minimal chart customizations. Most of these are basic functions, and so are not enough for us to recommend this trading terminal.
There is no mention of a spread commission. So are to believe that the spread really is 0.1 pips? Personally, we will never trust this cost of trade.
TRUEFXMARKETS DEPOSIT/WITHDRAW METHODS AND FEES
The deposit section in the user area gives us a broken payment area.
As you can clearly see, there are no input options, no depositing gateways, and nothing to suggest their presence. We can view this in two ways. Either the source is broken, or the broker hides its real depositing area only to selected clients.
Withdrawals are processed between 2 and 5 days. Withdrawal fees are not been disclosed, but we presume that they exist. The difference is that the unregulated broker will launch them without warning. So, we urge you to be aware.
Interestingly enough though, the withdrawal section in the registered user dashboard gave us more than the depositing one. There we found out that withdrawals are done through Bitcoin, credit card, and wire transfer.
The dormant account clauses will charge you an annual maintenance fee of $25. A dormant account fee is charactarized by zero activity for a period of 12 months.
Bonuses have to be traded with 30 000 times (the bonus amount) before they are to be withdrawn.
Here are two clauses that are very vital to the unregulated nature of the broker. The first one claims that the broker can set off positive balances in an account, which might touch on our suspicions that TrueFXMarket does not offer a Negative Balance Protection.
The second clause reveals that TrueFXMarket can impose volumes and other limits on a ser’s account. These, we assume, can apply to trades, withdrawals, and activities.
The broker makes sure that the user agrees to not make any chargebacks, which are one of the few ways through which a user can get her money back after being defrauded by an illicit company. Furthermore, all chargeback will be reimbursed to the broker.
Here is a very casual looking clause, that is in fact one of the most notorious ones. Here the broker basically claims that it will not be held legally responsible for any of damages it causes to users, basically indemnifying the broker from all illegal actions!
Not the most shocking of clauses, but definitely not the timidest of provisions either. They, nevertheless, reveal that the firm is unregulated. User must always remember that brokers without a license are a risk to all deposits and personal details! Do not invest here!
How does the scam work?
Scammers have been known to use the same type of scammer structure, with just different hues and approaches. With that said, the way the scam works is actually incredibly easy to grasp, and once yo know how it works, yo will always be able to detect it.
The first step to being scammed, if we can express ourselves so, is to be lured in by an ad online. These are found all over the internet, but especially on social media websites. Illicit FX firms advertise false promises and fake trading conditions. Internet users that are tempted by these will either be redirected to a so-called robo-scam website or straight to the unlicensed entity. These websites will require you to register with an email or a phone number, and once you provide these details, you will start getting contacted by reps of these scammer firms. These reps require a minimum deposit from users, and will probably achieve to convince you because they are charismatic and confident in what they do.
However, they are no match for the expert scammer, whose goal is to talk you into making more deposits, and in the end will tell you that you cannot withdraw your funds for a number of reasons that will sound suspicious. In the end, what matters is that the client will not be able to withdraw his or her money back.
What to do if scammed?
The only thing to do in that case is to file for a chargeback with your credit card provider. VISA and MasterCard have extended their chargeback time span to 540 days, so good news for those that at have deposited by either of these methods.
If you have deposited via bank transfer, be sure to block the account or change the password. Or you could contact your bank and see what they can do.
Never deposit funds using crypto methods into an unregulated broker. These methods are untraceable, and there is no way to get you money back.
Last but not least, do not trust the so called recovery agencies, who are nothing more than fraudsters in disguise. If you get scammed, you might get contacted by someone claiming t be a recovery agent who is willing t fight for you money back, in exchange for a small hiring fee. Once you pay them the fee, they will disappear.