Many unscrupulous brokers try to scam individuals through forex trading scams. Sometimes it can be difficult to know for sure they are problematic until you have already entrusted them with your money. A common problem is they will refuse to allow clients to withdraw their money with some excuses. This is what is known as a forex withdrawal scam.
BrokersView recently learned that an investor named AC has been trapped by a withdrawal scam conducted by the forex broker Fx Option Trade247 and couldn't get his money back.
Induce Investors to Pay Extra Money Before Withdrawing
An investor named AC posted his experience with Fx Option Trade247. According to AC, he had a trading account with the broker. The broker never told him about any fees until it cut off the investment. There was 10% upfront out of his pocket. After paying for $820, he then was told to pay $350 for a signal boost, then he had to pay $250 for legal fees, then $310 for WA withdrawal address for his wallet. Then 5% to his trader. After he paid all the extra money as the broker told him, he finally realized it is a scam, and that's the time he stopped paying more and he was out $2k US dollars at that time.
（Screenshot from the Inverstor AC）
Claims to be Regulated by a few Global Regulators
According to its homepage, Fx Option Trade247 offers trading in forex, shares, indices, commodities and cryptocurrencies with CFDs.
It gets really confusing when it comes to the broker's regulations. Checking on the website, Fx Option Trade247 claims to be regulated by a few global regulators. It shows that:
1. it is authorised and registered with the U.S. National Futures Association NFA ID: 0486419;
2. it is authorised and licensed by CYSEC (EU) (License No. 199/13);
3. it is authorised and regulated as a Investment Dealer by the FSC on 06/12/2016 (License No. C116016172)
However, the above three registration details are fake.
After checking with its stated license numbers on the above three regulators' register, we found the regulatory information the broker claimed belongs to another broker - BDSwiss, a regulated entity that has no association with Fx Option Trade247.
Besides, the broker was warned by CySEC before.
These proofs make it clear: Fx Option Trade247 is actually not regulated or registered by any financial regulator. That means investors' funds in the broker is unsafe and cannot be protected by any laws. Therefore, it is a scam broker.
BrokersView suggests investors to stay away from Fx Option Trade247 and keep vigilant when choosing forex brokers. If you are not sure on how to find a licensed broker, you can search on our website to check brokers' details.