The forex market is a high-risk endeavor for anyone who invests. But that's no excuse for being careless. In this context, falling victim to scam brokers means losing your hard-earned money, which you can avoid with some diligence. Here, we'll go through how dishonest brokers like BRFX Trade scam its clients and what you can do to avoid being a victim.
BRFX Trade- A Quick Overview
BRFX Trade (www.brfxtrade.com) is a forex and CFD brokerage firm founded in 2018. The company offers retail trading services across various financial markets, including forex, stocks, indices, and commodities. While the broker doesn't have a proprietary trading app, it facilitates trade execution through the MT5 trading platform powered by MetaQuotes.
Is BRFX Trade Regulated?
Operating under the brand name of BR Consulting Group Ltd, BRFX is registered in St. Vincent and Grenadines Financial Services Authority (SVGFSA). However, it doesn't hold regulations anywhere else. Notably, SVGFSA itself isn't authorized to issue licenses or oversee forex brokers and financial intermediaries that provide online trading services.
User reviews from third-party review sites such as BrokersView and online discussion groups on Facebook, Instagram, and Twitter showed widespread dissatisfaction with the company. Many clients complain about difficulty with withdrawals and some complaint about the broker's slow execution of trades and poor customer service. The clients also claimed that the company was a B-book broker. Below, we've excerpted some of the reviews our customers have left for the company.
Is BRFX Trade A Scam Broker?
First, BRFX Trade is an unregulated offshore broker, although the company is registered with SVGFSA. It is worth mentioning that scam brokers prefer to register overseas to avoid the legal fallout they may face in a country with a robust regulatory body.
You might think that's not always the case. Certainly, many reputable brokers also have offshore offices, but for providing flexible services such as increased leverage, instead of scamming people. Additionally, they often hold multiple licenses from top global regulators. In the case of BRFX Trade, however, the broker is not regulated anywhere. Also, the company has a poor reputation among customers.
Notably, the company seems to have changed its domain. Clients visiting BRFX Trade get redirected to FXBullion.com. A major red flag that raises even more concerns about it being legitimate. Possibly, the firm is looking to fool around with people with a new identity.
How does BRFX Trade Scam Work?
After clients sign up with the broker, the company's telemarketing staff follows them over the phone and email and asks them to make an initial deposit. According to clients, the broker promises to double your investment within a short period. However, the staffs are very good at turning their back once you have made deposits. The company barely bothers to reply to emails on answer your phone calls.
Considering the increasing number of scam brokers, you'd better deal with reputable brokers licensed by global authorities like NFA, FCA, ASIC, etc. Also, brokers with a solid reputation throughout their business's operational lifespan are likely to be a safer choice than signing up with unregulated entities. At least, you have the legal option of recourse if the company treats you unappropriately, which is not the case when you deal with a non-regulated entity.
If you have trouble with a broker, you can contact Service@BrokersView.com.