Been Scammed By This Broker? We Can Help!
The scam brokers who stay in the game the longest are those who set themselves up as legitimate brokerage sites with promises of transparency, precise data and a regulatory licence. However, just because a company is licensed doesn’t mean they are incapable of criminal behaviour. Companies like FXGlobe hold their registered status over their head to prove they are not fraudulent, but this claim of transparency is how they continue to lure in their victims.
Most scam brokers set up shop and disappear within a year or so when government authorities begin to catch on, however some disguise themselves and can survive in the market for decades.
FXGlobe is an international brokerage firm and the trading name of FS International limited. Their offices are registered in both Cyprus and Vanuatu. Their parent company, FS International is located in England, and online records suggest that the company is currently based in Lancashire.
FXGlobe is genuinely a registered and licensed broker; however, their licensing history does have some shady spots if you know where to look. For international business, FXGlobe is registered with the VFSC in Vanuatu. The VFSC has also recently become a popular license for scam brokers since it is cheap to acquire and easy to get your hands on. The financial body in Vanuatu doesn’t have the resources to oversee international trade, so it is incredibly easy for fraudulent brokers to make themselves look reputable by proving they hold a license but continue doing illegal trade under their noses.
They also hold a CySEC license; this is a moderately well-respected license; however, be warned that scammers commonly use it since their regulatory powers only stretch so far. Plenty of less than respectable businesses hide their illegal dealings from the watchful eye of CySEC, so criminal activity from FXGlobe certainly isn’t impossible.
Reviews and the general reputation of this broker show mixed feelings; some hail them as excellent and trustworthy brokers and others cry scam. ForexPeaceArmy rates them 3.8 stars, which is considerably high considering the large volume of negative reviews they have received there. It is entirely possible that some of these reviews have been faked to help maintain the broker’s online reputation. The broker has responded to complaints on ForexPeaceArmy in an attempt to hold face, but the massive divide in public opinion is questionable, to say the least.
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Yes, I believe it is incredibly likely that FXGlobe is a scam. To begin with their international presence and licensing history leaves me with questions. It is incredibly hard to pin down the exact locations and staff associated with this business. The number used on their international site which remembers holds registered offices in Vanuatu, is actually a UK mobile phone number which can be traced to London. If you google this number, you will find that people have made complaints about this number complaining of pushy sales convincing them to invest with them.
Government documentation of their parent company, FS International, is similarly suspicious. The records show that they have been struck off the registrar by compulsion once before and that they have operated in many different offices and with constantly changing directors and staff members. They could just move their offices a lot, but it feels a lot more likely that these people don’t want to be found.
CySEC has also issued a warning against them before in 2009, not long after the companies conception. The CySEC warning stated that they were not authorized to do business and warned clients not to invest with them. Since FXGlobe received their license from CySEC in 2013, I wouldn’t be surprised if they were operating without a license outside of this period.
Based on reviews and complaints from their previous clients, FXGlobe has a clear scam M.O. They lure in an investor to place a deposit, then they come up with a reason to either take money from the client or lock them out of their account, so their funds are no longer accessible. After this, they cut off all contact with the client, and their phone lines go dead. Clients have found themselves faced with immense inactivity fees falsely charged to them once they have been locked out of their account and some reviews suggest that FXGlobal has shifted the blame to their clients by claiming that they have committed financial abuse or money laundering.
FXGlobal disguises themselves as a regulated and legitimate broker by hiding their dubious dealings behind their licensing status. They use their nasty terms and agreements to turn against the client and claim it was the client’s fault they were conned out of their savings.
Here are some possible red flags for spotting scam brokers:
If you have fallen prey to a scam by FXGlobe or to any other form of fraud, then Trader Defence Advisory is here to help. We at Trader Defence Advisory utilize our hard-working team of legal and in-industry professionals to create cutting edge personalized strategize for getting your money back. To get us on the case book a free consultation today or directly report a fraudulent broker or business on our website.