Beware! ForexG 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.
ForexG is a broker that gained our suspicion outright. The website is hastily made and uninspired. There are the usual bold promises questionable brokers put on their websites – tight spreads, a large leverage, the ability to trade on the go. There is however something even more jarring on the website – the lack of any ability to actually make an account. Now, of course there could be perfectly valid reasons for this – website maintenance, maybe they moved to a new domain and it is not yet fully functional. However, in the section about the company, which miraculously was accessible, there is the claim that the company started up in 2004.
Now, dear reader, ask yourself if a legitimate company that has operated for more than a decade and half would allow for such an amateur mistake as to not enable the option to create a new account?
ForexG regulation and safety of funds
ForexG is registered in the city of port Louis on the island of Mauritius. There is a basic contact form on the website, as well as an email. Other than that it is unclear who the executives of the company are. Luckily, we are able to get some more information from a press release ForexG issued on the 13 of July. This information consists of a phone number and the name of some Mr. Chris. It is unclear what role Mr. Chris serves in the company.
Of course, regulation is, to put it mildly, lax in Mauritius. The nation has its own Financial Services Commission, but compared to more reputable regulatory bodies it lacks both the strict restrictions they impose on brokers and the protections put in place for the traders. For example, regulations in the EU demand a starting capital of at least 730 000 euro, segregation of customer accounts, strict supervision and regular reports on company activity. There are also insurance funds to restore losses in the case of broker bankruptcy that protect their customers from the volatility of Forex trade to an extent – for example in Cyprus that extent being 20 000 euro per trader. This is why it is recommended to stick with brokers regulated by trustworthy agencies like FCA or CySec.
On that note, in the press release ForexG also makes a very bold claim, that the company has just acquired two licenses from regulatory agencies. One of them is the aforementioned Mauritian Financial Services Commission and the other is the Canadian Financial Transactions and Reports Analysis Center of Canada.
The claim that ForexG is registered under the FSC is easily disproved by a look at their website
Back to the claim in the press release, the latter agency is not actually the body that is responsible for regulating traders and ensuring fund safety in Canada. That would be the respected Investment Industry Regulatory Organization of Canada (IIROC). The FINTRAC is an agency that prevents money laundering and the financing of terrorism. Don’t get us wrong – fighting money laundering is a worthwhile goal, but ForexG does not appear to be registered under it no more than it is under the FSC.
ForexG trading software
ForexG claims to offer a downloadable distribution of Metatrader 5 as well as a web-based platform. These claims cannot be proven at the time being, because, as stated above there does not seem to be a way to register for the site at the time of writing. Of course, MT5 is the industry standard trading platform, and for good reason. It offers some of the easiest to use charts, graphical tools like trend lines and Fibonacci levels, as well as a sophisticated automated trading option. There is also a large community around creating and selling trading bots. While these are some of the virtues of the platform it is impossible to know how many of them are present in the distribution ForexG claims to provide. MT5 is white-label software, which brokers quite often modify to suit their needs. It is not uncommon for these custom distributions to lack the bot trading feature for example.
The only reference there is to the web-based platform is on the home page.
It seems lacking in comparison to MT5. Of course it is unreasonable to judge it entirely based on this single picture, which could also very well be a stock photo, but since the site is broken it is the best we can do.
Another thing we cannot verify because of these peculiar technical difficulties is the promised spread of 0.2 pips and the huge leverage of 1:500. They may very well be available but how would we know?
ForexG deposit/withdrawal methods and fees
There are absolutely no ways to discover what deposit methods are accepted by the company. Their incredibly bare-bones User Agreement makes no mention of their deposit policy.
Withdrawals are much the same. There is no mention of how the process works, if there are any documents that need to be provided, how long it takes or if the company takes any fees. These lacks of crucial information are not surprising for ForexG, but entirely unprofessional. Once again we must circle back to the argument we made at the start of this article – if a company has operated successfully since 2004, 16 years by now, and has, as it is claimed on the home page “over 1 million registered traders”, why does it have such lapses in what is arguably the most important document on the site – the User Agreement? Why does this professional company, presumably run by Mr Chris himself, fail to adhere to such basic and uncomplicated needs, like any information on withdrawals?
How does the scam work?
The facts outlined in this review lead us to the conclusion that whoever is running ForexG is either incompetent or has some other, more malicious goal in mind. We must leave it up to you to decide what is the truth in this situation, but we must make a mention of the dangers of the latter option. The world of Forex trade is a ruthless place filled with scammers. The most common and simple scam starts when a company is registered in an offshore location with loose regulation. The company hastily makes a website and starts running ads on popular social media platforms. They promise a story – from the generic rags to riches to really devious creative writing exercises that can include, but are not limited to, secrets of the markets revealed, or an insider sharing top-secret info. The possibilities are endless. What matters is that the would-be victim follows the ad to the website, much like this one. The way it usually goes is they then make an account, giving away their personal information like a phone number or an email address. From there on they are bombarded with calls and emails from the scammers. Some of them are really aggressive, some are more patient, but what unifies them is two things – they present themselves as authority figures – your “Account manager”, or “Trade advisor”. The second thing is they will demand you deposit your money with them. They will spin you another tall tale of success. When you deposit your money however, you will most certainly see your account balance run into the ground. These scammers do not care about the actual trades they perform. This is because they make their money entirely from your deposit.
What to do when scammed?
When scammed there is usually little recourse. If you have paid using a credit card you can file a chargeback – in fact both Mastercard and Visa have significantly increased the time frame in which one can be filed – it is now 540 days from the date of the transaction. If you have paid using an bank wire or bitcoin however, you are not likely to see your money ever again. If you have provided the scammers with your credit card information it is of utmost importance to have it changed. You absolutely should delete any software they had you install as well – desktop sharing programs like TeamViewer/AnyDesk and any trading platforms for example.
Finally, you have to know you are not immune to further scams – the last step of the scam described above usually entails passing your contact information to a different scammer, who will then go on and pretend to be a representative of a recovery agency. They are not what they claim to be, despite what they may promise. They will not restore any losses and will demand even more money from you – they will call it an advance fee. If you cave into the demands they will cut any contact with you and disappear forever.
Rich Snippet Data