The way Forex scams work is very simple, the brokerages are creating their website based on some legit brokerage, make great offerings that usually targets beginner traders that are not aware of such scams yet and try to make them invest as much money as possible. When the trader finds out he is a victim of the scam it is too late and they have nothing else to do but be careful when they choose the broker to trade with next time. Due to this simple scam scheme, the same scam brokerages are popping out with the different names and start scamming people again. Hence, there are not many scammers who are on the market for several years. Forexchief review showed that it might be this kind of broker that manages to continue operating with the same name for years and scam traders.
Leverage: 1:400 Licences: FSC Vanuatu
Min. Deposit: 100 USD Bonus: 100 USD
Spreads: from 0 pips US Clients: No
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It is not easy to reveal the scam of the company which was leading it for several years already. However, it is also more interesting to bring the wrongdoing of sophisticated scam brokerage on the daylight. While at the beginning Forex chief broker seems fully legit going through its offerings and features in details reveals the scheme that the broker is using successfully. So let’s start from the beginning and from one of the most important parts of the brokerage – regulations.
Is Forexchief legit?
We found, when writing this Forexchief review, that it was established in 2016 and has three years of experience. Unfortunately, the broker does not provide much information about the brokerage. Instead, you can only find the summary of the services in “about us” page. That is already suspicious but more bothering is the regulation of the broker. Forexchief Forex broker is a trading name of the Forexchief Ltd. The company is registered and licensed in Vanuatu, by the Financial Services Commission of Vanuatu. It is never advised to choose the broker that is licensed by the offshore financial authorities for two main reasons. First things first, offshore regulatory bodies are not very reputable and it been a long time since the islands such as Marshalls islands, Vanuatu, Belize and others became a home of the scammer brokerages. Moreover, since the broker is not regulated by the local authority of your country, you will not have any possibility to get your money back if something happens. Seeing that the broker is regulated in Vanuatu should already make you wonder can Forexchief be trusted? It is very easy to get a license from Vanuatu and any scam brokerage can get it. For example, if a broker wants to get authorized by the ASIC it needs to have at least half a million in funds, to get a license from FSC Vanuatu broker needs only 2000 USD.
Now let’s take a look at the website and see if at least that inspires some confidence. The first thing we try is the Forexchief login, which is a little buggy and a little tiring to use, making accessing your own trading data a little bit of an annoyance. This allows users access to the Forexchief personal area, once they manage to get through the login screen. The main platform for any broker is their website where traders look at the offerings of the broker and open an account. While the website has a positive outlook one can guess straight away that it does not look like a website of a reputable broker. The design of it is nowhere near to good, it looks like the broker did not really want to invest much in it and simply used a cheap layout. Contentwise, there is not much to see at all. The broker does not suggest any education to its customers. All you can find there are some analysis and library that consists of several short articles. Most of the content is about the bonus offerings, which should make you think whether the Forexchief FX brokerage can be trusted or if it is a scam company that tries to look as legit as possible?
The minimum deposit is one way to attract new clients. In most cases, beginner traders are searching for the broker that requests a low minimum deposit. The logic behind is simple, beginner traders do not want to invest too much money in it and they want to start trading step by step by the small amount of money. Therefore, they do not want to open an account that requires 500 USD and search for better options. It is used very well by the scam brokers and it is a part of the Forexchief scam as well. The minimum deposit with a broker is 100 USD only and it is the first bait that it throws to the potential customer.
Forexchief bonus review
Apart from the minimum deposit, the broker uses the bonuses to lure the customers. The broker offers two different bonuses – no deposit bonus and turnover bonus. At first glance, the welcoming bonus looks too good to be true. Every new customer who will open an account with the broker gets 100 USD for free! Getting the bonus is easy as well. The brokers who offer such bonuses usually require several steps for confirmation. To get the Forexchief welcome bonus one only has to open an account, download the bonus application and get free money by scanning the QR code. Wonderful, is it not? In reality, everything is not as simple as it seems. The conditions for using the welcome bonus and the withdrawal requirements are too complicated. The trader needs to reach a turnover of 10 million USD in order to be eligible for withdrawal. If you think of it such turnover is impossible to be met, especially for the beginner traders. Forexchief withdrawal for the bonus is not something the traders would like to have, after meeting the turnover the customer is only eligible to withdraw 100 USD. As the broker explains itself in the example after reaching the turnover trader has 250 USD on the account, he can only withdraw 100 USD and the other 150 USD is simply cancelled. The other bonus that broker suggests is the turnover bonus which is applied once the trader reaches a certain turnover. The bonus is applied only after your trading account reaches 100,000,000 USD turnover. The broker encourages the traders to reach this turnover in a week stating that the greater the weekly turnover is, the greater is the bonus. So, simply put, the Forexchief no deposit bonus is a way to get people to deposit money that they will not be able to get back.
ForexChief scam revealed
There are no questions that this is a scam broker, which is why the broker is on our scam broker list. Our Forexchief opinion has been formed after a vigorous exploration of the broker, which has shown that the website of the broker is created in a way to leave a great first impression but if someone will go through the pages will see that the website is pretty much empty in terms of the valuable content for visitors. It is regulated by the financial authority that is known as a regulator of scam brokerages. The broker lures beginner traders with the small minimum deposit and offerings that look great on paper but in reality are part of the scams. There are a lot of paid Forexchief opinions that also target the inexperienced traders to make them open an account with Forexchief. However, you should think well before you get lured with such offerings, if you will make enough research you will be proved that all of them are just part of the Forexchief fraudscheme and you should avoid it just like a plague.