Is the broker legit?

[Hakvik]

Hi,

I have been contacted by a broker and the offered to educate me and in the beginning do the trading for me (this is normally a gold level $30000 account option).
I opened a small $250 account and he asked me what goal I had and I said if I could do 10% a week that would be great, they did 7 trades in 2 weeks and now I have $275 in my account. I talk to my account manager 1-2 times a week and he seems to know what he talks about. I have installed metatrader 4 to look at the charts and follow the trades as they close. Last time we spoke he asked if I wanted to upgrade to a silver account ($2000) to continue to have a good level of support and more possibility to do trades.
I have googled the broker and not found much info, the broker is quite new and doesn't seem to be regulated.
How do I know that the broker is legit and not trying to scam me?

 

[FxMaster]

Hi,

I have been contacted by a broker and the offered to educate me and in the beginning do the trading for me (this is normally a gold level $30000 account option).
I opened a small $250 account and he asked me what goal I had and I said if I could do 10% a week that would be great, they did 7 trades in 2 weeks and now I have $275 in my account. I talk to my account manager 1-2 times a week and he seems to know what he talks about. I have installed metatrader 4 to look at the charts and follow the trades as they close. Last time we spoke he asked if I wanted to upgrade to a silver account ($2000) to continue to have a good level of support and more possibility to do trades.
I have googled the broker and not found much info, the broker is quite new and doesn't seem to be regulated.
How do I know that the broker is legit and not trying to scam me?

If they keep forcing you to upload more funds then you can "Run as fast as you can "

 

[Hakvik]

If they keep forcing you to upload more funds then you can "Run as fast as you can "

They haven't forced me, just suggested the benefits of having a larger account which is correct, to be able to have both long and short term trades. It would feel a lot better if I could read some reviews of other customers experience with this broker. I'm skeptical by default but so far they have treated me fair, Next phone call is tomorrow, any suggestions of questions I can ask that will reveal that they are scammers and not just a new broker? They are called 100xfx.com please edit that out if 'it's not appropriate to name the broker but I'm not saying that they have done anything wrong, it just feels a bit strange to be offered this service.

 

[TinRSA]

H

They haven't forced me, just suggested the benefits of having a larger account which is correct, to be able to have both long and short term trades. It would feel a lot better if I could read some reviews of other customers experience with this broker. I'm skeptical by default but so far they have treated me fair, Next phone call is tomorrow, any suggestions of questions I can ask that will reveal that they are scammers and not just a new broker? They are called 100xfx.com please edit that out if 'it's not appropriate to name the broker but I'm not saying that they have done anything wrong, it just feels a bit strange to be offered this service.

Hi. Take it from someone who has lost lots of money to a broker who also took me along when he started "his own business" which turned out to be a way to lay his hands on my account and then after a couple of months just disappeared. I can't contact them and they do not respond to any of my correspondence. This was/is also a company licensed in St. Vincent but operating with British contact details and your broker sounds equally dodgy.

Maybe if you share the person's name or your contacts. Also see the website scamadviser.com. gives you the level of trustworthiness of the website. Nothing about the business but it tracks the volume of traffic on the website and if not heavy, the site could be a scam.

Have you asked whether they are regukated in your country or region? If not, try another broker. The legit ones do not try and get more money out of you by selling so-called silver, gold and platinum accounts. Been there and done that and unfortunately I have a very scant T-shirt. I wish I had listened to FX master when I started.

 

[FmrBrokerExecutive]

It's a Saint Vincent brokerage. There's nothing wrong with that - just pointing it out.
You will get bigger bonuses and leverage with offshore brokerages, but obviously don't have the same advantages a large UK/US broker may have.

As for the deposit size thing, any broker will motivate clients to deposit more than $250.

Remember, even with big spreads a broker is barely making anything on a $250 account...
Many brokers don't even bother with such small accounts because it costs more to support these account sizes then worth having them on the books.

 

[Pharaoh]

St Vincent. That's almost as bad as being "regulated" in the Marshall Islands.

Resist all requests to "upgrade" your account by depositing more. Don't ever take ANY trade suggestions from a broker, especially suggestions they claim are "sure" to win. Never under any circumstances agree to let any broker employee (or IB) place any trades on your account.

 

[FmrBrokerExecutive]

St Vincent. That's almost as bad as being "regulated" in the Marshall Islands.

Resist all requests to "upgrade" your account by depositing more. Don't ever take ANY trade suggestions from a broker, especially suggestions they claim are "sure" to win. Never under any circumstances agree to let any broker employee (or IB) place any trades on your account.

Pharaoh mate, you have a habit of trashing brokers that aren't Tier-1 regulated but don't offer alternatives...
These brokerages in offshore areas are often the only choice small traders from non tier-1 countries have to choose from.

A $200 deposit at a US or UK brokerage is often not an option because the brokerage would never make money on the client. They would actually lose money on it, even on a B Book it would be hardly worth it.

Therefore, even big brokerages usually have an "arm" of the business somewhere like St Vincent, Marshall Islands, Belize, etc. (It use to be Cyrpus but now even Cyprus has a $1m+ price tag to get a license).

It's very expensive to open shop somewhere like the UK or US. ($10M just in reserve capital). It doesn't automatically mean someone is a scam if they are operating from Belize, etc.
I know many good people operating offshore. Additionally, I see lots of these banners here on the FPA.

Happy trading all.

 

[Hakvik]

Talked to my broker again today, he was disappointed that I didn't deposit the $2000 and he tried to get me to deposit $1000 and he would put in $1000 in credit until next week when I was supposed to add the remaining $1000... so I asked what more he wanted to show me but he quickly wanted to end the call and talk to me again tomorrow, I guess to once again convince me to add funds.
I have decided to close my account, let's see if I can get my money back

 

[Whitesnake]

I don't think I have ever seen Pharaoh say something positive about one company. :/

 

[aum108]

How did they contact you? In my opinion it's always very suspicious if the broker contacts you first.
And yes, if they try to force you to upload more and more money, it's even more fishy.

I don't think I have ever seen Pharaoh say something positive about one company. :/

I'm sure he has in the past, bur not very often, since there are many scams on FPA