FXGlobe – Scam or Service?
With so many online brokers out there on the market, it can be hard to choose which investment plans are best for you especially when scam brokers run riot across the internet committing fraud and for the most part getting away with it.
Scam brokers who stay around the longest and avoid capture set themselves up as legitimate brokerage sites which provide data, terms and conditions and registration status to prove to their clients that their service isn’t a scam. This claim of transparency is how they continue to lure in investors.
|Product Types||Forex, Indices, Cryptocurrency|
|Products Offered||More than 200 products to Trade|
FXGlobe: An overview
Founded in 2009, FXGlobe International is the trading name of FS International limited. They are an international broker who has registered offices in Cyprus and Vanuatu. FS International is located in England, and records can be found online showing that they claim to be currently based in Lancashire.
Registered in Vanuatu, as FS International the licensing history of FXGlobe sounds suspicious. The VFSC has recently become a general license for scam brokers; it is cheap and easy to acquire and is also not very reputable as a legitimate governing body. A quick search and it seems that their CySEC licence is still valid and is used on the site www.FXGlobe.com and the VFSC licenced is used on their site www.FXGlobe.international. CySEC is a much more reputable broker; however, their powers only stretch so far, and many scam brokers are registered with them and operate criminal schemes under their jurisdiction.
Reviews on this broker are mixed, ForexPeaceArmy rates them 3.8 stars, which is pretty high considering the number of negative reviews. Some of the positive reviews listed have likely been faked, mostly since the broker has responded to clients’ negative feedback using this platform to retain their image.
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FXGlobe: Scam Warning Signs
So, is FXGlobe a scam? Very likely yes, their international presence and licensing history makes it very hard to pin down exact locations and staff associated with this business. The number on their global site is a mobile phone number from London. You will find that many have complained about this number claiming unsolicited calls and pushy sales trying to convince them to invest.
The legal documentation of FS International is similarly fishy, with records of the company showing that they have been struck off the registrar before by compulsion and that the company has operated in many different offices and with various directors and staff members. This is a company which doesn’t want to be located or identified.
CySEC has issued a warning against them before, in 2009 not long after the companies conception. This warning claimed that the commission had not approved them and did not advise trading or investing with them. CySEC licensed FXGlobe in 2013; this suggests that pre-2013 FXGlobe had been an unlicensed broker.
And the fact that their international trade is licensed to the VFSC is incredibly telling; the VFSC doesn’t have the power or resources to oversee international trade. The license isn’t known to be reputable in fact, the opposite since many scam brokers register with VFSC because it is a cheap and quick process to receive a license.
Now let’s turn to some complaints from previous clients, the process used by FXGlobe as based on these reviews is to lure an investor into making a deposit, then come up with some reason to either take money from the client or lock them out of their account, then they cut off all contact with the client and customer service becomes unavailable. Clients find themselves unable to withdraw money from their account and face inactivity fees, and some reviews even claim that FXGlobal has falsely accused their clients of financial abuse such as money laundering.
This broker likes to disguise themselves as a legitimate broker by hiding behind licensing status and nasty terms and conditions statements that shift the blame for the client’s financial losses that they have just cheated out of their savings.
Spotting scam brokers:
Here are some red flags which may indicate a fraudulent broker:
- the broker locking up your account: Blocking, Unable to log back in, Freezing accounts
- Being unable to withdraw money when requested or incredibly long withdrawal timeframes
- The broker not answering calls and absent customer service
- The website is closed or shut down without notice
- Money removed from your account without your permission or consent
- Pushy sales tactics and unsolicited calls
- History of customer complaints
- Claims that they cannot be a scam because of their license, but they have a license or licenses of questionable quality
How can Trader Defender help?
We at Trader Defender offer due to diligence services to our clients and can give a full report on any company or business you wish to do trade with so you can make well-informed decisions every time you invest. So if you would like to avoid being scammed by fraudulent brokers such as FXGlobe consider getting a free consultation today.