FinanceReserve (or FRCM) is a huge broker, with a lot going on on its plate. Its website seems to be overflowing with information. It advertises trading in a wide range of financial assets, a choice of 5 account types, trading education, professional account managers, attractive bonuses, etc. And it says to be owned by one of the worlds leading investment firms – a claim which turned out to be false. Moreover, the website is available only in English, which is quite disappointing for a website of this scale.
Is FRCM a legitimate broker？
If you look at the information of its website, you will see that there is hardly place on earth where this broker does not have a registration. FinanceReserves a.k.a. FRCM is allegedly owned and operated by Plus500UK Ltd. It seems that the company or its subsidiaries are all over the world – UK, EU, New Zealand, South Africa, Seychelles and Singapore. That should inspire confidence, right？ Wrong! The image below which is a screenshot from the Financial Conduct Authority (FCA) register clearly shows that this company is a clone of a legit firm. A clone company means that the scammers steal the name and registration number of a licensed company and claim it as their own to fool potential clients. It‘s needless to say that trading with such a broker won’t bring you any riches or joy.
One victim posted such a comment:
What's more, according to information provided by WikiFX, a global corporate financial information searching tool, FRCM currently is not under regulation:
So, don't allow FRCM or any such fraudsters to get you pulled by the nose. Always check the warning lists of financial regulators, and make sure you only invest in financial services providers regulated by reputable governmental agencies like the FCA, ASIC, or CySEC. These institutions have established some of the safest trading environments.
What to do to avoid being scammed？
Online investments are pretty risky. This is especially true in the foreign exchange landscape. There is an abundance of forex scams online, initiated by scammers who get their confidence from the Internets anonymity. Identifying a scam from a legitimate forex trading activity is imperative to protect yourself from financial ruin.
A classic indicator of a forex fraudster is exaggerated claims of massive returns on modes investments. It is most likely a scam if you are promised guaranteed high returns. The success of your investment is highly dependent on a highly volatile market. You may receive returns quickly, or you may not. But a company that purports consistently high returns is giving you false claims because it is not feasible in the foreign exchange trading market.
Furthermore, forex scammers take advantage of their knowledge of the forex exchange market by using complicated jargon when preying on their victims. Terms like risk disclosures and terms of use are often used to limit their liability should investors suffer losses along the way.
In addition, avoid brokers who fail to provide you with the proper credentials at all costs. You want a trustworthy person to manage your account. Do due diligence and check out regulating bodies to verify if a forex broker has a good legal standing in the foreign exchange market.
The best thing that you can do to avoid a forex scam is to educate yourself. The more you know, the less likely you are to be taken advantage of. Do your research—learn more about the foreign exchange market, terminology, and the legitimate resources to assist you with trading.
