Is there a 365-FX scam? Who regulates 365-FX? Does it even follow the rules? Do people get money when they withdraw? Read this 365-FX review to know all about this broker.
Before We Start This 365-FX Review, Here’s to Those Who’ve Lost Money
There are many tips online on how you can reclaim money that you have lost to fraudulent online forex brokers. Some “experts” will tell you that talking tough on the phone or threatening to sue the brokers will help get back lost money.
Most of these tips wouldn’t work because the brokers are also online and read the same tips that you do.
But the scammers are not invincible. At Wealth Recovery Expert, we have helped victims recover their money from some of the most brutal scam forex brokers like Europe FX. Contact us today for a free consultation on the best approach you can use to get your money back.
Recovering your money is great, but it’s better to not lose it in the first place. That’s why we review possible scam brokers that you should stay away from.
In this 365-FX review, we look at the firm and highlight the red flags that informed our decision to categorize it as a scam broker.
365-FX suspicious business changes
The broker was initially known as 365 Binary Option and was involved in binary trading. It received a lot of pressure to get regulated following complaints from traders. This prompted it to shift from binary trading to forex trading. Consequently, it changed its name to 365-FX.
It is speculated that one of the reasons for this shift was to make it almost impossible for victims to follow up on their refund claims. It would be difficult, for instance, to prove that 365 Binary Option and 365-FX are the same entity and thus liable for each other’s damages.
Recently, there has been a wave of complaints from forex traders about 365-FX. In response to these allegations, the broker now limits access to their site.
This move appears to be aimed at frustrating regulators and other people that want to look into the complaints leveled against the broker.
Note that there was no proxy involved when taking this screenshot. Either the site is offline for some people, or it’s completely offline for all.
This is more than a red flag. It is definitive proof that 365-FX scams its investors before disappearing, and it intends to do the same to you.
365-FX is NOT regulated
The firm has gone to great lengths to falsely appear regulated.
365 Binary Option was owned by Fintech Software Inc, registered in the offshore Marshal Island. The island is known for its lax laws on the operation of trading platforms and brokers. The fact that Fintech Software Inc was registered in an offshore island made a lot of people question 365 Binary Option’s legitimacy.
In a bid to boost the public image of the new outfit, 365-FX, the broker listed Oproserv Limited as one of its owners. Oproserv Limited is registered in London but is not authorized by the Financial Conduct Authority (FCA) to offer financial services.
This ploy works quite well for the scammers. Once naïve traders see that one of the parent companies is registered in the UK, they assume that 365-FX is regulated by FCA. The traders realize they have been duped when they try to file a complaint. By then, it’s too late for the FCA to do anything.
The broker also claims to operate in other countries, including South Africa, New Zealand, and Singapore. However, 365-FX and both parent companies are not regulated in those countries either.
Why do scam brokers like 365-FX prefer to operate without any regulation?
A broker must meet specific criteria before it can be approved and certified by financial regulators. Some of the basic requirements include:
- The physical address of its offices
- Details of its directors
- Proof that it has the capacity to give the services it claims to offer
The broker also commits to follow financial and trading laws. It should not, for instance, be able to manipulate your trades.
The primary purpose of these rules and regulations is to protect you, the trader, from exploitation. And should you suspect that the broker has acted inappropriately, the FCA can follow up on the matter because it has details of the directors and owners.
Scammers, therefore, prefer to operate unregulated because it allows them to:
- Use unethical means and unfulfillable promises to lure traders
- Manipulate the trades to benefit the broker at your expense
- Avoid accountability since traders and regulators can’t pursue them
Freezing payments: 365-FX reviewers state that they can’t withdraw funds
Almost all 365-FX reviews online are from traders complaining that the broker froze their funds. The complaints are both against 365-FX and the older version, 365 Binary Option. The broker is, therefore, doing this deliberately and probably intends to keep doing so.
365-FX prevents traders from withdrawing the amount they invested or subsequent profit. This is straightforward theft and goes against the basic regulations for brokers.
It would have been easy to prosecute 365-FX for this practice if it was regulated. Unfortunately, it’s not. There’s more…
365-FX uses a broker-controlled platform
Forex trading is usually done on neutral platforms such as MetaTrader. These platforms are unbiased in that when there is a change, it applies to all brokers.
If, for instance, the USD gains against the JPY, everyone who had ‘bought’ in the USD/JPY pair makes a profit irrespective of the broker they are using.
365-FX has its own trading platform. It encourages you to use that proprietary web platform instead of MetaTrader.
This allows 365-FX to manipulate your trade. For example, it can prevent you from stopping a loss-making trade and from taking a profit when you’re gaining. It can also manipulate trades such that it doesn’t reflect the real positions.
If it notes that a currency pair has made a movement that could make the firm lose money, it can delay reflecting that movement on its platform.
365-FX Review Conclusion: It’s a SCAM
After our careful 365-FX review, our conclusion is simple: 365-FX is clearly a scam broker out to take advantage of unsuspecting forex traders.
Its previous and current actions betray its intent to not only con you but also avoid accountability. You should, therefore, stay away from it and warn other traders about its practices.
If you have already lost money to 365-FX or any other broker, we can help you get your money back. At Wealth Recovery Expert, we have a team of trusted professionals. They have helped many people recover their hard-earned money. Schedule a free consultation immediately, and let’s start the process.