In online forex trading, there is an assumption that brokers based in countries with strict finance regulations are genuine. The United Kingdom, the United States, Canada, and Australia are among the most trusted.
Unfortunately, scammers are not faking their legitimacy by falsely claiming that their offices are located in these countries.
It appears that this is the trick that ProuFX is using. It claims to have an office in London. But all evidence shows that the company is not based in the city or even the UK.
In this review, we explore this and other suspicious practices that led us to believe ProuFX is a scam forex broker. If you have already lost your money to ProuFX, 24option, ITRADER, or similar scammers, contact us for a free consultation on how you can get a refund.
ProuFX Review: An Overview
ProuFX was known as UproFX till 2019. Critics say that the name-change was due to various negative reviews, but the company insists this was not the reason.
On its website, it claims to offer online trading services related to currencies, commodities, stocks, and indices. You can trade the assets on their web-based trading platform – Online FX Trader.
The site also indicates that the ProuFX is based in London, United Kingdom. It has a phone number whose code appears to confirm this claim. However, there is no other evidence showing that the company is based in England.
The site doesn’t provide any details of the parent company or directors of ProuFX. Neither does it indicate the regulatory bodies under which they operate. This is suspicious because trading brokers like to show their licenses and trading certificates on their sites as proof of their legitimacy.
ProuFX is not registered in the UK
Any entity that wants to offer financial services in the United Kingdom must be registered with the Financial Conduct Authority (FCA).
Other countries such as the United States, members of the EU, and Australia also have similar regulatory agencies. The authorities make sure that companies operate ethically also protect the consumer from exploitation. Usually, they also require the companies should be insured to cushion the traders in case of bankruptcy or insolvency.
ProuFX claims to operate from London and has a phone number to back up this claim. But today, anyone can easily register a number that appears to be from one country while the user lives in another one. This is probably the case since they also refuse to provide the exact street or building that their office is located.
We, therefore, decided to check on the FCA website. The results showed that ProuFX is not registered to offer financial services in the UK. We also searched for ProuFX’s initial company name, UproFX, and there was no company registered in that name either.
It is, therefore, clear that ProuFX’s office is not in London. And if it is indeed based in London, it is operating illegally. None of these options is good for you, the trader.
Companies like ProuFX choose to operate without the approval of the relevant authorities to avoid accountability. This means that if they used unethical practices to get money from you or refuse to refund, you cannot take any legal action against them.
They are also probably not insured; thus, you would have no reprieve if the company were to be declared bankrupt or insolvent.
Warnings from regulators about ProuFX
There have been doubts about ProuFX’s legitimacy for a long time. The parent company, UproFX, was getting negative reviews, which caused them to rename and rebrand. But the change in name only increased the suspicion of keen traders.
Many investors in Europe, therefore, sent inquiries to the regulatory agencies in their countries.
On 16th December 2019, the Spanish National Securities Market Commission (CNMV) released a list of suspicious and unauthorized brokers. The list included ProuFX and the old name, UproFX.
The Swedish Financial Supervisory Authority, Finansinspektionen (FI), released a similar statement on 17th December., 2019
Most recently, The Malta Financial Services Authority (MFSA) issued a statement on 21st April 2020. They warned investors that ProuFX was not registered with them or any other regulatory authority recognized by Malta.
These countries have trade connections with the other the world’s major financial authorities and markets. For the agencies to issue these statements, it means that ProuFX is not authorized by other international regulatory agencies.
Long and complicated ProuFX withdrawal process
Genuine brokers allow you to withdraw your account balance within 24 hours. The only acceptable delay should be when there is a need for communication or clarification from you or your bank.
ProuFX has made the withdrawal process complicated by introducing unnecessary requirements. It claims the requirements are for security purposes, but the real aim is to frustrate you so that they can hold on to your money.
First, they require you to make a written request for withdrawal. This is not common practice in online trading. You should be able to make a withdrawal through the click of a button on the site.
It also requires you to provide bank and card details. This is an unnecessary step meant to make the process longer since you already sent these details at the account opening and verification stage.
After fulfilling all these and other requirements, it will still take between 5 to 10 days to process the withdrawal. And this is the best they can do; it can take longer.
Customer complaints against ProuFX
Online customer reviews don’t portray ProuFX in good light. Past clients claimed that the company frustrated them when they tried to withdraw their money. Some clients allege that once they expressed their desire to withdraw, the company made unauthorized trades until the balance was depleted.
While we cannot verify these claims, it is not uncommon among companies that have their own web-based trading platforms to make and manipulate trades.
ProuFX review verdict: Do not sign up with the ProuFX scam
ProuFX is clearly a scam forex broker out to con naïve investors of their money. Since it is not regulated by any authority, its victims would find it hard to reclaim their money. However, with the help of a professional recovery expert, you can get the company to refund you or allow you to withdraw any balance.
Although we can help you recover the money, it is better to take caution. These are criminals who can use your personal data for more harm than just stealing money. We would, therefore, recommend that you do not sign up with ProuFX.
In case it’s already too late, and you’ve lost money, don’t worry. We can help you recover it. Schedule a free consultation, and let’s start the process.