There are many ways to spot an online scam broker. Lack of proper regulation is the biggest red flag. Regulatory bodies ensure that the company always has the customers’ interests at heart. If the broker is not under this regulation, expect the worst.
You have probably come across Brokerz, an online trading platform that boasts of providing high returns and testimonies to prove it.
How true is this claim? We will see in this candid Brokerz review.
We will dig deep and collect enough evidence to make a fair judgment about its operations. And if you have already lost money to Brokers, talk to us, and we will help you recover it.
An Overview of Brokerz
Founded in 2013, Brokerz is an online broker that deals in CFDs, indices, and commodities like sugar, coffee, gas, and oil. Brokerz Limited owns it and is registered in St. Vincent and the Grenadines (SVG) under number 24479 IBC 2018.
It offers MetaTrader 4 trading platform.
Withdrawals take three to six business days to get an approval, and the money could take up to seven business days to reflect in your bank account.
It offers a bonus that you can only withdraw after meeting a trading volume of $10,000 for every $1 bonus.
There are four account types – Classic, Gold, Platinum, and VIP, with the least minimum deposit required being $250 while the highest minimum deposit required being 50,000.
The website is not as detailed as we would expect from an online broker, and it does not provide any learning materials for beginners. The testimonials provided do not sound credible either. They are a trap to lure in unsuspecting investors with the promise of high returns.
Forex trading is a high-risk investment and implying that you only stand to get ‘unbelievable results’ make ‘great profits’ and ‘double your earnings in 30 days’ is misleading.
A Look at Brokerz Regulation
Brokerz is not regulated. There is no mention of being under any regulatory body in the website.
Working with a regulated broker provides some assurance that the broker is compelled by law to provide transparency and honesty in all its operations. Your account is also not protected from a negative account balance, and given Brokerz high dormancy fees, this is likely to happen.
The fact that Brokerz Limited is an offshore company registered in St. Vincent and the Grenadines is even more reason to stay away from it.
There is no strict regulation overseeing IBCs registered in the jurisdiction that engage in forex trading and brokerage. The St. Vincent and the Grenadines Financial Services Authority clearly states that it does not “Regulate, Monitor, Supervise or License” such operations.
Here is a warning provided on the SVG FSA website.
Warnings by Regulatory Bodies Against Trading with Brokerz Limited
The Austrian Financial Market Authority has banned Brokerz limited from carrying out banking transactions that require a license in Austria.
Despite not having the required regulation, Brokerz has been operating in regions where it is not authorized to operate.
The Financial Conduct Authority in the UK has issued a warning to those investing with the “unauthorised firm.”
Italy’s CONSOB has also blacklisted Brokerz from operating in the country. Brokerz Limited is included in its list of companies that offer financial services illegally.
These warnings by top regulatory bodies against operating with this unregulated broker are enough to derive a verdict for this Brokerz review. But let’s dig in some more.
Exorbitant Fees: Prove that Brokerz is only After Your Money
Brokerz dormancy fee is unrealistically high. It charges a monthly fee of $100 for any account inactivity of 45 days and above.
The firm will also charge you an auto trading software fee of $100 for closing your account and withdrawing funds before engaging in at least 20 trades using the software.
Customers’ Review About Brokerz
Unlike the inauthentic testimonials on the website, let’s look at what previous customers have to genuinely say on trusted review websites.
To start with, its overall score on Forex Peace Army is poor.
This customer learned about the Brokerz scam through the first-hand experience. And they provide us with a detailed description of how the scam runs.
According to the testimony, Brokers will draw you in with a promise of high returns. It starts well with promising returns, and this is when the account manager pushes you to invest more to get higher returns. The situation suddenly changes, and you start losing money. Any attempt to withdraw your money turns out to be a frustrating task.
Another customer shows us what happens when you resist the requests to invest more money and try to close your account. It turns into a back and forth game, and before you know it, 45 days are over, and Brokerz deducts $100 from your account. And if there is no money in your account to deduct, it will claim the $100 from you.
It goes as far as threatening you into paying the dormancy fee. And even if you pay up these fees, you still have to prove that the source of your funds is genuine before closing your account, and more dormancy fees accumulate before you can get to prove it.
There have also been claims that Brokerz will sometimes trade with your account without informing you, and it will work with losing trades so that you lose all your money.
Brokerz Review Conclusion: The Final Verdict
There is no doubt about it, Brokerz is a scam. It is unregulated and blacklisted from operating in countries such as the UK, Italy, and Austria.
Its sole purpose is one – to get you to invest as much money as the account managers can convince you. And from there, it will use unethical ways to make sure you can never withdraw it. It will:
- Trade using your account without your consent.
- Ignore your requests to withdraw or close your account so that so that 45 days can pass. It will then deduct auto trading software fee and dormancy fee up to a negative balance.
- Provide misleading trading advice that has you losing your money.
If you have already lost your money to the Brokerz scam, do not hesitate to get a free consultation, we will help you recover it.