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24option is a legal and well-regulated broker, making it unlikely that their services are a scam. Another indicator that this isn’t a scam is that their financial claims come with a warning label
BrokerZ is a relatively new broker, founded in 2018, and although it says it is located in St. Vincent and the Grenadines, a place where there is a well-known but low-tier financial regulator, BrokerZ has no license of any kind. Right from the start, the fact that BrokerZ is unregulated is a red flag.
However, some people may justify taking the risk since the broker promises outsized returns and there are a few positive reviews. Should you take a risk on BrokerZ? Fund Recall has investigated this broker and has some advice before you open an account with BrokerZ.
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BrokerZ seems like it is trying to give the impression that it is regulated, since it states its location as St. Vincent and the Grenadines. It is odd that BrokerZ would pretend to be regulated by a low-tier broker like St. Vincent and the Grenadines which requires very little of its licensees and provides almost no oversight, but many people do believe that a low-grade license is better than on license at all.
However, BrokerZ does not even have a low-grade license. It may be located in St. Vincent and the Grenadines and holds no license at all. There is an interesting detail that points to something BrokerZ’s possible origins.
BrokerZ’s name sounds suspiciously like BinaryBrokerZ.com, a broker that did something similar to BrokerZ. Just as BrokerZ now says it is located in St. Vincent and the Grenadines but holds no license from there, BinaryBrokerZ said it was located in Cyprus but didn’t have a license from the Cyprus regulator CySec. BinaryBrokerZ disappeared when the EU banned binary options trading, so it is possible that BrokerZ could be a new form of BinaryBrokerZ.
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The minimum to open BrokerZ account is $250 which is rather high. Many regulated brokers ask for only $100. It doesn’t have transparency about fees, and its spreads are very high at 3 pips for the EUR/USD/. Its transaction fees are $8 per lot.
Aside from this mention, there was no additional information about fees. When FundRecall tried to reach live chat, it was unresponsive on this issue and there was nothing in the FAQs. Lack of information about fees is a red flag. Fees and commissions are important for anyone to know when researching a broker and a reluctance to provide information does not reflect well on a broker.
There is also an extremely high and unnecessary fee for closing an account and withdrawing funds. According to BrokerZ’s terms and conditions, traders will have to pay $100 if they wish to withdraw their funds from the trading software before making 20 transactions. This is what BrokerZ calls a “software fee” but it is unheard of among legitimate brokers.
BrokerZ provides a proprietary trading platform. There is nothing wrong with this–many high-quality brokers have their own platforms. However, what is troubling in the case of BokerZ is that they imply that they offer MetaTrader 4. Instead of actually providing this popular trading platform, the visitor to the site is taken to a page describing the benefits of MT4 but the button does not take them to MT4 but to BrokerZ’s own platform.
This is meant to give site visitors the impression BrokerZ offers MT4 when it doesn’t, which can’t get its customer relationship off to a good start. It does offer what seems to be a decent platform that is web-based and designed by PandaTS, but the disappointment this broker sets up by claiming to provide MT4 may lose it many potential customers.
Although it is true that many customer reviews online are fake, the false ones usually have some telltale promotional material in them. Among those reviews that seemed to be genuine, there were several disturbing complaints about BrokerZ that were convincing given the fact that it is entirely unregulated and other practices that seemed to be out of the norm.
Some customers said that BrokerZ used rosy language and promised them they would make huge amounts of money only to notice that money had bled out of their account mysteriously and that transactions were made on their behalf.
A common complaint was that they seemed to make money for a few months, but when they asked to withdraw money, they were given excuses and the returns were never made. BrokerZ seems to work by raising expectations and hopes only to keep clients’ money and not return it.
After looking at the website, the terms and conditions and customer reviews, it is clear from the ouset that FundRecall cannot recommend BrokerZ to potential traders because it is unregulated and engages in practices that are not acceptable such as lack of transparency about fees and other inconsistencies on the website and paperwork. We recommend that you work instead with a reliable, regulated broker. Fund Recall can give you advice on finding and researching the best fit for you.
If you already hold an account with BrokerZ, ask for a release of your funds immediately. If they refuse to release your funds or demand you pay a high fee, do not pay them, but contact Fund Recall experts immediately.
If BrokerZ or a Scam broker will not return your money, contact experts at Fund Recall today. Our team has extensive experience helping clients report scams, track down fraudsters, and seek a refund. Fund Recall has close contacts with major banks, regulators, and organizations that can help stop scam brokers. Contact us immediately so we can get started helping you recover from losing money to a scam broker
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