Is ForexChief legit broker or just another sophisticated scam?
Nowadays the scam brokers are so sophisticated even experienced traders might become a victim of it. Some time ago, such brokers had a very short life cycle, once they were formed, they would try to get as much profit as possible and disappear after a short time only to rebrand themselves and continue with different names. Now as it is getting harder to find out if the brokerage is a scam or not, some of them are able to exist and stay unnoticed for several years! ForexChief is one of such brokers. But it does not mean that it is impossible to Forexchief scam scheme. In this review, we will do exactly that.
ForexChief scam behind the first impression
Generally, people form their first impression on the Forex broker based on its website. ForexChief website is made to look as positive as possible. It is light, well structured and creates a positive atmosphere with the green coloured elements. But at the same time, it looks more like a health blog rather than an FX broker website. It clearly shows that the sole purpose of the website is to create a positive impression on the visitors. While doing Forexchief.com review we were little overwhelmed by the quantity of the content that is placed on the website. There is a lot to see and read and most of the content, unsurprisingly is written in a very convincing way. But if you dig a little deeper with the pages you will see that none of them really provides full information, for example, there are only 5 basic questions in the FAQ page, up to ten articles in the library, company profile does not provide much information about the company and so on. Considering that Forex Chief exists for four years now they should have more to say about themselves and to suggest to the website visitors. The most part of the content placed on the website talks about Forexchief bonus and referral systems. This increases our suspicion even more than the broker is actually a scam that tries to register as many traders as possible.
If after reviewing the broker’s website you cannot hear the bells ringing that it is a fraud than let me inform you that the broker is registered in Vanuatu. The company ForexChief Ltd is registered as a dealer in securities and has a license from the Vanuatu Financial Services Commission. Needless to mention that the offshore regulator is not very reputable. It is very easy and cheap to get the license from it, hence many of the scam brokerages are authorized by the VFSC. Since it is very cheap to get the license, the brokerages are not required to have high funds on their account, it means that there are no reimbursement funds whatsoever and the traders who will lose the money will be able to do nothing about it. So while claiming to be international brokerage and being licensed by Vanuatu FSC only, can Forexchief trusted? The answer is clearly no.
How Forexchief scam works
I am sure you cannot think of one person who would go back to the scam brokerage and continued trading once he realized that he was a victim of a scam. Therefore all of the scam brokerages try to seem as legit and customer friendly as possible so that they can lure the traders into opening account and depositing the money. Most often it is done by the low minimum deposit and various bonus offerings that seems like a good opportunity, especially for the beginner traders. Forexchief review showed that the broker is using the same classic methods to scam customers.
The minimum deposit with the broker is 100 USD. It looks very attractive for the new traders who do not want to commit to the brokerage right away with high minimum deposit. At the same time, the broker offers leverage as high as 1:400. A small Forexchief minimum deposit with the high leverage encourages the customers to enter the trades that would be too expensive for them otherwise. As the victims of the scam are usually the people who are inexperienced and do not know much about the brokers or trading, the vast majority of them gets into the trap and loses a lot of money.
Forexchief welcome bonus
Forexchief welcome bonus is higher than any other welcoming bonus that is offered by the legit brokers. This kind of bonuses was brought by the brokerages to market themselves better and attract the customers. There is nothing wrong about it, as it is a win-win situation for both parties, for the broker who gets a new client and for the customer who receives free money to trade. However, only well-established brokers with a large audience of the customers can offer free money all the time. Hence often the welcoming bonuses are seasonal, otherwise, the broker would need to pay the free money to every person who would open an account – which is not always affordable. Forexchief welcoming bonus is accessible throughout the whole year and is 100 USD for every new customer. It can mean that either Forexchief has one of the biggest bases of the customers, or the bonus is simply a trick to lure more people into registering with them.
The welcome bonus is very easy to get, usually, it goes through the confirmation from both trader and broker side, but getting Forexchief bonus is possible by downloading the bonus application and scanning the QR code of the bonus. However, meeting the requirements of the bonus and withdrawing money is not that easy.
One can withdraw profits only after the trading turnover is achieved, which is 10,000,000 USD. The trading turnover of each order is the total turnover under two transactions: for opening an order and for closing it. Now let’s say a trader met the trading requirements and achieved the turnover, the maximum amount he can withdraw is 100 USD. As you can see the Forexchief no deposit bonus withdrawal policy is not something you’d be pleased with. Unfortunately, many traders skip these policies and are applying for the bonuses right away only to end up themselves in a scam broker’s trap.
Another Forexchief bonus
Apart from the no deposit bonus, the broker also offers so-called turnover bonus too. If you got excited about it, sorry but there’s nothing to be happy about. Forexchief withdrawal policy for the turnover bonus is as bad, like the one for the welcome bonus. A trader needs to reach a turnover of 10 million USD.
The broker itself understands how these requirements do not make much sense but want to lure the customers and make them think that this turnover is not only achievable but at the same time easy! Forexchief brings an example of reaching 225,000 turnovers by trading one lot. Beginner traders might not understand the problem, at first sight, hence, let’s break it down. To achieve this turnover you need to make a 260 pip trade, which is not easy by any means. However it is not enough, you need to make such trade over and over again four 40 times and be successful in all of them. The withdrawal policy for the bonus and the way the broker describes it proves that the bonus is part of the Forexchief scam. The broker makes promises of high profits and sets up withdrawal requirements that are hard to achieve even by the experienced traders, hence even if the trader’s success rate is high, the chances for him to withdraw any money is significantly low.
Is Forexchief legit broker?
There is no such question is Forexchief is a legit broker or the scam. Although the Forexchief broker managed to stay unnoticed for four years thanks to the sophisticated scam scheme it does not mean that the broker is not a fraud. As other scam FX brokerages, it lures the customers with various bonuses that looks nice on the paper but does not make any sense in reality and with the low minimum deposit. We cannot think of any Forexchief opinions that say anything good about the brokerage. Hence, after all, we have only one thing to say – keep your funds safe from such brokers and take your time to learn more about the brokerage before you open an account with them. A reputable-looking broker might just end up being another sophisticated scam, just like Forexchief.