BenettonFX is a new foreign exchange broker, and it seems suspiciously like a fraud. It presents itself as a legal Japanese organization, yet it has been blacklisted by a regulatory body in Europe.
If a forex broker receives a warning from a regulatory agency, they are likely a scammer. Not only that but if you want this broker’s help with your device, you’ll need to install remote access software so it can take control of it remotely.
This is conclusive evidence that they are a fraud!
Authorization and Guidance for BenettonFX
Osaka, Japan-based Capital Mog Co. Ltd. operates under the brand name BenettonFX. They say they have a permit from the appropriate Japanese agency, but I was unable to locate any evidence of this in my study. They are misleading potential customers by claiming to have a Japanese license when they do not.
BenettonFX is not a licensed or regulated broker. They list a mailing address in the offshore territory of the Marshall Islands. It lacks a centralized monetary authority, making the area ripe for dodgy foreign exchange businesses.
Be aware of brokers who are not supervised by a regulatory body. Neither the Financial Conduct Authority nor the Cyprus Securities and Exchange Commission (FCA or CySEC) regulations are adhered to by these brokers. Due to the lack of oversight, unlicensed brokers might use questionable methods to steal your money or personal information without facing any consequences.
To ensure that licensed brokers are acting in their client’s best interests at all times, regulatory authorities keep a tight eye on them. Broker clients have recourse to insurance through their governing bodies in the event of any adverse actions taken by the broker. If a broker declares insolvency, CySEC, for instance, will pay €20,000. Brokers are required by regulators to maintain their operational money distinct from traders’ funds.
It is quite dangerous to trade with unregulated brokers because they do not offer these protections. Avoid dealing with unregulated brokers if you value the security of your money and personal information.
Trading Policies of BenettonFX
You can learn a lot about a broker’s trustworthiness by looking at the terms and conditions under which trades are executed. Before signing up with any broker, you must read over their trading conditions. This prevents you from opening an account with the wrong broker. Let’s check out BenettonFX’s trading terms and determine if they’re satisfactory.
Market Place
BenettonFX’s proprietary trading platform is accessible via the web. Such exchanges typically have a lot of glitches and other technological issues. Moreover, you won’t get enough functionality on these platforms.
MetaTrader is without peers among trading platforms. Metatrader 4 and 5 are two of the most widely used trading systems in the foreign exchange market. You can make more informed trades with the support of MT4’s online quotations, charts, and historical data. These features are not available on any other trading platform.
So, it’s important to always seek out brokers that support MT4 and MT5.
Lowest Acceptable Initial Investment
This broker requires a minimum deposit of $500. It’s a lot more than double the average price in its field, which is $100.
Brokers that demand a big initial investment should be avoided. It’s a red flag that your broker is a con artist. Because the majority of regulated brokers have relatively low initial deposit requirements.
Untrustworthy brokers want a large initial investment from their clients, so they can quickly make off with a sizeable chunk of money.
Influence and Exposure
BenettonFX’s leverage ratio is a very high 1:100. This ratio also cannot be modified to suit individual preferences. The fact that BenettonFX does not have a Japanese license is corroborated by the fact that Japanese brokers are not permitted to provide leverage of greater than 1:25.
BenettonFX is typical of fraudulent brokers because of its extremely high leverage ratio. The Financial Conduct Authority (FCA) of the United Kingdom prohibits brokers from providing consumers with leverage greater than 1:30. This limitation has been imposed to protect customers’ funds from being misappropriated due to excessive leverage. Extremely high levels of leverage can result in catastrophic losses.
Untrustworthy forex brokers prey on their clients’ greed by maintaining high leverage levels.
With this broker, your spreads will be 0.7 pips.
Methods of Payment and Fees at BenettonFX
Methods of Exchange
Customers of BenettonFX can only choose from a handful of payment options. Only Wire Transfers, credit cards, and debit cards can be used to fund a trading account. Keep in mind that unscrupulous brokers love Wire Transfers precisely because they cannot be reversed. Credit and debit cards avoid this problem, hence I advise their use.
Fees
The fact that BenettonFX discloses so much data about its charges is further evidence that it is a fraud. There is no information on fees, processing times, or minimum withdrawal amounts. If your account is inactive for 30 days or more, you will be charged a dormant fee of $36.
Bonuses
BenettonFX provides its customers with a number of perks. To cash out your extra money, though, you’ll need to trade a total of $20,000 worth of volume for every $1 in bonus money you receive. You can still withdraw your money if you haven’t met the requirements, but you won’t get the bonus.
It is general knowledge in the foreign exchange market that bonuses are no reason to choose a broker. Keep in mind that the broker, not you, is the rightful owner of any bonus monies you may receive. In addition, the broker can prevent the consumer from retrieving its funds by imposing undisclosed limits on withdrawal requests when the customer accepts a forex bonus.
Scammers in the foreign exchange market frequently utilize bonuses to entice potential victims. Avoid brokers that give out too many bonuses.
BenettonFX: Legit or Bogus? Yes!
BenettonFX has long since been exposed as a fraud. Various types of con artists operate in the foreign exchange market. Scammers in this industry commonly use exaggerated promises and freebies to lure in unsuspecting novice traders. The user signs up for the service and agrees to the shady terms and conditions. People sign up with these brokers while knowing that they have unfavorable terms hidden in the fine print.
Do check before signing up with a new broker’s website to protect yourself from fraud. The broker’s reputation, regulation, license, and address can all be researched online. Some brokers go so far as to pay for positive-sounding but completely fictitious reviews to boost their online reputation.
Conclusion of Our BenettonFX Analysis
BenettonFX employs a web-based, proprietary trading platform and claims to be licensed and regulated while it is neither. All of these characteristics suggest that, like Tai Lopez, this broker is a con artist.
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