Beware! FxPrimeBolt is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
FxPrimeBolt is a broker that offers trading in Forex, Stocks, Commodities and Cryptocurrencies. They advertise 5 types of accounts, starting from $300 minimum deposit and going up to $50,000 for the premium one. These accounts come also with a requirement for number of trades per week – from 10 to 150, as well as significant performance and management fees:
The registration form asks only for first and last names, email address and phone number. There is a checkbox to accept the broker’s Terms and Conditions, but we were able to submit without checking it and were transferred to the client area, where a Demo account was available. Confirmation email was also sent to our mailbox.
FxPrimeBolt Regulation and safety of funds
FxPrimeBolt has a United Arab Emirates address but no phone number on their Contact page. UAE is one of the most heavily regulated Middle Eastern jurisdictions – forex brokers must comply with the strict rules of the Central Bank of the United Arab Emirates (CBUAE) and their compliance is overseen by the Securities and Commodities Authority (SCA). In order to be licensed by the Bank, the broker should either be a UAE citizen in the case of natural persons or the national shareholding should not be less than 60% of total paid-up capital in the case of companies. There is also a minimum capital requirement of one million dirham ($275,000).
The broker also claims to be registered in the UK and authorised by the Financial Conduct Authority (FCA) – the statement at the footer of their website is with a tiny font size so we had to enlarge it to be readable:
The UK’s financial watchdog, the FCA, is one of the strictest regulators in the world, and what is more important it is very easy to check their database to verify such authorisation claims. The reference number FxPrimeBolt has on their website turned out to be of a completely different company, which is no longer authorised, while a search for the broker’s name did not return any results.
Such false statements are a sure sign of a scam. This brokerage is not regulated by the FCA or any other respected financial authority and that significantly lowers its credibility. Their promises of winning “up to 90% of the trades with our AI” are exactly that – empty promises. If you are considering investing in Forex trading we would suggest finding a broker licensed by an established watchdog organization, such as the FCA, the Cyprus Securities and Exchange Commission (CySEC) or the Australian Securities and Investment Commission (ASIC).
These agencies have other rules besides Segregation of Funds. The Minimum Capital Requirements for brokers regulated by the FCA or CySEC are 730,000 EUR, while in Australia they are AUD 1 million. European brokers have to participate in Compensation Schemes that provide additional guarantees to investors’ funds in case the broker goes bankrupt – up to 85,000 GBP in the UK and 20,000 EUR in the EU, and they need to comply with a Negative Balance Protection policy, which ensures that the traders may not lose more than the total sum deposited, in this way effectively preventing indebted accounts.
FxPrimeBolt is a scam website and an unregulated broker, so they are not bound by these rules and policies. Any claims regarding the good trading conditions and tight spreads they offer or the safety of clients’ funds are not guaranteed by any regulatory agency, so we would warn our readers that there might be a risk to their money if invested with this broker.
FxPrimeBolt Trading Software
Regarding the trading platforms offered there are more misleading claims. The broker’s Download and Mobile web pages supposedly have links to get their “world’s leading platform” which is “the industry standard in online forex trading” for different operating systems. All the links, however, simply open the same page in a new tab.
The Mobile page also promises “no commissions” and “no hidden fees”, but there are no links to the app stores:
The only trading software FxPrimeBolt offers is a very basic, web-based platform with limited features and poor design. As you can see on the screenshot below of all the major currency pairs only GBPUSD was available.
We advise our readers to select a broker that offers an established trading platform, such as the MetaTrader 4 (MT4) or the MetaTrader 5 (MT5). MT4 is the world’s number one platform, preferred by more than 80% of users worldwide. It offers an intuitive and user-friendly interface, advanced charting and analysis tools, as well as copy and auto-trade options. It can be further customized to create different trading strategies using its proprietary MQL4 programming language. Its successor, MT5, has some advantages – it allows traders to execute trades on different financial markets through a single account and there is a hedging option.
FxPrimeBolt Trading Conditions
The GBPUSD spread, 1.6 pips, we see on the platform screenshot is not excessive. Considering the untrustworthy nature of this broker, it is hard to take anything in their proprietary software at face value – rather we believe it may have been rigged to display good trading conditions.
FxPrimeBolt advertises very high leverage – up to 1:1000. Leveraged trading entails significant risks, especially to inexperienced traders. Although it allows for making bigger profits, one may incur great losses too, often much greater than the invested funds. That is why, most regulatory authorities impose leverage caps for non-professional traders: in the USA it is 1:50, while for brokers licensed in the EU and the UK it is 1:30.
FxPrimeBolt Deposit/Withdrawal Methods And Fees
The broker provides a number of payment transaction methods for deposit and withdrawal, including credit cards, bank transfers, e-wallets and Bitcoin. The minimum deposit amount of $300 is very high – respectable brokers rarely ask for more than $100 and there are some that you can open an account with for just $10.
The minimum withdrawal amount is only $10 but the processing time can be up to 10 business days. Most disturbing are the fees FxPrimeBolt charges. As we saw in the account details they charge significant performance fees on profitable trades plus a management fee on every trade!
To conclude, FxPrimeBolt is not regulated and definitely a scam broker – stay away and do not invest with them!
How does the scam work?
The most common scams are quite simple and straightforward and involve a multi-level scheme that usually goes by the following scenario. Internet users are lured by the numerous ads promising quick and easy fortunes by trading in the Forex world. When they click on such an ad they are redirected to a website tailored to the continuation of these false pledges, which asks them to register with their personal information. This data is then used by the scam brokers who immediately start to work on getting them to make an initial deposit of $200 – $300 by making even greater promises of big profits.
Once the users make their first deposit, the scam brokers get a fat commission on it. Now the senior scammers enter the scene. They are smooth talkers who will not stop at anything to convince traders that they are on their way to become very rich, if only they follow their advice and deposit more money to trade with.
Sooner or later the users will start suspecting something is not right and will want to withdraw their funds. This will not prove very easy, however. The scammer will do everything to delay their requests, by persuading them now is not the right time, asking for additional documents, or referring to specific withdrawal clauses. This is also part of the scam since the con-artists are trying to delay the users from filing for chargeback with their financial institution, and they miss the time frame for such chargeback, traders will lose their money without a chance of getting it back.
What to do when scammed?
If you’re scammed you should immediately file for a chargeback with your credit card provider. Good news is that VISA and MasterCard recently extended the chargeback period to a year and a half in an effort to combat online fraud. If you deposited with bitcoin or bank wire there is not much chance.
If you provided the scammers with any bank account or credit card details, such as security codes or passwords, make sure to cancel the card and talk to your bank. Also, if you are being approached by any “recovery agencies” promising to get your money back for a fee, do not fall for that. This is a piggyback scam, using the vulnerability of recently defrauded people and their hope the fraud may be reversed, and it will not recover your funds. These so-called agents will collect their fee and you will never hear from them again.
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The Forex Review