The internet and technological advances brought about the possibility of online trading. Today, millions of people all over the globe participate in the financial markets from the comforts of their homes, or offices. All of this is possible because there are online brokers ready to facilitate anyone who is ready to invest in these markets. You can find thousands of these platforms and they present you with some good and lucrative offerings, but you have to ensure your safety because there are impostors active in the space. This Fxunico review tells you how these fraudulent platforms operate.
There was a time when spotting a scam brokerage had become easier because there were some prominent indications on their website. These days, it is not that simple because these cybercriminals have also caught up. They put in effort to craft thorough and professional websites that present the illusion of a reliable platform and make it difficult to distinguish between genuine and fraud brokerages. Therefore, they are successful in attracting people to their platform and most of them do not know the truth until it is too late.
To say it is devastating to find out that you have lost your hard-earned money to a scam is a big understatement. It can often discourage people from trading altogether because they do not want to repeat the experience. The good news is that being a little diligent from the get go can save you from this kind of scenario. You do not need to worry about falling into any traps because you will first verify the information and look for any red flags that may exist. The same is necessary for Fxunico, which is one of the platforms you will come across.
It presents a decent front, but there are plenty of red flags that you will discover with some diligence. What are the issues with Fxunico? Take a look:
It is not licensed
When you are thinking of signing up with a broker, it is smart of you to check out its background, get to know the company, where it is based and also its licensing and regulatory status. This tells you if you are dealing with a genuine and reliable company that can be trusted. If there is some problem, you will know that you need to look for a different option. When you look into Fxunico, you will find that the brokerage claims to be operating from Cyprus.
It is one of the most highly regulated jurisdictions in the European Union, which would make Fxunico an attractive option. Unfortunately, when you check the online register of the Cyprus Securities and Exchange Commission (CySEC), which is the regulatory authority for the region, you will not find the broker listed. This means that either the company is lying about its location, or operating illegally in Cyprus.
Regardless of which category it falls into, this means that Fxunico cannot be trusted to offer you a safe environment. Moreover, if you check some of their other offerings, you will find that they are offering services that are in contradiction with the rules of CySEC. For instance, the leverage amounts offered are much higher than what is permitted in the European Union. Secondly, the practice of trading bonuses is banned in the EU, yet Fxunico appears to be offering them.
It has a malicious bonus policy
As mentioned above, trading bonuses are banned in the European Union and brokers are not permitted to offer them to traders. This ban was imposed because these bonuses come with strings attached, which had been termed as unfair for traders by regulatory authorities. If you are looking for an example of their unfair nature, all you have to do is check out the malicious bonus policy of Fxunico.
It is the embodiment of why trading bonuses were banned in the first place. According to the bonus policy of Fxunico, traders are not allowed to withdraw profits they make through the trading bonuses, until they meet a certain trading volume requirement. If traders attempt to make a withdrawal before that, the brokerage will keep their funds.
The problem with this policy is that there is no way for Fxunico to physically separate the profits that a trader may generate from the bonuses and from their own deposits. Essentially, it would give them the authority to prevent their clients from making a withdrawal altogether, until they meet the said requirement. Of course, these requirements are deliberately kept so high that traders will never be able to achieve them.
No competitive trading software
When you are signing up with a brokerage, you obviously expect to have access to a powerful and reliable trading platform. Some of the well-known names in the market are MT4, MT5 and cTrader and these are known to offer clients with advanced technology and a ton of trading tools that can ensure a good trading experience. The problem is that when you check out the trading platform at Fxunico, you will be disappointed because they offer a basic web trading platform that offers nothing special. Many scam brokers offer this trading platform and it does not provide you any such features.
As mentioned earlier, the leverage that Fxunico offers is completely against the rules of the regulatory authorities in Cyprus. The ratios are as high as 1:400, whereas the authorities do not permit a leverage of more than 1:30 or 1:50.
Another worry you have to deal with when you are considering signing up with Fxunico is that the broker does not give you the option of chargeback. This is because they only support one payment option on their website and that is of cryptocurrency. You will not be able to get a refund, as in the case of debit and credit cards, because crypto payments are final and irreversible. Plus, they offer anonymity to scammers, which is what they want.
You can conclude that Fxunico is not a safe option because it is not licensed and offers you no protections at all.