WHAT YOU SHOULD KNOW ABOUT PIBEXA.COM
Pibexa is a Marshall Islands-based forex trading firm. There is allegedly a web-based trading platform accessible, and the necessary minimum deposit is the industry norm of $250; nevertheless, the EUR/USD spread is extremely high at 3 pips, and the trading possibilities are disappointingly limited.
REGULATION BY PIBEXA AND FUND SECURITY
The corporate information displayed on the website is a little disorganized, which is a red flag right away. According to what we’ve read, the brokerage is owned by a company called Hello Technology LTD that is registered in the Marshall Islands. Furthermore, there is a second firm listed as an owner, Capital Letter GmbH, which is registered in Scotland.
As previously stated, business data is disorganized. This is not the first time we’ve come across a brokerage that claims to be based in both Europe and the Marshall Islands. We remind readers that brokerages in Scotland must be licensed by the Financial Conduct Authority of the United Kingdom; however, there is no mention of a license, and after checking the Financial Conduct Authority’s online registry, we can safely conclude that Pibexa does not have a European license. We also want to point out that the second corporation is clearly registered overseas. It’s no surprise that the Marshall Islands has become a favourite location for would-be scammers thanks to its extremely lax company registration requirements. To register a business, the government does not even require that someone be physically present. Many unscrupulous brokers have undoubtedly discovered and exploited this loophole. Because the Marshall Islands’ government does not include Forex trading in its regulatory framework, it’s safe to conclude that Pibexa, regardless of its legitimacy, is not subject to any regulatory monitoring. Overall, trading with the firm entails a significant amount of unwelcome risk.
Traders who opt to trade with a brokerage that is regulated and authorized by a reputable regulatory organization will not have to worry about such danger. The FCA in the United Kingdom and CySec in Cyprus are two such organizations that have been major names in Forex trading for a long time .Their regulatory structure is made up of a set of tight rules that protect clients from being defrauded. Segregation of accounts is one of these criteria, which ensures that no money from the client is mixed in. A license from such a regulating organization also implies involvement in a financial mechanism that compensates clients who suffer losses as a result of fraud or insolvency. The FCA offers up to 85 thousand pounds per person, whereas CySEC offers up to 20,000 euros.
TRADING PROGRAM AND SYSTEM OF PIBEXA
The MetaTrader 4 trading platform is not supported, which we usually consider a negative because MT4 is currently one of the most popular trading terminals in Forex trading, with about 80% of customers preferring it. The platform includes a sophisticated charting package, numerous technical indicators, a robust back-testing environment, and a number of Expert Advisors (EAs). Although we were unable to register for a test account using the web-based trading terminal, what we witnessed was underwhelming to say the least. The EUR/USD spread is twice the industry average, which is quite unfavorable in our opinion, and the brokerage appears to lack a wide selection of trading choices, which is something we constantly look for. Furthermore, given the lack of regulatory control, we are inclined to suspect Pibexa of foul play, and we always advise readers not to take chances and stay away from such offerings.
PIBEXA FEES AND DEPOSIT/WITHDRAWAL METHODS
We were unable to determine whether the accessible payment options are for potential brokerage clients. Traders in Forex trading can usually deposit and withdraw funds using regular Visa and MasterCard cards, as well as bank wire and popular e-wallets like WebMoney, Skrill, and Neteller.
We couldn’t locate any specified withdrawal costs either, but dealing with an unregulated brokerage means you never know if they’ll charge unexpected fees after you’ve placed your money. There are additional withdrawal restrictions for accounts that have benefited from the bonus promotion. In order to be eligible for withdrawal, a trader must reach a particular trading volume, which is purposely high. Legitimate European-regulated brokerages do not provide such discounts, and even if they do, information about prospective withdrawal requirements is always prominently shown on the website, not buried in the terms and conditions.
Such websites are also the reason why we urge traders to always put up the mandatory minimum deposit rather than risking a larger sum with no guarantee. They may then attempt withdrawing a small amount to see if there are any surprise costs or delays. Fees and delays like these are usually hallmarks of a fraudster.
HOW DOES THE SCAM WORK?
Unfortunately, practically every Forex trade has the risk of being a scam, especially if you are dealing with an unlicensed company. As a result, we feel that traders should be aware of how a scam works. Here’s how you’d usually go about it:
You will be routed to a website such as Bitcoin Evolution or Crypto Cash after clicking an ad promising fast money, where you will be asked to provide your address, email address, and phone number during registration. Following the disclosure of your personal information, you will receive calls from brokers pleading with you to invest with them and win big. You decide to deposit $200-250 after listening to their pitches for a few minutes. And then it was over.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
What to do when scammed?
Simple send an email to us via contact@finrecoveryinc.com or fill in the contact page.
