BenettonFX is a new forex broker that has all the qualities of a scam. It claims to be a legitimate Japanese organization but a European regulatory authority has already blacklisted it.
If a regulatory authority issues a warning against a forex broker, it is a clear sign that the particular broker is a fraudster. That’s not all however, this broker urges you to use remote access software so it can control your device remotely for offering customer support.
This is a strong indication of them being a scam! In my BenettonFX review, you’ll find out more on why you should stay away from them.
BenettonFX License and Regulation
BenettonFX is the trading name of Capital Mog Co. Ltd. a Japanese company based in Osaka. They claim to have a license from a Japanese regulatory authority but when I did some research, I didn’t find any such record. They are lying about having a Japanese license to their potential users.
BenettonFX is an unregulated and unlicensed broker. They give an address based in the Marshall Islands, which is an offshore region. It doesn’t have any financial authority which has helped the region in becoming a haven for shady forex companies.
Be wary of unlicensed and unregulated brokers. These brokers don’t follow the stringent rules and regulations of popular authorities such as the FCA or CySEC. Such brokers can use shady techniques to steal your funds or data and get away scot-free because of their unregulated nature.
Regulatory authorities keep a close watch on licensed brokers so they don’t act against their clients’ interests. In case a broker does act against their clients’ interests, the clients can get insurance compensation from their respective regulator. For example, CySEC offers €20,000 in case the broker files for insolvency. Regulators ensure that the broker keeps their operation funds separate from their clients’ trading funds as well.
Unregulated brokers don’t provide such benefits and that’s why it’s very risky to trade with them. If you want to keep your funds and data safe from fraudsters, it’s best to avoid trading with unregulated brokers.
BenettonFX Trading Conditions
Checking the trading conditions of a broker can help you a lot in understanding its reliability. I always recommend checking the trading conditions of the broker before signing up with them. It ensures that you don’t sign up with the wrong broker. Let’s see if BenettonFX’s trading conditions are okay or not:
BenettonFX has a web-based custom trading platform. Such trading platforms tend to be full of technical difficulties and bugs. Moreover, these platforms don’t provide you with sufficient features.
In terms of trading platforms, Metatrader is always the best. Metatrader 4 and 5 are among the most popular trading platforms in the forex industry because of the vast amount of benefits they offer. MT4 provides you with real-time and historical data, interactive charts, as well as, online quotes to help you make better trading decisions. You don’t get such facilities with other trading platforms.
So, always look for brokers which offer MT4 or MT5.
The minimum deposit requirement of this broker is $500. It is considerably higher than the industry average, which is $100.
You shouldn’t trust brokers that have high minimum deposit requirements. It’s usually an indication that the broker is a fraudster. Because most regulated brokers keep their minimum deposit limit very low to make them accessible to a wider audience.
Shady brokers keep their minimum deposit limit high so they can steal a substantial sum of funds right away.
Leverage and Spreads
BenettonFX offers a substantially high leverage ratio of 1:100. What’s worse is you can’t adjust this ratio according to your requirements. It is also a proof that BenettonFX doesn’t have a Japanese license because Japanese brokers can’t offer more than a 1:25 leverage ratio.
Brokers that offer very high leverage ratios, such as the one BenettonFX offers, are usually scammers. FCA, the financial regulator in the UK, doesn’t allow its brokers to offer more than 1:30 leverage to their customers. They have added this restriction to ensure that clients don’t lose their funds because of recklessly high leverage ratios. A very high leverage ratio can cause you devastating losses.
Shady forex brokers keep their leverage ratios high so they can trap their clients in large piles of debt.
In terms of spreads, you get 0.7 pips with this broker. This is the only positive quality I have seen in this broker so far.
BenettonFX Payment Methods and Charges
BenettonFX offers very limited payment methods to its clients. You can only add funds to your trading account through a Wire Transfer or credit and debit cards. Note that Wire Transfers are non-refundable which is why they are so popular among shady brokers. I recommend using credit or debit cards as they don’t have this issue.
Another proof that BenettonFX is a scam is the amount of information it provides about its fees. They don’t specify their withdrawal charges, transaction processing time, or minimum withdrawal limit. The only fees they mention is a dormant fee of $36 which they charge if your account doesn’t perform any trades for 30 days.
BenettonFX offers several bonuses to its clients. However, to withdraw your bonus winnings, you must trade the volume of $20,000 for every bonus dollar. You are allowed to withdraw your funds even without meeting these requirements but then you’d forfeit your bonus amount.
It’s common knowledge in the forex industry that you should never trust a broker because of its bonus offers. Remember that the funds you get through a bonus belong to the broker and not you. Moreover, forex bonuses allow the broker to impose hidden restrictions on withdrawal requests so the client can’t get its funds back.
Bonuses are quite popular among forex scammers because they allow them to attract new users. Be wary of brokers who offer a lot of bonuses.
Is BenettonFX a Scam? Yes!
It’s clear by now that BenettonFX is a scam. The forex sector has many kinds of scammers. Usually, the scammers in this field focus on attracting new and inexperienced traders to their platforms through fake claims and bonus offers. They get the user to sign up on their platform and accept their fishy terms and conditions. Such brokers hide their unfair conditions in the fine print and people usually ignore them while signing up.
Then, they either use hidden fees or make excuses to take away the deposited funds from their user’s trading accounts. Having a high minimum deposit ensures that they get a substantial amount to steal from every user.
The best way to combat such scams is to do thorough research before signing up on any new broker’s website. You should check the broker’s regulation, license, address, and its reputation online. Some brokers even spend money on fake reviews to create a fake positive reputation on the internet.
BenettonFX Review: Conclusion
BenettonFX lies about its license, has no regulation, doesn’t provide sufficient information about its fees, and uses a web-based custom trading platform. All of these qualities indicate that this broker is a fraudster similar to Tai Lopez.
Be sure to share this BenettonFX review with others. The more people know about this scam, the better.