The broker is based in Hong Kong but operates without a license. That means they are not authorized to provide financial services in Hong Kong as well as in the rest of the world.
This broker employs a variety of tactics to appear trustworthy. One of their tactics is designing an eye-catching and professional-looking website to deceive traders. Their goal is to distract clients with an attractive website and stop them from asking critical questions, such as whether the broker is licensed.
We have noted that the broker uses Web Terminal as a trading platform, instead of the widely used MT4 and MT5 platforms. The software used by Finaguide allows traders to purchase or sell financial instruments.
Moreover, the outcome of the trade, whether profit or loss, is determined after the contract expires. Stay tuned as this Finaguide review will help you find out more details!
|Headquarters||8 Finance Street, Hong Kong/SVG|
Finaguide Regulation and Security
The broker is based in Hong Kong but is registered in St. Vincent and the Grenadines. This raises a red flag. This country has become a popular destination for scammers due to its lack of regulation of the forex industry.
The local financial authority only regulates the banking sector and does not enforce any laws or monitor the activities of forex brokers. It is simply a matter of registering a company to start offering complex services in St. Vincent and the Grenadines.
This is without having to meet any requirements or be held accountable for their actions. In contrast, markets like the UK, the EU, and Australia have strict regulations for brokers. These brokers must uphold high standards because regulatory bodies monitor them closely.
Licensed brokers must maintain minimum operational capital to prove their financial stability and ability to serve multiple clients – at least €730,000 in the UK and the EU, and A$1 million in Australia. Clients’ funds are kept in separate bank accounts from the broker’s funds.
This ensures transparency and quick withdrawals. Also, it protects against negative balances. In addition, clients can never lose more money than they have in their accounts.
Trading Software Used by Finaguide
Finaguide has only one trading platform – the WebTrader – which the company claims is designed for discerning and visionary traders and is modern and secure. However, it appears to be hard to test its validity.
Furthermore, the company does not offer the best third-party platforms such as MT4, MT5, or CTrader. Any browser-based platform offered by the company cannot compare to the widely used MetaTrader software, which has millions of downloads on all devices.
Finaguide Account Types
Finaguide account types are as follows:
- Beginner – $2,500
- Standard – $5,000
- Intermediate – $25,000
- Advanced – $50,000
- Integral – $100,000
- VIP – $250,000
It is worth noting that the minimum deposit required to open an account with Finaguide is quite high. It is as high as $2,500. This may be considered too high for many traders, especially those just starting out investing.
Deposit and Withdrawal Methods
You must submit a request for a withdrawal as soon as possible, as funds deposited with an unregulated broker are never secure. That is when things get complicated.
Should you wish to retrieve your funds, the broker may prolong the withdrawal process for several months. If this process lasts for more than six months, you will no longer be able to initiate a chargeback. This will result in the permanent loss of your funds.
No matter how often you request to withdraw your money, you will not be able to retrieve it. If you have signed the Managed Account Agreement (MAA), which essentially grants the broker control over your account, they will eventually deplete all of your funds, leaving nothing to request.
How Does The Scam Work?
The scam begins with the presentation of an advertisement for a particular website. These websites frequently make unrealistic promises of excellent conditions and fast profits while providing limited information regarding their license and company. Scammers may be convincing, leading you to give them your phone number or email and other personal information.
Once they establish contact, they will push you to open an account and make a deposit.
Be aware that these scammers are professionals who make a living convincing individuals to transfer money. They will use persuasive tactics to encourage you to deposit more funds by talking only about profits and opportunities.
In some cases, you may even see profits, prompting you to deposit even more money. However, this is just a trick.
Eventually, you may decide to withdraw your funds, leading to the start of problems. Hidden fees or unfulfilled clauses in the Terms and Conditions may appear, and you will be denied access to your money.
Suggested Forex Brokers
Please take a look at some of the suggested FX brokers in the table down below!
|FXTM Broker||Cyprus, UK, Mauritius||4.5||$10||Forextime.Com|
|OctaFX Broker||Cyprus, SVG||4.4||$100||OctaFX.Com|
|FP Markets Broker||Australia, Cyprus||4.7||$100||FpMarkets.Com|
|XM Broker||Cyprus, Belize, Australia||4.7||$5||XM.Com|
|HFM HF Markets Broker||Cyprus, UK, South Africa, UAE, Kenya||4.3||$5||HFM.Com|
|FBS Broker||Cyprus, Belize, Marshall Islands||4.85||$100||FBS.Com|
We have written this Finaguide review in the hope of preventing the spread of fraud. We care about the safety of your funds.
Before completing any transaction, it is a good idea to thoroughly examine all Forex companies and any other company. We trust that our article has been of assistance to you.
FAQs About Finaguide Broker
Is Finaguide Regulated?
No, they are an unregulated and scammy broker you really don’t want to deal with. This is a fact!
What Are The Funding Methods for Finaguide?
They allow clients to deposit funds through cards, bank wire transfers, and e-wallets like Skrill, Neteller, and UnionPay.
What is the Minimum Deposit for Finaguide?
The minimum deposit is an extra large amount of $2,500. Keep in mind that this is suspicious.