Caution Investors proglobalfx – Regarding registration of issuance, offer or sale of securities/derivatives, and reporting requirements
Overview:
Proglobalfx is a forex and CFD broker that claims to be regulated by the Australian Securities and Investments Commission (ASIC), but this is not true. ASIC has issued an alert about this imposter entity, which uses a fake Australian Financial Services (AFS) license number and a cloned website of a legitimate ASIC-regulated broker. Proglobalfx is not authorized to provide financial services in Australia or any other jurisdiction, and traders should avoid dealing with it.
Regulation and Compliance:
Regulation and compliance are important factors to consider when choosing a broker, as they indicate the level of security, transparency, and accountability that the broker offers. A regulated broker must follow the rules and standards set by the regulatory authority, which protects the interests of traders and ensures fair market practices. A compliant broker must also adhere to the anti-money laundering (AML) and know-your-customer (KYC) policies, which prevent fraud and identity theft. To check the regulation and compliance of a broker, traders should verify its license number, registration details, and contact information on the official website of the regulator. They should also look for signs of membership in compensation schemes or dispute resolution mechanisms.
Customer Reviews:
Customer reviews are another source of information that can help traders evaluate a broker’s reputation, performance, and quality of service. However, not all customer reviews are reliable or objective, as some may be influenced by personal biases, emotions, or incentives. Therefore, traders should read customer reviews with a critical eye and look for evidence, facts, and consistency. They should also compare reviews from different sources and platforms, such as forums, blogs, social media, or third-party websites.
Products and Services:
Proglobalfx claims to offer trading in various instruments, such as forex, indices, commodities, stocks, cryptocurrencies, and futures. It also claims to provide access to multiple trading platforms, such as MetaTrader 4 (MT4), MetaTrader 5 (MT5), WebTrader, and MobileTrader. However, these claims are not verified or supported by any proof or documentation. Moreover, proglobalfx does not disclose any information about its trading conditions, such as spreads, commissions, leverage, margin requirements, or execution types. This raises doubts about the transparency and honesty of this broker.
Location:
Proglobalfx does not provide any clear or consistent information about its location or origin. On its website, it states that its address is Level 29 Chifley Tower 2 Chifley Square Sydney NSW 2000 Australia. However, this address belongs to a legitimate ASIC-regulated broker that has nothing to do with proglobalfx. On its terms and conditions page, it states that its governing law is the law of Saint Vincent and the Grenadines (SVG), which is a notorious offshore jurisdiction for unregulated brokers. On its contact page, it provides phone numbers from Australia, New Zealand, Canada, the UK, Germany, Italy, Spain, France, Norway, Sweden, Denmark, and Finland. However, these phone numbers are either invalid or unreachable.
Customer Service:
Proglobalfx claims to offer 24/7 customer service via phone, email, live chat, and social media. However, these claims are not true or consistent. As mentioned above, the phone numbers provided by proglobalfx are either invalid or unreachable. The email address provided by proglobalfx is [email protected], but this domain does not exist or belong to proglobalfx. The live chat feature on its website does not work or respond to any queries. The social media links on its website lead to either blank pages or unrelated accounts.
Is Your Money Safe in an unregulated company?
Trading with an unregulated company like proglobalfx is very risky and unsafe for traders’ money. An unregulated company does not have to follow any rules or standards regarding the security, segregation, or protection of traders’ funds. It can also manipulate prices, quotes, or orders to its advantage or use unfair terms and conditions to restrict withdrawals or impose fees. An unregulated company can also disappear with traders’ money at any time without any recourse or compensation.
Defensive Measures Against Fraudulent Brokers:
To avoid falling victim to fraudulent brokers like proglobalfx, traders should take some defensive measures, such as:
– Doing thorough research on the broker’s background, history, and reputation before opening an account or making a deposit.
– Checking the regulation and compliance of the broker with the relevant authorities and verifying its license number, registration details, and contact information.
– Reading and understanding the terms and conditions of the broker and looking for any hidden clauses, fees, or restrictions.
– Testing the broker’s customer service and communication channels and seeing how responsive, helpful, and professional they are.
– Using a demo account or a small amount of money to test the broker’s trading platform and conditions and see how they perform in terms of speed, accuracy, and reliability.
– Being wary of any unrealistic or exaggerated claims, promises, or offers made by the broker or its representatives and avoiding any pressure or persuasion to invest more money or accept bonuses or incentives.
– Keeping records of all transactions, communications, and documents with the broker and reporting any suspicious or fraudulent activity to the relevant authorities.
Conclusion:
Proglobalfx is a fraudulent broker that pretends to be regulated by ASIC but is not. It uses a fake license number and a cloned website to deceive traders and lure them into its scam. It does not provide any information or proof about its products, services, location, or customer service. It is not authorised to provide financial services in any jurisdiction and traders should avoid dealing with it. Traders should also take some defensive measures to protect themselves from fraudulent brokers and choose only reputable, regulated, and transparent brokers for their trading needs.
