Unicorn Forex wants us to believe that it gives its customers the best trading platforms and helps each of them make their financial dreams come true. In reality, though, it’s a shady brokerage that lies about everything. We’ll talk about that in the next review.
Regulation and Safety of Funds for Unicorn Forex
Unicorn Forex says they are registered in the UK and offer separate trading accounts and protection against negative balances. Well, we can’t really prove that they keep deposits separate, but we do know for sure that the broker doesn’t have a license. Without a license, the broker can say anything and do nothing. As the screenshot below shows, Unicorn Forex is not regulated in Britain. However, it falsely claims to be a legitimate broker registered in the UK, which is a strong sign that it is a scam. Now, let’s talk about what it all means.
First of all, every broker that isn’t licensed, like Unicorn Forex, is just an unknown, unreliable person or business that is probably a scam. If it were honest, it would get a license to show that it only wants to do business, but the broker wants to stay anonymous, which makes us wonder why. The fact that Unicorn Forex is not regulated also means that it is not accountable to anyone because there is no one to keep an eye on it. This means that these people can put your money at risk or just steal it and get away with it.
So, it’s always best to stick with companies that have been approved by reliable financial regulators like CySEC (Cyprus) and FCA (Britain). Both of these things require brokers to keep their clients’ deposits in separate local banks. This makes sure that clients won’t lose their money if something goes wrong. The separation makes things clearer, speeds up withdrawals, makes chargebacks easier, and helps stop fraud in general.
Also, European FX companies are protected by deposit insurance funds that are set up to compensate clients if something unexpected happens. Clients of CySEC brokers can claim up to €20,000 per person, and British guarantees go even higher, up to £85,000.
In the end, if you deposit money, you’ll lose it to fraud because Unicorn Forex is an unregulated brokerage that is pretending to be a legitimate broker. That is a trick!
TRADING SOFTWARE FOREX UNICORN
MetaTrader 5, which comes with Unicorn Forex, is the most popular trading platform. It has a wide range of advanced tools, such as Expert Advisors and a marketplace with more than 10,000 trading apps. Strangely, though, the fact that MT5 is available makes Unicorn Forex a lot riskier because many people may think it is a reliable broker just because of the platform. Beware!
The trading costs seem to be good as well, since the EUR/USD spread is only 1.4 pips, which is about average for the market. In particular, Unicorn Forex’s clients pay $14 per lot, while legit brokers usually charge around $10. Obviously, it makes no sense to open accounts with the questionable Unicorn Forex when there are so many reputable brokers that can offer even better trading conditions.
The platform also tells you about the risks. When we opened a virtual money account, we could choose up to 1:200 leverage, and Unicorn Forex says that if we ask, the ratio can be raised to 1:500. Both levels are risky for most traders, but what’s more important is that the British FCA has already put a limit of 1:30 on leverage, so by offering 1:500, Unicorn Forex is already breaking the law. That is a trick!
Deposit and withdrawal methods and fees for Unicorn Forex
The minimum deposit is supposedly $10 via Credit/Debit cards, Wire Transfers, and Bitcoin, but we can’t verify this because we didn’t sign up. But it was the broker’s fault because the sign-up page was broken, as the screenshot below shows. That’s too bad, and the technical mistakes are the only reason we can’t recommend Unicorn Forex, even though there are other red flags.
It is not possible to find out about withdrawals and fees. The broker doesn’t say anything, and it doesn’t even have legal paperwork. This is another big red flag that shows Unicorn Forex is just a scam.
HOW DOES THE SCAM WORK
In this review, we showed that Unicorn Forex is a scam. Now, we’ll show you what scammers usually do to take people for a ride.
So, if scammers get your phone number, you’ll get a call promising you the moon and stars if you make a deposit right away. And to get people to trust them, these criminals usually act like they work for governments, financial authorities, banks, or other well-known companies.
Scammers will be sure of what they say, so if you don’t notice the warning signs, you might fall for their fake commitment and give them money. But the scam starts in earnest after you send the money. Once the scammers have the deposit they want, they will change prices and make up fake reports to make you think you are on the winning side. They do this to get you to start thinking big and think about making more deposits.
Then, the scammers will keep asking you to put in more money and will make up stories to get you to do it over and over again. Sooner or later, though, you’ll be ready to get your money out, and the scammers will ask you to put more money in because, in their words, you need to pay taxes and fees. At this point, you’ll probably realize something is wrong, and when the scam becomes too obvious, the scammers will stop answering your calls and emails.
WHAT TO DO WHEN SCAMMED
The best thing to do would be to call your bank to let them know and then deactivate your card to avoid any extra risks, since the scammers may already have your information.
Then, call the police, tell the financial authorities, file complaints, and don’t forget to tell other people about the scam online. Still, it’s important to take your time when trying to get your money back because many scams are set up as chargeback agencies to double-scam people.
Lastly, we know it’s awful to fall for a scam, but please tell others about it so they can avoid it!
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