Beware! Pips500 is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Pips500 follows a trend popular among the shady brokers, and opens with a very detailed and intricate animation of a person interacting with a projection representing the FX market industry. What’s funny is that we have seen this exact animation with dozens of other brokers, and all of them turned out to be illegitimate in one way or the other. Therefore, it must be that Pips500 is also unlicensed. Well we wont spoil it for you, but it’s easy to see where this is going. Please read the review before doing anything that you might regret later on.
We could not register because the account creation process kept telling us that we had made an error, but it never told us of the type of error we had made.Was it our user name, our email address, our phone number? Or is it just that Pips500 has barred us from creating an account because it does not consider us a potential investor?
What ever the answer to these questions might be, we are left with no choice but to quote the website on all trading and payment details. This is never the best thing to do, for website owned by shady brokers rarely reveal the truth.
Without further ado, here is what we learned. The alleged tradeable assets are divided into the following categories: forex currency pairs, cryptocurrencies, commodities, indices, stocks, and cryptocurrencies. The leverage is capped at 1:500, which is the most common of all offshore leverages. Sadly, Pips500 discloses no accurate spread values.
The website of the broker comes in both English and Italian.
PIPS500 REGULATION AND SAFETY OF FUNDS
The home page barely mentions of a license in Hong Kong. The local Securities & Futures Commission of Hong Kong does not license this sloppy broker, that’s for sure!
Crucially, the company is blacklisted by Italy’s CONSOB. To be on the black list of any European regulator is a serious offense, and speaks volumes of the brokers illegitimacy.
There are also no legal documents. All links to a legal document resulted in an error page. These crucial provisos are the legal bond that defines the relationship between user and broker. Without them Pips500 can do as it pleases all of the time!
And moreover, there isn’t any solid information on a regulation, not that any self-respecting FX regulators would ever oversee this broker. Pips500 has a long way to go if it wishes to even attract the slightest attention from any FX license issuer.
So the company is UNLICENSED, and a risk to all investors and investments!
Better to invest in an FCA or CySEC regulated broker than throwing it to a scammer/unlicensed broker that will spend it on its own indulgences. Unregulated brokers will not return your funds, and users of these companies will face other issues! That is why we always say to readers that they should always check and double-check for a legitimate license. The FCA or CySEC are preferable regulations, but there are dozens of other equally capable regulators. Check our list for all of them. Crucially, though some FX watchdogs offer compensation schemes that apply to users of brokers that cannot deliver their financial duties. For example, CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
PIPS500 TRADING SOFTWARE
Without accessing a user area we cannot vouch for a trading platform. It may seem conventional, but that’s how things work.
A broker is unlicensed and does not grant us access to a trading platform, leading us to think that there is no trading platform.
Moreover, the site does not disclose any terminal links, leaving us completely empty-handed.
PIPS500 DEPOSIT/WITHDRAW METHODS AND FEES
The payment information on the website is extremely limited, so bear with us.
The only two revealed payment methods are credit cards and wire transfer. And that’s it. The website reveals nothing else on payments. There is no minimum deposit amount revealed, and although the firm mentions that there are no fees, we cannot trust it fully with this claim. There are also no withdrawal processing times revealed.
The lack of legal documents are also felt here, because they might have given some payment insight.
What can we say. This broker is completely unlicensed, a scam, and a risk to all traders, as well as all personal details that have been provided! It does not deserve you money and time!
How does the scam work?
The crucial moment for scammers happens when a random user decides to click on an ad that promises high profit, luxury goods, a care-free lifestyle, or any other too-goo-to-bee-true prospect.
Said user will be redirected either to the scammer investments site directly or to an intermediary site. There, she will be asked for her phone number and email address, through which the broker’s representatives will contact her. The goal is for the user to deposit the initial deposit.
Once this happens, in come the expert scammers, whose job is to keep the user as invested in the scam as possible, by initiating further deposits and, if possible, extracting sensitive ID documents.
At some point, the user will want to see results. She might see a couple of impressive profit sessions, but these are devices to keep her invested. The crucial part arrives when the client want’s to actually withdraw this money.
At this time, the broker will delay the request, block the account, stop calling the user, shit down the website, or do whatever it can so as to keep the user’s money for itself!
What to do if scammed?
Filling for a chargeback with your credit or debit card is crucial. That is if you have invested by means of a credit card. The good news is that MasterCard and VISA have a chargeback period of 540 days.
Bank deposits are harder to recuperate, but not impossible. Your best bet is to contact the bank and see with the institution itself if it can somehow get the money back. It’s crucial to always change your bank details – user name and password – if you have been defrauded by means of a wire transfer.
Last are deposits made by some kind of crypto method. These are untraceable, and therefore impossible to retrieve. That is why users should never invest by means of any digital currency.
The last line is the recovery agent or agencies. These promise to retrieve all the lost funds, using questionable techniques. Do not trust these for they will take a commission from you and leave you at an even bigger loss!
Rich Snippet Data