Regarding the legitimacy of ForexBY forex brokers, it provides a comprehensive investigation into the security aspects of regulatory and WikiBit, as well as whether there are any negative scam reviews.
Rating Index
Risk Control
Software Index
Is ForexBY safe?
The regulatory license is the strongest proof.
NBRB Retail Forex License
National Bank of the Republic of Belarus
National Bank of the Republic of Belarus
Current Status:
RegulatedLicense Type:
Retail Forex License
Licensed Institution:
MFEE Limited Liability Company
Effective Date:
2020-11-04Email Address of Licensed Institution:
info@forexby.comSharing Status:
No SharingWebsite of Licensed Institution:
http://www.forexby.comExpiration Time:
--Address of Licensed Institution:
220007, Minsk, Fabritsius St. 8Б, building 1, office 5Phone Number of Licensed Institution:
+375297577070Licensed Institution Certified Documents:
Is ForexBY Safe or Scam？
Introduction
ForexBY is a forex brokerage firm based in Belarus that positions itself as a reliable player in the foreign exchange market. With a range of trading instruments, including forex, stock indices, and precious metals, ForexBY aims to cater to both novice and experienced traders. However, the forex trading landscape is fraught with potential risks, making it imperative for traders to exercise caution when selecting a broker. This article aims to evaluate the safety and legitimacy of ForexBY by exploring its regulatory status, company background, trading conditions, customer fund security, user experiences, and overall risk assessment.
To conduct this investigation, we have analyzed various sources, including regulatory filings, customer reviews, and expert assessments. Our evaluation framework focuses on key indicators of broker reliability, such as regulatory compliance, financial transparency, and customer feedback.
Regulation and Legitimacy
The regulatory landscape is a critical factor in determining whether ForexBY is safe or a potential scam. ForexBY operates under the oversight of the National Bank of the Republic of Belarus (NBRB), holding a retail forex license. Below is a summary of the broker's regulatory information:
| Regulatory Authority | License Number | Regulatory Region | Verification Status |
|---|---|---|---|
| NBRB | унп 192530878 | Belarus | Verified |
Regulation by a recognized authority like the NBRB is crucial as it ensures that ForexBY adheres to specific standards designed to protect traders. However, the quality of regulation can vary significantly. While Belarusian regulations have improved, they are often considered less stringent than those in more established jurisdictions like the UK or the US. Thus, while ForexBY is regulated, the extent of consumer protection it offers may not be as robust as that provided by top-tier regulatory bodies.
Company Background Investigation
ForexBY was founded in 2005 and has since developed a presence in the forex trading market. The company operates under the ownership of LLC "EMFI," which is registered in Belarus. While the company has been in operation for several years, it is essential to assess the management team's background and the level of transparency in its operations.
The management team at ForexBY comprises individuals with varying degrees of experience in financial services, but specific details about their backgrounds are not extensively disclosed. This lack of transparency raises questions about the company's accountability and trustworthiness. A broker that is open about its management and operational practices tends to foster greater trust among traders.
Trading Conditions Analysis
ForexBY offers various accounts with different trading conditions, but its fee structure is a vital aspect that traders should consider. The broker's overall fee structure can significantly impact profitability. Below is a comparison of ForexBY's core trading costs against industry averages:
| Fee Type | ForexBY | Industry Average |
|---|---|---|
| Spread on Major Pairs | From 0.9 pips | 1.0 - 1.5 pips |
| Commission Model | Varies by account type | $5 - $10 per lot |
| Overnight Interest Range | Varies | Varies |
ForexBYs spreads start from 0.9 pips, which is competitive compared to industry averages. However, they also charge commissions based on the account type, which may not be as favorable for all traders. Understanding these costs is essential for evaluating whether ForexBY is safe for individual trading strategies.
Customer Fund Security
The security of customer funds is paramount when assessing whether ForexBY is safe. ForexBY claims to keep client funds in segregated accounts at tier-one banks, which is a standard practice that helps protect traders in case of insolvency. Additionally, the broker offers negative balance protection, ensuring that traders cannot lose more than their initial investment.
However, there have been reports of past issues regarding fund withdrawals and customer service responsiveness, which could undermine trust in the broker's claims about fund security. A broker's historical performance in safeguarding client funds is a crucial indicator of its reliability.
Customer Experience and Complaints
Customer feedback is a valuable resource for understanding the real-world experiences of traders with ForexBY. While some users report satisfactory experiences, including timely withdrawals and effective customer support, others have voiced concerns regarding the company's responsiveness and transparency.
The following table summarizes the primary types of complaints received about ForexBY:
| Complaint Type | Severity Level | Company Response |
|---|---|---|
| Withdrawal Issues | High | Slow response |
| Customer Service Quality | Medium | Inconsistent support |
| Transparency Concerns | High | Lack of information |
For instance, one user reported difficulties in withdrawing funds after experiencing initial success with their trades. This inconsistency raises red flags regarding the broker's reliability and whether ForexBY is truly safe for traders.
Platform and Trade Execution
Evaluating the trading platform's performance is essential for understanding the overall trading experience with ForexBY. The broker offers the widely-used MetaTrader 4 (MT4) platform, known for its robust functionality and user-friendly interface. However, users have reported issues with order execution quality, including slippage and rejections.
These execution problems could indicate potential manipulation or inefficiencies within the trading system, which raises concerns about whether ForexBY is safe for serious traders. A broker should provide a reliable trading environment to ensure that traders can execute their strategies effectively.
Risk Assessment
When considering whether ForexBY is safe, it is crucial to evaluate the overall risks associated with trading through this broker. Below is a risk assessment summary:
| Risk Category | Risk Level (Low/Medium/High) | Brief Description |
|---|---|---|
| Regulatory Risk | Medium | Regulated but in a less stringent jurisdiction |
| Fund Security Risk | Medium | Segregated accounts but history of withdrawal issues |
| Execution Risk | High | Reports of slippage and rejected orders |
To mitigate these risks, traders should conduct thorough research before committing significant capital to ForexBY. Utilizing smaller amounts for initial trades and closely monitoring the trading experience can help identify any potential issues early on.
Conclusion and Recommendations
In conclusion, while ForexBY is regulated by the NBRB, several factors raise concerns about its safety and reliability. The mixed reviews from customers, potential issues with fund withdrawals, and reports of execution problems suggest that traders should exercise caution.
For traders considering ForexBY, it is advisable to start with a small investment and thoroughly monitor the trading experience. If you are looking for more reliable alternatives, consider brokers regulated by more stringent authorities, such as the FCA or ASIC, which tend to offer better consumer protections.
In summary, while ForexBY is not outright a scam, the potential risks and customer complaints warrant careful consideration before proceeding with trading activities.