First Brokers – Are They Safe?

Website URL: www.fbrokers.io

Founded: 2020

Regulations: Unregulated

Languages: English

Deposit Methods: Visa, MasterCard, BTC Buying Options

Minimum Deposit: 250 Euros

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Forex/Currencies, Cryptocurrencies, Commodities, Stocks

Trading Accounts and Conditions

First Brokers offer their clients the following account types:

• Self Manage: The minimum deposit requirement for this account type is 250 Euros. You are offered a leverage of up to 1:100, but the broker has not mentioned anything about the spreads you will get.
• Gold: To use this account, you need to first deposit at least 10,000 Euros. The maximum leverage in this account category is 1:200. All that the broker states is that you will get something called Gold Spreads
• Platinum: For the Platinum account, you need to make a minimum deposit of 50,000 Euros and you will be given a maximum leverage of 1:300. Once again, the only thing we know about the spreads is that you are offered Platinum Spreads.
• VIP: You can only open a VIP account if you are invited by the broker to do so. For this account type, the maximum leverage offered is 1:400. The only information about the spreads for this account type is that they are VIP Spreads.

First Brokers – Advantages

We cannot honestly say that there are any advantages to trading with First Brokers. Read the next section of our review to find out why.

First Brokers – Disadvantages

Here is the list of reasons why it would be a bad idea for any trader to contract with First Brokers:

• Lack of Registration

First Brokers claims to be owned by a company called Tera Holdings Ltd. According to the information on their website, this company is based in Hong Kong. The broker claims that this company is registered there, but does not mention its regulation status – in Hong Kong or anywhere else, for that matter.

Since this broker states that it is registered in Hong Kong, we decided to check the territory’s financial watchdog’s (Securities and Futures Commission’s) online register to see if it was regulated.

As one of the biggest financial markets in the world, the Hong Kong SFC has very stringent regulations and it isn’t easy to get a license to offer financial services in this territory. We were not surprised to find that First Brokers was not listed as a regulated broker with the SFC.

And since this broker has not mentioned any other form of regulation, we can safely conclude that First Brokers is an unlicensed operator.

Plus500

$100

Minimum Deposit

Start Trading

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82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

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The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• Poor Trading Software Seen in Another Scam Broker’s Website

First Brokers uses a poorly designed web-based trading platform which has absolutely no added features that other professional platforms have. The best platform for traders today is the MT4 (MetaTrader 4), which offers a wide range of features such as charting and market analysis tools, automatic trading algorithms called Expert Advisors, pending orders, calendars and so on.

This website would only pass with novice traders who have no idea what a real trading platform should look like.

We also found out that this platform is exactly the same as the one we found being offered by another broker called 4EX7. 4EX7 has been proved to be a scam broker, so that fact that First Markets offers the same platform is very suspicious.

• BTC Buying Portals Offered in Deposit Options

First Brokers states on its website that it allows its customers to deposit their funds using Visa, MasterCard and two BTC portals. However, these two BTC portals are actually places where you can buy BTC, not a payments processor. It is strange that a broker would offer BTC buying options as a deposit method. These portals are also known to be shady.

• No Payment Methods for Withdrawals

When we checked the Withdrawals segment of this broker’s client area, we found that there were no payment methods for withdrawals. The only thing that you can do is make a request for a withdrawal. You are no give any options on how those payments should be disbursed to you.

• Unfair Conditions

We also saw a number of unfair conditions mentioned in First Brokers’ Terms and Conditions page. Here is the list:

• Trading Benefits Removed From Withdrawal Amount

First Brokers states that it will adjust or remove amounts received from trading benefits from the funds that are being withdrawn by the trader. However, the broker fails to mention what these trading benefits are. We speculate that the broker could be referring to profits made by the trader on bonuses, but as there is no clarification, we cannot be sure.

• High Trading Turnover Target

You will not be allowed to withdraw your funds until you have traded at least 50,000 times your deposit. This is ridiculous condition that no legitimate broker would impose!

• Withdrawal Conditions Related to Bonuses

This particular condition is becoming increasingly popular with scam brokers. First Brokers states that if your withdrawal amount is more than 20% of your deposit then your bonus amount and any profits made from these trades will be revoked. Another unreasonable condition!

• Broker Accepts No Liability

First Brokers also states that it will accept no liability for losses that you may suffer from using the bonuses they offer. The only thing you will get as reimbursement is $50.

• Closure of Accounts

This broker also states that if you have not carried out any transactions on your account for 3 months and your account balance is less than $100, then they will close your account and claim all your funds.

Conclusion 

All the disadvantages that we have listed about First Brokers clearly show us that this broker is a scammer and that if you invest your money with them, you will lose all your funds. We recommend that all traders stay away from First Brokers.

First Brokers

2.5

User Experience

3.3/10

Payment Options

2.2/10

Security

2.4/10

Support

2.3/10

Reputation

2.5/10

Pros

• None

Cons

• Lack of Registration
• Poor Trading Software Seen in Another Scam Broker’s Website
• BTC Buying Portals Offered in Deposit Options
• No Payment Methods for Withdrawals
• Unfair Conditions