Who is FXUnited?
FXUnited was an online forex broker that was established in 2016 with its headquarters registered in Auckland, New Zealand; its parent company was listed as United Global Holdings Limited. The company collapsed in 2017 amid growing concern that it was not a legit operation.
In the FXUnited review below, we investigate whether this broker was indeed a scam and, if so, whether there is any action that former investors can take to recover their lost funds.
Is FXUnited a Licensed Broker?
In answer to the question, ‘is FXUnited regulated?’ - the answer is yes and no. The platform was originally registered with the FSP in New Zealand; however, shortly before its collapse in 2017, FXUnited was de-registered by the FSP following claims that it was a scam platform and was not allowing its members to withdraw their money.
It is extremely important if you are thinking about investing with a broker to check that they have all the relevant licenses in place and are fully regulated. As well as being a means to ensure that the company has a watchdog to check that best practices are being followed, this is also a way to have peace of mind knowing that, should the platform run into trouble, you will have some redress and opportunity to recoup any funds lost as a result.
Is FXUnited a Scam or Legit?
Did an FXUnited scam result in the loss of a huge number of investors’ funds? This is an absolute certainty. Following the collapse of the platform in 2017, five people were arrested due to their involvement in the scam, and police estimate that more than 70,000 former platform members have had their funds misappropriated. The sum total of this loss is thought to be around the $250 million mark.
Before FXUnited’s collapse, it was one of the companies warned by the FSMA in Belgium to cease offering binary options related products within Belgian territory:
“FSMA Warning Against Firms Offering Binary Options Related Products in Belgium. FSMA adds to the series of warnings that it has been issuing of late against errant companies.” From finance magnates
Even before FXUnited’s deregistration and collapse, there were warning signs that this was not a legit platform, with increasing reports of traders being unable to withdraw their funds. Other red flags include the vagueness of the information provided on the company’s website regarding trading strategy and a total lack of information on the owners or founders of the company and their experience within the world of forex.
Biggest Complaints Against FXUnited
Given the massive nature of the FXUnited scam that was perpetrated, it is not surprising that there are many FXUnited complaints regarding investors who, before the platform collapsed, were unable to withdraw their funds. There have also been claims that members were not able to get through on the various contact numbers given out on the platform’s website and that messages sent were ignored.
There have also been complaints regarding deposits inexplicably disappearing from the system and traders finding that their accounts were suspended without explanation.
Can I Get My Money Back From FXUnited?
Yes, it is possible to obtain an FXUnited refund. You have two options to go about this. You could attempt to track down your funds and confront all the entities involved in its movement yourself, or, alternatively, you could instruct a professional chargeback company to act and fight your case on your behalf. The latter option is much more likely to result in getting your FXUnited money back, as a reputable chargeback company has the expertise, industry knowledge, and experience in other scam cases to pursue your misappropriated money successfully.
What Is The Chargeback Process?
To begin the process of attempting to get an FXUnited refund, start by choosing the chargeback company you would like to work with. Have a look at past client reviews and the company’s success rate to determine the best choice for you. Make contact using the form that most chargeback companies have on their websites.
Once this has been received, a member of the team will get in touch with you to fully discuss the details of your case and determine whether it is likely to be a winnable one. If this is deemed to be so, then the company will take on the case and begin a process of document and evidence gathering. At this point, you will probably be asked to provide proof of the funds that were scammed by FXUnited, including the dates on which the transactions took place.
The next part of the process involves the chargeback team tracking down your funds and all the entities - both individual figures and companies - that were involved in the scam and confronting them in a bid to retrieve your money. In the highly likely event that an FXUnited refund is obtained, this will be paid directly into your bank account. The timeframe for cases to conclude is usually about six months, depending on complexity; however, the timeframe is often much shorter.
If you have been a victim of an FXUnited scam and have lost funds as a result, then it is highly advised that you make contact with a chargeback company at your earliest convenience to begin the process of recovering your money.