Beneffx is an offshore brokerage that is not regulated and operates anonymously, acting on its own and violating the rules of the heavily controlled industry such as online trading.
But even if these bogus brokers were licensed, their legal documentation would be full of loopholes.
Even though we might ignore those things, an unscrupulous broker has terrible trading conditions, and the trades aren’t even appropriately executed. They’re just poorly done.
If you’re interested in investing in Beneffx, you should read our full report. We’ve thoroughly assessed this online trading company to help you out!
Namely, Beneffx promises to deliver an advanced, user-friendly platform for traders that includes top trading software, live webinars, real-time data, over 1000 tradable assets, and much more! And yet again, the reality is quite different from what we had hoped for.
This brokerage service is way below the industry standard, but it’s not the worst part of the company either. Please read our Beneffx review before ever thinking about using it.
|Address||Marshall Islands and Bulgaria|
|[email protected], [email protected]|
|Minimum Deposit||$250 USD|
|Bonuses||Welcome bonus, birthday bonuses, and one trade-on-us bonus|
|Warning||FCA, FCNB, FSMA, CONSOB, CNMV|
Is Beneffx An Authorized Broker? Regulation and Security
As far as regulations go, Beneffx is not regulated by any financial authority. It is, therefore, not safe for investing. On top of this, they hide their actual location by claiming to operate from Bulgaria and the Marshall Islands.
Although Beneffx may be registered in the latter, this country is a safe haven for fraudsters since it lacks proper regulation policies and masks information about registered businesses in this entity, which makes it an ideal environment for scammers.
As a European Union (EU) member, Bulgaria has to abide by EU law regarding online trading. Bonuses for European traders were banned because they were being used for manipulations. Online brokers don’t offer bonuses in this region.
However, Beneffx offers bonuses in this entity. Furthermore, the maximum leverage for European brokers is 1:30, whereas Beneffx provides several times more, i.e., 1:400.
Thus, Beneffx’s statement about having “Jurisdiction” in Bulgaria is false overall, you should avoid investing in Beneffx because it’s unsafe.
Trading Software Available at Beneffx
Beneffx provides access to what seems to be an advanced browser-based trading system. However, it’s inadequate for trading when compared with MetaTrader4 (MT4) and MetaTrader5 (MT5).
For example, if you trade with a major brokerage, you’ll be able to use their next-gen trading software, which includes a social trading feature where you can follow and copy the best traders in real-time.
While Beneffx misrepresents the results of its top traders to appear more profitable than they are these returns are unrealistic for advanced traders, who rarely achieve these results.
You’ll be lured into thinking that if you trade on the Beneffx platform, you may get high returns but ultimately lose out.
For these reasons, this is yet another example of why we strongly suggest sticking with reputable brokers offering MT4 and MT5 trading platforms and using their expertise and other tools for profitable trading.
Deposit and Withdrawal Methods for Beneffx
Beneffx requires a $250 deposit, which is way more than authorized brokers demand as an initial balance ($10 on average). It accepts credit/debit card payments, which is the only positive aspect of Beneffx since it is possible to get refunds from top-level payment providers such as
MasterCard and VISA. But be careful not to invest blindly; you’d better think hard before investing with such an unreliable broker. You can also deposit via wire transfers, Skrill, Neteller, and other e-wallets with Beneffx.
Withdrawal options include the following transaction types: credit/debit cards (minimum $50) and wire transfers (minimum $100). Beneffx charges a 3.5% fee of the amount for withdrawal. There are no fees for black account holders.
However, the Beneffx website doesn’t provide any details about the black account, including its cost and other relevant information, so it seems strange.
With Beneffx, there are a lot of inconsistencies, such as no-trading fees that are $10 per month, but the Terms and Conditions state inactivity fees as 50 units. That’s a warning sign and is yet another reason not to use Beneffx.
Here’s How the Scam Works
Unregulated offshore brokerages are usually worth avoiding. By our verdict, it’s a scam, so let’s just call it one. As for an investment scam, we’re going to shortly explain how scam artists typically operate.
Scam brokers use deceptive websites, fake accounts on social media, and spam advertisements to defraud unsuspecting victims.
Once you’re caught, they’ll pretend to take care of your trading account and show you ‘hot’ trade deals, so you think it’s worth doing business with them.
That doesn’t mean they’re going to allow you to make/withdraw any profit; instead, they want you to keep depositing more funds so that they can reap even larger returns.
Don’t be fooled by them; they will try to take advantage of you in every way possible, so they might tell you to put in as much money as possible.
When you finally decide you want your hard-earned cash back from a financial swindler, you’ll likely find out that they won’t give it back.
Once a scammer realizes you don’t want to be their victim anymore, they’ll say you must send them some money before they allow you to withdraw anything from your account.
If you ignore their requests, they eventually give up trying to “help.” Once fraud is publicly revealed and widely circulated, unscrupulous individuals will stop using a website that is known for being fake and move to a new fraudulent project.
Highly Suggested Forex Brokers
Rather than trading on manipulative trading software provided by unlicensed companies like Beneffx, we recommend using highly reliable trading platforms offered by trustworthy and regulated firms instead. The following brokers are the best options if you’re starting out in online trading.
|FXTM Broker||Cyprus, UK, Kenya, and Mauritius||4.5||$10 USD||Forextime.com|
|OctaFX Broker||SVG and Cyprus||4.4||$100 USD||Octafx.com|
|FP Markets Broker||Australia, Cyprus, and SVG||4.7||$100 AUD||FPMarkets.com|
|XM Broker||Belize, Australia and Cyprus, UAE||4.7||$5 USD||Xm.com|
|HFM HF Markets Broker||SVG, Cyprus, and South Africa||4.3||$5 USD||Hfm.com|
|FBS Broker||Belize, Australia, and Cyprus||4.85||$1 USD||Fbs.com|
In the final words in our Beneffx broker review, since it is not transparent and doesn’t provide any details about its licensing and jurisdictions, Beneffx is a fraudulent broker. Its website contains numerous discrepancies.
The company falls behind industry leaders since it offers an unsuitable trading platform, has unfavorable trading conditions, and requires a much larger minimal deposit amount.
Not to mention that your funds are not protected with Beneffx since it lacks risk management mechanisms such as a stop loss option, negative balance protection, and segregated accounts.
Education resources and trading tools practically don’t exist with this broker; the effectiveness of its customer service is questionable, that’s to say.
The Beneffx scam is genuine in the final verdict, and you should refrain from trading with this broker and similar untrustworthy companies. Sticking with recommended online brokers is definitely a safe option for all of you.
FAQs About Beneffx Broker
Is Beneffx a Legitimate Broker?
No, it isn’t. Since Beneffx operates anonymously and isn’t regulated by any financial market agency, everything points out it’s a scam!
What Leverage is Available with Beneffx?
Speaking of leverage offered by Beneffx, it is min 1:100 and max 1:400; both options are way higher than the regulatory standard.
What is the Minimum Deposit with Beneffx?
Beneffx offers a classic account requiring a $250 minimum deposit, far above legitimate companies in the business.