YellowStoneFX Review: Fraud Behind Yellowstonefx.io
YellowStoneFX has one of the best-made scam websites we have come across so far. The company is owned by Plaintech LLC, operating out of St. Vincent and the Grenadines. Neither the YellowStoneFX nor their parent company has any trading license to speak of.
We can firmly say that this website is a front for fraudulent activities. See the remainder of our YellowStoneFX Review to find out how they compare to both known scam entities, as well as renowned and fully licensed forex brokers.
Is YellowStoneFX a Reliable Broker? Regulation and Security
YellowStoneFX is owned by a company named Plaintech LLC, which is legally registered in St. Vincent and the Grenadines. Just because a company is legally registered, does not mean that it is a regulated and safe brokerage.
SVG’s main financial regulator, FSA, does not regulate brokers. The companies registered in SVG need to acquire their broker license elsewhere, and Plaintech LLC didn’t do anything to provide a license.
Because YellowStoneFX is an unregulated brokerage means that they lack many safety standards that developed nations require. These requirements are set in order to protect the clients in case something awry happens to the broker and ensure financial stability. One of the most strict regulatory standards is set by the nations that belong to the European Union.
Here is what a German regulator, BaFIN, requires from their brokers:
- The initial capital of no less than 730 000€
- A compensation fund of 20 000€
- Maximum leverage of 1:30
- Segregated bank accounts for client funds
- Negative balance protection
- Bonuses are forbidden
- Full financial transparency in compliance with EU MiFID
We can see that due to the unusually high leverage of 1:300, YellowStoneFX would simply not be eligible for a license from BaFIN. This means that they would not be allowed to trade in many European nations. When searching BaFIN, CONSOB, CBR, ASIC and FSCA we didn’t find any info on YellowStoneFX. This confirms our suspicion – YellowStoneFX is a scam website!
Broker’s Trading Platform Overview
The only available trading platform with YellowStoneFX is a Web Trader. Although this faux broker advertises a mobile trading app, as well as MT5 support, this is simply not the case. The alleged MT5 is yet another web trader, which has been changed to have a user interface similar to the renowned MT5 software.
You will remember that scam brokers are the most prolific users of Web Trader, which they edit to display false trading data. We have already mentioned this problem when reviewing Broker Capitals, another fraud website.
The MT5, the real one, is currently the industry standard for regulated brokers. This is a very versatile program that allows automated trading and has the fastest market execution speed to date.
YellowStoneFX Account Types Available
The YellowStoneFX accounts show a rather high number of different accounts on offer. The account types themselves are very similar to other scam sites, like Active Brokerz which we reviewed a while ago.
These are the account types that YellowStoneFX offers, with the minimum deposit amount:
- Bronze – $1 000
- Silver – $5 000
- Gold – $25 000
- Premium – $75 000
- Diamond – $125 000
When put side by side, you will see that these accounts offer somewhat different trading conditions. Leverage with a Bronze account is 1:50 and goes as high as 1:300 for Diamond.
Additionally, the minimum deposit on the website is stated to be $250, but the cheapest account is $1 000. These discrepancies are a good sign something fishy is going on with the broker. There is no demo account and no support for Islamic traders either.
Funding Methods Available
YellowStoneFX advertises the most popular transaction methods on their website, but deposits and withdrawals are subject to some very unusual conditions. If you wish to deposit to the account, you need to do so through the Trading Platform. A deposit cannot be made by the client unless approved by an agent of the broker.
The withdrawals from the platform are done in a similar way. A client must provide a photograph or a scan of their personal ID, Passport, and Bank Card they wish to use for payment. We strongly advise against this! Such information can be used by scammers to steal your identity or withdraw funds from your bank accounts by pretending to be you!
How Does the Scam Implement?
YellowStoneFX has a website that disguises its actions quite efficiently. This is why it is always important to read the fine print in the Terms and Conditions on every broker’s website. The scammers behind YellowStoneFX aren’t after just your money, but your identity as well!
Their shady deposit and withdrawal requirements let them handle your personal data unhindered because you would give them this data off your own consent. It is quite possible that the scammers will commit identity fraud and clean out not just your trading account, but the bank accounts as well!
YellowStoneFX is nothing but a fraud! Their well-made website is but a lure to trap clueless beginner traders. The market conditions seem good at first glance, but there are many caveats and discrepancies when it comes to this scam entity.
The specialty with YellowStoneFX is identity theft. These swindlers require a color photograph of a victim’s personal ID and bank cards. This allows them to commandeer a bank account and clean it out of all the money they can find!
FAQs About YellowStoneFX Broker
Is YellowStoneFX Regulated?
No, YellowStoneFX is an unregulated broker that does not have a license.
Is my Money Safe with YellowStoneFX?
No, YellowStoneFX does not offer any safety with their accounts.
Does YellowStoneFX Offer a Demo Account?
There is no demo account available on YellowStoneFX.