Beware! Bedbrook is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
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Bedbrook is a forex company specialiasing in the trade of forex, futures, commodities, precious metals and CFDs.
We were unable to open a live account with this company, as the email with the verification code was not sent.
Bedbrook Regulation and safety of funds
Bedbrook forex broker claims to be regulated by the Australian Securities and Investment Commission (ASIC). After checking the company’s name on the ASIC register, we did find a company with the same name (screenshot below). However, we have doubts that this legitimately registered and regulated company in the screenshot has been mimed by a scam broker who is using the same name. If you open the document that you see below and read the licence conditions, you will notice that there is no mention of forex trade activities. Be cautious as the broker using this website might be a scammer.
There are other details indicating that this company looks suspicious. For example, there is missing information in the footer of the company’s website, such as the address and registration/regulation number of the company. In the ‘contact us section’, again, there is no address or telephone number. There is even a spelling mistake on the company’s website. No self-respecting legitimate broker (especially from an English speaking country) would put something on its site with a spelling mistake.
We want to warn you to be very cautious about this company. If something with the registration doesn’t seem to be right, then you better avoid dealing with such broker. On the other hand, there are many legitimate forex companies to choose from that are licenced and regulated in the well-established jurisdictions, such as EU, UK and US, for example. In those jurisdictions, the strict requirements about registrations and regulation make difficult for scammers to sneak in. You may not know, but forex companies in EU and UK must have a minimum of initial capital that is not less than 730,000 EUR and they must contribute to compensation funds in case the forex company goes belly up. In such cases, the clients will be compensated up to 20,000 EUR per client if the company is regulated by CySEC and up to 85,000 GBP per client if the company is regulated by FCA. Not bad, eh? That is why you should always choose a legitimate and reliable forex company to trade with!
Bedbrook Trading software
To its clients, Bedbrook offers the MetaTrader5 trading platform. If we look at the screenshot below, it will show us what the platform looks like. On the left is the menu for the forex pairs with their bid/ask price and below is the navigator with its trading tools and instruments. In the center of the screen you see displayed the charts with the forex pairs and how the bid/ask price fluctuates in a given time frame. Please note, that the number of the charts can vary and is practically unlimited and their design may vary to suit the traders needs. This is one of the advantages of MT5 in addition to many more, such as the auto trading option, the code base with customers scripts, the financial calendar, the app market, the trading signals (which you can obtain for a subscription fee), the VPS, etc. It is not by chance that MT5 is considered one of the best trading platforms preferred by around 80% of the brokers around the world.
If we look at the first currency pair on the display below, EUR/USD, we’ll see that the spread is 0.8 pips which is not too wide. On this company’s site there is indication that the leverage is 1:500. You must be aware that Australian forex companies do not have a cap on leverage and it can go really high. Although it may seem tempting to use high leverage in forex trading because it may bring big profit, you must exercise caution as it may also signify big loss. Given the fact that over 70% of traders lose in forex transactions, what are the chances that you will profit from the high leverage?!
Bedbrook Deposit/Withdrawal methods and fees
Bedbrook does not provide sufficient information on its website about the types of accounts that are offered to the clients. There are only the options of opening a live account and simulation (demo) account but the process of opening either one was not completed due to some broken links in the system.
There is no Terms and Conditions document so we can see what the stipulations are about deposits/withdrawal methods, what fees are required and what the payment methods are. There is no information about the minimum initial deposit.
If such crucial information is missing from Bedbrook website, this company does not seem legitimate and you will do well to stay away from it!
How does scam work?
Scam works in different ways. It could be either that you receive an unsolicited telephone call or you see one of these flashy ads on the Internet or the social media promising you a quick and easy profit. Scammers will promise you the sky and the earth until you give way to temptation and deposit money. Once you give them money you get caught in the scammers’ mouse trap and the cheese in the shape of a big fat money fall is gone! It may take some time before you realise that you are being scammed. Scammers are smooth talkers and they are masters of deception. They will give you some excuses as to why the big profit hasn’t come yet and will try to lure you to make even a bigger investment because according to them, the more you invest, the more you profit. After you have been waiting for awhile and you finally come to your senses, you realise that you are being scammed. All you want now is to get your money back and get out of there. However, the scammers won’t make it easy for you! They will try to delay you so that you miss the deadline for applying for chargeback.
What to do if scammed?
There are a few things that you must do immediately – file for chargeback if you have paid using a VISA or MasterCard. Those two payment providers allow you 540 days time frame within which you may file for chargeback.
However, the chances are grim if you have used bank transfer or Bitcoin as a payment method. There is no chance you’ll be able to recover your money.
In such desperate situation, some so-called ‘recovery agents’ may approach you with offers to recover your money for a fee. Be cautious as you may be dealing with another type of scammers. Always check the information about the recovery agency – make sure it is legitimate and transparent in the public eye. Also, some scammers publish personal comments after our review about how they have been scammed and how they found a recovery agent who helped them get their money back. Do not trust such comments and do not use the published contact info in them as it will lead you to another scammer!
And lastly, a reminder to cancel your credit card if you have given your CVV code to the scammers and erase any software from you PC that gives scammer access to your personal data.