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PrimeFx.Pro Review: Is It Safe To Trade?

The short answer to this is no, and the short answer should be enough. In order to openly label a broker service as a scam, there has to be proof, such as a cease and desist order or a fraud warning but why wait until the inevitable end when you can follow the signs?

No matter how good the trading conditions are, they can never surpass regularity and transparency. When I was searching information for for this PrimeFX review, I found several brokers with the name of primefx, all unregulated and all filled with bad customer reviews. Now, the Prime FX we’ll review is the one that operates in Canada and the United States, one that I believe is related to Prime FX Ltd.

Prime FX Review Key Points

  1. It’s important to have solid proof before calling a broker service a scam. Things like official warnings or legal notices are key pieces of evidence and Prime FX’s history does not draw a very reliable picture.
  2. PrimeFX Ltd. has been operating in the UK without catching the eye of the Financial Conduct Authority (FCA), which makes one wonder about its safety.
  3. The lack of transparency about PrimeFX’s operations, owners, and tools makes the brokers’ operations suspicious.
  4. It’s a bit odd and suspicious that several brokers, including Liberty CryptoFX and GlobalTradeFXPro, all list the same Canadian address as Prime FX Ltd. headquarters.
  5. PrimeFX claims it doesn’t charge fees for deposits or withdrawals through bank transfers and e-wallets, but customer reviews mention issues with withdrawals.
  6. When multiple brokers share the same address and internet footprint, it feels like there’s a bigger scheme at play, which is worrying.
  7. The FCA has flagged PrimeFX Trade Limited for operating without permission, which is a big red flag for anyone thinking of doing business with them.
  8. The fact that primefx.pro, libertysminings.com, and globetradefxpro.com not only offer similar services but also seem to be linked to past scams at the same address makes one seriously question their safety and legitimacy.

What is PrimeFX?

When I first came across the name PrimeFX months ago, I simply dismissed it as just another scam and moved on. Recently, however, I’ve started encountering this name again, but with a different domain. Now, as I look into Prime FX’s history, I’ve discovered several forex brokers, each offering different trading conditions. However, the common denominator among them all is that their conditions seemed too good to be true. And as the saying goes, when something seems too good to be true, it generally isn’t true.

prime fx scam brokers
prime fx scam brokers 2

Like I said there are several brokers under the name of Prime FX, and I doubt the genuineness of each of them. One that I believe is linked to Prime FX.pro is the company Prime FX Ltd, which has a bad reputation due to legal issues and the lack of valid licenses.

Who Owns PrimeFX?

During the California court cases against Prime FX’s Limited fraudulent operations, an individual named Benjamin Reid stood out as a director but never showed up in court.

prime fx owner

Now, the old Prime FX is apparently a known scam, but when I looked into the internet, the only thing I found was the FCA warning regarding the broker. I’m not saying that it’s not a sufficient reason to stay away from the broker. PrimeFX operated in the United Kingdom without an FCA warning, and it’s not safe to trade with them. What concerns me is that there is so little information about the broker.

prime fx canada
liberty-cryptofx-canada

At this point, I still have a hard time connecting the dots. The founder of PrimeFX Ltd is unknown, and the lack of transparency of the broker is very concerning. Now, the main site has been shut down, and we all know that they have an FCA warning for operating without a license. But from the information I found online, I came across an address: 56th Floor, 100 King St West, Toronto, ON M5X 1P3, Canada. This address is special for several reasons, the most important one being that I found for other brokers related to this address.

If several forex and crypto brokers are established at the exact same physical location, it raises a concerns. Some of these concerns are:

  1. Shared Office Services: The location could be offering shared office services, such as virtual office space or co-working arrangements. These services enable companies, especially those operating primarily online, to have a physical mailing address and office-related services without the need for a dedicated office space. This is actually a common and legitimate practice for startups and small enterprises to reduce costs.
  2. Potential for Scam Operations: The presence of multiple brokers at the same address could indicate a higher risk of scam operations. Scammers might set up several brokers under different names at the same location to manage multiple schemes simultaneously. This approach makes it easier to share resources and infrastructure designed to deceive investors.
  3. Lack of Physical Operations: In the forex and crypto markets, physical location often matters less than in traditional financial sectors. However, having several brokers list the same physical address could suggest that these entities are not maintaining a meaningful physical presence and might be relying on the perceived legitimacy that comes with a specific location.

When writing this PrimeFX review, it is imperative to highlight the potential risks regarding the brokers operations but remember this observation is merely a cautionary note.

I found this address on another broker reviewer, ScamOSafe.com. In their review, they also mentioned multiple brokers operating from the same physical address:

  • FxOption24
  • InitialStocks
  • SiwirexBitsOption
  • SwizzFXPro
  • FxExpertAssets
  • ProDualTrades
  • DawnFinancials
  • AmeriPips
  • CryptProFX

I highly suspect these brokers operate as High-Yield Investment Programs (HYIPs) and scams from the same physical address. When I look into their operations, several common operational processes and red flags emerge. These shared characteristics suggest a pattern typical of fraudulent schemes:

  1. Suspicious Offers and Unrealistic Returns: All the mentioned entities promise exceptionally high returns with little to no risk. This is a hallmark of HYIPs, where the offered returns are not sustainable or based on legitimate investment activities.
  2. Lack of Transparency: Not one broker is transparent about its operations. They do not provide essential legal information, such as company registration details, ownership, or the backgrounds of the people managing the funds. This lack of transparency is a significant red flag indicating potential fraud.
  3. Unregulated Operations: None of the entities are regulated by any recognized financial authority. This means they are not subject to the stringent regulations designed to protect investors, making it easier for them to operate without accountability.
  4. Anonymous Company Structures: The brokers are either completely anonymous, use fictitious company names, or claim to be offshore entities. This makes it challenging to verify their legitimacy, pursue legal action, or recover funds if the operation turns out to be a scam.
  5. Shared Physical Address Linked to Multiple Suspicious Entities: The fact that all these brokers list the same physical address in Toronto, Canada, which is also linked to other suspicious HYIPs, suggests a coordinated operation possibly run by the same group. This shared address strategy is often used to give a veneer of legitimacy while complicating efforts to track and address fraudulent activities.
  6. New or Briefly Registered Domains with Hidden Ownership: The websites for these brokers are often newly registered or have been active for a short period. Additionally, they use privacy services to hide domain ownership, a common tactic to avoid identification and accountability.
  7. Promotion through Social Media and Creating False Impressions of Legitimacy: These schemes are adept at using social media to attract investors, creating a false impression of legitimacy and trustworthiness. They often mimic the aesthetics and language of legitimate investment opportunities to lure unsuspecting individuals.
  8. Pattern of Creating Unrealistic Expectations: They all promote the idea that trading or investing through their platforms is an easy way to achieve guaranteed profits. This is misleading and creates unrealistic expectations about the risks and skills involved in trading.

What is HYIP?

A High Yield Investment Program (HYIP) is a type of investment scheme that promises unusually high returns on investment over a short period. While HYIPs are not exclusive to forex trading but quite common due to the allure of high leverage and the potential for significant profits.

hyip scam

Characteristics of HYIPs:

  • Unsustainable Returns: HYIPs often advertise unsustainable high returns that are not achievable through legitimate investment strategies in the traditional forex markets.
  • Ponzi Scheme Structure: Many HYIPs operate on a Ponzi scheme model, where returns to earlier investors are paid out from the investments of new participants, rather than from genuine profit earned through trading or other investment activities.
  • High Risk: Despite the promise of high returns, HYIPs carry an extremely high risk, including the risk of losing all invested capital, due to their speculative nature and often fraudulent operations.
  • Lack of Transparency: HYIPs typically offer little to no transparency about their investment strategies, operational details, or the management team behind the scheme. This opacity is a red flag indicating potential fraud.
  • Regulatory Warnings: Regulatory bodies frequently issue warnings about HYIPs and similar investment schemes due to their high risk and the prevalence of fraud. Participation in HYIPs can lead to significant financial loss and legal complications.

In the context of forex trading, HYIPs might claim to use investors’ funds to trade in the forex market, promising high returns from these trades. They may promise profits through advanced trading strategies or algorithms that allegedly guarantee profits and PrimeFX does the exact same thing. Let’s review the other brokers connected to PrimeFX’s address.

Liberty Crypto FX

Liberty Crypto FX is the first broker that I came across when looking through the address. When I looked for their website (https://libertysminings.com/), I found a broken and outdated website with several issues. Now, the design is a great signifier of legitimacy. Companies that are built to scam often do not put a lot of effort into their website, nor do they have capable personnel to take care of it.

liberty-crypto-fx-website

When you go to their website (https://libertysminings.com/) and visit the “About” link on the footer, they identify themselves as “GlobalTradesFxPro is an online investment platform focused on cryptocurrency and forex trading (currency pairs).” Now, this statement is concerning in many ways. Firstly, it’s not even the company we are looking for; this is a whole other broker. Secondly, using “FxPro” in the company name seems like a pathetic effort to mislead inexperienced traders who are looking for a way into forex trading.

liberty-crypto-fx-global-trades-pro

When you look at their services, they sell packages: Gold, Premium, Bronze, and Titanium, to be exact. This part is especially important because it shares similarities with PrimeFX. You can’t even make a deposit from this website; it is that broken. You wouldn’t be able to sign in if you wanted to.

Globaltradefxpro

When you visit the website https://globetradefxpro.com/, you’ll notice that the design is the same as Liberty Crypto FX, but there are some additions. These additions include live deposits and withdrawals, which I doubt the legitimacy of. Showcasing deposits and withdrawals is a way to mislead potential clients, and right after that, they showcase their rewards, which also seem very scammy.

globaltradefxpo

Don’t even get me started on the testimonials. One customer review says that they tripled his assets in 7 days. I mean, come on. The other one says it’s risk-free. Tell me, if tripling your money in 7 days were possible, who would work?

PrimeFx Trade Limited

Trading Conditions of PrimeFX Trade Ltd.

Prime FX Limited was founded on April 29, 2020, claiming to offer an extensive range of financial instruments and advantageous trading conditions from its base in Canada. The broker promotes itself as a versatile platform welcoming diverse trading preferences through various account types, including Standard, Cent, ECN, and Prime accounts, alongside a Demo account for those looking to practice without financial risk. Each account type is designed with different minimum deposit requirements, leverage ratios, and spread options.

Alleged trading conditions of Prime FX:

  • Minimum Deposits: The broker presents a wide range of entry points for traders, from as low as $50 for a Cent Account to as high as $50,000 for a Prime Account, welcoming both beginner traders and high-net-worth clients.
  • Leverage: PRIME FX TRADING allegedly offers leverage ranging from 1:200 to 1:500, which could be enticing for traders seeking to maximize potential returns. However, such high leverage also significantly increases risk exposure.
  • Spreads: The advertised spreads vary significantly across account types, from as low as 0.05 pips in the Prime Account to 2 pips in the Cent Account. While attractive, especially the lower spreads, these claims does not seem very compelling, given the broker’s regulatory status.
  • Platform and Assets: The broker claims to offer trading via the popular MetaTrader 4 platform, covering a broad spectrum of tradable assets, including Forex, indices, stocks, commodities, and cryptocurrencies.

Prime FX Trading Account Types

The account types offered by PRIME FX TRADING exhibit a variety of options designed to satisfy the diverse needs and preferences of traders. Here’s each account type and its specific trading conditions:

STANDARD ACCOUNT

  • Minimum Deposit: $500
  • Leverage: Up to 1:500
  • Spreads: Starting from 0.7 pips
  • Commission: None
  • Markets: Forex, CFDs on indices, stocks, commodities, and cryptocurrencies

CENT ACCOUNT

  • Minimum Deposit: $50
  • Leverage: Up to 1:200
  • Spreads: Starting from 2 pips
  • Commission: None
  • Markets: Forex, CFDs on indices, stocks, commodities, and cryptocurrencies

ECN ACCOUNT

  • Minimum Deposit: $5,000
  • Leverage: Up to 1:500
  • Spreads: Starting from 0.1 pips
  • Commission: Applicable
  • Markets: Forex, CFDs on indices, stocks, commodities, and cryptocurrencies

PRIME ACCOUNT

  • Minimum Deposit: $50,000
  • Leverage: Up to 1:500
  • Spreads: Starting from 0.05 pips
  • Commission: Applicable
  • Markets: Forex, CFDs on indices, stocks, commodities, and cryptocurrencies

DEMO ACCOUNT

  • Minimum Deposit: No minimum requirement
  • Leverage: Up to 1:500
  • Spreads: Typical market spreads
  • Commission: None
  • Markets: Forex, CFDs on indices, stocks, commodities, and cryptocurrencies

Prime FX Deposit and Withdrawals

PRIME FX claims to support multiple funding methods, including bank transfers, credit/debit cards, and e-wallets. Prime FX claims to not impose deposit fees, and withdrawal fees are waived for transactions made via bank transfers and e-wallets.

Prime FX FCA Warning

On march 22, 2022, a warning issued by the Financial Conduct Authority (FCA) regarding PrimeFx Trade Limited highlights several critical points:

  1. Unauthorised Firm: The FCA believes that PrimeFx Trade Limited is offering financial services or products in the UK without the necessary authorization from the regulatory body. This means that the broker was not legit and trading with Prime FX was not safe.
  2. Risk to Consumers: Since the firm is not authorized by the FCA, individuals dealing with PrimeFx Trade Limited will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS). This means that if things go wrong, consumers are unlikely to recover their money, posing a significant financial risk.
  3. Website Address Provided: The FCA provides the website address (https://primexfxtrade.com/) associated with PrimeFx Trade Limited, allowing consumers to identify and avoid this particular firm.

Even though an FCA warning has been issued for a specific entity on the domain of https://primexfxtrade.com/, several scam brokers have been operating at the same physical address. Additionally, several websites have shared the same IP address before, all being part of suspicious operations. This is not the only domain Prime FX has used; https://www.pfxbank.com/ is another example. Scam brokers often change domains to escape bad reviews and complaints from their old websites. By using a new name, they can start fresh and attract new people without the negative history.

prime fx fca warning

They also change names to avoid being noticed by the people who regulate and watch over financial activities. This way, they can continue running their scams without being shut down. Lastly, they change names to avoid legal problems. If people who have been scammed or the authorities try to take legal action, it’s harder to do so if the broker keeps changing their online presence. This makes it difficult for them to be held accountable for their actions.

Prime FX Scam

Another case where the Prime FX name comes up is in 2021 when The Commodity Futures Trading Commission (CFTC) took action against a group of individuals who operated a fraudulent Forex and Bitcoin trading scheme through a platform called Prime FX. The operators of this scheme, including a Nigerian named Uduakobong Udo Inyangudo (also known as Alexander Uti Bassey) and several US citizens, were charged with civil enforcement for misappropriating over $1.2 million in client funds.

prime fx scam in the us

The fraudulent activities occurred from around June 2016 until February 2019. Scammers ran a website, Primefx.org, where they made false and misleading representations about their trading activities. Uti, the website’s administrator, was responsible for managing the domain and soliciting funds from both US and international investors.

The funds solicited were directed to be deposited into personal bank accounts of the defendants and other agents of Prime FX, who then misappropriated the funds. According to the CFTC, the defendants engaged in conduct that facilitated the misappropriation of virtually all of the funds from Prime FX customers.

The CFTC’s action against this scheme is part of its ongoing efforts to combat Forex and crypto-related fraud in the United States.

PrimeFX Customer Reviews

Like any other Ponzi scheme, at some point, a scam broker decides to plan an exit. This means that withdrawals are no longer processed. When I look at the PrimeFX customer reviews, I see that the main issue is that clients are having a hard time completing withdrawal processes.

prime fx customer reviews 2

PrimeFx.pro: Suspected Reincarnation of PrimeFX

Now, the main domain https://primexfxtrade.com/ no longer works, but there is a new broker that came into existence just around the time of the FCA warning on https://primexfxtrade.com/. Do you remember when I told you about the services of Liberty CryptoFX, the broker that shared the same address with Prime FX Limited’s first address, along with other brokers, at the physical address 56th floor 100 King St West Toronto ON M5X 1P3, Canada?

primefx.pro

The services offered on primefxtrade.com, libertysminings.com, and globetradefxpro.com are highly similar. Given the history that the address in Canada has been home to many scams, it makes me think that these operations are connected and not safe.

Prime FX Red Flags: How to Avoid a Scam

Scam brokers often use similar methods to take traders’ money. In this case Prime FX scam showcases several similarities with other forex scams. Let’s look at these red flags and understand how they can harm you:

  • Prime FX name is quite familiar among unregulated brokers. This means they don’t operate under the oversight of a recognized financial authority like the FCA (Financial Conduct Authority) or CySEC (Cyprus Securities and Exchange Commission).
  • Trading with an unregulated brokers means risk of losing your entire investment and when that happens you’ll be left alone with other victims to salvage your assets. Many trusted authorities act as a peacemaker in disputes.
  • The FCA has issued a warning against Prime FX Ltd. Regulatory bodies like the FCA warn the public about suspicious companies or practices.
  • The lack of transparency about Prime FX’s owners and operations is a huge red flag. They don’t provide clear information about their team, location, or financial standing. Transparency is crucial in forex trading. A company hiding its ownership or operations is a no go if you ask me.
  • Multiple brokers being listed on the same address as Prime FX is really suspicious. This is a potential attempt to create a false impression of legitimacy or hide the true nature of their operations.
  • Always check the customer reviews before trading with a broker. Customers also highlights difficulties with withdrawing funds. Most ponzi schemes have difficulties

Forex, by its highly volatile nature and potential, will never be short of schemes. However, you can avoid risks by understanding the process of these scams and not falling into traps. If you want to trade forex safely, you can also check my forex broker reviews. In that list, look for FCA-regulated forex brokers, as the FCA is the most trusted authority in forex trading and requires brokers to comply with several client protective rules, such as keeping client funds in a segregated account and providing negative balance protection.

Fca regulated forex brokers

Conclusion

In summary, the examination of PrimeFX and its associated entities reveals a complex web of unregulated brokers operating under various names and domains, all linked to the same physical address. The recurring theme across these operations is the promise of high returns with little to no risk, a lack of transparency, and a pattern of evading regulatory scrutiny. The FCA’s warning against PrimeFx Trade Limited serves as a stark reminder of the risks associated with dealing with unauthorized firms. The consistent issues with withdrawals, as reported by customers, further underline the potential for financial loss. The emergence of new domains, such as primefxtrade.com, following regulatory warnings, suggests a continued effort to evade detection and legal consequences. It is imperative for investors to exercise caution, conduct thorough due diligence, and prioritize dealing with regulated and transparent entities to safeguard their investments.

In summary, there are several brokers under the name Prime FX, and I doubt the genuineness of each of them. One that I believe is linked to Prime FX.pro is the company Prime FX Ltd, which has a bad reputation due to legal issues and the lack of valid licenses.

Prime FX FAQs

What is Prime FX?

Prime FX has been the name of several brokers that operated mainly in the US, Canada, and the UK. The name has been used by multiple brokers, all of which were unregulated. Prime FX reviews are mostly negative, mentioning suspicions of being a scam and disputes in withdrawal processes.

Is PrimeFX a regulated broker?

No, PrimeFX is not regulated by any recognized financial authority. It has operated in the UK without a proper license, and the Financial Conduct Authority (FCA) has issued a warning, which raises concerns about its safety and legitimacy.

Is Prime FX a scam?

The main entity, Prime FX Ltd, was indeed a confirmed scam. However, several brokers share the same name, and it would be unjust to label them as scams without concrete proof. Suspicion arises from the lack of transparency about their operations, owners, and tools. Additionally, several brokers, including Liberty CryptoFX and GlobalTradeFXPro, list the same Canadian address as Prime FX’s trading headquarters, raising concerns about potential fraudulent schemes.

Is Prime FX regulated?

The FCA issued a warning on Prime FX Ltd, and there is no information on other entities’ websites about a legitimate license or regulations. Therefore, Prime FX is not regulated.

Who is the CEO of Prime FX?

During the California court cases against Prime FX’s Limited fraudulent operations, an individual named Benjamin Reid stood out as a director but never showed up in court.

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