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Scam Brokers
Score
1.59 /10
Danger
EratoFX
Scam Brokers5-10 years
Suspicious Regulatory License
Suspicious Scope of Business
New Zealand Financial Service Corporate Revoked
Suspicious Overrun
High potential risk
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Comparison
Expose
Exposure
Time Machine
Website
Score
Regulatory Index0.00
Business Index7.59
Risk Management Index0.00
Software Index4.00
License Index0.00
Time Machine
Website
Licenses
VPS Standard
No restriction on the broker account. Support service provided by WikiFX
Single Core
1G
40G
open now
Check whenever you want
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This platform is a Ponzi Scheme. Please stay away!
4
Previous Detection :
2024-12-26
- This broker has been verified to be illegal and all of its licences have expired, and it has been listed in WikiFX's Scam Brokers list. Please be aware of the risk!
- The platform is a Ponzi Scheme, which refers to the use of "principle of value multiplication". In the form of rolling or static fund circulation, it uses the money of next member to pay to the present one, which is essentially a pyramid scheme with the distinction of hidden, deceptive and socially harmful. By calling common person's desire for money, fraudsters in the platform begin raising funds underground. Since this kind of platform mostly will abscond after 1 or 2 years, the fund-raising mode just can exist less than 3 years.
WikiFX Verification
General Information & Regulation
EratoFX is forex and CFD broker, owned and operated by Erato Services Group Limited, a New Zealand-registered company that does not fall under any regulatory agency. Traders should take extra vigilance when investing with this broker, or just stay away from this broker.
Risk Warning
EratoFX is a Ponzi Scheme. The scheme leads victims to believe that profits are coming from legitimate business activity (e.g., product sales or successful investments), and they remain unaware that other investors are the source of funds. A Ponzi scheme can maintain the illusion of a sustainable business as long as new investors contribute new funds, and as long as most of the investors do not demand full repayment and still believe in the non-existent assets they are purported to own. Some red flags of a Ponzi Scheme:
High investment returns with little or no risk
Overly consistent returns.
Unregistered investments
Unlicensed sellers
Secretive or complex strategies.
Issues with paperwork.
Difficulty receiving payments
Official Website Unavailable
Since EratoFX website cannot be opened or unavailable at this stage, we can only find minimal information about this broker from some broker reviews portals.
Market Instruments
EratoFX advertises that it can offer forex currency pairs, indices, metals, as well as crypto currencies. .
Minimum Deposit
EratoFX seems to require a minimum deposit of $500. Keep in mind that most legit brokers only ask its traders to fund around $100 or even less into their accounts to start real trading.
Leverage
In terms of trading leverage, the maximum leverage level offered by EratoFX is up to 1:500, which is considered high. Although this trading leverage is generous, inexperienced traders are not advised to use too high leverage given the fact that margin trading is full of risks.
Spreads & Commissions
EratoFX only hypes that it offers low spreads, but does not specify its spreads on particular instruments. Unregulated brokers love to scam traders by hiding their real trading costs, but in fact, trading on its platforms usually costs immensely much.
Trading Platform Available
When it comes to trading platform available, EratoFX does not make this part clear. As an unregulated and scam broker, it can be risky to trade with it no matter what trading platforms it offers.
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