B-S500 is a rebranded version of an old forex scam BlackStone 500. They were a notorious scam and had received a warning from the Financial Conduct Authority (FCA). Just so you know, a warning from such any regulatory authority is kind of a certificate of being a scam.
Since BlackStone500 had become so notorious, the people behind this site decided to relaunch the same scam but under a different name.
This time, they are going with the name B-S500. In my B-S500 review, I have listed out the various reasons why you should trading with them and what are the prominent highlights of this scam:
Is B-S500 Regulated?
As we have already discussed how B-S500 is a forex scam, so it must be obvious that this broker doesn’t hold a license. Instead of having a license, B-S500’s past version has a warning from FCA.
B-S500 claims to be a Swiss broker. In this case, they must have a license from the Swiss regulator, FINMA, which requires a forex broker to have a paid-up capital of $22.5 million, which is a substantial amount.
I checked FINMA’s register for B-S500 and just like I expected, didn’t find a trace of this firm.
B-S500 is an unregulated broker and is definitely a scam.
What is an Unregulated Broker?
An unregulated broker refers to a broker that doesn’t hold a legitimate license or when there’s no regulatory authority that supervises its activities. Unregulated brokers usually reside in offshore regions such as the Commonwealth of Dominica or Saint Vincent and the Grenadines. These regions don’t have financial regulators, allowing shady forex brokers to set up shop easily.
Are Unregulated Brokers Safe?
No, trading with an unregulated broker is very dangerous. As they don’t face any repercussion for harming the interests of their clients.
With an unregulated broker you face multiple risks such as:
- stealing of funds
- data theft
- price manipulation
- getting defrauded
As such brokers don’t fall under the control of any regulatory authorities, you don’t get to participate in the various compensation schemes they run as well. For example, the regulatory authority of the UK, Financial Conduct Authority (FCA), offers up to 85,000 in case the broker goes insolvent.
Similarly, CySEC (Cyprus Securities and Exchange Commission) offers up to 20,000 to the clients of a CySEC-regulated broker in case it goes bankrupt. You wouldn’t get such compensation in case your broker is unregulated.
Regulatory authorities keep very strict rules and regulations to ensure their licensed brokers don’t steal from their clients. Again, unregulated brokers don’t follow such provisions.
All in all, it is unsafe and very dangerous to trade with an unregulated broker.
Should You Trust B-S500?
No, considering the history of this broker and how it still hasn’t changed its ways, I don’t think it would be safe to trade with them. You should avoid this broker at all costs.
How is the Website of B-S500?
B-S500 has the same website as its past version had. The website is filled with useless text and praises about the broker. There’s not a lot to say about this scam’s website. They even claim to have won awards but there’s no way to verify their claims.
The website of a broker can tell you a lot about its reliability. Reliable brokers would keep most of the information on their website accessible while ensuring that their interface looks attractive.
You wouldn’t have to put much effort into finding any vital piece of information on a reliable broker’s website.
On the other hand, scammers and unregulated brokers try to hide a lot of crucial information from their users. They wouldn’t want you to find out about their shady policies or thier unregulated nature. Many times, a group of people runs multiple forex scams and so, their websites look sloppy and very unprofessional.
If a broker’s website looks outdated and horrible, you should avoid trading with them. No reliable broker would risk losing customers because of their horrible UI.
What are the Trading Conditions of B-S500?
B-S500 Trading Platform
This broker uses a custom web-based trading platform. Regulatory authorities don’t let brokers use such platforms because they are prone to price manipulation. Moreover, these platforms have tons of technical issues.
The offered leverage of this broker is 1:30. I suspect they have kept such a leverage level to appear legitimate. Additionally, there’s no way to verify whether they actually have this leverage ratio. There’s a good chance that this broker offers a very high leverage to its clients.
Usually a high leverage ratio suggests that the broker is a scam. That’s because various regulatory authorities have added limits on the amount of leverage a broker can offer. In the UK, the limit is 1:30 while in the US, the limit is 1:50.
The offered spreads of this broker are 0.1 pips. Just like the leverage, it seems the broker is trying to seem trustworthy. Such pips are offered by legitimate and regulated brokers as they affect the profitability of every trade.
B-S500 Minimum Deposit
The minimum deposit requirement of this broker is $250, which is too high. Regulated brokers keep their minimum deposit requirement around $100 and below. Shady brokers tend to have high minimum deposit requirements so they can get their hands on a large sum as soon as possible.
What are the Payment Methods of B-S500?
B-S500 lets you add funds to your trading account through credit or debit cards and wire transfers. The offered payment options are quite limited with this broker, which doesn’t surprise me.
What are the Fees of B-S500?
This broker has a very shady withdrawal policy. They charge you $25 and a $10 fee for bank card withdrawals while for bank transfers, they charge $50. Also, you must execute more than 200 trades in turnover to avoid their 10% withdrawal fee. This is a common strategy among scams to steal money from their clients.
In terms of dormant fees, B-S500 charges you a 10% monthly fee if your account remains inactive for six months. The charged amount and the duration, both are unfair.
Regulated brokers provide a longer duration to their clients and even keep their charges as low as $5. Such unfair fee policies suggest that B-S500 is clearly a scam and aims to steal funds from you.
Does B-S500 Offer Bonuses?
Many forex scams offer bonuses and B-S500 is just the same. Even though it is not running a promotional campaign currently, they have kept provisions in their terms and conditions for bonuses, suggesting they will offer bonuses in the future.
If you accept a bonus from them, you’d have to execute a trading volume equal to 25 times the bonus and the deposit if you want to withdraw the funds. It is nearly impossible to meet this requirement and they have created this provision only to trap you.
The funds you get from a bonus belong to the broker and not the trader, which is a prominent issue many traders are unaware of.
Although I recommend verifying every broker’s license before trading with them, there’s a much easier way to see if a broker is unregulated or not.
You see, all the reputed financial regulators prohibit their licensed brokers from offering bonuses to their clients. The regulators add this restriction because bonuses make the withdrawal process more complicated for the users through adding further conditions.
So if you ever see a broker that offers ‘credit’ or ‘bonus’ then know that they don’t have a license at all.
How is the Customer Support of B-S500?
Just like I expected, the customer support of this broker is sub-par. The only way to contact them is through the different forms present on their ‘Contact Us’ page. Reliable brokers offer a contact number, email and a live chat option to their clients. But this broker doesn’t offer any of them.
B-S500 Review – Are They Worth It?
B-S500 is a scam. It’s a rebranded version of a past scam and it’s clear that they haven’t changed. The people behind this scam are trying to loot from forex traders and you must stay away from this broker.
I hope that you found my B-S500 review helpful. You can share this review with others who might be interested in trading with them. The more people know about their reality, the better.This review has been syndicated from The Skeptic Tank To read the full review, go to – www.skeptictank.org/b-s500/