Finpari belongs to those brokers that are still being unregulated. This warning is especially directed to clients that are trading with Finpari or its sister company BinaryMate.
We have found out that Finpari is experiencing some financial issues. The complications have started with several long-term partners that are not being compensated for their services with Finpari. The story behind Finpari is that they attempt to side step their obligations by coming up with constant excuses. The main problem, allegedly, lies with PayPal and credit card processors that enable financial transactions with Finpari platform. Customers are known to withdraw money rather quickly which isn’t something that higher management is pleased with.
Here are some of the Google search results we have found about this issue:
*These binary sites are not connected with our site
When partners are not paid, it means that things are not handled in the proper way. The case with scam brokers is they avoid to pay individual customers, highly unusual to avoid paying their partners who are their affiliates. Without referral partners Finpari can lose large amount of traffic.
This situation is pointing to serious internal problem with Finpari management. Our experience has shown that many brokers go out of business when affiliate partners are not paid.
Unsafetrading with Finpari! Traders funds are not being segregated
It is already known that brokers who are not certified with some of the regulatory bodies don’t necessarily have segregated accounts for their clients. This is also most likely the case with Finpari and BinaryMate. Not providing those safety methods means that client’s investments are not being safe after deposit. When funds are being separated on different accounts, it means they are not being used for broker’s initial financial operations. If traders deposit funds with Finpari or BinaryMate, they are exposed to high levels of risk which can, consequently, lead to lost investment. We are of the opinion that it is not ethical to continue promoting certain brand if traders are in potential position to be deceived. Our mission here is to inform traders about this situation and to let them decide if they want to continue having a partnership with Finpari.
See more Finpari Google searches that talk about Finpari not being trustworthy:
*These binary sites are not connected with our site
Segregated funds – what does it mean?
Segregating or separating funds is a financial term that is often being mentioned among regulated brokerage companies. Regulated brokers are obligated to follow all regulatory rules that are required by each financial regulatory agency to keep their license valid. Segregated account means that all client’s funds are being held with a diverse range of major international banks, apart from broker’s operational account. If a broker doesn’t separate client’s funds on separated accounts, it means their investments could be used for a variety of expenses like shareholder dividends, management bonuses, salaries, affiliate partners, marketing etc. It doesn’t mean that every unregulated broker is acting this way, but neither can it be claimed that they are not doing such things.
What is wrong in this story is the fact that Finpari pays its expenses with their client’s deposits. This means that Finpari business philosophy centers around traders’ losing the funds they have deposited and which are then used to pay Finpari partners and their management. They basically rely on traders’ investments and they transfer their money to pay other financial obligations trying to avoid negative outcome. Same situation happened with famous Full Tilt Poker company that caused breakdown in 2011. The rumors about the biggest poker room mention they collapsed because of Ponzi scheme that brought this company to close its business.
How can unregulated brokers conduct their business from the UK?
Basically, they just make it seem they are operating from the UK. Traders may read on broker’s website that company is registered in the UK, but it doesn’t mean that it is regulated in accordance with UK regulatory body. What is usually behind the curtains is an offshore company that wants to apply cheaper payment service provider (PSP) services and to show themselves to be located in Europe, which gives client’s feeling of trust.
Is Finpari using Ponzi scheme with my investments?
There is no proof that Finpari is using Ponzi scheme as their business policy, nor can we say anything to the contrary. This information will most likely be revealed soon and, as proven by the experience with other brokers, their website will become inactive. If this moment comes, clients will get typical Google message “The page cannot be found” and trader’s funds will most likely vanish. After this moment, traders will no longer be able to withdraw their funds, nor will they be able to make new transactions.
I am trading from US, are my funds safe?
Not exactly. The situation with the US is that Finpari is not a licensed broker, and US traders are not accepting their deposits. Finpari is broker that doesn’t comply with CFTC requirements or SEC regulations. Traders that have made deposits with PayPal are recommended to proceed with precaution. If traders encounter some issues with withdrawals, they are advised to file a complaint with PayPal that might help solve this issue. If traders have transferred their funds through credit cards and can’t withdraw their funds, they need to contact their bank which will continue solving the problem and maybe get their initial investment.
There is an old saying: “Better safe than sorry”, therefore we advise all traders to trade only with recommended traders that are listed on our site. There are various brokers that provide excellent services and they are regulated, which ensures safer trading experience.
Finpari is in ownership of offshore financial company Lerona Impex SA with a headquarters on Seychelles and Scotland.
The company is being operated from a subsidiary that is located in Riga, Latvia.
If you are interested to know more about scam brokers, you can find information here.