Is 123.com a Legitimate Trading Platform or a Scam?

In the ever-evolving world of online trading, it is crucial to discern between legitimate platforms and potential scams. This article evaluates 123.com, focusing on its legitimacy and whether it poses risks to traders.

Company Overview

• Company Name: 123.com
• Website: 123.com
• Registered Country: Unknown
• Regulation Status: Unregulated; claims of regulation are misleading.
• Operating Since: 2021
• Trading Platforms: WebTrader (no MT4 or MT5 available)
• Leverage Offered: Up to 1:500
• Minimum Deposit/Deposit Bonus: Minimum deposit of $250; no deposit bonus mentioned.
• Available Assets to Trade: Forex, Crypto, Commodities, Indices
• Demo Account Availability: No demo account offered.
• Customer Support Contact Methods: Email and live chat.

Red Flags Indicating It is a Scam

Unlicensed and Unregulated

Despite claims of being regulated, there is no evidence that 123.com holds licenses from reputable financial authorities such as the FCA or ASIC. This lack of regulation raises significant concerns about the platform’s legitimacy.

Misleading Information

The platform may falsely assert affiliations with legitimate brokers to gain trust among potential users. Such tactics are common in fraudulent schemes.

Fake Reviews and Testimonials

Numerous reports suggest that 123.com utilizes paid or fabricated reviews to create a false sense of credibility. This practice misleads potential traders into believing they are dealing with a trustworthy platform.

Withdrawal Issues

User complaints frequently highlight difficulties in withdrawing funds from their accounts, which is a major red flag for any trading platform.

Lack of Demo Account

The absence of a free demo account prevents users from testing the platform before committing real money, which is often indicative of untrustworthy practices.

Trading Platform and Conditions

The only trading option available on 123.com is its proprietary WebTrader. Users have reported issues with high spreads and commissions that can significantly affect profitability. The high leverage offered (up to 1:500) also poses substantial risk for inexperienced traders.

License and Regulatory Issues

Regulatory bodies like the FCA have issued warnings against unregulated platforms like 123.com. There are no valid licenses associated with this broker, further confirming its dubious status in the trading community.

User Feedback

Common complaints include:

• Difficulty withdrawing funds.
• Poor customer service response times.
• Technical issues with the trading platform functionality.

Deposit and Withdrawal Methods

While specific deposit methods are not clearly outlined on their website, many users report problems when attempting withdrawals. These issues often lead to frustration among traders who find themselves unable to access their funds easily.

Why Unregulated Brokers Are Risky

Dealing with unlicensed brokers like 123.com exposes traders to significant risks including:

• Loss of funds without any legal recourse.
• Increased likelihood of fraud due to lack of oversight.

How to Get Help if You Are Scammed

If you believe you have been scammed by this platform, consider services like Reportscammedfunds.com for chargeback assistance and legal support in recovering your funds.

Conclusion

In conclusion, it is advisable for traders to avoid using 123.com due to its unregulated status and misleading practices. Opting for properly regulated brokers ensures better protection against fraud. If you’ve already fallen victim to this scam, seek legal help immediately or report your experience through appropriate channels.