Fiboventure International Limited is a company registered in Vanuatu. Although this isn’t a typical forex broker per se, the same rules regarding the lack of credibility of off-shore companies apply. That being said the company is regulated by the Vanuatu Financial Services Commission (VFSC), which is most widely known for its loose regulatory standards. For instance, in order to receive a license, a firm must prove it has $2,000 in capital.
As a comparison, in order to obtain a license by the United Kingdom’s Financial Conduct Authority (FCA) one must have holdings of EUR 730,000. This is done to ensure a long-term outlook, the ability to withstand financial shocks and last but not least, to prevent scammers from registering. Furthermore the FCA forces brokerages to keep client funds in segregated accounts. This means, they ate not allowed to spend traders’ funds at their own whim. On top of that all regulated UK brokers participate in the Financial Services Compensation Scheme (FSCS). This is a mechanism; functioning similarly to an insurance company, which guarantees client accounts against broker bankruptcy, up to GBP 50,000.
Other than the loose regulation, there is no other information on the people behind Fiboventure International Limited, which is not that unusual, when it comes to classic forex brokers. On the other hand, when you are trying to convince e people to invest money, which you would be managing, it goes a long way to provide some background information.
Fiboventure provides very little information on the strategy they use. The key points are:
• Diversification of trading strategies – to be precise four in total;
• No EAs or any form of automated trading;
• “Professional fund managers” are involved;
This basically doesn’t reveal anything. There is no description on the four strategies and no trading history provided. Most people who want to manage others’ money in the forex market either register with a service like Zulutrade or at least provide a verified myfxbook account.
In essence, we do not have enough evidence to believe trading actually takes place at Fiboventure.
Although there is a lack of clarity on the trading system, operated by Fiboventure, there is full clarity on the promised returns.
The “Fixed Profit ROI” is in essence the minimum you hypothetically receive, while the “Fixed Profit %” is only paid, if it exceeds it (based on the total monthly gains of the trading system). Though this may not appear to be unusual, the percentages are extremely high. These kind of monthly gains are not unheard of, but getting them consistently definitely is. If a company makes 3-6% per month, they would be world famous and have a solid investor base.
That being the case, a basic rule in finance is that greater returns come with greater risks. A company promising such income is, at best, very risky.
Furthermore, fund managers rarely, if ever, offer fixed percent gains. This is due to the inherit risks involved in trading – even a solid strategy suffers loosing periods. If the company has to pay a fixed percentage, even in the loosing months, this may lead to an issue.
Referral Scheme (MLM)
Other than the income you would hypothetically receive from your investment, you could also refer others to the company. A “7 x 7 Uni-level referral system” is applied, by which one would get income based on the people who register after them.
Although some MLM-schemes have worked in the past, mostly for the early adopters, when it comes to trading, they are generally viewed negatively. This is especially true, with such high percentages of the deposits are being given to the person introducing the new client.
Significant risk disclosures are placed all over Fiboventure’s website. The company does not guarantee the returns it offers, which makes the “fixed profit ROI” essentially useless. As we mentioned above, an investment with this company will be very risky. There are two major risks associated with the entire scheme:
1) the credibility of the company;
2) the actual trading performance, even if the company is honest.
The company mentioned sounds very similar to Lloyd’s of London, a world famous re-insurance market. The firm mentioned by Fiboventure appears to be an intentional “mistake”, meant to mislead unsophisticated investors.
Fiboventure Review Conclusion
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