Debunking FIRE PHOENIX's Lies: Client Reports "Funds Cannot be Withdrawn", and FCA's Warning Exposes Misrepresentation

FIRE PHOENIX promises lower trading costs, access to comprehensive investment markets, and optimal service, but in reality, it is a scam broker. A complaint revealed the details of how a client was scammed by FIRE PHOENIX and the broker's sophisticated tricks.

Client: “FIRE PHOENIX is a scam, funds cannot be withdrawn”

The client decided to withdraw his funds after 4 months of trading on the FIRE PHOENIX platform but was informed that he would need to pay 10% of his balance for capital verification, i.e. $466,000. FIRE PHOENIX claimed that the move was made to prevent money laundering and other illegal sources of capital investment.

FIRE PHOENIX promised to refund this fee to the client when the capital verification was complete, but instead of doing so, it merged the fee with his balance. In other words, the client's fee was also turned into a string of numbers, with the final account balance showing $5,136,101.93.

So has the client made a successful withdrawal after the successful capital verification? No, because FIRE PHOENIX asked the client to pay 20% capital gains tax as required by UK law.

The client contacted HMRC regarding the tax issue and was clearly told by HMRC that he should not pay tax to FIRE PHOENIX. After the client shared the HMRC document with FIRE PHOENIX but received no response, the broker simply continued to insist that he pay 20% capital gains tax.

As HMRC reminds the client, the UK’s capital gains tax is paid by individuals directly to HMRC and not collected by a third party, and brokers claiming to pay the tax on behalf of their clients are likely to be scams.

Frequent website changes

BrokersView has long since included FIRE PHOENIX as a scam and flagged its multiple website domains. Currently, the domain that displays the company's details has been changed to https://firephoenixex.com/#/home, while several other domains (https://www.firephoenix.cc/pc/#/layout, https://www.zodialtd.cc/pc/#/layout) directly display login and trading interfaces. According to the client, he was able to see his funds on the zodialtd.cc platform, but FIRE PHOENIX claimed that they were not aware of the platform.

Unmasking FIRE PHOENIX

FIRE PHOENIX claims to have 300,000 clients and to handle an average of $12.55 billion in trading volume per day. However, the earliest of its three existing domains was registered in April 2023, and the remaining two were registered only a few months ago, which clearly does not support its claims of outstanding performance.

FIRE PHOENIX states in a simple sentence that it is regulated by multiple reputable regulators, including the Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the Federal Financial Supervisory Authority (BaFin), without providing any licensing details. Our investigation found that the broker completely misrepresents its regulatory status.

FCA’s warning

On December 19, 2023, the FCA issued a warning against FIRE PHOENIX, flagging it as unauthorized to provide financial services. This marks the broker as operating illegally in the UK and is also a red flag for potential fraudulent practices.

Bottomline

The client complaint indicates that FIRE PHOENIX puts obstacles in the way of client withdrawals and that client investments become numbers displayed on the platform while the real money has already fallen into the pockets of the scam broker. FIRE PHOENIX is not regulated in any way but falsely claims to be multi-regulated and has been warned by the FCA, which poses a huge threat to traders. BrokersView advises against any trading with FIRE PHOENIX.