FRAAR is a forex and contract for difference (CFD) broker established on March 17, 2023, in the United States. The company primarily offers financial trading services to investors, including forex, indices, energy products, precious metals, soft commodities, ETF trading, stock CFDs, and bond CFDs. The company is headquartered in Denver. The official website for this broker is https://fraar.com/, and it mainly provides services in English. FRAAR does not offer services to residents of any country or jurisdiction where it may violate local laws or regulations, such as the United States or North Korea.
Company Background and Regulatory Status:
The US-registered entity for FRAAR is FRAAR LTD, with a registered address at 1700 Broadway, Denver, CO, United States. According to the information provided on the official website, FRAAR LTD is registered with the Financial Crimes Enforcement Network (FinCEN) in the United States and is regulated by them. However, it's worth noting that FinCEN's mission is to "safeguard the financial system from illicit use and combat money laundering and related crimes (including terrorism) and to promote national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence." In other words, FinCEN is not a regulatory authority for forex trading and financial business. This means that the forex trading and brokerage services provided by FRAAR LTD are not effectively regulated, and as of October 17, 2023, it has been in operation for just seven months. Information from Whois shows that the broker's official website domain was registered on March 20, 2023.
Account Types:
FRAAR offers two types of trading accounts: Standard STP Account and RAW ECN Account. Both accounts have the following similarities: a minimum deposit of $100, a minimum trade size of 0.01 lots, and base currencies available in AUD, USD, GBP, EUR, and CAD. Both account types also offer Islamic accounts.
The differences between the two accounts are as follows: The Standard STP Account has an execution type of Straight Through Processing (STP) and offers spreads starting from 1.2 pips. This account does not charge trading commissions. The RAW ECN Account has an execution type of Electronic Communication Network (ECN) and offers spreads starting from 0 pips but charges a trading commission of $6 per lot.
Trading Platform:
While FRAAR's official website claims to provide MT4 and MT5 trading platforms on its trading account page, there is no information related to FRAAR or FRAAR LTD on the MT4 and MT5 platforms. In reality, the broker provides its own developed FRAAR LTD Mobile App to users.
Deposits and Withdrawals:
FRAAR supports users in depositing funds through Neteller, Skrill, e-wallets, alternative payment methods (APM), or credit cards.
Customer Support:
Users can contact FRAAR via email at info@leiwowfx.com. No other contact information is provided.
Summary:
Traderknows advises investors to exercise caution with FRAAR. The broker appears to intentionally mislead with its regulatory claims, and its business operations lack effective oversight. The broker's website indicates the use of MT4/MT5 trading platforms on their trading account page, but there is no trace of FRAAR on the MT4/MT5 platforms, as they use their proprietary trading platform. Additionally, the broker's only provided contact method is through email, potentially causing communication challenges. It is recommended for investors to choose platforms with strong regulation and avoid FRAAR to safeguard their financial assets. As of now, this broker is marked as "Suspicious of Scam" on Traderknows.
