BluFX (www.blufx.co.uk) is an unregulated venture offering traders funded accounts on a subscription basis and calls its offer revolutionary. Starting with GBP 99 p.m., one allegedly receives a funded trading account. The UK-registered companies BluFX Ltd and Blueprint Capital Limited (LinkedIn) are presented as related entities. The Chinese citizen Yu Song, born in February 1987, controls both companies and serves as a director in both. Neither company has an FCA license, and no regulated entity is provided in the public presentations. Here is our initial review of BluFX.
Business model and offering
BluFX (LinkedIn) says that they themselves do not have a license and would not need one. They would not take client funds and would work with regulated brokers. Detailed information about these regulated brokers is not provided. According to its own description, BluFX works with AI technology whereby the traders’ data is collected, analyzed, and used to evolve its risk management model. The more traders, the more data and the better the risk management would work. In doing so, BluFX supposedly relies on traders’ behavioral data to manage risks.
BluFX offers two subscription models. For GBP 99, one gets access to the LITE package with $25,000 finds and a buying power of $75,000. For GBP 249, one can have the PRO package with a funding of $50,000 and a buying power of $150,000. With both packages, the loss is borne by BluFX, whereas the profits are split 50/50. BluFX has reportedly been around since 2015 or 2016 and is said to have already had over 3,000 traders in 2019.
Traders can allegedly withdraw their profits once they have reached at least 5% profit.
The company apparently lives from subscription fees. High profits are apparently not made with the business model.
- The 2020 balance sheet of BluFX Ltd (here) does not look good. Net assets and capital have decreased at low levels by almost 30% compared to 2019, and capital in 2020 was only GBP 40,200. The company has no employees either. Commission income or profits from trading cannot be seen.
- Blueprint Capital Limited was highly indebted with negative capital according to the 2019 balance sheet (here) and received a Notice for compulsary strike-off in May 2021 which appears to have been appealed. The 2020 balance sheet was due on February 28, 2021 and has not yet been filed.
We would have expected the balance sheets of the legal entities involved to reflect the business. Corresponding figures should be found in the balance sheet from the referral of trades and traders to regulated brokers. With more than 3,000 traders, this should result in an attractive balance sheet. However, we do not see that.
On Trustpilot, BluFX receives a 4.6-star rating with an “Excellent” trust level. There are no negative reports about non-payouts. This is quite positive, as the Trustpilot account has existed since at least 2017. It certainly seems not to be a scam.
A Blueprint Capital scam
We discovered a forex and CFD broker scam some time ago that operates as Blueprint Capital (www.thebpca.com), is still active today and is supposedly operated by St. Vincent and the Grenadines. At the moment, we cannot rule out with certainty that these operators of BluFX have nothing to do with this scam. However, the logos look very different and the domains are also different. To us, it seems to be different schemes.
Overall, the business model of BluFX is not understandable for us. Whether and with which regulated brokers are actually traded is not comprehensible. The balance sheet of the two companies involved does not look like successful trading. You cannot lose a lot of money, just your monthly subscription payment. While we would like to know more about the regulated partners BlueFX works with, we would not see a reason not to work with BluFX.