Trading in the financial markets has always been profitable and lucrative. Since you can do it online, it is also quite convenient, but you want to keep the risks minimum and have a good experience. This can depend heavily on the online broker you choose for your journey. It is understood that every company will be marketing its own services, but not all of them will be able to live up to your expectations. But, what you need to be concerned about are scam brokers because they are very active in the market and not that easy to identify unless you know what to look for. This EuroxtradeFX review can assist you in this process.
At first glance, most of the fraudulent and shady brokers look very much like genuine ones. Some may look exactly like authentic brokers because they are running a clone scam i.e. stealing the details of a licensed broker to appear authentic themselves. Others are just good at creating a façade that makes them appear genuine when they are not. How can you learn the truth? It means evaluating a brokerage to ensure there are no red flags. If there are any, you can look for a different option and keep yourself safe.
But, you also have to know what those red flags might be in order to be able to identify them. This means you should not trust everything you are being told until you have verified it. The approach is recommended in the case of EuroxtradeFX as well because it leaves a good impression in the first look. It seems to have everything presented in an orderly and precise manner, but an evaluation reveals a different story. Claiming to be a regulated broker, EuroxtradeFX is offering trading bonuses and an advanced trading platform. It also advertises excellent trading conditions and you would want to sign up with EuroxtradeFX right away.
However, it has more than its fair share of red flags that tell you just what EuroxtradeFX is all about. What are they? Check them out here:
False Regulation Claims
The first thing that catches your eye about EuroxtradeFX is that it claims to be a regulated broker when it is actually a scam broker. This automatically implies that the company has a license, which means it can offer you quality trading services. It also indicates compliance with laws and regulations and implies that you can expect security as well as transparency. Most of the scam brokers out there are unregulated and unlicensed, so you are led to believe that you are safe.
Nonetheless, nothing should be taken for granted and you need to always confirm what you are being told by a broker. This especially applies to the regulation claim that EuroxtradeFX makes. It is good that you do because you will learn that the broker is blatantly lying about it. When you look into its background, you will find no corporate address or other information on the website. The only piece of information available is that it is registered in Saint Vincent and the Grenadines.
This does absolutely nothing to help with the credibility of EuroxtradeFX because this is an offshore zone that has become notorious for being a scam haven. Why? It is because the financial authorities in SVG have clarified that they do not regulate the forex industry in their jurisdiction. This means that there is zero oversight and the companies operating there are not bound to any rules and regulations. They can do pretty much anything, which also applies to EuroxtradeFX and such a company cannot be trusted.
No Functional Trading Platform
The second red flag that you will come across at EuroxtradeFX is that it does not seem to have a functional trading platform at all. Given that you need a trading platform for doing the actual trading, its absence shows that the brokerage does not really intend to offer you trading services of any kind. Without a trading software, you cannot connect to the financial markets, you cannot execute any transactions and you will have no tools available.
You can scour through the EuroxtradeFX website and all you find is a dashboard that shows a bunch of instruments listed, but nothing more. It does not have any tools and there is only the option of making a deposit. No trading option is provided, which shows that they are only interested in your money.
No Terms and Conditions
Another glaring red flag that you will find is when you try to check out the bonus policy. The bonuses advertised on EuroxtradeFX are quite attractive and you want to know what policies are associated with them because this is how they work. There are always strings attached with these bonuses, due to which they have been banned in several jurisdictions.
Since SVG does not have any regulations, EuroxtradeFX can offer bonuses, but you will not be able to learn about its policies. When you try to do that, you will find that the Terms and Conditions of the broker are missing. Their website does not have any legal documentation available and this is a huge red flag because you cannot know what policies they might implement later on. These documentations are meant to highlight the policies and costs that will be involved, but their absence means that EuroxtradeFX can introduce anything and you will have to comply with it. It gives them the perfect opportunity to exploit you.
Poor Trading Conditions
Considering that the lowest spreads offered at EuroxtradeFX start at 2.9 pips, you cannot call these trading conditions ‘excellent’. Most average brokers will offer you spreads lower than 1 pip, or go as low as 0.3 pip and these are just too high. The leverage ratios, on the other hand, are about 1:200. These seem quite attractive, but such ratios are extremely dangerous because they can backfire. Most regulatory bodies do not permit such high ratios to be offered, yet EuroxtradeFX is doing so because it is unregulated.
These red flags that you discover at EuroxtradeFX make it apparent that the brokerage is a scam and you need to avoid it altogether.