86fxtrade Review – The Signs of a Scam

86fxtrade Review

The market is flooded with online brokers that are offering their services to help people engage in trading different instruments. Suffice it to say, you will not run short out of choices when you start looking for a broker, but this does not mean that you select any one of them. This is because there are different quality of brokerages to be found. Some of them may be reliable and have a solid reputation, but others do not fit the same criteria, as you will learn from this 86fxtrade review.

But, the problem is not just that some brokers offer low quality services; the problem is that some of them are not brokerages at all. Considering the lucrative nature of these markets, it is not surprising that criminals have become very active in this space. There has been a drastic number of scams that have occurred in the financial markets and they haven’t slowed down at all. As a matter of fact, these criminals have gotten smarter at what they do, making it difficult for people to identify them.

You do not want to sign up with a scam broker and lose your savings; you want a legitimate company that can give you access to top-notch services that can help you have a profitable trading journey. How do you do that? You go through the services of a broker with a fine-toothed comb and look for any signs of a scam. If there are any, you need to skip the company and look for a different one. You may have to spend a bit of time and effort in doing so, but it can save you from a lot of hassle down the road.

A look at 86fxtrade may make it look like a reliable and comprehensive brokerage, given the variety of instruments it offers and the promises it makes. But, at the end of the day, it is nothing but a scam. Why? This is because you will plenty of signs that show you the truth. What are they? You can check them out here.

False licensing and regulation claims

The easiest way to distinguish between a reliable and fraudulent broker is by checking its licensing and regulatory status. A company that is licensed and regulated can be trusted because they have to maintain standards, comply with laws and policies and provide transparent and fair services. Unregulated companies do not answer to anyone and can make up their own policies.

The problem is that many scams also claim to be regulated and licensed, so you have to investigate this claim before you believe them. Doing so in the case of 86fxtrade shows you just how focused they are on fooling people. The company running the operation is called P240 LTD, which has become notorious for operating fraudulent brokerages. Many of its entities have been blacklisted before as well and the same applies to 86fxtrade.

The broker claims to be regulated by the Malta Financial Services Authority (MFSA), but the regulatory body of Malta has warned that 86fxtrade is making a false claim and it is not licensed at all. This is enough to confirm that you are dealing with a scam and nothing more.

No reliable trading software

Every professional broker worth its salt understands that the trading software is key to their services. Therefore, they do their level best to offer their clients an advanced and superior trading platform that allows them to enjoy a seamless trading experience. Given the big claims that 86fxtrade makes, you would expect it to offer a similar platform, but you are in for disappointment.

There is a web-based platform available on the 86fxtrade website, which does not have anything special to offer. In fact, it cannot even be termed reliable because the interface is downright messy and it lacks a lot of basic features that are essential to the trading process.

A good and dependable brokerage would offer you the MT4, or the MT5 trading platforms that are recognized as the best trading software in the market and can help in ensuring efficient and seamless trading for everyone.

Excessive leverage

It is a must to check the trading conditions that a broker offers because they have a direct impact on your bottom line at the end of the day. Leverage is one such factor, as it affects your flexibility during the trading process. The fact that 86fxtrade is offering high leverage ratios might impress some people, but you have to remember that leverage can be quite dangerous.

Therefore, regulatory bodies have imposed caps on the maximum leverage that brokers can offer to retail traders and 86fxtrade goes way beyond that cap. For a brokerage that claims to be operating from Malta, it should not be offering leverage as high as 1:500. After all, the European Union is one of the jurisdictions that have imposed a cap on leverage, which means that any entity based in Malta should not be offering such ratios.

No chargeback possible

Taking a look at the deposit methods a broker offers is also a must, not only because you want to be able to make your payments easily, but also due to safety. You want to ensure that you can get your money back in case the brokerage turns out to be shady or a fraud. This depends on the payment methods available. Unfortunately, you will find that 86fxtrade has no intention of letting you get your money back.

Why? This is because it only supports crypto deposits on its platform. 86fxtrade is careful enough to not offer you options like credit cards that come with a chargeback option. It has opted for cryptocurrencies because these payments cannot be reversed. Most importantly, they also offer anonymity and this can also benefit scammers because they can easily get away with their fraud.

Conclusion

All of the problems highlighted above are the hallmarks of a scam and show that 86fxtrade fits in that category perfectly, making it best for you to avoid the platform altogether.