Aclassbank Review

Aclassbank logoIn the last few decades, online trading has become a prominent trend. To keep up with the high demand, thousands of brokerages have been established for offering trading services to people all over the globe. This is certainly an advantage because it means you have plenty of options to find a brokerage that suits your needs, but there is also a disadvantage; there has been an influx of scam brokers in the market and this can be very risky for traders because distinguishing them is not that simple. This Aclassbank review can show you how scam brokers can lure you in.

On the surface, these brokerages will also appear to be quite similar to legitimate ones, offering you comprehensive trading services and some go as far as claiming to be licensed and regulated. For the uninitiated, this can be dangerous because they don’t know what to look for and can sign up with a broker, based on what they see on their website. However, the key is to be thorough, check and verify all offerings to determine their authenticity. You need to do the same in the case of Aclassbank, which claims to be a globally renowned broker.

It is offering a powerful trading platform, a range of account types, leverage that goes as high as 1:500 and all of this can be enjoyed by a global audience of traders. Most importantly, you will find that Aclassbank claims to be licensed and regulated in Mauritius and this sounds quite cool. But, when you start digging in, you will discover that things are not what they seem to be. Read on to know more:

Aclassbank website

False claims of regulation and licensing

The regulation and licensing of a broker are of the utmost importance because they serve as evidence of their legitimacy. Regulatory authorities have stringent rules and regulations that brokers have to comply with to get a license and they are not just granted to anyone. Therefore, they are considered very valuable and the fact that Aclassbank claims to be licensed and authorized by the Financial Services Commission (FSC) of Mauritius is undoubtedly impressive.

But, you will come across glaring issues that make it obvious that Aclassbank is lying about this regulation. First off, it appears that the broker cannot make up its mind about the company that owns and operates it. At one point, it claims that it is owned and operated by an investment company called Aclassbank, which is listed in the Companies Register of the Republic of Mauritius.

However, if you take a look at the Contact section of the Aclassbank website, they claim to be owned and operated by a company known as Bellerophon Group Ltd., which is based in the offshore jurisdiction of St. Vincent and the Grenadines. A legitimate company would not have such confusing information on their website and would have a proper corporate background.

Most importantly, even if Aclassbank was licensed in Mauritius, a license in an offshore jurisdiction does not offer the same protection as other regulated jurisdictions. If more proof of the lack of licensing and regulation was needed, you just need to know that the financial authorities in Austria have issued a warning against the broker. According to the Financial Market Authority (FMA), this is not a regulated broker and is offering its services illegally.

Malicious withdrawal policy

The fact that there is no proper licensing and regulation of Aclassbank is already a major red flag and enough to convince anyone to avoid this broker. But, if you are looking for more proof, you can find it easily. All you have to do is look at their malicious withdrawal policy because it is evident that the broker has no intention of letting its clients make a withdrawal at all.

They claim that additional requirements or conditions might be applicable for withdrawal at any time. Furthermore, Aclassbank also states that it is not committed to a time frame for processing your withdrawal requests, which means it can continue delaying them with any excuse for as long as it wants. The point is that there is a good chance you will not get your money at all.

Excessive leverage ratios

The problems continue to worsen as you take a closer look at Aclassbank and the next issue is with their leverage levels. According to their website, traders are offered leverage as high as 1:500 and even though this sounds tempting, you should be aware of the risks. Such high levels of leverage can be very risky, due to which most regulated jurisdictions have imposed a cap on leverage. It is usually 1:30 to 1:50, depending on the jurisdiction and such excessive leverage only proves that Aclassbank is not a licensed and regulated broker.

No trading platform

Even though Aclassbank claims to offer a powerful trading platform on their website, it doesn’t seem to be available. Moreover, they have also made a mention of the MT4 platform, but when you go through their offerings, you will not find it available anywhere. This is another indication that they are just misleading their clients and don’t really offer what the promise.

Misleading payment methods

If you take a look at the Aclassbank website, you will notice the logos of VISA and MasterCard, which implies that they support credit cards that are eligible for a chargeback in case of a problem. However, when you actually try to make a deposit, you will find that they have an obscure third party payment provider called GumballPay. This payment method is obviously permanent and irreversible, which means you will not be able to get your money back in case of a problem.

Final Word

The fact that Aclassbank is blacklisted by the Austrian financial authorities, has a malicious withdrawal policy that legitimate brokers don’t offer and does not accept payment via credit cards are reason enough for you to avoid selecting this broker. Signing up with them is certainly not the right choice and you need to drop them from your list altogether.