There are plenty of brokers in the financial markets and you will discover this fact when you begin searching for a reliable one to start trading. The problem is that the sheer number of options can result in a lot of confusion, especially when every company is promising you a ton of features and services. Every company you check appears to be the best one out there, but it is not necessarily true. The fact is that setting up a website is easy for anyone, but actually delivering what they promise is not that simple. This becomes evident when you check out this MajorTrade review.
It is understood that no company, regardless of industry, would ever tell you its own flaws or issues. But, research is essential to finding out what you are signing up for. This is of the utmost importance when it comes to online trading because a broker has to be trusted with your money and your information and loss of either or both can result in disastrous consequences for you. Every other day, you will hear about scam brokers getting away with clients’ deposits and their sensitive data and you don’t want to end up like that.
Therefore, you need to do some homework when you come across MajorTrade. No matter how impressed you may be with their offerings, you shouldn’t make your decision without digging into the company itself and finding out everything possible. After all, you want to make a good choice and once you check out MajorTrade, you will discover why it is the polar opposite. Some of the problems you will find are:
No regulation and licensing
Brokerages have to be licensed and regulated to provide their services in most countries in the world. Yes, unregulated ones do exist, but these are usually those that cannot be relied upon. Why? This is because licensing and regulation means they are monitored and subject to rules, which doesn’t apply if they are unregulated. Yes, it can be a big hassle for companies, but authentic ones are willing to go through the trouble because they want to reassure their clients.
You will not find the same with MajorTrade because it is certainly not license or regulated. A look at their website will show that it was founded by Cynosure Consulting LTD, which is a company based in Commonwealth of Dominica. This is an offshore location where brokers are not regulated or licensed, so anyone can set up a company very easily. However, the real giveaway is the address that’s provided on the MajorTrade website.
If you follow up on the given address in Dominica, you will find that the same address has been used by a dozen other dodgy brokers, and a number of them have been blacklisted by numerous regulatory authorities, including the FCA (Financial Conduct Authority) in the United Kingdom.
Malicious bonus policy
The lack of regulation and licensing is already a big problem and one that you shouldn’t ignore. However, if you need more reasons to realize that MajorTrade is not an authentic broker and is really a scam, then you can simply check out their bonus policy. First and foremost, you should note that the fact they are offering bonuses is itself a red flag because most legitimate brokers do not offer them anymore.
It is usually scam brokers that follow this practice because they want to attract clients for exploiting them. The classic bonus scam is to offer them to traders and then ask them to fulfill impossible requirements before they are eligible for making a withdrawal. This is no different in the case of MajorTrade, as they ask their clients to meet minimum trading volume requirements and these are just not practical at all.
Apart from that, you will also find that they have a ‘Non-deposited funds’ clause in their terms, which is just a legal excuse that scam brokers use for denying withdrawals. According to this clause, traders cannot withdraw the profits they make from bonuses, but can withdraw those they make from their own deposits. The problem is that once the funds are credited into your account, you cannot determine which profits were generated by which funds, which means you cannot withdraw money at all. Hence, MajorTrade will get to keep your money.
Lack of trading platform
If you have every looked into online brokers before, then you are probably aware that the most important tool they offer to their clients is a trading platform. This has to be a good one for you to be able to trade smoothly and efficiently. The problem with MajorTrade is not that they don’t have a good platform; they have not provided any details about what platform they offer.
You can scour their website, but you will not find any mention of a trading platform, which means that you are expected to sign up with MajorTrade without knowing what kind of platform you will be provided. This has all the hallmarks of a disaster all over it.
No mention of leverage
Another vital piece of information that you will not find anywhere on the MajorTrade website is about the leverage they offer to their clients. It is a given that traders would want to understand the trading conditions before they sign up with a broker, so they know what to expect, but they have not bothered to provide any such detail.
You will discover that MajorTrade has a minimum deposit requirement of $250, which is considered standard amongst brokers. Apart from that, their payment options also appear to be diverse because they are supporting bank wire transfers, debit and credit cards and Piastrix. While this may definitely appeal to some traders, you have to remember that it is not enough for you to choose this company. A thorough study of MajorTrade makes it obvious that they have all the hallmarks of a fraudulent broker, which means you are not making the right choice if you want to open a trading account with them.