Whether it is the forex currency market, stock market, or the cryptocurrency market that has grabbed your attention, you will need to find an online broker to get access. Yes, it is true that participating in these markets has become easier and simpler than ever, but this doesn’t mean that you don’t have to make any effort at all. You should remember that choosing a broker for your trading needs requires is a big decision because it will shape your overall experience and also affect your profits. Hence, you have to vet your broker carefully, which will bring you to this Protraderfx review.
A simple search on Google will give you hundreds of companies to choose from, but not all of them are a good choice. The quality of services and their offerings will vary a great deal, which means it is up to you to find a platform that can fulfill your needs in the best possible way. It has become a challenge for many because of the increasing number of scam brokers in the market. These are fraudulent platforms established primarily to exploit people. They steal money, or personal information, and can cause a lot of upheaval.
Initially, people were able to identify scam brokers after their existence became known, but these scammers have gotten better and now present themselves as legitimate platforms. Thus, it can be extremely hard for people to know their true nature, unless they dig deep to identify the loopholes. This is what you need to do in the case of Protraderfx that offers both CFD and binary options trading. It may seem like a good and strong combination, but there are a lot of problems that you will come across. What are they? Check out this review to know:
No licensing or regulation
In order to determine where a broker is licensed and regulated, you have to check the location of their headquarters. In the case of Protraderfx, they show an address in London, United Kingdom. This is one of the most highly regulated markets in the world, so it is impressive for any company to be based and licensed there. Unfortunately, once you scour the Protraderfx website, you will find that they don’t claim to be licensed at all.
In order to operate in the UK, they have to have a license issued by the Financial Conduct Authority (FCA), which is the British regulator. But, you can check their online register and not find Protraderfx listed there. This means that the brokerage cannot simply be operating legally in the country, if they really do have their offices in London.
They have gone against a number of policies of the FCA, including those related to leverage and trading bonuses. Most importantly, Protraderfx offers binary options trading, which is banned in the UK because of its exploitative nature. This indicates that the broker is not to be trusted and is illegal.
Incomplete terms and conditions
It is expected that you will be asked to agree to some terms and conditions when you sign up with a broker and this is no different when it comes to Protraderfx. The problem that you do face is that their terms and conditions don’t offer you a lot of relevant and vital information. To begin with, they don’t outline what kind of fee is charged by the broker, which is a concern because you don’t want to be saddled with hefty charges.
Secondly, there is no mention of what kind of withdrawal policy is applicable at Protraderfx and this is a problem because the broker offers trading bonuses. Not only are these against the rules of the FCA, they also come with strings attached. Typically, traders are required to fulfill minimum trading volume requirements to be eligible for withdrawal. However, the broker has not mentioned any of this in the terms and conditions, which means they plan on springing it as a surprise later on.
While some traders may consider high leverage an advantage, you shouldn’t forget that it is not without its risks. Yes, you can make high profits, but the losses are equally higher if the trade doesn’t go your way. Protraderfx is offering leverage as high as 1:500 and as appealing as it sounds, you need to be cautious because such levels are not permitted in regulated markets. This includes the UK, where the FCA has prohibited brokers from offering these ratios to traders and the broker is clearly going against the rules.
No suitable trading platforms
The fact that you will not find a suitable trading platform at Protraderfx is also alarming. It is more so because the broker claims to offer three platforms to its clients and none of them are up to the mark. You will find a desktop-downloadable trading platform and there are two platforms, one for CFD trading and the other for binary options.
First things first, the desktop-downloadable trading platform gets flagged by an antivirus software, which means there is something fishy about it. Apart from that, the other two trading platforms also don’t have much to offer to traders. They fall short of the industry standard trading platforms like the MT4 and MT5 because they don’t have much to offer in the way of tools and features that these top platforms provide.
Only Bitcoin support available
Deposits and withdrawals are part of the trading process and brokers offer traders different payment methods for this purpose. However, it is shocking to discover that Protraderfx only supports Bitcoin payments on its platform. This is certainly a concern because payments via cryptocurrencies are irreversible and completely anonymous. Once you make a payment, you cannot get it back in any way because there is no option of chargeback. Bank cards, such as VISA and MasterCard, come with this option, but the broker clearly doesn’t support them.
These are some of the major loopholes that you will discover when you take a closer look at Protraderfx, which indicates it is a not a reliable or trustworthy broker.