Opening an account with a broker is a requirement if you want to trade in any of the financial markets online. This is not very different from signing up on other online platforms, but you do need to find a good and dependable broker to do so. This is where most people find the challenge because there are countless companies offering you their services and you shouldn’t just pick one out of the hat. That is to say you can do it, but it is not recommended. Why? It is simply because scam brokers are not a myth and you can fall into their trap, as this Stuholk review will show.
These scammers are smart enough to create such an offering that people will find difficult to resist. Plus, many people don’t really look beyond the surface and this is another way that these scammers are able to operate and find their victims. A look at Stuholk shows that this broker presents itself as a forex and CFD broker based in London that’s delivering advanced trading solutions to its clients. It is offering a wide range of instruments, including currency pairs, stocks, commodities, and indices. Moreover, you will also find the broker offering cutting edge security, smart earning strategies and groundbreaking trading technology.
All of this sounds downright fantastic and you would think that Stuholk is the kind of broker you should be using. But, all you have to do is identify the red flags to see exactly why there is a problem. What are these red flags? You can find out in the following review:
Not regulated or licensed
The one theme in common amongst scam brokers is that they are unregulated. This means that they are not monitored by a regulatory authority and don’t have a legitimate license to operate. Therefore, most people steer clear of unregulated brokers. When it comes to Stuholk, you will notice that it claims to be operating from London, United Kingdom. This is considered to be one of the most highly regulated markets in the world and forex brokers cannot operate there without a proper license from the Financial Conduct Authority (FCA).
The claim made by Stuholk of having its offices in London implies that they are regulated in the country, but all you have to do is check the FCA’s online register and find out this is not the case. Hence, this means that either the broker is not based in the UK at all, or is operating illegally from there. Another problem you will notice is that the address given on their website is missing a postcode. No physical address in the United Kingdom is considered legitimate without a postcode, which makes you doubt the legitimacy of the broker once more.
False promises about income
Another common tactic that Stuholk seems to have used for attracting people to its platform is by offering them the chance to earn a ‘stable source of income’. They claim to have artificial intelligence algorithms that are designed to predict potential market reactions, along with ‘personal finance advisors’ who can give guidance about the trading process and will help you trade.
What is the problem with these claims? The problem is that Stuholk, like other brokers in the market, is a market-maker. This means that the company will only make money when their clients lose trade. Thus, no broker in the world would be willing to help their clients in making profits because it would mean losses for them. By offering such services, they are only going to mismanage your money and make you lose everything for their own profit. This is because it is a glaring conflict of interest.
Furthermore, rather than claiming to help you make profits, Stuholk should actually be telling you about the exact percent of traders who incur losses on their platform. This is required of brokers in the UK and the EU, so people are aware of the risks.
Leverage is missing
One of the crucial pieces of information you need about a broker is the leverage they offer to their clients and this is something you will not find on the Stuholk website. This is rather disappointing because a good and trustworthy company would be open about their trading conditions and if they refrain from doing so, then you should immediately back off.
Misleading information about trading platform
Perhaps, the most important offering of any online broker is the trading platform they offer to you for executing your trades in the financial market. You engage with this feature the most, so it has to be a good one and should provide you the right tools and features needed for secure and profitable trading. Therefore, knowing what platform will be provided by a broker is essential before you decide to use their services.
At first glance, you will be impressed with Stuholk because they advertise both the MetaTrader4 and the MetaTrader5. These two are the top trading platforms in the market and highly favored for their interface and tools. The problem is that Stuholk is just misleading its clients because you will notice that the website actually has an unbranded and demo version of the MT5 available for download. This doesn’t mean that the brokerage offers the MT5 trading platform.
This is because this platform is not a functioning one, but is really a trial version that’s provided to you directly from the website of the developers i.e. MetaQuotes. This means that Stuholk doesn’t even have a trading platform to offer and this clearly makes it a scam.
No confirmation about payment methods.
You will also find that Stuholk promises a range of payment options to its clients for their deposits and withdrawals, including VISA and MasterCard, which are considered safe because of the option of chargeback. However, there is no way for you to confirm the availability of these options, which makes it a big risk.
The fact that Stuholk has so many red flags indicate that you need to find a better broker for your online trading venture.