When it comes to online trading, safety has become a priority for people. The internet is a hotspot for cybercriminals and you have to be extremely cautious if you don’t want to have your money or your personal information stolen. Being careful means you need to select a broker that can be relied upon and is capable of providing you a secure trading environment. Only a legitimate and reputable company can do that and you should prioritize signing up with one. The problem is that there are just too many options and this can often leave you overwhelmed. In such a scenario, going through AMCTrade review is the route to take.
You have to know the ins and outs of the broker before you can even begin to trust them and the easiest way to go about it is by reading their reviews. Of course, you can personally do the research as well, but it will take you a long time and you will never be done because new brokers are constantly added to the mix. Hence, you will always be left wondering if the latest one is the best choice for you. In order to take advantage of the opportunities, you have to start trading right away and this means choose a broker as quickly as possible.
One of the options that you will find is AMCTrade and it has been designed as such that it appears to be the perfect broker for every trader. They are presented as a multinational brokerage, one that’s categorized as the fastest growing CFD platform in the market. Plus, you add the fact that it is licensed and authorized in the United Kingdom and has offices located in London as well as Paris, and this makes it a very tempting package. Who would be able to resist?
Yet, when you check out this AMCTrade review, you will find out exactly why you shouldn’t sign up in a hurry and proceed with caution:
False regulation claims
The licensing and regulation of a broker plays a very important role in your decision to trust it and this is the primary reason why a scam broker like AMCTrade has gone as far as claiming to be licensed in one of the most highly regulated markets i.e. the United Kingdom. The problem is that they have taken things a little too far. When you check the details, you will discover that the brokerage claims to be owned and operated by two companies rather than one.
This doesn’t really make sense because the two companies are completely different. One is AMC Capital Invest and the other is called AMC Trade Finance Ltd. Sure, the two companies share the same name, but they have absolutely nothing to do with each other and are not even remotely related. The only reason that AMCTrade has even added their names is because these two companies are really registered with the Financial Conduct Authority (FCA), the financial regulator in the UK.
Thus, this means that AMCTrade is actually a clone website and not a real broker and is just trying to present itself as such in order to trap people. In reality, you will find that the company is actually operating from the offshore jurisdiction of the Marshall Islands. You will find this tidbit concealed in the Terms and Conditions of the broker and this should clue you in regarding what the intentions of the platform really are. The Marshall Islands are not trustworthy because there is no monitoring and this has made it a popular spot for scammers.
Availability of trading bonuses
You would think that the broker lying about their regulatory status is the limit, but there is a lot more to be found where AMCTrade is concerned. If you need further confirmation about the broker not being regulated by the FCA in the UK, you can find it when you check out their Terms and Conditions. This is where you will find that they offer trading bonuses to clients, a practice that’s explicitly forbidden by the regulatory authority because of their exploitative nature.
Not only does AMCTrade offer trading bonuses to its clients, it also takes advantage of their exploitative aspect. You will find the bonus policy of the broker and it makes it evident that you will not be able to make withdrawals until you meet certain trading volume requirements. They have deliberately made them tough to cancel withdrawal requests. What’s worse is that they also have a clause that states AMCTrade can make changes to their bonus policy when they want. This means that if you even come close to meeting their said criteria, they will change it to prevent you from withdrawing your money.
Amongst the trading conditions that you need to know about the broker is the leverage they provide to you for trading purposes. Yes, leverage is a part of trading and many people would want high leverage because it means greater opportunities. However, it is important to note that the risks are equally higher. Keeping this in mind, many regulatory authorities have restricted the amount of leverage brokers can offer and this also applies to the FCA in the UK.
Therefore, it is surprising to find that AMCTrade offers leverage of about 1:300, which is extremely high and nowhere close to the 1:30 that has been imposed by the FCA. How can this broker be regulated by the regulatory authority when it is clearly breaking the rules?
Lack of MetaTrader
The trading platform you will use during trading is an essential feature that you shouldn’t compromise on. The MetaTrader platforms are known as the industry standard because they come equipped with everything necessary for the trading process. But, AMCTrade doesn’t offer you access to either the MT4 or the MT5. They promise a state-of-the-art platform, which is basically web-based platform that’s commonly given by scam brokers these days.
After you have identified the flaws and the false claims of AMCTrade, you can determine that this broker is not safe at all.