Finding an online broker is a prerequisite to start trading in the financial markets. It has become one of the most daunting tasks for people because the market is overflowing with companies that are touting their services. The choices can end up confusing people and they either abandon the idea of trading altogether or end up on a random platform that can result in a poor experience. Your goal should be to find a reliable broker and not end up getting scammed, as fake platforms do exist. The problem is that these scammers are often quite sophisticated and this can make it difficult to sort through the options.
One of the examples like this is BostonMex, which is presented as an award-winning and trustworthy broker that offers you everything. You can speculate on the price movements of leading stocks, or trade your favorite currency pairs. They have added generous leverage to attract clients and the MetaTrader5 (MT5) trading platform appears to seal the deal, as it is the leading option in the market. Indeed, many people are blinded with such a combination of offerings and sign up without a second thought.
However, there is a possibility that you will regret this decision later because something is clearly amiss with BostonMex. Read this BostonMex review to find out.
Regulation and Licensing
According to the broker’s website, it is operated by a company named Bostonmex LLC, which is a registered firm in St. Vincent and the Grenadines (SVG). This is a problem because brokers that are registered in SVG are not licensed, even formally. This means that they are completely free to conduct their business as they see fit and most of them usually turn out to be investment scams. So, as BostonMex is not licensed, they can choose to vanish overnight with your money and there will be nothing you can do about it.
Terms and Conditions
One of the most important aspects of any broker is their Terms & Conditions because you want to know what you are getting into. These conditions will tell you about the policies of the company regarding withdrawal, the fee they charge and other rules that you will be required to follow. It will work in your favor if you check the terms and conditions outlined by BostonMex because they will show you that the broker is writing its own rules.
According to their Terms of Business, they do not have to disclose to you why or when they may charge any fees or commission from you. They don’t even have to notify you and this is not something any legitimate brokerage would ever do. After all, it is your money and you should be the one controlling it.
In order to draw people to its trading platform, BostonMex has added extremely high leverage of 1:1000. Sure, leverage can come in handy when you are making profitable trades, but can backfire if the trade moves in the wrong direction than you anticipated. Other than this problem, it should also be noted that most regulatory authorities have imposed a limit on the amount of leverage that brokers can offer to their clients. They do not approve of such a high leverage because of the risks associated with it. This is another indication that BostonMex is not a properly licensed firm.
There is only one payment method supported at BostonMex and that is wire transfer. This can be used for both deposits and withdrawals, but the problem with this is that these payments are final and you will not be able to file for chargeback to get your money.
You will not find any information available about the minimum deposit applicable on BostonMex and this is another problem because you will have no idea how much investment you are required to make.
When you consider all these features and aspects of BostonMex, it can be determined that you cannot rely on this broker as it is a shady one.