Do you want to trade in the financial markets? Many people are turning towards this space because of its money-making opportunities and how easy it is to access them. Sure, you don’t need to have massive amounts of money and even a lot of skill and knowledge, but this doesn’t mean that you throw caution out of the window either. There are decisions that have to be made, one of them the broker you choose to use for your trading activities. Opting for any random company is a mistake, one that you need to avoid and going through this EasyfoBit review is one way of doing so.
After all, you shouldn’t forget that not all brokers in the markets are legitimate. It is immensely simple for anyone to set up a website and pretend to be what they want. Due to the lucrative nature of the financial markets, cybercriminals have been drawn to the space and setting up scam brokers is one of the most popular tactics they use for luring in victims. Many people who suffer at the hands of these brokers end up becoming demotivated and you don’t want to experience that.
To prevent this, you have to ensure that you don’t become entrapped by a broker’s offerings. You may not believe so, but it is easier than you think. There are brokers that have such offerings, which can make them very hard to resist and EasyfoBit is one of them. It is presented as a leading independent broker that offers trading services in forex, spread betting as well as Contract for Difference (CFDs). But, you shouldn’t fall for their offerings without knowing about any potential red flags. Are there any? Indeed, there are and you can check them out below:
No company or regulation information
You need the services of a legitimate and regulated broker if you don’t wish to expose yourself to security and scam risks. Unfortunately, a number of fraudulent companies also pretend to be regulated and licensed, which makes it hard to steer clear of them. The good news is that it is not that difficult with EasyfoBit. This is because they haven’t even bothered to disclose the name of the company behind it.
A check of their website shows there is no contact number or even an actual address and this kind of anonymity on EasyfoBit’s part is extremely troubling, especially when traders want to trust their broker. The problem is that this lack of information goes hand-in-hand with lack of regulation as well because properly licensed companies are forthcoming about their background and regulatory status. Yet, you will find none of that here, which means the broker cannot be relied upon.
Troubling terms and conditions
Your relationship with a broker is defined by the terms and conditions you agree with when you sign up for their services. Therefore, it is recommended that you check them out thoroughly in order to ensure you know what you are getting into. This is a sound move when it comes to EasyfoBit because you will come to know about their malicious policies and practices. First and foremost, they offer trading bonuses to their clients, something that has been forbidden in a number of jurisdictions.
According to their bonus policy, traders are required to conduct a certain number of trades before they are permitted to make withdrawals from their trading account. The preconditions set by brokers are usually impossible to achieve, due to which these bonuses are forbidden and same is the case with EasyfoBit, which means you will not be able to withdraw your money.
The problem doesn’t end here. Other than bonuses, you will also come across another strange clause in the terms and conditions of EasyfoBit regarding taxation. It states that the broker may also deduct some taxes from their clients’ accounts, which is simply outrageous. Yes, it is true that the income derived via trading may be subject to taxes, depending on where you are based, but the broker is not relevant in this regard and they shouldn’t deduct anything in the name of taxes.
Lack of a capable trading platform
A great deal of a trader’s experience with a broker depends on the trading platform they are given. This is the software used for trade execution and it has to have the appropriate tools and features that can be helpful during the trading process. The MetaTrader4 (MT4) or the MetaTrader5 (MT5) are considered the top two trading platforms in the market and provide a complete package to the traders.
Hence, it is not surprising that most of the regulated and licensed brokers are offering these trading platforms to their clients. But, a quick check of EasyfoBit shows that they don’t offer either of these trading solutions. Instead, they have a web-based trading interface, which is easy to manipulate and low-cost, due to which a number of scam brokers are known for offering it.
High initial deposit and spreads
You have to make a minimum deposit to open an account with many brokers, even if some of them have waived it off. Others do have it, but EasyfoBit is asking for $500 as the minimum deposit and this is on the high side because most platforms don’t go past $250. Secondly, they also appear to be offering high spreads, as it is advertised as 3.7 pips for the EUR/USD pair. This is more than twice as high as what many of the competitive brokers in the market can offer, which means it is not cost effective.
While EasyfoBit does appear to be supporting a variety of payment options, including cards that are eligible for a chargeback, and they also offer high leverage, it doesn’t mean that you ignore the problems with the broker. The number of red flags that are highlighted above are enough for anyone to conclude that EasyfoBit is not a reliable or trustworthy broker and you shouldn’t trust them with your money, even if it is just the initial deposit.