If you are thinking about engaging in online trading, then the first step you should take is find a good and reliable broker. It takes only a minute for people to learn that there are hundreds, or even thousands, of companies that are prepared to facilitate trading, but quantity should never be considered an indicator of quality. The same applies here and you have to be a bit more attentive because signing up with a brokerage involves entrusting a great deal of your personal data, along with your money to the company. Obviously, you cannot just do this with any random broker and need a reliable one. Checking out this Finowiz review is an essential step to take before opting for this one.
The key is to not let the hundreds of brokers confuse you because it will increase the possibility of mistakes. It is a good idea to not make this decision in a hurry either because that also increases your chances of missing out on important pieces of information. The goal is to remember that appearances can be deceiving. Just because a company has a great website is no guarantee that their services will also live up to the same standards. Nowadays, creating a modern website has become really simple for everyone, even if you do not have any prior experience.
This is one of the primary reasons why most scammers have really attractive websites. If you talk to scam victims, they will tell you that the appealing features and offerings drew their attention and pushed them into signing up without digging deep. You need to ensure that you are not making this mistake by checking the reliability of a broker because that will reveal the truth. At first glance, you will not see any problem with Finowiz, as it comes off as a standard broker offering its services to global traders. As a matter of fact, some of its trading conditions are quite tempting.
After all, you will discover that Finowiz is offering the MT5 trading platform, which is recognized as the top trading software in the market with advanced features and tools. Likewise, it has a minimum deposit requirement of just $10, which is quite reasonable. But, is it reliable? Read on to find out:
Regulation and Licensing
Perhaps the best way of determining the reliability of a brokerage is by checking its regulation and licensing. A regulated and licensed broker has a lot more credibility that one that lacks in this area because they have to meet certain requirements in terms of quality and standards, ensure transparency and also comply with laws and rules. The latter, on the other hand, can come up with their own rules and cannot be held accountable. This regulation and licensing depends on the jurisdiction where a brokerage is based, which is Saint Vincent and the Grenadines in the case of Finowiz.
The problem with SVG is that this is an offshore jurisdiction that has become a popular destination for scammers because the Financial Services Authority (FSA) in the region has declared that it does not regulate its forex industry. This means that anyone can set up a company and begin offering their trading services, as they are not asked to meet any requirements, or follow any policies. They can do pretty much anything without having to answer to anyone. The fact that Finowiz is operating from SVG puts its reliability into question.
Background and Company Information
When you sign up with any brokerage, you have to trust them with the funds you want to invest and your personal and confidential information. This is why you need a reliable broker and you cannot assess their reliability without knowing their background and other details. Since we have already established that Finowiz is unregulated, it means that you cannot verify the brokerage’s credentials. It cannot be trusted regarding the authenticity of the corporate address it has given on its website either.
Another major concern is the fact that Finowiz itself seems to be unsure of its corporate background. This is because when you go through the broker’s website, you will find that it claims to be owned and operated by a company named Finowiz Markets Incorporated in the footer, but when you check its Terms and Conditions, you will find a company called Finowiz Fintech Limited.
It is a given that you would want to know what kind of registration process you have to follow for opening an account and this is where you will find yet another issue with Finowiz. You will discover that you are not permitted to make a deposit until you share your ID card with the broker. This is a big warning sign because no legitimate company would ever ask you to share such sensitive information, even before you have registered with them. The fact that Finowiz is doing so makes it likely that it plans on misusing your data one way or the other. You obviously do not want to be a victim of identity theft, or any other criminal activity, so this brokerage should be avoided.
When you trade in the financial markets, you make use of leverage at some point because you want to make as much profits as possible. But, leverage is a double-edged sword because it can magnify your profits, but also your losses. Therefore, you should always stick to reasonable amounts of leverage. A quick look at Finowiz shows that the brokerage is offering leverage as high as 1:500 and this has been done to lure people to its platform. But, this shows that Finowiz is not reliable because such high levels of leverage are not permitted in most jurisdictions due to the risks.
Other problems with Finowiz include lack of transparency about the payment methods they offer, so you do not know if you can file for a chargeback and they have not clarified their bonus policy either. This shows that you are not dealing with a reliable broker.