Green Dot Fx Review – Scam or Legitimate?

Green Dot Fx Review

The popularity of online trading resulted in a high demand for brokers for providing access to the financial markets. These days, you will find a long list of companies that are offering you their trading services and this can often be confusing for people. How do you choose one broker? Opening multiple trading accounts is a big hassle, so it is a good idea to do your homework and opt for a platform that can offer you everything in one place. This involves checking out this Green Dot Fx review to learn more about the broker.

Why is this necessary? It is because no company is going to tell you about its flaws. They are going to tout themselves as the best option for you to trade in the financial markets and do everything they can to convince you to sign up. Obviously, you cannot open an account on every platform, so you need to check the offerings and then make up your mind. Yes, it means taking some time to evaluate the brokerage and its services, but it is worth it in the long run.

When you have a good brokerage by your side, you will be able to enjoy the opportunities available in the financial markets and achieve your financial goals. But, the wrong broker can lead you to disaster, especially if it turns out to be a scam. Indeed, the number of fraudulent platforms has also increased exponentially, given the massive amounts of money involved. Hence, it is extremely important for you to do your homework and this is where Green Dot Fx review can come in handy.

Due to the popularity of cryptocurrencies, Green Dot Fx has presented itself as a crypto broker aimed at facilitating retail traders. But, it is certainly not what it appears to be and this becomes apparent when you evaluate it. How? Read on to find out.

Licensing and regulation

The biggest difference between a legitimate and scam broker is that of their licensing and regulation. The former are licensed and authorized to provide their services to people by a regulatory authority, which means they have to follow rules and laws and are answerable for their actions. The latter, on the other hand, operate without any license, which means they make their own rules and are not accountable to anyone.

When you are trading instruments as volatile as cryptocurrencies, you should sign up with a regulated brokerage to minimize the risks as much as possible. In which category does Green Dot Fx fall in? Throughout their presentation, the brokerage does not claim to be licensed, but it does say that it is based in the United States.

But, the address that Green Dot Fx has provided on its website does not appear to be authentic at all. Moreover, in order to operate from the US, it would have to have a license from the Commodity Futures Trading Commission (CFTC) and would need to be a member of the National Futures Association (NFA). However, when you search the online register of these entities for Green Dot Fx, you will not find the broker mentioned.

This means that either Green Dot Fx is lying about where it is based, or is operating illegally from the US. Moreover, it is also going against the rules of the US regulatory authorities in terms of its leverage, which is further confirmation that the company is not authentic.

No trading software

Another glaring problem with Green Dot Fx that officially confirms that you are indeed dealing with a scam and not a genuine brokerage is the lack of trading software on the platform. The primary feature that an online broker offers is the trading platform because you cannot connect to the financial markets without it, or execute trades.

Therefore, it is one of the most vital features and has to have the right tools and technology for you to be able to trade profitably. The fact that Green Dot Fx does not offer a trading platform at all is a clear sign that it is not a legitimate broker. All you find available in a chart on Trading View, which is easily available online and cannot be used for trading at all.

It is only meant to create an illusion of trading platform in order to hide the true nature of Green Dot Fx.

Unreasonable trading conditions

Things continue to get worse as you evaluate Green Dot Fx and this is evident when you check out their trading conditions. They have a leverage of 1:200 available and this considered excessive, even with regular financial instruments. The fact that they are offering this leverage ratio for cryptocurrencies only makes it worse.

These instruments are very volatile and such ratios are not permitted with cryptocurrencies in most jurisdictions. As far as spreads are concerned, you will obviously not find them at Green Dot Fx because they do not have a trading platform at all.

Only crypto payments supported

The payment methods of a broker are also highly important because you have to make your deposits and withdrawals regularly and you want to do it safely and quickly. The fact that Green Dot Fx only offers cryptocurrencies as a payment option can be quite worrisome. Sure, it is a crypto broker, so it should make sense that it supports crypto payments.

However, the problem is that it does not offer you any other option at all and this is a big concern. You want to be able to choose a payment method that gives you the option of chargeback, such as credit cards. But, cryptocurrencies do not give you this option. There are no chargebacks with crypto and this is what scammers like Green Dot Fx want.

Crypto payments are final and they are also anonymous, so the scammers are able to get away with stealing your money.

The Verdict

All of these signs all point to one thing; Green Dot Fx is a scam broker and you should not sign up with it.